Chapter 17: MKT 301
Put the five stages that a prospective buyer goes through, known as the hierarchy of effects, in order from first to last.
- Awareness - Interest - Evaluation - Trial - Adoption
A manufacturer places a full-page, four color ad in Time magazine about its new product at the cost of nearly $274,000 which is an example of
ADVERTISING
Any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor is known as
ADVERTISING
Match the five stages that a prospective buyer goes through, known as the hierarchy of effects, to their definitions.
Awareness => The consumer's ability to recognize and remember the product of brand name. Interest => An increase in the consumer's desire to learn about some of the features of the product or brand. Evaluation => The consumer's appraisal of the product or brand on important attributes. Trial => The consumer's actual first purchase and use of the product or brand. Adoption => Through a favorable experience of the first trial, the consumer's repeated purchase and use of the product or brand.
Percentage of sales, competitive parity, and objective and task are three methods of setting a promotion
BUDGET
The ____ refers to the medium that carries the message for a firm, such as a salesperson, advertising media, or public relations tools.
CHANNEL OF COMMUNICATION
refers to the technical sophistication of a product and is one of the factors in choosing personal selling for a promotion.
Complexity
Which of the following represents the three steps in the promotional decision process?
DEVELOPING EXECUTING, AND ASSESSING THE PROMOTIONAL PROGRAM.
Like personal selling, _____ often consist of interactive communication with a customization message.
DIRECT MARKETING
allow marketers to create profiles of its customers, including information about lifestyles, media use, and purchasing patterns, which are useful in direct marketing.
Databases
During which stage of the product life cycle is promotion least important?
Decline
Match the following desirable responses that result from direct marketing with the correct definition
Direct orders => Result from offers than contain all the information to make a decision and complete the transaction.Lead generation => Results from an offer designed to generate interest in a protect and a request for more information.Traffic generation => Results from an offer designed to motivate people to visit a business.
What responses do sellers hope to create through its use of direct marketing?
Direct orders, lead generation, and traffic generation.
Awareness, interest, evaluation, trial, and adoption are the 5 stages a prospective buyer goes through in moving towards a purchase. These stages are known as the hierarchy of
EFFECTS
In the communication process ____ refers to the transformation of the sender's ideas into a set of symbols.
ENCODING
International marketing presents special challenges in communication, since the source and receiver may not have overlapping _______, due to difference in culture and language.
FIELD OF EXPERIENCE
_____ marketing communications (IMC) is the coordination of all promotional activities to provide a consistent message across all audiences.
INTEGRATED
Withing the communication process, decoding can best be described as
INTERPRETATION
What is an advantage of direct marketing?
It can be customized to match the needs of a target market.
What is true about advertising?
It is nonpersonal communication and it is a paid form of communication.
Select the two characteristics of advertising
It is nonpersonal communication. It is a paid form of communication.
What is the primary advantage of publicity?
It is perceived as credible.
Select three characteristics of an effective promotional objective.
It should cover a specified time period. It should be measurable. It should be designed for a well-defined target audience.
In the communication process, the information sent by the source forms the
MESSAGE
When a cell phone provider features a new product in its advertising, the description for the new phone would be best be called the
MESSAGE
What product characteristics are likely to result in a greater use of personal selling in the promotional mix?
More required ancillary services and higher complexity.
The extraneous factors that can work against effective communication by distorting a message or feedback received is?
NOISE
When marketers set promotion goals, determine the tasks to accomplish them, and determine costs for these tasks, they are using ____ budgeting.
OBJECTIVE AND TASK
What are three methods of setting a budget for promotion?
Objective and task Competitive parity All you can afford
In the competitive _____ method of setting a promotion budget, the budget is set by matching competitor's absolute level of spending or the proportion per point of market share
PARITY
In the percentage of sales method of promotion budgeting, funds are allocated to promotion as a percentage of either ____ sales.
PAST OR ANTICIPATED
The ____ method for promotion budgeting is a simple and safe approach, but may not correctly allocate funds that may be necessary when a product faces an actual or anticipated downturn.
PERCENTAGE OF SALES
Higher level of complexity, risk, and need for ancillary services for a product will result in the use of more ______ in the promotional mix.
PERSONAL SELLING
What promotional element refers to a two way flow of communication between a buyer and a seller and is designed to influence the buyer's purchase decision?
PERSONAL SELLING
At the purchase stage of the buying decision, the importance of ____ is the highest, whereas the impact of ____ is the lowest.
PERSONAL SELLING; ADVERTISING
Advertising and personal selling help reduce the buyer's anxiety in the ____ stage of the buying decision, but public relations pays only a small role at this stage.
POSTPURCHASE
Advertising, personal selling, public relations, sales promotion, and direct marketing are the five elements of the
PROMOTIONAL MIX
What promotional elements refers to a form of communication that seeks to influence the feelings, opinions, or beliefs held by customers and other about a company and its products, using tools like special events, lobbying, and press conferences?
PUBLIC RELATIONS
Which promotional element refers to a two-way flow of communication between a buyer and a seller, designed to influence the buyer's purchase decision?
Personal Selling
is recommended for promotion when a high degree of service or support, known as ancillary services, is required after the sale of the product.
Personal selling
What is a particular challenge for the coordination of a consistent promotional effort?
Promotional elements are often the responsibility of different departments.
is a nonpersonal, indirectly paid presentation of an organization, good, or service.
Publicity
The feedback loop in the communication process is made up of an _____ from the receiver, and feedback, the interpretation of the dame by the source.
RESPONSE
___ promotion refers to a short-term inducement of valued offered to arouse interest in buying a good or service.
SALES
Which of the following activities are likely to be affected by seasonality?
SCHEDULING THE PROMOTION
If Wendy's airs a television advertisement delivering a message about a special promotion at its restaurant, Wendy's is the _______ in the communication process
SOURCE
The two promotional strategies used by a manufacturer to assist in moving a product through the channel of distribution are known as
THE PUSH STRATEGY AND THE PULL STRATEGY
The tools of the promotional mix are used primarily to?
To remind buyers later about the benefits they enjoyed by using the product and to persuade prospective buyers to try the product.
What two questions must be answered for the development of the promotional program?
Who is the target audience? When should the promotion be run?
Personal selling to provide information and support after the sale and advertising in trade publications are common promotion elements when the purchaser is
a business buyer
What is the definition of personal selling?
a two-way flow of communication between buyer and seller designed to influence a purchasing decision
What are two advantages of personal selling?
ability to modify the message based on immediate feedback reduction in wasted coverage
A manufacturer pays $274,000 to place a full-page, four-color ad in Time magazine about its new product. This is an example of
advertising
In the growth stage of the product life cycle, ______ is used as the primary promotional element in order to stress brand differences.
advertising
What two elements are likely to be used in promotion during the prepurchase stage of the consumer buying decision?
advertising that informs the buyer of the existence of the product and the seller samples that provide a low-risk trial
What two tactics would most likely be used by a firm when its product is in the growth stage of the product life cycle?
advertising that stresses brand differences personal selling that solidifies the channel of distribution
An effective promotional program may lead to an additional stage called ______, where loyal customers recommend brands they have adopted.
advocacy
In the ______ method for promotion budgeting, money is allocated to promotion only after all other budget items are covered.
all-you-can-afford
Along with experience, a(n) ______ approach is particularly important when selecting the right promotional tools because a large number of possible combinations can achieve the same objective.
analytical
In the ______ budgeting method of setting a promotion budget, the budget is set by matching the competitor's absolute level of spending or the proportion per point of market share.
competitive parity
While considering your competition in promotional budgeting is important, use of ______ budgeting may not be effective if you have different promotional objectives that will be implemented with different expenditures.
competitive parity
Which of the following is a key element in any direct marketing program?
customer databases
Which promotion activity typically requires the most creativity?
designing the promotion
When using the objective and task method to determine the promotion budget, marketers must take which two steps?
determine its promotion objectives determine the promotion costs for performing tasks
What are the three steps in the promotional decision process?
developing, executing, and assessing the promotional program
Telephone solicitations, infomercials, catalogs, and e-mails can all be considered methods of ______ marketing.
direct
Like personal selling, ______ often consists of interactive communication with a customizable message.
direct marketing
Privacy is of particular concern for which of the elements of the promotional mix?
direct marketing
Within an IMC program, customizing communication with ______ results in improved attitudes and thus solidifies customer relationships
direct marketing
The dramatic growth of the mobile phone industry in international markets provides an opportunity for
direct marketing campaigns
Select the responses sellers hope to create through its use of direct marketing tactics.
direct orders traffic generation lead generation
Promotion in the purchase stage is meant to
encourage demand
Which two factors are especially helpful in choosing the right promotional tools from a wide array of possibilities?
experience an analytical approach
What two issues must be considered when putting together a firm's promotional mix?
how to coordinate a consistent promotional effort among various departments how to balance the use of different promotional tactics
The first step in developing a promotion program is to
identify the target audience
Which is related to the dramatic growth of direct marketing?
increasing interest in customer relationship management
Promotion in the prepurchase stage is meant to ______ and ______.
induce a low-risk trial inform the consumer
The primary promotional objective in the introduction stage of a product's life cycle is to
inform and generate awareness
Successful promotion designs are often the result of
insight regarding consumer's interest and purchasing behavior
Like personal selling, direct marketing makes use of ______ communication, allowing the seller to adapt messages according to the particular customer.
interactive
Match the following promotional objectives with the corresponding stage of the product life cycle.
intro: inform growth: persuade maturity: remind decline: phase out
Trial samples, news releases, personal selling to intermediaries, and advertising to drive awareness and interest would most likely be a promotional mix used during which stage of the product life cycle?
introduction
Which of the following are challenges facing direct marketers in global markets today?
lack of credit and credit cards in different parts of the world countries with mandatory "opt-in" requirements countries with less reliable and secure mail systems
Match the promotional effort to the audience it is best suited to
mass media: buyers of consumer products in which the number of buyers is potentially large personal selling: buyers shopping in a retail store direct marketing: used to encourage first-time or repeat purchases
To the extent that time and money permit, the target audience for the promotion program should
match the target market for the firm's product
Which two of the following are benefits consumers report regarding their experiences with direct marketing?
more privacy than in-store shopping good customer service
The push strategy and the pull strategy assist the manufacturer in
moving a product through the channel of distribution
The all-you-can afford method of promotion budgeting has been criticized for
not being based on the promotion-sales relationship nor on promotion objections
The all-you-can-afford method of promotion budgeting has been criticized for
not being based on the promotion-sales relationship nor on promotion objections.
The best approach to promotion budgeting is______, though it requires careful judgment.
objective and task
In the percentage of sales method of promotion budgeting, funds are allocated to promotion as a percentage of
past or anticipated sales
The ______ method for promotion budgeting is a simple approach, but may not correctly allocate funds that may be necessary when a product faces an actual or anticipated downturn.
percentage of sales
Minimizing wasted coverage and customizing the message based on feedback are advantages of
personal selling
At the purchase stage of the buying decision, the importance of ______ is highest, whereas the impact of ______ is lowest.
personal selling; advertising
What ethical concern is most likely to be an issue for the direct marketer?
privacy
The order in which each promotional tool is introduced and the frequency of its use during the campaign is set by a ______ schedule.
promotion
Advertising, personal selling, public relations, sales promotion, and direct marketing are the five elements of the
promotional mix
Credibility is the major advantage of which element of the promotional mix?
public relations
Frommer's travel guides describe out-of-the-way, inexpensive restaurants and hotels, but these establishments cannot buy a mention in the guides. This is an example of
public relations
Which promotional element is a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers and others about a company and its products, using tools like special events, lobbying, and press conferences?
public relations
News stories, editorials, and announcements about organizations, goods, and services are examples of
publicity
When a consumer sees a television commercial for a program to be shown on a new cable channel and the ad asks viewers to contact their cable provider to add this new channel, it is an example of a(n) _____ strategy.
pull
When a pharmaceutical company uses the phrase "Ask your doctor if Zetia is right for you" in its print advertising, it is an example of a(n) ______ strategy.
pull
When manufacturers face resistance from channel members who do not want to order a new product, they may instead implement a(n) ______ strategy to stimulate demand at the consumer level.
pull
When the manufacturer directs the promotional mix at ultimate consumers to encourage them to ask the retailer for a product, and the retailer then orders it from a wholesaler, it is known as a(n) ______ strategy.
pull
Salespeople calling on wholesalers to encourage orders and providing sales assistance are typical of a(n) ______ strategy.
push
When Ford Motor Company provides its Ford and Lincoln-Mercury dealers with incentives for meeting or exceeding sales goals, this is an example of a(n) ______ strategy.
push
When Procter & Gamble provides incentives to channel intermediaries for buying larger quantities of its personal care products or providing marketing support, this is an example of a(n) ______ strategy.
push
When the manufacturer directs the promotional mix at its channel members to gain their cooperation in ordering and stocking the product, it is known as a(n) ______ strategy.
push
The two channel strategies used by a manufacturer to assist in moving a product through the channel of distribution are the ______ strategies.
push and pull
The primary promotional objective in the maturity stage of a product's life cycle is to
remind and generate loyalty
Free samples, rebates, sweepstakes, and contests are all examples of which promotional element?
sales promotion
Which promotional element is a short-term inducement of value offered to arouse interest in buying a good or service?
sales promotion
Which promotion tactic would most likely be used by a firm when its product is in the maturity stage of the product life cycle?
sales promotion to maintain loyalty
What two benefits do consumers report regarding their experiences with direct marketing?
saving time and money 24-hour shopping
When a company learns the launch date for a new product that will be a close substitute for its own, it is most likely to affect which part of the IMC program?
scheduling the promotion
Which of the following steps in developing an IMC program is likely to be affected by seasonality?
scheduling the promotion
Which activity takes place once the design of the promotional program is complete?
set the promotion schedule
Percentage of sales and competitive parity are two methods of
setting a promotional budget.
