FINAL MARKETING STUDY GUIDE TEST (1)

12) Under which of the following conditions is the reach of media the most important factor in media selection? A) when introducing frequently purchased brands B) when going into a defined target market C) when launching extensions of well-known brands D) when there are strong competitors to a brand E) when there is high consumer resistance to the product

Answer: C Diff: 3 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking

13) Under which of the following conditions is the frequency the most important factor in media selection? A) when introducing flanker brands B) when launching infrequently purchased brands C) when going into undefined target markets D) when there is high consumer resistance to the product E) when there is modest competition to the brand in the market

Answer: D Diff: 3 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking

5) An advertising objective to stimulate more usage of a product is appropriate under which of the following conditions? A) The advertised product belongs to a nascent product category. B) The company is not the market leader. C) The advertised brand is superior to the market leader. D) The product class is mature. E) Brand usage for the product is very high.

Answer: D Diff: 3 LO: 15.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

63) Which of the following parameters forms the basis for measuring sponsorship effectiveness using demand-side methods? A) impact on market share of sponsor B) amount of time a brand is clearly visible on a television screen C) amount of relevant newsprint mentioning the sponsor D) influence on consumers' brand knowledge of the sponsor E) net impact on the sponsor's bottom line

Answer: D Diff: 3 LO: 15.3: What are the guidelines for effective brand-building events and experiences? AACSB: Analytical thinking

71) Which of the following functions of public relations departments involves presenting news and information about the organization in the most positive light? A) corporate communications B) product publicity C) lobbying D) counseling E) press relations

Answer: E Diff: 1 LO: 15.4: How can companies exploit the potential of public relations? AACSB: Reflective thinking

16) Which of the following is an advantage of using radio as an advertising medium? A) higher attention than television B) standardized rate structures C) long duration of ad exposure D) high quality reproduction E) high geographic selectivity

Answer: E Diff: 2 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking

14) Which of the following is an advantage of using newspapers as an advertising medium? A) long lifespan B) high reproduction quality C) huge "pass-along" audience D) high level of targeting E) good local market coverage

Answer: E Diff: 2 LO: 15.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

59) Rolex calls itself the "Official Timekeeper" of the Wimbledon and Australian Open lawn tennis championships, by virtue of its sponsorships of the marquee events. What is the most likely objective for Rolex's sponsorship deal with these events? A) to permit merchandising or promotional opportunities B) to express commitment to the community or on social issues C) to create experiences and evoke feelings D) to identify with a particular target market or lifestyle E) to increase salience of company or product name

Answer: E Diff: 2 LO: 15.3: What are the guidelines for effective brand-building events and experiences? AACSB: Analytical thinking; Application of knowledge

49) When Fred sends in the box top from his cereal to receive a free DVD of a cartoon featuring one of his favorite characters, he is responding to a ________. A) self-liquidating premium B) with-pack premium C) reduced-price pack D) banded pack E) free in-the-mail premium

Answer: E Diff: 3 LO: 15.2: How should sales promotion decisions be made? AACSB: Application of knowledge

114) Which of the following is NOT one of the four distinctive characteristics of a mobile device? A) It is tied to one user. B) It allows marketers to personalize messages. C) It is virtually always "on." D) It allows for immediate consumption as it is a distribution channel with a payment system. E) It is highly interactive given it allows for geotracking and picture and video taking.

B

18) Devin, an online marketing manager for the Gilt Groupe, sends more than 3,000 variations of its daily e-mail for its flash-sale site based on recipients' past ________, browsing history, and purchase history. A) complaints B) click-throughs C) comments D) ratings E) interstitials

B

3) Which of the following is NOT one of the four main categories of online marketing communications? A) Web sites B) guerrilla marketing C) search ads D) display ads E) e-mail

B

59) The social network which focuses on career-minded professionals is ________. A) Facebook B) LinkedIn C) MySpace D) Twitter E) Gawker

B

62) Which of the following is a blog network? A) Facebook B) Sugar C) MySpace D) Groupon E) YouTube

B

78) Which of the following increases the likelihood a brand is discussed in face-to-face, oral communications? A) brand novelty B) brand salience C) brand excitement D) brand surprise E) brand edginess

B

84) Online customer reviews are the second-most trusted source of brand information. What is the most trusted source? A) print advertising B) recommendations from friends and family C) salesperson recommendation D) celebrity endorsements E) Facebook recommendations

B

86) According to media researcher Duncan Watts, the key to setting a song on the path to popularity is a phenomenon called ________. A) sampling B) cumulative advantage C) influence farming D) entertainment trendspotting E) buzz firing

B

97) ________ social media ground control and command center in Round Rock, Texas, has 70 employees and processes 25,000 daily social media events in 11 different languages, responding to most queries and complaints within 24 hours. A) DuPont's B) Dell's C) Gatorade's D) Wells Fargo's E) Nestlé's

B

________ includes all the activities in selling goods or services directly to final consumers for personal, nonbusiness use. A) Wholesaling B) Retailing C) Procurement D) Promoting E) Warehousing

B) Retailing

Which of the following is an example of direct marketing? A) E&OE sells its herbal skincare products exclusively through its stand-alone stores. B) TCJ is a telemarketing firm that sells products from a number of different suppliers. C) Jayne's sells most of its products to customers through home sales parties. D) J3 is a storeless retailer that organizes the retail activity of the employees of four firms. E) Reynold's tries to minimize its staff costs by installing vending machines in its stores.

B) TCJ is a telemarketing firm that sells products from a number of different suppliers.

________ includes all the activities in selling goods or services to those who buy for resale or business use. A) Retailing B) Wholesaling C) Procurement D) Promoting E) Warehousing

B) Wholesaling

Which of the following is considered a wholesaler? A) retailer B) broker C) producer D) manufacturer E) farmer

B) broker

Stores are using ________ to measure a product's handling costs from the time it reaches the warehouse until a customer buys it in the retail store. A) electronic data interchange (EDI) B) direct product profitability (DPP) C) radio-frequency identification (RFID) D) global positioning systems (GPS) E) compounded annual grown rate (CAGR)

B) direct product profitability (DPP)

Companies that sell products door-to-door or at home sales parties are engaging in ________. A) franchising B) network marketing C) direct-response marketing D) corporate selling E) direct marketing

B) network marketing

If the shipper owns its own truck or air fleet, it becomes a ________ carrier. A) containerized B) private C) contract D) common E) diversified

B) private

Because shelf space is scarce, many supermarkets now charge a ________ for accepting a new brand, to cover the cost of listing and stocking it. A) retainer B) slotting fee C) residual fee D) contingent fee E) royalty

B) slotting fee

E&OE produces and markets its own brand of skincare products using herbal remedies and natural ingredients through stand-alone stores as well as an online portal. E&OE is a(n) ________ retailer. A) off-price B) specialty C) discount D) department E) extreme value

B) specialty

Which of the following is the strongest differentiator for brick-and-mortar stores who want to emphasize their superiority over online retailers? A) product quality B) the shopping experience C) product range D) pricing E) the retailer's reputation

B) the shopping experience

Which of the following wholesaler functions reduces inventory costs and risks to suppliers and customers? A) selling and promoting B) warehousing C) transportation D) market information E) assortment building

B) warehousing

A reorder point of 10 means ordering the product ________. A) every 10 days B) when stock falls to 10 units C) every 10 units D) when stock falls to 9 units E) in batches of 10 items

B) when stock falls to 10 units

4) Which of the following is an advantage of online communications for marketers? A) Consumers cannot effectively screen out your messages. B) Companies can accurately track how effective their ads are because software filters out all bogus hits. C) Companies can offer tailored information or messages that engage consumers. D) Advertisers maintain complete control over the message. E) Advertisers do not need to worry as much about context.

C

8) What percentage of total digital ad spending is accounted for by mobile? A) 1 percent B) 7 percent C) 17 percent D) 30 percent E) 43 percent

C

116) ________ out of every 10 US consumers owned a smart phone in 2014. A) Two B) Four C) Six D) Eight E) Ten

C

123) Which of the following is NOT one of the ways companies can utilize cell phones to market to or track consumers? A) utilize GPS data to provide location-based offers B) utilize digital in-store signs that dispense coupons to smart phones C) utilize cookies to track mobile activity D) track behavior across tablets and mobile devices using screen identities E) track loyalty program participation

C

125) Experts recommend mobile ad copy should occupy only ________ percent of the screen, avoiding complex viewing experiences that may take a toll on consumers' battery and data availability as well as their time. A) 30 B) 40 C) 50 D) 60 E) 70

C

13) The average click-through in terms of the percentage of consumers who click on a link for ________ is about 0.8 percent. A) search engine optimization B) pay-per-click ads C) standard banner ads D) microsites E) rich media banner ads

C

15) When Johnson & Johnson's Tylenol headache reliever would pop up on brokers' Web sites whenever the stock market fell by 100 points or more, they were using a(n) ________. A) microsite B) pay-per-click ad C) interstitial D) search ad E) banner ad

C

16) Which of the following is NOT one of the ways to maximize the marketing value of e-mails? A) Give the customer a reason to respond. B) Personalize the content of your e-mails. C) Offer something the customer can get via direct mail. D) Make it easy for customers to opt in as well as unsubscribe. E) Combine e-mail with other communications.

C

64) When GlaxoSmithKline sponsored a weight-loss community in preparation for the launch of its first weight-loss drug, Alli, which of the following was the key benefit of the online community? A) Consumers did not have commercial interests or company affiliations. B) Democratization of innovation for lowest-common denominator solutions. C) Two-way information flow led to useful, hard-to-get customer information and insights. D) A point of contact for product recalls. E) One-way communication with customers.

C

80) Which of the following extrinsic factors is most likely to sway a consumer's decision about whether to contribute to social media? A) whether they are having fun B) whether they are learning C) whether it affects their self-image D) whether the brand is novel E) whether their family is having fun

C

88) The bottom rung of the customer loyalty ladder is ________. A) word of mouth/buzz B) repeat purchase C) satisfaction D) evangelism E) ownership

C

94) To monitor the Gatorade brand on social networks around the clock, ________ created a Mission Control Center — set up like a broadcast television control room — in the middle of the marketing department in its Chicago headquarters. A) Coca-Cola B) Cadbury Schweppes C) PepsiCo D) P&G E) Nestlé

C

112) Identify and describe the rungs on the customer loyalty ladder in ascending order.

1. Satisfaction — Sticks with your organization as long as expectations are met. 2. Repeat purchase — Returns to your company to buy again. 3. Word of mouth/buzz — Puts his or her reputation on the line to tell others about you. 4. Evangelism — Convinces others to purchase/join. 5. Ownership — Feels responsible for the continued success of your organization.

A

45) In your neighborhood there is a small men's store that has a limited selection of clothing, but the selection that is carried is of very high quality and price. Services include free alterations and tailoring, personalized record keeping, and free dry cleaning. The inside of the store has deep leather chairs and couches and thick pile carpet. Upon entering the store, a customer feels "special and rich." In terms of differentiation, what is this retailer trying to communicate by its decorations and service level? A) differentiation based on services mix and atmosphere B) differentiation based on prepurchase services C) differentiation based on postpurchase services and atmosphere D) differentiation based on ancillary services and atmosphere E) differentiation based on prepurchase and postpurchase services Page 457

C

45) Which of the following sources of a spokesperson's credibility describes his or her attractiveness? A) expertise B) trustworthiness C) likability D) integrity E) experience

B

46) Which of the following is the strongest differentiator for brick-and-mortar stores who want to emphasize their superiority over online retailers? A) product quality B) the shopping experience C) product range D) pricing E) the retailer's reputation Page 457

D

46) Which of the following marketing communications principles implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience? A) principle of closure B) principle of duality C) principle of delegation D) principle of congruity E) principle of neutrality

E

47) A brand developed by a retailer and/or wholesaler that is available only in selected retail outlets is called a ________ brand. A) generic B) franchisee C) marque D) national E) private-label Page 459

C

47) Which of the following is an example of a personal communications channel? A) public relations B) events and experiences C) interactive marketing D) sales promotions E) advertising

E

48) Though it is sold only in Wal-Mart stores, Wal-Mart's Ol'Roy dog food has surpassed Nestlé's Purina brand as the top-selling dog food. Ol'Roy is an example of a ________. A) generic product B) national brand C) franchise D) copy-cat brand E) private label Page 459

C

48) Which of the following personal communication channels consist of company salespeople contacting buyers in the target market? A) expert channels B) social channels C) advocate channels D) independent channels E) informal channels

D

49) Which of the following is true for distributor brands? A) They sell at higher volumes than national brands and are also known as generics. B) They are usually sold at higher prices than national brands because production costs are higher. C) They are always of better quality than national brands as production is strictly monitored. D) Distributor brands can be sold at lower prices yet generate a higher profit margin because of their lower cost structure. E) Advertising and sales promotion costs for distributor brands are much higher than those for national brands. Page 460

C

49) Which of the following personal communications channels consist of family members, neighbors, friends, and associates talking to target buyers? A) expert channels B) advocate channels C) social channels D) formal channels E) sponsored channels

A

10) Which of the following types of retailing generally entails the highest costs? A) full-service B) self-service C) limited-selection D) limited service E) self-selection Page 448

C

10) ________ is an element of the marketing communications mix that involves people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services. A) Personal selling B) Sales promotion C) Word-of-mouth marketing D) Public relations E) Advertising

F

100) Mass merchandisers are usually high-markup, lower-volume stores.

false

100) Trustworthiness is that source of a spokesperson's credibility that describes his or her attractiveness.

T

101) Low prices on some items serve as traffic builders or loss leaders for retailers.

false

101) The most highly credible source would score high on at least two of the three dimensions—expertise, trustworthiness, and likability.

T

102) EDLP can lead to lower advertising costs and higher retail profits.

true

102) The principle of congruity implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience.

F

103) Accepting telephone and mail orders is an example of the ancillary services that a retailer offers.

true

103) Personal communications channels derive their effectiveness from individualized presentation and feedback and include direct and interactive marketing, word-of-mouth marketing, and personal selling.

false

104) Personal influence carries especially great weight when products are inexpensive, risk-free, or purchased frequently.

T

104) Postpurchase services include shipping and delivery, gift wrapping, adjustments and returns.

true

105) Although personal communication is often more effective than mass communication, mass media might be the major means of stimulating personal communication.

F

105) Private label or store brands are also known as generics.

T

106) The lower price of generics is made possible by lower-cost labeling and packaging and minimal advertising, and sometimes lower-quality ingredients.

false

106) The two-step flow supports the notion that consumption styles are primarily influenced by a "trickle-down" or "trickle-up" effect from mass media.

true

107) Two-step communication suggests that mass communicators should direct messages specifically to opinion leaders and let them carry the message to others.

T

107) Wholesaling includes all the activities in selling goods or services to those who buy for resale or business use.

false

108) The affordable method accounts for the role of promotion as an investment and the immediate impact of promotion on sales volume.

F

108) Wholesalers exclude manufacturers and farmers because they are engaged primarily in production, but include retailers, as they are selling to the end consumer.

T

109) Merchant wholesalers are independently owned businesses that take title to the merchandise they handle

true

109) The percentage-of-sales budgeting method encourages management to think of the relationship among communication cost, selling price, and profit per unit.

E

11) Which of the following elements of the marketing communications mix involves face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders? A) advertising B) sales promotion C) word-of-mouth marketing D) public relations E) personal selling

D

11) Which of the following is an example of a limited-service retailer? A) Customers at TAB pick out the products they want and pay at the checkout counter. B) Salespeople at Eli are always on hand to offer shoppers advice and assistance in choosing products. C) Mina's allows customers to checkout their own purchases in order to reduce the staff count. D) As CLO's offers a number of merchandise-return privileges, customers need information and assistance while shopping. E) Alison's stocks a number of specialty products and the store's salespeople generally help shoppers with all their needs. Page 448

F

110) Most companies today are trying to increase the order-to-payment cycle.

false

110) The percentage-of-sales method leads to a budget set by market opportunities rather than by the availability of funds.

true

111) Marketing communications budgets tend to be higher when there is much change in the marketing program over time and more complex customer decision making.

F

111) More stocking locations mean goods can be delivered to customers more quickly, and warehousing and inventory costs are lower.

true

112) Advertising allows the buyer to receive and compare the messages of various competitors.

T

112) Inventory cost increases at an accelerating rate as the customer-service level approaches 100 percent.

F

113) If setup costs are high, the manufacturer can produce the item often, and the average cost per item is stable and equal to the running costs.

false

113) Public relations is incapable of reaching prospects who prefer to avoid mass media and targeted promotions.

true

114) In general, personal selling is used more with complex, expensive, and risky goods and in markets with fewer and larger sellers.

T

114) Order-processing costs must be compared with inventory-carrying costs because the larger the average stock carried, the higher the inventory-carrying costs.

false

115) Advertising and publicity play the most important roles in the conviction stage of buyer readiness.

T

115) As inventory draws down, management must know at what stock level to place a new order. This stock level is called the order point.

true

116) In the growth stage of a product's life cycle, demand has its own momentum through word of mouth and interactive marketing

F

116) The order-processing cost per unit increases with the number of units ordered because the order costs are spread over more units.

T

117) Companies who want to carry near-zero inventory should build for order, not for stock.

true

117) Media coordination can occur across and within media types, but marketers should combine personal and nonpersonal communications channels through multiple-vehicle, multiple-stage campaigns to achieve maximum impact and increase message reach and impact.

true

118) By using full-service marketing communications agencies, integrated and more effective marketing communications at a much lower total communications cost can be achieved.

Answer: Technology and other factors have profoundly changed the way consumers process communications, and even whether they choose to process them at all. The rapid diffusion of multipurpose smart phones, broadband and wireless Internet connections, and ad-skipping digital video recorders (DVRs) have eroded the effectiveness of the mass media. In 1960, a company could reach 80 percent of U.S. women with one 30-second commercial aired simultaneously on three TV networks: ABC, CBS, and NBC. Today, the same ad would have to run on 100 channels or more to achieve this marketing feat. Consumers not only have more choices of media, they can also decide whether and how they want to receive commercial content.

119) Briefly describe the current marketing communications environment.

C

5) Reynold's is a grocery chain that has always catered to mid-market customers. However, the owner, Mal, has noticed that an influx of new residents are buying mostly the lower-cost products and products on discount. To attract customers, Mal decides to make a gradual switch to the discount store format, but to do this, he will have to cut costs wherever possible. Which of the following types of service should Mal avoid in order to lower costs? A) limited service B) self-selection C) full-service D) self-service E) limited-selection Page 448

C

5) Which of the following is an example of a business and sales force promotion? A) advertising allowance B) free samples C) contests for sales reps D) display allowance E) discount coupons

A

50) Top Gear is an award-winning British television series about motor vehicles, mainly cars. It is presented by a set of hosts who test drive new cars and provide reviews on the cars' performance, their prices, and other factors. Which of the following personal communications channels is Top Gear closest to in description? A) expert channel B) formal channel C) social channel D) sponsored channel E) advocate channel

C

50) ________ are unbranded, plainly packaged, less expensive versions of common products such as spaghetti, paper towels, and canned peaches. A) Common carriers B) Shills C) Generics D) Private labels E) Marques Page 460

C

51) In addition to its store brands and nationally well-known brands of detergents, Reynold's also carries much cheaper varieties of detergents that are not advertised and have little-known names. They are often manufactured from lower-quality ingredients and save on packaging and advertising costs. These are known as ________. A) common carriers B) shills C) generics D) private labels E) marques Page 460

C

51) Which of the following is a form of earned media for marketing communication messages? A) experts providing product reviews B) celebrities endorsing products C) social network discussions about products D) company salespeople contacting target buyers E) sponsored advertisements promoting products

B

52) Because shelf space is scarce, many supermarkets now charge a ________ for accepting a new brand, to cover the cost of listing and stocking it. A) retainer B) slotting fee C) residual fee D) contingent fee E) royalty Page 460

C

52) Personal influence in marketing communications carries great weight when ________. A) the product being marketed is a convenience item B) the purchase of the product is considered to be safe and risk-free C) the product suggests something about the user's status or taste D) the product being marketed is purchased on a frequent basis E) the product or service in questions is used without being recommended by others

C

53) Which of the following is a form of mass communications channel? A) interactive marketing B) personal selling C) public relations D) word-of-mouth marketing E) sales presentations

B

53) ________ includes all the activities in selling goods or services to those who buy for resale or business use. A) Retailing B) Wholesaling C) Procurement D) Promoting E) Warehousing Page 461

B

54) Which of the following is considered a wholesaler? A) retailers B) brokers C) producers D) manufacturers E) farmers Page 461

C

60) Which of the following is true of brokers? A) Brokers represent buyers or sellers on a semipermanent basis. B) Most brokers are small businesses with a few skilled salespeople. C) Brokers bring buyers and sellers together and assist in negotiation. D) Selling brokers have contractual authority to sell a manufacturer's entire output. E) Purchasing brokers make purchases for buyers and often receive, inspect, warehouse, and ship merchandise. Page 462

D

61) Marketing communications budgets tend to be higher when ________. A) there is high channel support B) there exists hardly any change in the marketing program over time C) there are infrequent product purchases in large quantities D) there are differentiated products and nonhomogeneous customer needs E) there are many easily-reachable customer spread over small geographic territories

A

61) ________ refers to buying large carload lots and dividing them into smaller units before shipping them out to consumers. A) Bulk breaking B) Containerization C) Wholesaling D) Warehousing E) Broking Page 462

D

62) Which of the following benefits is offered by sales promotion tools? A) Sales promotion tools are more authentic and credible to buyers than others such as advertising, public relations, and personal selling. B) Sales promotion tools can reach prospects who prefer to avoid mass media and targeted promotions. C) Sales promotion tools are typically an indirect form of "soft-sell" and hence, better received by customers. D) Sales promotion tools incorporate some concession, inducement, or contribution that gives value to the consumer. E) Sales promotion tools allow buyers personal choices and encourage them to respond directly.

A

62) ________ encompass sales forecasting, production planning, and inbound materials transportation. A) Market logistics B) Containerization C) Transportation D) Nonstore retailing E) Wholesaling Page 464

E

63) The elapsed time between an order's receipt, delivery, and payment is called the ________. A) variable-costs-to-payment cycle B) product-to-payment cycle C) inventory-to-sale cycle D) order-to-inventory cycle E) order-to-payment cycle Page 466

A

12) Bill and Josh are considering opening a retail store. They have identified their target market and location and are finalizing the details of the merchandise they will carry. Since the neighborhood is rundown and the customers in the area are very price-conscious, Bill and Josh want to offer goods from well-known brands, but at lower rates than the full retail prices of the products. They choose to stock excess production from manufacturers or goods that have remained unsold at other retailers. This is a description of a(n) ________ retailer. A) off-price B) specialty C) discount D) department E) catalog Page 449

A

12) Which of the following is an example of an advertising platform? A) posters and leaflets B) company magazines C) fairs and trade shows D) sales presentations E) continuity programs

E

2) Which of the following is true for retailing? A) Manufacturers are not considered to be retailers as they are engaged in producing the product. B) Vending machines are considered to be retailing only if they are located within stores. C) Retailing deals only with goods; it does not include services. D) Selling from a consumer's home is direct selling, but not retailing. E) Wholesalers are only considered to be retailers if they are selling to final consumers. Page 447

D

20) In ________, a salesperson goes to the home of a host who has invited friends, demonstrates the products and takes orders. A) catalog marketing B) franchising C) direct-response selling D) network marketing E) direct marketing Page 449

B

20) Which of the following factors found in the macromodel of the communications process refers to random and competing messages that may interfere with the intended communication? A) negative feedback B) noise C) attenuation D) phase lag E) selective distortion

E

21) Telemarketing is a type of ________. A) direct selling B) network marketing C) multilevel selling D) close-range marketing E) direct marketing Page 449

D

21) Which of the following represents one of the major tools for effective communication in the macromodel of the communications process? A) feedback B) noise C) receiver D) message E) sender

E

22) Electronic shopping is a type of ________. A) direct selling B) network marketing C) multilevel selling D) corporate selling E) direct marketing Page 449

A

22) Which of the following is the correct order of stages that a buyer is assumed to pass through, by the four classic response hierarchy models? A) cognitive stage-affective stage-behavioral stage B) affective stage-cognitive stage-behavioral stage C) behavioral stage-affective stage-cognitive stage D) cognitive stage-behavioral stage-affective stage E) affective stage-behavioral stage-cognitive stage

C

23) LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers, for both individual consumers and businesses. Which of the following sequences of consumer responses is relevant as a marketing communications model for LCH's products? A) learn-do-feel B) feel-learn-do C) do-feel-learn D) feel-do-learn E) do-learn-feel

C

23) Which of the following is true of store retailers? A) A hard-discount store offers a wider merchandise mix than discount stores at higher prices. B) A discount store offers leftover goods, overruns, and irregular merchandise sold at less than retail. C) A specialty store generally stocks a very narrow product line. D) An extreme value store generally has a broad selection of high-markup, brand-name goods. E) A catalog showroom is a large, low-cost, low-margin, high-volume, self-service store. Page 449

C

24) A ________ is a storeless retailer serving a specific clientele—usually employees of large organizations—who are authorized to buy from a list of retailers that have agreed to give discounts in return for inclusion on the list. A) direct-selling vendor B) direct marketing vendor C) buying service D) automatic vendor E) corporate retailer Page 449

C

24) All response hierarchy models of the communication process assume the buyer passes through cognitive, affective, and behavioral stages, in that order. Which of the following product categories lends itself most appropriately to such a "learn-feel-do" sequence? A) clothes B) dish-washers C) real estate D) personal computer E) air tickets

C

25) An independent retailer using a central buying organization and joint promotion efforts with other retailers is part of a ________. A) corporate chain store B) voluntary chain C) retailer cooperative D) merchandising conglomerate E) franchise organization Page 450

D

25) When planning communications for a detergent brand, which of the following sequences of buyer responses should the marketer choose on which to base the communications model? A) feel-do-learn B) do-feel-learn C) feel-learn-do D) learn-do-feel E) learn-feel-do

C

26) A ________ is a retail firm owned by its customers. Members contribute money to open their own store, vote on its policies, elect a group to manage it, and receive dividends. A) retailer cooperative B) voluntary chain C) consumer cooperative D) merchandising conglomerate E) franchise organization Page 450

D

26) Which of the following steps in the innovation-adoption model of marketing communications corresponds to the cognitive stage that a buyer passes through? A) interest B) evaluation C) trial D) awareness E) adoption

B

27) A ________ is wholesaler-sponsored group of independent retailers engaged in bulk buying and common merchandising. A) retailer cooperative B) voluntary chain C) consumer cooperative D) merchandising conglomerate E) franchise organization Page 450

C

27) According to the hierarchy-of-effects model, which of the following corresponds to the behavioral stage that a buyer passes through? A) awareness B) knowledge C) purchase D) preference E) conviction

E

28) According to the hierarchy-of-effects model, which of the following corresponds to the affective stage that a buyer passes through? A) attention B) exposure C) reception D) adoption E) conviction

D

28) Which of the following is true for franchisors? A) The franchisor has to pay the franchisee to be part of the franchise system. B) The franchisor licenses the trade mark from the franchisee. C) The franchisor must change its operations to suit those of the franchisee's. D) The franchisor collects royalty payments from the franchisee. E) The franchisor pays start-up costs for the franchisee. Page 450

C

29) Which of the following is true for franchisees? A) The franchisee is paid by the franchisor to be part of the franchise system. B) The franchisee licenses a trade mark to the franchisor. C) The franchisee must change its operations to suit those of the franchisor's. D) The franchisee collects royalty payments from the franchisor. E) The franchisee owns the trade or service mark. Page 450

C

29) Which of the following sequences accurately represents the hierarchy-of-effects model of marketing communications? A) attention-interest-desire-action B) awareness-interest-evaluation-trial-adoption C) awareness-knowledge-liking-preference-conviction-purchase D) exposure-reception-cognitive response-attitude-intention-behavior E) knowledge-persuasion-decision-implementation-confirmation

E

3) Which of the following elements of the marketing communications mix involves a variety of short-term incentives to encourage trial or purchase of a product or service? A) advertising B) direct marketing C) public relations D) personal selling E) sales promotion

D

3) Which of the following is an example of retailing? A) Dylan's sends catalogs to retail, industrial, and institutional customers. B) SEZ U Inc. sells a limited line of fast-moving goods to small retailers for cash. C) BEL Inc. sells FMCG goods to merchant wholesalers and distributors. D) Praxis International sells products to consumers directly through the Internet. E) Hub Styles procures its raw materials directly from farmers in the region. Page 447

A

30) Which is the first step to be performed by a marketer in developing effective marketing communications? A) identifying a target audience B) determining the objectives C) establishing the budget D) deciding on the media mix E) selecting the communication channels

A

30) Which of the following is a benefit of franchising for franchisees? A) The franchisee finds it easier to borrow money from financial institutions. B) The franchisee receives ownership of the franchisor's trade mark. C) The franchisee must change its operations to suit those of the franchisor's. D) The franchisee collects royalty payments from the franchisor. E) The franchisee is paid by the franchisor for being part of the system. Page 450

C

31) Jake wants to open a Subway franchise in his small town. To do this, he must pay the company a ________ fee. A) slotting B) title C) royalty D) merchandising E) residual Page 450

A

31) Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of ________. A) brand knowledge B) purchase patterns C) demographic characteristics D) income levels E) psychographic characteristics

E

32) Which of the following is the marketing communications objective for a new-to-the-world product, such as electric cars? A) enhancing brand awareness B) developing brand attitude C) increasing brand purchase intention D) encouraging repeat purchases E) establishing category need

A

32) Which of the following is true for the retail industry? A) Discount stores and catalog showrooms are competing for the same customers. B) Upscale retailers see a decline in sales as middle-market retailers thrive. C) Small, specialized retailers are crowding out larger, more diverse retailers. D) Store retailing sees no competition from non-store retailing. E) Discount stores are not doing as well as middle-market retailers. Page 452

E

33) Electronic shelf labeling allows retailers to ________. A) check inventory levels instantaneously B) order electronically from suppliers C) run continual promotional messages D) advertise sales and special offers E) change price levels instantaneously Page 452

D

33) When Apple introduced the iPod in October, 2001, it was the first-of-its-kind product that offered sizable storage capacity for songs and a portable device that was not seen before in the market. Which of the following is most likely to have been the marketing communications objective for the iPod at the time of its introduction? A) developing brand awareness B) building customer traffic C) enhancing purchase actions D) establishing product category E) enhancing firm image

A

34) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a negatively oriented relevant brand need? A) normal depletion B) sensory gratification C) social approval D) intellectual stimulation E) value enhancement

D

34) Staples is a giant retailer that concentrates on selling office supplies. Staples is an example of a(n) ________. A) ambush marketer B) supercenter C) megamarketer D) category killer E) guerilla marketer Page 452

C

35) In the corporate headquarters of a supermarket chain, ________ are responsible for developing brand assortments and listening to salespersons' presentations. A) central buyers B) brokers C) specialist buyers D) agents E) specialized wholesalers Page 455

B

35) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a positively oriented relevant brand need? A) problem removal B) social approval C) normal depletion D) problem avoidance E) incomplete satisfaction

E

36) In supermarkets and other retail outlets, RFID is used to ________. A) change prices instantaneously B) check for spoilage or damage to goods C) advertise special offers and discounts D) run continual promotional messages E) monitor inventory and track goods Page 455

C

36) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is emphasized by an advertisement for dish-washing gloves? A) social approval B) intellectual stimulation C) problem removal D) normal depletion E) sensory gratification

B

37) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is most likely emphasized by an advertisement for a luxury car? A) problem removal B) sensory gratification C) normal depletion D) intellectual stimulation E) problem avoidance

C

37) Which of the following is true for direct product profitability analysis? A) It is highly correlated with the gross margin on a product. B) It is negligible compared to the gross margin on a product. C) It bears little relation to the gross margin on a product. D) It is significantly lower than the gross margin on a product. E) It is exactly the same as the gross margin on a product. Page 456

A

38) Creative strategies refer to _______. A) the way marketers translate their messages into a specific communication B) the amount of creative content in a communications message C) the degree of innovation involved in the marketing of a product D) the novelty of a marketing communication E) the type of medium used to deliver a marketing communication

D

38) Mass merchandisers and discount stores typically fall into the ________ group with respect to margins and volume. A) mixed markup, high-volume B) low-volume, mixed markup C) low-volume, low-markup D) high-volume, low-markup E) high-markup, lower-volume Page 456

E

39) A store selling expensive artwork and luxury goods typically falls into the ________ group with respect to margins and volume. A) mixed markup, high-volume B) low-volume, mixed markup C) low-volume, low-markup D) high-volume, low-markup E) high-markup, low-volume Page 456

B

39) A(n) ________ appeal is a creative strategy that elaborates on product or service attributes or benefits. A) aesthetic B) informational C) bandwagon D) emotional E) transformational

D

4) Discount stores that try to keep prices as low as possible are more likely to function using ________ operations. A) limited service B) self-selection C) full-service D) self-service E) limited-selection Page 448

C

4) Which of the following is an example of a trade promotion? A) free samples B) discount coupons C) display allowances D) contests for sales reps E) premiums

B

40) A(n) ________ appeal is a creative strategy that elaborates on a nonproduct-related benefit or image. A) logical B) transformational C) reasonable D) informational E) rational

A

40) Most retailers will put low prices on some items in order to increase traffic to the store. These low-priced products are known as ________. A) loss leaders B) price ceilings C) price skimmers D) price floors E) cold calls Page 456

D

41) American businessman King Gillette pioneered the sales model in which razor handles were given away for free or sold at a loss, but sales of disposable razor blades were very profitable. This is known as the _______ model. A) two-tiered pricing B) predatory pricing C) cross selling D) loss leading E) product churning Page 456

D

41) Which of the following ads depict a transformational appeal? A) Thompson Water Seal can withstand intense rain, snow, and heat B) DIRECTV offers better HD options than cable or other satellite operators C) NBA phenomenon LeBron James pitching Nike, Sprite, and McDonald's D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years E) Excedrin stops the toughest headache pain

A

42) Which of the following ads depict an informational appeal? A) Thompson Water Seal can withstand intense rain, snow, and heat B) The California Milk Processor Board ran the successful "Got Milk?" ad to boost declining sales C) VW advertised to active, youthful people with its famed "Drivers Wanted" campaign D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years E) KFC has marketed its fast-food products under the slogan, "Finger Lickin' Good"

A

42) Which of the following is a prepurchase service offered by retailers? A) accepting orders over the telephone B) shipping the product C) delivery to the customer's doorstep D) general information E) interior decoration of the retail outlet Page 457

C

43) Which of the following is a postpurchase service offered by retailers? A) accepting orders over the telephone B) advertising and window displays C) delivery to the customer's doorstep D) general information E) interior decoration of the retail outlet Page 457

B

43) ________ is one of the sources of a spokesperson's credibility that refers to the specialized knowledge that he or she possesses to claim. A) Trustworthiness B) Expertise C) Acquaintance D) Likability E) Professionalism

D

44) Which of the following is an ancillary service offered by retailers? A) accepting orders over the telephone B) advertising and window displays C) delivery to the customer's doorstep D) general information E) alterations and tailoring Page 457

D

44) ________ is a source of a spokesperson's credibility that describes how objective and honest the spokesperson is perceived to be. A) Likability B) Expertise C) Experience D) Trustworthiness E) Compassion

A

63) Which of the following statements correctly reflects a characteristic of public relations as a marketing communications tool? A) Public relations can reach prospects who prefer to avoid mass media and targeted promotions. B) They incorporate some concession, inducement, or contribution that gives value to the consumer. C) Given their live, real-time quality, public relations tools are more actively engaging for consumers. D) Public relations communications can be prepared to appeal to the addressed individual. E) Public relations tools create an immediate and interactive episode between two or more persons.

E

64) Janet is a marketing manager with a Injoos, a company that manufactures packaged fruit juices. Knowing that there exist several other companies in the market that offer similar products, Janet decides to build a customer base from among those who prefer to avoid mass media and other targeted promotions. Which of the following marketing communications tools would be her best option to build a favorable impression among the prospective customers? A) advertising B) personal selling C) sales promotions D) direct marketing E) public relations

D

64) ________ costs for a manufacturer consist of setup costs and running costs. A) Inventory-carrying B) Containerization C) Wholesaling D) Order-processing E) Transportation Page 467

A

65) As inventory draws down, management must know at what stock level to request additional stock. This stock level is called the ________. A) reorder point B) least fixed point C) point of divergence D) inflection point E) critical point Page 467

A

65) Which of the following marketing communications tools is most effective at the later stages of the buying process? A) personal selling B) public relations C) advertising D) sales promotions E) direct marketing

B

66) A stock order point of 10 means ordering the product ________. A) every 10 days B) when stock falls to 10 units C) every 10 units D) when stock falls to 9 units E) in batches of 10 items Page 467

D

66) Which of the following statements is true of the role of advertising in business markets? A) Advertising is unsuitable for explaining any new features that a product might have. B) Sales calls are more economical than reminder advertisements. C) Sales calls are more effective than advertisements at reminding customers how to use a product and reassure them about their purchase. D) Sales representatives can use copies of the company's ads to legitimize their company and products. E) Advertisements are the least preferred tools when intended to generate leads for sales representatives.

C

67) Optimal order quantities exist when the curves for the order-processing cost per unit and inventory-carrying cost per unit ________. A) are collinear B) are diagonal to each other C) intersect D) are parallel to each other E) equal zero Page 467

C

67) Which of the following circumstances are best suited for the use of personal selling? A) when the products used are simple and easy-to-use B) when there is minimal risk involved in buying or using the products C) when the market has fewer and larger sellers D) when the products being marketed are inexpensive and easily available E) when prospective customers are spread across a wide geographic area

C

68) E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing more only once a product is ordered. Which of the following is true for E&OE? A) Inventory costs are lower than order-processing costs. B) Running costs are higher than inventory-carrying costs. C) Setup costs for the products are low. D) Order-processing costs are high. E) Order-processing costs are lower than setup costs. Page 467

D

68) Which of the following marketing communications tools is most effective at influencing customers at the conviction stage of buyer readiness? A) advertising B) publicity C) sales promotion D) personal selling E) events and experiences

E

69) Advertising and publicity tools play the most important roles in influencing buying decisions at the ________ stage of buyer readiness. A) comprehension B) conviction C) ordering D) reordering E) awareness-building

D

69) E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing only once a product is ordered. Which of the following will be true for E&OE? A) Short production runs will be more expensive than longer ones. B) Setup and order-processing costs will be high. C) The order point will be high. D) Order-processing costs will be lower than the inventory-carrying costs. E) E&OE can reduce the average cost per unit by producing a long run. Page 467

C

7) In ________ retailing, salespeople are ready to assist in every phase of the "locate-compare-select" process. A) self-service B) self-selection C) full-service D) limited service E) limited-selection Page 448

B

7) Which of the following elements of the marketing communications mix includes a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications? A) direct marketing B) public relations and publicity C) personal selling D) advertising E) sales promotion

A

70) Beyond the optimal order quantity, total cost per unit increases because ________. A) inventory-carrying cost per unit increases B) inventory-carrying cost per unit decreases C) order-processing cost per unit increases D) order-processing cost per unit increases though inventory cost decreases E) inventory-processing cost per unit falls slowly Page 468

B

70) Which of the following tools or combinations of tools is most influential at the comprehension stage of buyer readiness? A) sales promotion and advertising B) advertising and personal selling C) publicity and personal selling D) reminder advertising and publicity E) sales promotion and personal selling

B

71) Companies are reducing their inventory costs by treating inventory items differently, positioning them according to risk and opportunity. High-risk, low-opportunity items are known as ________. A) nuisance items B) bottleneck items C) variable items D) critical items E) commodities Page 468

E

71) Which of the following marketing communications tools has the highest cost-effectiveness in the introduction stage of the product life cycle? A) personal selling B) sales promotion C) interactive marketing D) direct marketing E) events and experiences

E

72) HCN recently introduced a product that the distributor considers a "bottleneck" item. What is the risk/opportunity relationship for bottleneck items? A) low risk, mediocre opportunity B) low risk, high opportunity C) low risk, low opportunity D) high risk, mediocre opportunity E) high risk, low opportunity Page 468

C

72) Which of the following marketing communications tools is most influential at the maturity stage of a product's life cycle? A) sales promotions B) direct marketing C) advertising D) publicity E) interactive marketing

WHAT MAKES CUSTOMERS LOYAL?

73% SAID FRIENDLY EMPLOYEES OR CUSTOMER SERVICE REPRESENTATION

A

73) An item described as low-risk and low-opportunity is a ________. A) nuisance item B) bottleneck item C) variable item D) critical item E) commodity Page 468

D

73) Luke is considering the various options available to him to promote an energy-drink, Turbozade, that is seeing decreasing sales volumes after having peaked some time back. Which of the following marketing communications tools should Luke focus marketing efforts on to keep the sales volume up? A) advertising B) direct marketing C) events and experiences D) sales promotions E) publicity

D

74) Which of the following marketing communications tools is most influential at the reordering stage of buyer readiness? A) events and experiences B) publicity C) direct marketing D) sales promotion E) interactive marketing

A

74) ________ consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes. A) Containerization B) Haulage C) Inventory carrying D) Order processing E) Warehousing Page 468

E

75) Which of the following is an example of a private carrier? A) MET is a transporter that operates only in the Chicago area and charges fixed prices. B) BCL is a family firm that owns only three trucks, but takes small orders for transport. C) VTV owns a fleet of trucks and transports goods for any client for a fee. D) COM is a shipping firm that transports goods by road and rail across the U.S. E) BEL Inc. manufactures parts for automobiles and transports its products to customers itself. Page 468

B

75) ________ is a measure of communications effectiveness that describes the percentage of target market exposed to a communication. A) Frequency B) Reach C) Width D) Depth E) Range

E

76) The trucking firm hired by your transportation manager provides a trucking service between the city of Sacramento and the surrounding towns on a regular schedule and at fixed prices. The trucking firm saves transportation costs by transporting the goods using trains as well as trucks, instead of trucks alone. Your transportation manager has hired a(n) ________. A) airship carrier B) airtruck carrier C) trainship carrier D) fishyback carrier E) piggyback carrier Page 468

B

76) ________ refers to a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time. A) Brand engagement B) Integrated marketing communications C) Market research D) Customerization E) Marketing research

B

77) If the shipper owns its own truck or air fleet, it becomes a ________. A) containerized carrier B) private carrier C) contract carrier D) common carrier E) diversified carrier Page 468

true

77) Marketing communications allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things.

T

78) Retailing includes all the activities involved in selling goods or services directly to final consumers.

false

78) The rapid diffusion of multipurpose smart phones, broadband and wireless Internet connections, and ad-skipping digital video recorders (DVRs) have augmented the effectiveness of the mass media.

F

79) Full-service retailers generally have the lowest costs of all retail types

false

79) The pervasive nature of advanced communications technologies, such as the Internet, has resulted in greater exposure of customers to advertising content than it was in the 1960s.

B

8) In the ________ type of retailing, customers usually find their own goods, although they can ask salespeople for assistance. A) self-service B) self-selection C) full-service D) limited service E) limited-selection Page 448

C

8) Which of the following elements of the marketing communication mix involves use of mail, telephone, fax, e-mail, or Internet to communicate with or solicit response or dialogue from specific customers and prospects? A) advertising B) personal selling C) direct marketing D) public relations E) sales promotion

F

80) Discount stores usually stock leftover goods, overruns, and irregular merchandise, sold at less than retail.

true

80) Marketing communications in almost every medium and form have been on the rise, and some consumers feel they are increasingly invasive.

false

81) In this new communication environment, advertising is often the single-most important element of a marketing communications program for sales and building brand and customer equity

T

81) The network marketing sales system works by recruiting independent businesspeople who act as distributors.

T

82) Electronic shopping is a form of direct marketing.

false

82) Personal selling refers to people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services.

F

83) A superstore is a storeless retailer serving a specific clientele who are entitled to buy from a list of retailers that have agreed to give discounts in return for membership.

true

83) In building brand equity, marketers should be "media neutral" and evaluate all communication options on effectiveness and efficiency

F

84) A retailer cooperative is a retail firm that is owned by its customers.

false

84) The less the sender's field of experience overlaps that of the receiver, the more effective the message is likely to be.

T

85) A franchise organization is a corporate retail organization.

false

85) All the response hierarchy models assume that a buyer passes through affective, cognitive, and behavioral stages, in that order

true

86) A "do-feel-learn" response sequence is considered appropriate when the audience has high involvement but perceives little or no differentiation within the product category.

T

86) The franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments.

T

87) "Pop-up" stores let retailers promote brands to seasonal shoppers for a limited time.

true

87) Though the target audience can be profiled in terms of demographic, psychographic, or behavioral segments, it is often useful to do so in terms of usage and loyalty.

F

88) Department stores only face competition from other department stores as other retailing forms are not a threat to their sales and profitability.

true

88) Marketers can set communications objectives at any level of the hierarchy-of-effects model.

CUSTOMER DISATISFACTION?

89% OF COSTUMERS BEGAN DOING BUSINESS WITH A COMPETITOR 26% POSTED NEGATIVE COMMENT ON A SOCIAL NETWORKING SITE 79% OF CUSTOMERS WERE IGNORED BY THE ORGANIZATION THEY ATTACKED ONLY 1% OF CUSTOMERS FELT THEIR EXPECTATIONS FOR GOOD CUSTOMER EXPERIENCE WERE MET EVERY TIME

T

89) Consumers now receive sales offers through direct-mail letters and catalogs, television, cell phones, and the Internet. The nonstore-based retailers are taking business away from store-based retailers.

true

89) The marketing communications objective of "brand attitude" refers to helping consumers evaluate the brand's perceived ability to meet a currently relevant need.

B

9) Which of the following is true for self-service retailing? A) These retailers carry more shopping goods and services such as credit and merchandise-return privileges. B) This service model is favored by discount stores and customers who want to save money. C) It results in high staffing costs compared to other forms of retailing. D) Salespeople are ready to assist in every phase of the "locate-compare-select" process. E) Customers need more information and assistance than in other forms of retailing. Page 448

D

9) ________ is an element of the marketing communications mix that involves online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services. A) Personal selling B) Direct marketing C) Sales promotion D) Interactive marketing E) Public relations

false

90) Problem removal and normal depletion are examples of positively oriented relevant brand needs.

T

90) Supercenters retail grocery items as well as a huge selection of nonfood merchandise.

false

91) Communications effectiveness depends solely on the content of a message, irrespective of how it is expressed.

F

91) Growth in the retail market is centered firmly in the middle market, leaving luxury retailers and discounting specialists struggling.

T

92) As discount retailers improve their quality and image, consumers have been willing to trade down.

true

92) Volkswagen's famed "Drivers Wanted" advertising campaign aimed at attracting active, youthful people uses a transformational appeal as its creative strategy.

F

93) Electronic shelf labeling allows retailers to check inventory levels instantaneously.

false

93) One-sided presentations that praise a product are found to be more effective than two-sided arguments that also mention shortcomings.

T

94) Firms are increasingly recognizing the importance of influencing consumers at the point of purchase.

true

94) Two-sided messages are more effective with more educated audiences and those who are initially opposed.

true

95) In a one-sided message, presenting the strongest argument first arouses attention and interest, important in media where the audience often does not attend to the whole message.

F

95) Retailers can target their customers more effectively by using only a single channel to reach them.

false

96) Fear appeals work best when they are rather strong and reinforce what the audience already believes.

T

96) Featuring exclusive national brands that are not available at competing retailers is a way of generating consumer interest in a retailer.

true

97) If the messages are too discrepant, audiences will counterargue and disbelieve them.

F

97) In order to clearly differentiate themselves from competitors, retailers must keep merchandise and prices always consistent.

true

98) Motivational or "borrowed interest" devices—such as the presence of cute babies, frisky puppies, popular music, or provocative sex appeals—are often employed to attract attention and raise involvement with an ad.

F

98) The gross margin on a product bears a direct relation to the direct product profit.

true

99) Celebrities are likely to be effective when they are credible or personify a key product attribute.

T

99) Some high-volume products may have such high handling costs that they are less profitable and deserve less shelf space than low-volume products.

79) What percentage of word-of-mouth content cascades to more than one person beyond the initial recipient? A) 4 percent B) 6 percent C) 8 percent D) 10 percent E) 25 percent

A

14) Internet users spend ________ of their time online searching for information. A) 5 percent B) 10 percent C) 12 percent D) 15 percent E) 20 percent

A

17) ________ tracks eye movements with cameras to measure what people read on a computer screen. A) Heat mapping B) An interstitial C) A pay-per-click ad D) A click-through rate E) Animation

A

2) Mountain Dew's Dewmocracy promotional campaign — including advertising, events, a Web site and social media efforts designed to engage consumers in brand-related activities — is an example of ________. A) paid media B) earned media C) individualization D) word-of-mouth E) mobile marketing

A

2) ________ aims to create brand awareness and knowledge of new products or new features of existing products. A) Informative advertising B) Corporate advertising C) Reinforcement advertising D) Persuasive advertising E) Reminder advertising

A Page Ref: 504 Objective: 1 Difficulty: Easy

12) Which of the following is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure? A) television B) radio C) newspapers D) magazines E) billboards

A Page Ref: 507 Objective: 1 Difficulty: Easy

14) According to researchers, which of the following is the correct order in which content of print advertisements matter? A) picture-headline-copy B) copy-picture-headline C) headline-copy-picture D) picture-copy-headline E) copy-headline-picture

A Page Ref: 508 Objective: 1 Difficulty: Easy

16) ________ refers to simple exaggerations in advertisements that are not meant to be believed and that are permitted by law. A) Puffery B) Boosterism C) Astroturfing D) Doublethink E) Subliminal advertising

A Page Ref: 510 Objective: 1 Difficulty: Easy

22) Which of the following equations accurately describes the total number of exposures (E) of an advertising message through a given medium? A) E = reach * frequency B) E = (reach * frequency) / impact C) E = reach * frequency * impact D) E = (reach + frequency) / impact E) E = frequency / reach

A Page Ref: 511 Objective: 1 Difficulty: Moderate

Coca-Cola

A pioneer in China, ________ created a national campaign asking Beijing residents to send text messages guessing the high temperature in the city every day for just over a month for a chance to win a one-year supply of its products.

LinkedIn

A social network which focuses on career-minded professionals is ________.

informational

A(n) ________ appeal is a creative strategy that elaborates on product or service attributes or benefits.

________ refers to buying large carload lots and dividing them into smaller units before shipping them out to consumers. A) Bulk breaking B) Containerization C) Wholesaling D) Warehousing E) Broking

A) Bulk breaking

________ consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes. A) Containerization B) Haulage C) Inventory carrying D) Order processing E) Warehousing

A) Containerization

________ includes planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer requirements at a profit. A) Market logistics B) Containerization C) Transportation D) Nonstore retailing E) Wholesaling

A) Market logistics

Which of the following is TRUE for the retail industry? A) Retailers are experimenting with "pop-up" stores that let them create buzz. B) Upscale retailers see a decline in sales as middle-market retailers thrive. C) Fast fashion is offering more choice and longer-lived products. D) Technology use by stores is driving up the cost of inventory. E) Discount stores are not doing as well as middle-market retailers.

A) Retailers are experimenting with "pop-up" stores that let them create buzz.

Which of the following is a prepurchase service offered by retailers? A) accepting orders over the telephone B) shipping the product C) delivery to the customer's doorstep D) general information E) interior decoration of the retail outlet

A) accepting orders over the telephone

Most retailers will put low prices on some items in order to increase traffic to the store. These low-priced products are known as ________. A) loss leaders B) price ceilings C) price skimmers D) price floors E) cold calls

A) loss leaders

A factory outlet is an example of a(n) ________ retailer. A) off-price B) specialty C) discount D) department E) catalog

A) off-price

PLACE IS?

AKA DISTRIBUTION - HOW DO CLIENTS FIND YOUR PRODUCT AND HOW DO THEY RECEIVE IT? EX: DELIVERED TO THEYRE DOOR, RETAIL LOCATION, DOWNLOADED? IF IT IS RETIAL LOCATION - HOW DOES THE CUSTOMER GET THERE, HOW MANY CUSTOMER DO YOU EXPECT?

STRATEGIC PLANNING CAN OSSUR?

AT MULTIPLE LEVELS: CORPORATE, DIVISION, PRODUCT, BUSINESS UNIT LEVEL

74) Which of the following is a medium of visual identity for a company? A) annual reports B) dress codes C) press releases D) seminars E) trade shows

Answer: B Diff: 2 LO: 15.4: How can companies exploit the potential of public relations? AACSB: Reflective thinking

22) Which of the following types of advertising timing patterns calls for spending all advertising dollars in a single period? A) frequency capping B) flighting C) concentration D) pulsing E) continuity

Answer: C Diff: 1 LO: 15.1: What steps are required in developing an advertising program?

2) When Lola asked what the advertising campaign should say, she was concerned with which of the five Ms? A) Mission B) Money C) Message D) Media E) Measurement

Answer: C Diff: 1 LO: 15.1: What steps are required in developing an advertising program? AACSB: Application of knowledge

52) A ________ is a sales force promotion tool that aims at inducing the sales force or dealers to increase their sales results over a stated period, with prizes (money, trips, gifts, or points) going to those who succeed. A) trade show B) frequency program C) sales contest D) sweepstake E) patronage award

Answer: C Diff: 1 LO: 15.2: How should sales promotion decisions be made? AACSB: Application of knowledge

8) TV advertising is considered to be particularly advantageous because ________. A) messages have extended exposure B) it has a low absolute cost C) it is appealing to the senses and generates high attention D) it reaches highly selective audiences E) it offers low clutter

Answer: C Diff: 2 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking

25) Share of ________ represents the proportion of company advertising of a product to all advertising of that product. A) wallet B) mind C) voice D) market E) cost

Answer: C Diff: 2 LO: 15.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

9) ________ is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience. A) Media scheduling B) Content analysis C) Media selection D) Communication design E) Copy testing

Answer: C Diff: 2 LO: 15.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

47) Which of the following is an example of a trade promotion? A) free samples B) discount coupons C) display allowances D) contests for sales reps E) premiums

Answer: C Diff: 2 LO: 15.2: How should sales promotion decisions be made?

75) Rather than merely counting media exposures, a better measure of marketing public relations effectiveness is the ________. A) number of promotional tools required B) effect it has on its market capitalization C) change in product awareness, comprehension, or attitude D) changes observed in media behavior E) impact it has on the company's market share

Answer: C Diff: 2 LO: 15.4: How can companies exploit the potential of public relations? AACSB: Reflective thinking

43) Which of the following advertising practices involves advertisers paying filmmakers to have their products make cameo appearances in movies and television shows? A) brand extension B) flyposting C) co-branding D) product placement E) ambush marketing

D Page Ref: 514 Objective: 1 Difficulty: Moderate

49) Ted is a media buyer with Shelvey Partners, an ad agency in San Francisco. He is currently working on charting a media plan for a departmental store chain's ads that are targeted at the upcoming Thanksgiving weekend. Which of the following advertising timing patterns is best suited for running these ads? A) continuity B) flighting C) pulsing D) concentration E) frequency capping

D Page Ref: 517 Objective: 1 AACSB: Analytic skills Difficulty: Moderate

47) In which of the following types of advertising timing patterns do exposures appear evenly throughout a given period? A) concentration B) pulsing C) flighting D) continuity E) frequency capping

D Page Ref: 517 Objective: 1 Difficulty: Easy

62) Which of the following is an example of a manufacturer promotion? A) price cuts B) feature advertising C) retailer coupons D) high-value trade-in credit E) retailer contests or premiums

D Page Ref: 520 Objective: 2 Difficulty: Easy

61) According to consumer-packaged goods companies, which of the following effects is attributed to the heavy use of sales promotion? A) increased brand loyalty B) focus on long-run marketing planning C) improved brand-quality image D) increased price sensitivity E) greater coupon redemption rates

D Page Ref: 520 Objective: 2 Difficulty: Moderate

65) Which of the following consumer promotion tools offers a free amount of a product or service delivered door-to-door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer? A) coupons B) rebates C) premiums D) samples E) price packs

D Page Ref: 521 Objective: 2 Difficulty: Easy

70) ________ is a consumer promotion tool that involves inviting prospective purchasers to try the product without cost in the hope that they will buy. A) Sampling B) Premium C) Cross-promotion D) Free trial E) Rebate

D Page Ref: 521 Objective: 2 Difficulty: Easy

71) Which of the following consumer promotion tools involves using one brand to advertise another noncompeting brand? A) tie-in promotion B) frequency programs C) specialty advertising D) cross-promotion E) patronage awards

D Page Ref: 521 Objective: 2 Difficulty: Easy

69) Premiums, as a consumer promotion tool, are defined as ________. A) offers to consumers of savings off the regular price of a product, flagged on the label or package B) certificates entitling the bearer to a stated saving on the purchase of a specific product C) programs providing rewards related to the consumer's frequency and intensity in purchasing the company's products or services D) merchandise offered at a relatively low cost or free as an incentive to purchase a particular product E) values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors

D Page Ref: 521 Objective: 2 Difficulty: Moderate

76) ________ is the time necessary to prepare a promotional program prior to launching it. A) Sell-in time B) Link time C) Setup time D) Lead time E) Hold time

D Page Ref: 523 Objective: 2 Difficulty: Easy

80) Mountain Dew is a brand known for sponsorships of adventure events such as snowboarding and skateboarding competitions. What is the most likely objective of Mountain Dew's sponsorship of these events? A) to enhance corporate image B) to express commitment to the community or on social issues C) to entertain key clients or reward key employees D) to create perceptions of key brand image associations E) to become part of a personally relevant moment in consumers' lives

D Page Ref: 525 Objective: 3 AACSB: Analytic skills Difficulty: Moderate

84) Which of the following parameters forms the basis for measuring sponsorship effectiveness using demand-side methods? A) impact on market share of sponsor B) amount of time a brand is clearly visible on a television screen C) amount of relevant newsprint mentioning the sponsor D) influence on consumers' brand knowledge of the sponsor E) net impact on the sponsor's bottom line

D Page Ref: 526 Objective: 3 Difficulty: Moderate

90) ________ refers to the task of securing editorial space—as opposed to paid space—in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization. A) Advertising B) Media planning C) Communication design D) Publicity E) Copy testing

D Page Ref: 527 Objective: 4 Difficulty: Easy

87) Which of the following describes the public relations function of lobbying? A) sponsoring efforts to publicize specific products B) advising management about public issues, and company positions and image during good times and bad C) presenting news and information about the organization in the most positive light D) dealing with legislators and government officials to promote or defeat legislation and regulation E) promoting understanding of the organization through internal and external communications

D Page Ref: 527 Objective: 4 Difficulty: Moderate

5) Of the time US consumers spend with all media, almost ________ is spent online. A) one-quarter B) one-third C) two-thirds D) one-half E) three-quarters

D

81) ________ has enrolled more than half a million mothers in Vocalpoint, a group built on the premise that highly engaged individuals want to learn about products and share their opinions with companies and other individuals. A) Blendtec B) SodaStream C) Google D) P&G E) Vimeo

D

89) ________ is the rung of the customer loyalty ladder where the customer convinces others to purchase/join. A) Word of mouth/buzz B) Repeat purchase C) Satisfaction D) Evangelism E) Ownership

D

90) Maria is flagged as a special customer at your firm because she is a satisfied customer, returns to your company to buy, puts her reputation on the line to tell others about you, and convinces others to purchase from you, which suggests she is on the ________ rung of the loyalty ladder. A) word of mouth/buzz B) repeat purchase C) satisfaction D) evangelism E) ownership

D

4) ________ aims to create liking, preference, conviction, and purchase of a product or service. A) Corporate advertising B) Reminder advertising C) Persuasive advertising D) Reinforcement advertising E) Informational advertising

C Page Ref: 505 Objective: 1 Difficulty: Easy

8) ________ aims to convince current purchasers that they made the right choice. A) Persuasive advertising B) Informational advertising C) Reinforcement advertising D) Reminder advertising E) Comparative advertising

C Page Ref: 505 Objective: 1 Difficulty: Easy

57) Which of the following elements of the marketing communications mix consists of a collection of incentive tools, mostly short-term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade? A) advertising B) public relations C) sales promotion D) events and experiences E) personal selling

C Page Ref: 519 Objective: 2 Difficulty: Easy

58) Which of the following is an example of a trade promotion? A) free samples B) discount coupons C) display allowances D) contests for sales reps E) premiums

C Page Ref: 519 Objective: 2 Difficulty: Easy

59) Which of the following is an example of a business and sales force promotion? A) advertising allowance B) free samples C) contests for sales reps D) display allowance E) discount coupons

C Page Ref: 519 Objective: 2 Difficulty: Easy

60) Sales promotion expenditures increased as a percentage of budget expenditure for a number of years, although its growth has recently slowed. Which of the following is a factor that has contributed to the growth of sales promotion expenditures? A) many brands have come to be seen as dissimilar B) the efficiency of advertising as a promotion has improved C) the trade demands more deals from manufacturers D) consumers have become less price-oriented E) the number of brands in the market has decreased

C Page Ref: 519 Objective: 2 Difficulty: Moderate

68) ________ are consumer promotion offers to consumers of savings off the regular price of a product, flagged on the label or package. A) Coupons B) Rebates C) Price packs D) Premiums E) Samples

C Page Ref: 521 Objective: 2 Difficulty: Easy

75) A ________ is a salesforce promotion tool that aims at inducing the sales force or dealers to increase their sales results over a stated period, with prizes (money, trips, gifts, or points) going to those who succeed. A) trade show B) frequency program C) sales contest D) sweepstake E) patronage award

C Page Ref: 523 Objective: 2 Difficulty: Easy

81) Audi models featured prominently in the 2010 blockbuster Iron Man 2, including main character Tony Stark's personal R8 Spyder. Which of the following is the most rational explanation for Audi's decision to associate itself with the movie? A) to express commitment to the community or on social issues B) to identify with a particular target market or lifestyle C) to create experiences and evoke feelings D) to become part of a personally relevant moment in consumers' lives E) to entertain key clients or reward key employees

C Page Ref: 525 Objective: 3 Difficulty: Moderate

83) Which of the following factors forms the basis of assessing sponsorship activities through supply-side methods? A) consumers' brand knowledge B) impact on sponsor's bottom line C) extent of media coverage D) brand exposure reported by consumers E) sales pattern of sponsored products

C Page Ref: 526 Objective: 3 Difficulty: Moderate

92) The easiest measure of marketing public relations effectiveness is ________. A) the resultant effect on the company's sales figures B) the effect it has on its market capitalization C) the number of exposures carried by the media D) the changes observed in consumers' brand knowledge E) the impact it has on the company's market share

C Page Ref: 529 Objective: 4 Difficulty: Easy

Which of the following is TRUE of brokers? A) Brokers represent buyers or sellers on a permanent basis. B) Most brokers are hired by sellers and work for a salary. C) Brokers bring buyers and sellers together and assist in negotiation. D) Selling brokers have contractual authority to sell a manufacturer's entire output. E) Brokers assume title and risk from the time an order is accepted to its delivery.

C) Brokers bring buyers and sellers together and assist in negotiation.

________ are unbranded, plainly packaged, less expensive versions of common products such as spaghetti, paper towels, and canned peaches. A) Common carriers B) Shills C) Generics D) Private labels E) Marques

C) Generics

Why would a retailer measure direct product profitability (DPP)? A) because DPP is highly correlated with the gross margin on a product B) because handling expenses are negligible compared with gross margin C) because handling costs can make products less profitable D) because gross margin on a product is too difficult to measure accurately E) because DPP removes the impact of paperwork expenses

C) because handling costs can make products less profitable

A(n) ________ is a storeless retailer serving a specific clientele-usually employees of large organizations-who are authorized to buy from a list of retailers that have agreed to give discounts in return for inclusion on the list. A) direct-selling vendor B) direct marketing vendor C) buying service D) automatic vendor E) corporate retailer

C) buying service

Which of the following is a postpurchase service offered by retailers? A) accepting orders over the telephone B) advertising and window displays C) delivery to the customer's doorstep D) general information E) interior decoration of the retail outlet

C) delivery to the customer's doorstep

In addition to its store brands and nationally well-known brands of detergents, Reynold's also carries much cheaper varieties of detergents that are not advertised and have little-known names. They are often manufactured from lower-quality ingredients and save on packaging and advertising costs. These are known as ________. A) common carriers B) shills C) generics D) private labels E) marques

C) generics

Optimal order quantities exist when the curves for the order-processing cost per unit and inventory-carrying cost per unit ________. A) are collinear B) are diagonal to each other C) intersect D) are parallel to each other E) equal zero

C) intersect

An independent retailer using a central buying organization and joint promotion efforts with other retailers is part of a ________. A) corporate chain store B) voluntary chain C) retailer cooperative D) merchandising conglomerate E) franchise organization

C) retailer cooperative

STRATEGIES NEED OT BE USED AS A TOOL - 3 QUESTIONS?

CAN WE PREDICT IT/PLAN IT? CAN WE SHAPE IT? CAN WE SURVIVE IT?

CH 9...

CH9...

CHAPTER 6..

CHAPTER 6

VALUE CHAIN?

CHOOSING PROVIDING SUPERIOR VALUE (((THAT THING THAT YOU DO BETTER THAN ANYBODY ELSE****)))

THE PROCESS OF STRATEDY (PLANNING, ANALYZING, ADJUSTING) ALL INCREASE THE PROCESS OF?

COMPETITIVE ADVANTAGE OF THE COMPANY

MARKET PLACES AVAILABLE TO MARKET?

CONSUEMR BUSINESS, GLOBAL, NON-PROFIT

MARKETER SHOULD THINK THRU DIFFERANT LEVELS OF A PRODUCT - WHICH ARE?

CORE BENEFIT BASIC PRODUCT EXPECTED PRODUCT AUGMENTED PRODUCT POTENTIAL PRODUCT

1) Which of the following is an example of paid media? A) word-of-mouth about the brand B) news stories about the brand C) social network conversations about the brand D) a trade show booth about the brand E) consumers' Instagram photos that include the brand

D

115) Marcel downloaded an episode of his daughter's favorite program to his cell phone to ward off a tantrum while they were shopping. Which of the four distinctive characteristics was most critical to enable this action? A) It is tied to one user. B) It allows marketers to personalize messages. C) It is virtually always "on." D) It allows for immediate consumption as it is a distribution channel with a payment system. E) It is highly interactive given it allows for geotracking and picture and video taking.

D

124) Why is the Web experience different for mobile phone users than for people who are surfing from a computer? A) smaller screen sizes B) longer download times C) lack of software D) all of the above E) none of the above

D

76) AT&T found that one of the most effective drivers of its sales, along with unaided advertising awareness was ________. A) a blog B) an online forum C) social networks D) WOM E) pay-per-click ads

D

82) ________ operates an international word-of-mouth media network powered by 1 million demographically diverse, ordinary people who volunteer to talk up the products they deem worth promoting. A) Brand Advocates B) Vocalpoint C) P&G D) BzzAgent E) Influentials

D

11) Individual Web pages or clusters of pages that function as supplements to a primary site are ________. A) search engine optimization B) pay-per-click ads C) delighters D) microsites E) touch points

D

119) Mobile ad spending approached ________ worldwide in 2013. A) $14 million B) $18 million C) $48 million D) $18 billion E) $48 billion

D

122) ________ "Face Retirement" app used 3D "virtual makeover" imaging technology to show people what they might look like as they approached retirement age as part of a campaign to encourage young people to save for retirement. A) Charles Schwab's B) Ameritrade's C) Prudential's D) Bank of America's E) Fidelity Investments's

D

126) Nadya is designing a mobile ad to promote her company's widgets. Where should the company's logo appear in the mobile ad? A) in the middle of the ad B) centered at the bottom C) centered at the top D) in the corner E) it should not appear

D

129) Why should mobile ad developers avoid complex viewing experiences? A) They take a toll on consumers' battery. B) Consumers may have limited data availability. C) Consumers may have limited time. D) All of the above E) None of the above

D

72) Why are social media important to marketers?

Social media provide a means for consumers/companies to share text, images, audio, and video information with each other and with companies/consumers. Social media allow marketers to establish a public voice and presence online. They can cost-effectively reinforce other communication activities. Because of their day-to-day immediacy, they can also encourage companies to stay innovative and relevant. Marketers can build or tap into online communities, inviting participation from consumers and creating a long-term marketing asset in the process.

138) What can US marketers learn about mobile marketing by looking overseas?

In developed Asian markets such as Hong Kong, Japan, Singapore, and South Korea, mobile marketing is fast becoming a central component of customer experiences. In developing markets, high smart-phone penetration also makes mobile marketing attractive. For example, Coca-Cola created a national campaign asking Beijing residents to send text messages guessing the high temperature in the city every day for just over a month for a chance to win a one-year supply of Coke products. The campaign attracted more than 4 million messages over the course of 35 days.

one-half

Of the time U.S. consumers spend with all media, almost ________ is spent online.

THE APPORACH TO STRATEGY IS?

NOT ONE SIDE FITS ALL - IT MUST BE CREATED DEPENDING ON BUSINESS AND PROBLEM SOLVING

PRODUCTS SERVICES DIFFERENTIATORS?

ORDERING NEEDS DELIVARY INSTALLATION CUSTOMER TRAINING CUSTOMER CONSULTIN MAINTENANCE REPAIR

suggests something about the user's status or taste

Personal influence in marketing communications carries great weight when the product being marketed ________.

likable

Qualities such as candor, humor, and naturalness make a spokesperson ________, which is an important component of spokesperson credibility.

likability

Receivers of a message generally see a source as credible if they perceive the source to have expertise, trustworthiness, and ________.

109) What are the two most trusted sources of brand information?

Recommendations from friends and family and online customer reviews.

MARKETING PLAN IS?

SUMMERIZES WHAT A FIRM NKNOWS ABOUT A MARKET PLACE AND WHAT IT WILL TAKE TO REACH ITS MARKETING OBJECTIC AND BOTH STRATEGIC AND TACTICAL LEVEL

GPS data

Sonic's mobile app uses ________ to tell customers when they are near a Sonic restaurant.

Which of the following is an example of a limited-service retailer? A) Customers at TAB pick out the products they want and pay at the checkout counter. B) Salespeople at Eli are always on hand to offer shoppers advice and assistance in choosing products. C) Mina's allows customers to check out their own purchases in order to reduce the staff count. D) CLO's offers a number of merchandise-return privileges, customers need information and assistance while shopping. E) Alison's stocks a number of specialty products and the store's salespeople generally help shoppers with all their needs.

D) CLO's offers a number of merchandise-return privileges, customers need information and assistance while shopping.

Which of the following is an example of retailing? A) Dylan's sends catalogs to retail, industrial, and institutional customers. B) SEZ U Inc. sells a limited line of fast-moving goods to small retailers for cash. C) BEL Inc. sells consumer packaged goods to merchant wholesalers and distributors. D) Praxis International sells products to consumers directly through the Internet. E) Hub Styles procures its raw materials directly from farmers in the region.

D) Praxis International sells products to consumers directly through the Internet.

Which of the following is TRUE for distributor brands? A) They sell at higher volumes than national brands and are also known as generics. B) They are usually sold at higher prices than national brands because production costs are higher. C) They are always of better quality than national brands as production is strictly monitored. D) They can generate a higher profit margin because of their lower cost structure. E) Advertising costs for distributor brands are much higher than those for national brands.

D) They can generate a higher profit margin because of their lower cost structure.

A large staff, along with a higher proportion of specialty goods and slower-moving items and many services, are usually features of ________ retailing. A) self-service B) self-selection C) limited service D) full-service E) limited-selection

D) full-service

Which of the following is an ancillary service offered by retailers? A) accepting orders over the telephone B) advertising and window displays C) delivery to the customer's doorstep D) general information E) alterations and tailoring

D) general information

Discount stores typically fall into the ________ group with respect to margins and volume. A) mixed-markup, high-volume B) low-volume, mixed-markup C) low-volume, low-markup D) high-volume, low-markup E) high-markup, lower-volume

D) high-volume, low-markup

Discount stores that try to keep prices as low as possible are more likely to function using ________ operations. A) limited service B) self-selection C) full-service D) self-service E) limited-selection

D) self-service

SUCCEFFUL MARKETING MANAGEMENT TODAY INCLUDES?

DEVELOPING, MARKETING, STRATEGY AND PLANS, CAPTURING MARKETING INSIGHTS, CONNECTING WITH CONSUMERS, BUILDING STRONG BRANDS, CREATING, DELEIVERING, COMMUNICAITNG VALUE AND MANAGING MARKETING ORGANIZATION WITHIN THE GLOBAL ECONOMY

CUSTOMER WILL BUY FROM A FIRM THEY PERCEIVED THAT OFFERS THE HIGHEST CUSTOMER DELIVERED VALUE - EQUATION?

DIFFERENCE BETWEEN TOTAL CUSTOMER BENEFITS VS TOTAL CUSTOMER COSTS

HOW DO MARKETERS CLASSIFY LEVELS OF PRODUCT ABOVE?

DURABILITY TANGIBILITY USE (CONSUMER OR INDUSTRIAL)

128) Carlos is training his new graphic design intern on the use of color in mobile ads. Which of the following is good advice when it comes to the use of color? A) Only use one bright color. B) Do not use bright colors. C) Use at least three bright colors. D) Use at least four bright colors. E) Use a bright color to highlight calls to action.

E

130) In which developed Asian market is mobile marketing becoming a central component of customer experiences? A) Hong Kong B) Japan C) Singapore D) South Korea E) All of the above

E

6) How much was total digital ad spending in 2013? A) $40.1 million B) $42.8 million C) $18.4 billion D) $40.1 billion E) $42.8 billion

E

61) Which of the following is NOT a benefit of a social media presence for a brand? A) Social media allows marketers to establish a public voice and presence online. B) Social media can cost-effectively reinforce other communication activities. C) Social media can encourage companies to stay innovative and relevant. D) Social media can be used to build or tap into online communities. E) Social media allows companies to have a short-term focus.

E

7) What percentage of total digital ad spending is accounted for by search advertising? A) 1 percent B) 7 percent C) 17 percent D) 30 percent E) 43 percent

E

83) Which of the following is NOT an example of viral marketing? A) Quicksilver puts out surfing videos and surf-culture books for teens. B) Johnson & Johnson has a popular parenting advice Web site. C) Walmart places videos with money-saving tips on YouTube. D) Mountain Dew has a record label and offers free downloads. E) Hasbro places a Facebook ad about its TV channel.

E

91) When another customer complains about the hair salon where Georgeanna is a loyal customer, she defends it because she feels responsible for the continued success of the hair salon. This behavior suggests she has reached the ________ rung of the loyalty ladder. A) word of mouth/buzz B) repeat purchase C) satisfaction D) evangelism E) ownership

E

92) The top rung of the loyalty ladder is the ________ rung. A) word of mouth/buzz B) repeat purchase C) satisfaction D) evangelism E) ownership

E

95) One of the measures of online word of mouth at DuPont was the effort's ________, or whether it was not a one-shot deal. A) authority B) sentiment C) relevance D) scale E) sustainability

E

11) Marketers often cut the cost of advertising dramatically by using consumers as their creative team. This strategy is known as ________. A) disintermediation B) public relations C) vertical integration D) reintermediation E) crowdsourcing

E Page Ref: 50 Objective: 1 Difficulty: Easy

3) Which of the following is an example of informational advertising? A) Volkswagen famed "Drivers Wanted" campaign B) Pringles campaign with the tagline "Once You Pop, the Fun Don't Stop" C) KFC's fast-food range that it claims to be "Finger Lickin' Good" D) The California Milk Processor Board's famous "Got Milk" campaign E) Excedrin's ads that claim it stops the toughest headache

E Page Ref: 504 Objective: 1 AACSB: Analytic skills Difficulty: Easy

6) ________ aims to stimulate repeat purchase of products and services. A) Reinforcement advertising B) Comparative advertising C) Persuasive advertising D) Informational advertising E) Reminder advertising

E Page Ref: 505 Objective: 1 Difficulty: Easy

28) Which of the following is an advantage of using newspapers as an advertising medium? A) long lifespan B) high reproduction quality C) huge "pass-along" audience D) high level of targeting E) good local market coverage

E Page Ref: 513 Objective: 1 Difficulty: Moderate

32) Which of the following is an advantage of using radio as an advertising medium? A) higher attention than television B) standardized rate structures C) long duration of ad exposure D) high quality reproduction E) high geographic selectivity

E Page Ref: 513 Objective: 1 Difficulty: Moderate

53) Advertisements for which of the following product categories would be most effective when used with a flighting pattern? A) breakfast cereal B) detergents C) beer D) electric bulbs E) refrigerator

E Page Ref: 517 Objective: 1 AACSB: Analytic skills Difficulty: Moderate

63) Which of the following is a sales promotion tool that is consumer franchise building in nature? A) price-off packs B) contests and sweepstakes C) consumer refund offers D) trade allowances E) frequency awards

E Page Ref: 520 Objective: 2 Difficulty: Moderate

73) Which of the following terms describes the practice of retailers purchasing a greater quantity during a sales promotion period than they can immediately sell? A) diverting B) panic buying C) straight rebuy D) buyout E) forward buying

E Page Ref: 522 Objective: 2 Difficulty: Easy

77) ________ begins with the promotional launch and ends when approximately 95 percent of the deal merchandise is in the hands of consumers. A) Lead time B) Hold time C) Setup time D) Link time E) Sell-in time

E Page Ref: 523 Objective: 2 Difficulty: Easy

79) Rolex calls itself the "Official Timekeeper" of the Wimbledon and Australian Open lawn tennis championships, by virtue of its sponsorships of the marquee events. What is the most likely objective for Rolex's sponsorship deal with these events? A) to permit merchandising or promotional opportunities B) to express commitment to the community or on social issues C) to create experiences and evoke feelings D) to identify with a particular target market or lifestyle E) to increase salience of company or product name

E Page Ref: 524 Objective: 2 AACSB: Analytic skills Difficulty: Moderate

86) Which of the following functions of public relations departments involves presenting news and information about the organization in the most positive light? A) corporate communications B) product publicity C) lobbying D) counseling E) press relations

E Page Ref: 527 Objective: 4 Difficulty: Easy

An example of a restaurant with a narrow and deep assortment is a ________. A) small lunch counter B) cafeteria C) large restaurant D) fast-food restaurant chain E) delicatessen

E) delicatessen

A store selling expensive artwork and luxury goods typically falls into the ________ group with respect to margins and volume. A) mixed-markup, high-volume B) low-volume, mixed-markup C) low-volume, low-markup D) high-volume, low-markup E) high-markup, low-volume

E) high-markup, low-volume

The elapsed time between an order's receipt, delivery, and payment is called the ________ cycle. A) variable-costs-to-payment B) product-to-payment C) inventory-to-sale D) order-to-inventory E) order-to-payment

E) order-to-payment

Walmart developed the Ol'Roy brand of dog food to sell only in its stores. Ol'Roy is an example of a ________. A) generic product B) national brand C) franchise D) copy-cat brand E) private label

E) private label

A brand developed by a retailer and/or wholesaler that is available only in selected retail outlets is called a ________ brand. A) generic B) franchisee C) marque D) national E) private-label

E) private-label

The owner of supermarket chain Reynold's wants to offer nonfood items such as greeting cards and magazines. However, Reynold's does not want to take care of setting up displays and maintaining inventory records. Which of the following types of wholesalers can help Reynold's meet customer demand while minimizing costs? A) producers' cooperatives B) cash and carry wholesalers C) truck wholesalers D) drop shippers E) rack jobbers

E) rack jobbers

103) P&G's Vocalpoint is a group built on the premise that moms who have conversations with three to five women each day are more influential than women who speak to 25 to 30 other women during the day.

FALSE

105) A recent Nielsen survey found that online customer reviews were the most trusted source of brand information.

FALSE

106) Social influence can lead to disproportionally positive online ratings, and subsequent raters are more likely to be influenced by previous negative ratings than positive ones.

FALSE

21) Non-digital media provide marketers and consumers with opportunities for much greater interaction and individualization than digital media.

FALSE

23) Earned media includes company-generated advertising, publicity, and other promotional efforts.

FALSE

25) It is difficult for marketers to trace the effects of online marketing communications.

FALSE

26) Relative to online marketing communications, traditional media offers advantages related to contextual placement.

FALSE

27) Beauty pioneer Estée Lauder does not utilize Internet marketing because the multimillion-dollar cosmetics business uses three means of communication: "telephone, telegraph, and tell a woman."

FALSE

30) The amount spent on search ads in 2013 was $12.8 billion.

FALSE

31) When Tough Mudder launched in 2010, it spent its entire $8,000 communication budget on mobile advertising, which generated plenty of word of mouth.

FALSE

33) A Web site's physical attractiveness is ensured when the site downloads quickly, the first page is easy to understand, and it is easy to navigate to other pages that open quickly.

FALSE

36) Microsites are less relevant for companies selling low-interest products.

FALSE

37) Average click-through for pay-per-click ads is about 0.08 percent.

FALSE

39) If Apple wanted to generate or convert sales leads, it should focus on broader search terms.

FALSE

42) Social media ads prompt purchase at least three times more often than e-mails, and the average order value from social media ads is thought to be 17 percent higher.

FALSE

45) Clickable graphic icons and buttons that link to more details of a marketing offer have lower click-through rates than links that simply utilize an Internet address.

FALSE

67) At the PopSugar blog site, a team of bloggers tracks green consumer products for 5 million unique visitors per month.

FALSE

68) Bloggers do not need to disclose their relationship with marketers whose products they endorse.

FALSE

69) Facebook is an early warning system for firms that permits rapid response, whereas Twitter allows deeper dives to engage consumers in more meaningful ways.

FALSE

70) San Francisco bakery Mission Pie benefited from sending tweet alerts about its events on TreeHugger.com.

FALSE

94) Persuasive advertising aims to create brand awareness and knowledge of new products or new features of existing products.

FALSE Page Ref: 505 Objective: 1 Difficulty: Easy

95) Reinforcement advertising aims to stimulate repeat purchase of products and services.

FALSE Page Ref: 505 Objective: 1 Difficulty: Easy

96) If the product class is mature, then the advertising objective is to convince the market of the brand's superiority.

FALSE Page Ref: 505 Objective: 1 Difficulty: Easy

98) Brands in highly-differentiated product classes require heavy advertising to establish a unique image.

FALSE Page Ref: 505 Objective: 1 Difficulty: Easy

99) Print advertising (newspapers and magazines) is generally acknowledged as the most powerful advertising medium.

FALSE Page Ref: 507 Objective: 1 Difficulty: Easy

102) Puffery refers to simple exaggerations in advertisements that are not meant to be believed and are considered illegal.

FALSE Page Ref: 510 Objective: 1 Difficulty: Moderate

104) The higher the forgetting rate associated with a brand, product category, or message, the lower the warranted level of repetition.

FALSE Page Ref: 511 Objective: 1 Difficulty: Easy

106) Outdoor advertising is more effective at creating new brand associations than enhancing brand awareness or brand image.

FALSE Page Ref: 515 Objective: 1 Difficulty: Moderate

107) The macroscheduling decision calls for allocating advertising expenditures within a short period to obtain maximum impact.

FALSE Page Ref: 517 Objective: 1 Difficulty: Moderate

110) An advertiser makes "local buys" when it buys TV time in just a few markets or in regional editions of magazines.

FALSE Page Ref: 518 Objective: 1 Difficulty: Easy

111) Sales promotion consists of a collection of incentive tools designed to mainly stimulate long-term brand associations of products or services with consumers or the trade.

FALSE Page Ref: 519 Objective: 2 Difficulty: Easy

116) Loyal brand buyers tend to change their buying patterns as a result of competitive promotions.

FALSE Page Ref: 519 Objective: 2 Difficulty: Easy

118) Examples of manufacturer promotions include price cuts and feature advertising.

FALSE Page Ref: 520 Objective: 2 Difficulty: Easy

123) The supply-side method identifies the effect sponsorship has on consumers' brand knowledge.

FALSE Page Ref: 526 Objective: 3 Difficulty: Easy

128) The public relations function of lobbying involves advising management about public issues, and company positions and image during good times and bad.

FALSE Page Ref: 527 Objective: 4 Difficulty: Easy

129) The main objective of marketing public relations is to secure editorial space in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization.

FALSE Page Ref: 527 Objective: 4 Difficulty: Easy

133) MPR is effective in blanketing local communities and reaching specific groups and hence has to be planned separately from the less cost-effective advertising.

FALSE Page Ref: 528 Objective: 4 Difficulty: Easy

132) MPR can build credibility by placing stories in the media to bring attention to a product, service, person, organization, or idea.

FALSE Page Ref: 528 Objective: 4 Difficulty: Moderate

134) MPR's contribution to a company's bottom line is the easiest to measure among all the available promotion tools.

FALSE Page Ref: 529 Objective: 4 Difficulty: Moderate

PRODUCTS CAN BE DIFFERENTIATED BY ?

FORM FEATURES PERFORMANCE CONFORMANCE QUALITY DURABILITY RELIABILITY REPAIRABILITY STYLE CUSTUMIZATION DESIGN

BUYER SATISFACTION IS THE FUNCTION BETWEEN?

FUNCTION OF THE PRODUCT PERCEIVED PERFORMANCE AND BUYER EXPECATATION

forum

Faith is a big fan of a popular musical group, so she created a place for other fans to communicate with each other online. Faith created a ________.

TED TALK II - STRATEGY

TED TALK II - STRATEGY

TED TALK NOTES 4 P'S:

TED TALK NOTES 4 P'S:

PRODUCT IS ANYTHING THAT

THAT CAN BE OFFERED TO A MARKET TO SATISFY A WANT OR NEED

101) Only 4 percent of content cascades to more than one person beyond the initial recipient.

TRUE

20) The newest and fastest-growing channels for communicating and selling directly to customers are digital.

TRUE

41) When Johnson & Johnson's ads popped up on brokers' Web sites whenever the stock market fell by 100 points or more, it was an example of an interstitial.

TRUE

102) Consumers are more likely to share a viral video ad when the brand uses pulsing so it is not too intrusive in the video.

TRUE

104) BzzScapes are digital tools to activate widespread opinion-sharing throughout its own social media site and each member's personal social circles.

TRUE

132) Mobile ad copy should occupy only 50 percent of the screen, avoiding complex viewing experiences that may take a toll on consumers' battery and data availability as well as their time.

TRUE

133) In mobile ads, calls to action should be highlighted with a bright color.

TRUE

19) Doritos brand's "Crash the Super Bowl" contest resulted in a healthy uptick in Twitter, Facebook, and other social media activity.

TRUE

22) Paid media includes company-generated advertising, publicity, and other promotional efforts.

TRUE

24) Social media play a key role in earned media.

TRUE

28) Of the time US consumers spend with all media, almost half is spent online.

TRUE

29) In 2013, total digital ad spending surpassed TV advertising for the first time.

TRUE

32) A Web site's ease of use means the site downloads quickly, the first page is easy to understand, and it is easy to navigate to other pages that open quickly.

TRUE

34) J.D. Power found that consumers who were "delighted" with an automotive manufacturer's Web site were more likely to test drive one of its vehicles as a result.

TRUE

35) One of the key recommendations for managing Web site privacy "touch points" is preventing human intrusion by using automation whenever possible.

TRUE

38) Search engine optimization (SEO) describes activities designed to improve the likelihood that a link for a brand is as high as possible in the rank order of all nonpaid links when consumers search for relevant terms.

TRUE

40) Internet users spend only 5 percent of their time actually searching for information.

TRUE

43) Williams-Sonoma reported a tenfold increase in response rates when it adopted personalized e-mail offerings based on individuals' on-site and catalog shopping behavior.

TRUE

44) To increase the effectiveness of e-mails, some researchers are employing "heat mapping," which tracks eye movements with cameras to measure what people read on the computer screen.

TRUE

65) Social media allow marketers to build or tap into online communities, inviting participation from consumers and creating a long-term marketing asset in the process.

TRUE

71) When it comes to social media, only some consumers want to engage with some brands, and, even then, only some of the time.

TRUE

98) AT&T found word of mouth was one of its most effective drivers of its sales.

TRUE

99) Viral marketing is a form of online word of mouth, or word of mouse, that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online.

TRUE

93) An advertising objective is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time.

TRUE Page Ref: 504 Objective: 1 Difficulty: Easy

97) Established brands usually are supported with lower advertising budgets, measured as a ratio to sales.

TRUE Page Ref: 505 Objective: 1 Difficulty: Easy

100) Although newspapers are timely and pervasive, magazines are typically more effective at building user and usage imagery.

TRUE Page Ref: 508 Objective: 1 Difficulty: Easy

101) Researchers studying print advertisements report that the picture, headline, and copy matter in that order.

TRUE Page Ref: 508 Objective: 1 Difficulty: Easy

103) Reach of an advertising message is most important when launching new products, flanker brands, extensions of well-known brands, or infrequently purchased brands.

TRUE Page Ref: 511 Objective: 1 Difficulty: Easy

105) The rationale behind place advertising is that marketers are better off reaching people where they work, play, and shop.

TRUE Page Ref: 512 Objective: 1 Difficulty: Easy

108) The forgetting rate is the rate at which the buyer forgets the brand; the higher the forgetting rate, the more continuous the advertising should be.

TRUE Page Ref: 517 Objective: 1 Difficulty: Easy

109) Concentrated advertising is well suited for products with one selling season or related holiday.

TRUE Page Ref: 517 Objective: 1 Difficulty: Easy

112) Sales promotions often attract brand switchers, who are primarily looking for low price, good value, or premiums.

TRUE Page Ref: 519 Objective: 2 Difficulty: Easy

113) Sales promotions in markets of high brand similarity can produce a high sales response in the short run but little permanent gain in brand preference over the longer term.

TRUE Page Ref: 519 Objective: 2 Difficulty: Easy

114) Incessant price reductions, coupons, deals, and premiums can devalue a product in buyers' minds.

TRUE Page Ref: 519 Objective: 2 Difficulty: Easy

115) The historical approach correlates past sales to past advertising expenditures using advanced statistical techniques.

TRUE Page Ref: 519 Objective: 2 Difficulty: Easy

117) Dominant brands offer sales promotion deals less frequently, because most deals subsidize only current users.

TRUE Page Ref: 520 Objective: 2 Difficulty: Easy

119) Sales promotion tools that typically are not brand building include price-off packs, contests and sweepstakes, consumer refund offers, and trade allowances.

TRUE Page Ref: 520 Objective: 2 Difficulty: Moderate

120) Manufacturers handle forward buying and diverting by producing and delivering less than the full order in an effort to smooth production.

TRUE Page Ref: 522 Objective: 2 Difficulty: Moderate

121) Additional costs beyond the cost of specific promotions include the risk that promotions might decrease long-run brand loyalty.

TRUE Page Ref: 524 Objective: 2 Difficulty: Easy

122) An ideal event is also unique but not encumbered with many sponsors, lends itself to ancillary marketing activities, and reflects or enhances the sponsor's brand or corporate image.

TRUE Page Ref: 525 Objective: 3 Difficulty: Easy

125) Media coverage and telecasts only expose the brand and don't necessarily embellish its meaning in any direct way.

TRUE Page Ref: 526 Objective: 3 Difficulty: Easy

126) The supply-side measurement method focuses on potential exposure to the brand by assessing the extent of media coverage, and the demand-side method focuses on exposure reported by consumers.

TRUE Page Ref: 526 Objective: 3 Difficulty: Easy

124) Although supply-side exposure methods provide quantifiable measures, equating media coverage with advertising exposure ignores the content of the respective communications.

TRUE Page Ref: 526 Objective: 3 Difficulty: Moderate

127) A public is any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives.

TRUE Page Ref: 527 Objective: 4 Difficulty: Easy

130) Creative public relations can affect public awareness at a fraction of the cost of advertising.

TRUE Page Ref: 528 Objective: 4 Difficulty: Easy

131) MPR can hold down promotion cost because it costs less than direct-mail and media advertising.

TRUE Page Ref: 528 Objective: 4 Difficulty: Easy

STRATEGIC PLANS NEEDS TO?

WHAT IS THE MISSION, ESTABLISH STRATEGIC BUSINESS UNIT (SBU), ASSIGN RESOURCES, AND ACESS GROWTH OPPORTUNITIES

PROMOTION IS?

WHAT MOST PEOPLE THINK OF WHEN THEY THINK OF MARKETING. INCLUDES: ADVERTISING, PERSONAL SELLING SALES PROMOTION PUBLIC RELATIONS, SPOCERING LITTLE LEAGUE GAME, SALES CALL, HANDING OUT BROSHURES, ANSERING CLIENT EMAILS...

PRODUCT IS?

WHAT YOUR SELLING (PRODUCT OR SERVICE) DIFFERANT VARIETIES OF THE PRODUCT, DISGN PACKAGE AND/OR BRANDING

source

When researchers seek to evaluate word of mouth according to the relevance, sentiment, and authority of where the message came from, they are focused on characterizing the message's ________.

competitive-parity method

Which method for establishing the total marketing communications budget sets communication budgets to achieve the same amount of share-of-voice as competitors?

Sales promotion tools provide an incentive that gives value to the consumer.

Which of the following benefits is offered by sales promotion tools?

public relations and publicity

Which of the following elements of the marketing communications mix includes a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications?

advertising

Which of the following elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media?

noise

Which of the following factors found in the macromodel of the communications process refers to random and competing messages that may interfere with the intended communication?

brand salience

Which of the following increases the likelihood a brand is discussed in face-to-face, oral communications?

Social media allows companies to have a short-term focus.

Which of the following is NOT a benefit of a social media presence for a brand?

guerilla marketing

Which of the following is NOT one of the four main categories of online marketing communications?

Identify underserved, inactive individuals and devote extra effort to them.

Which of the following is NOT one of the steps that can improve the likelihood of starting positive buzz?

Gawker media

Which of the following is a blog network?

Marketers can personalize messages.

Which of the following is a reason why marketers see appeal in using mobile devices as a communication tool?

Companies can offer tailored information or messages that engage consumers.

Which of the following is an advantage of online communications for marketers?

sales presentations

Which of the following is an example of a personal selling communication platform?

Lobbying

Which of the following is an example of a public relations and publicity communication platform?

display allowances

Which of the following is an example of a trade promotion?

chat rooms

Which of the following is an example of a word-of-mouth marketing communication platform?

Posters and leaflets

Which of the following is an example of an advertising platform?

mobile phones

Which of the following is consumers' "third screen"?

The first page is easy to use

Which of the following is one of the elements of a site's ease of use?

cognitive stage—affective stage—behavioral stage

Which of the following is the correct order of stages that a buyer is assumed to pass through, by the four classic response hierarchy models?

establishing category need

Which of the following is the marketing communications objective for a new-to-the-world product, such as electric cars?

personal selling

Which of the following marketing communications tools is most effective at influencing customers at the conviction stage of buyer readiness?

sales promotion

Which of the following marketing communications tools is most influential at the reordering stage of buyer readiness?

Public relations can reach prospects who prefer to avoid mass media and targeted promotions.

Which of the following statements correctly reflects a characteristic of public relations as a marketing communications tool?

Advertisements can legitimize the company and introduce its products.

Which of the following statements is TRUE of the role of advertising in business markets?

SHOULD WE PLAN OR STRATEGIZE PLANNING INTO AN ADAPTIVE ENVIRENMENT? OR A TURBULANT TECHNLOGY INDUSTRY VIRTULLY IMPOSSIBLE TO FORECAST?

YOU CANT PLAN USE BIOLOGY & EXPERIEMENT, SELECT, SCALE-UP AND RE-ITERATE

Social media

________ are a means for consumers to share text, images, audio and video information with each other and with companies, and vice versa.

Mobile apps

________ are bite-sized software programs that can be downloaded to smart phones.

Viral marketing

________ is a form of online word of mouth, or "word of mouse," that encourages consumers to pass along company-developed products and services or audio, video or written information to others online.

Six

________ out of every 10 U.S. consumers owned a smart phone in 2014.

Events and experiences

________ refer to the marketing communications element that involves company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers.

integrated marketing communications

________ refers to a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.

Marketing communications

________ refers to the means by which firms attempt to inform, persuade, and remind consumers-directly or indirectly-about the products and brands they sell.

Facebook and Twitter's noncommercial nature makes it easier for marketers to attracts attention and persuade customers

false

MPR can build credibility by placing stores in the media to bring attention to a product, service, person, organization, or idea

false

MPR is effective in blanketing local communities and reaching specific groups and hence has to be planned sperately from the less cost-effective advertising

false

P&G's Vocalpoint is a group built on the premise that highly engaged individuals do not want to be bothered with learning about products

false

a drawback of public relations is that it does not reach prospects who prefer to avoid mass media and targeted promotions

false

a functional organization allows for adequate planning as the member of products and markets of a firm increases

false

a pull strategy is particularly appropriate when there is low brand loyalty in a category, brand choice is made in the store, the product is an impulse item, and product benefits are well understood

false

a recent Nielsen survey found that online customer reviews were the most trusted source of brand information

false

a superstore is a storeless retailer serving a specific clientele who are entitled to buy from a list of retailers that have agreed to give discounts in return for membership

false

a waterfall approach to entering foreign markets is described as entering countries simultaneously

false

advertising and publicity play the most important roles in the conviction stage of buyer readiness

false

bloggers do not need to disclose their relationship with marketers whose products they endorse

false

brands in highly differentiated product classes require heavy advertising to establish a unique image

false

brick-and-click companies are those that have launched a Web site without any previous existence as a firm

false

cause-related marketing efforts are unlikely to backfire as customers generally view the company's motives as genuine

false

companies enter the international market only when their domestic markets are saturated

false

consumers are more likely to transmit negative WOM and pass on information about their own negative consumption experiences than about others' negative experiences

false

country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods

false

department stores only face competition from other department stores as other retailing forms pose little threat to their sales and profitability

false

earned media includes company-generated advertising, publicity, and other promotional efforts

false

examples of manufacturer promotions include price cuts and feature advertising

false

exclusive dealings and tying agreements are illegal and prohibited by law

false

forward invention refers to reintroducing earlier product forms that are well adapted to a foreign country's needs

false

full-service retailers generally have the lowest costs of all retail types

false

growth in the retail market is centered firmly in the middle market, leaving luxury retailers and discounting specialists struggling

false

if a small Iowa college builds awareness among applicants from Nebraska, increases the target audience's knowledge about its offerings, communicated in a way that makes the target audience like it and prefer it to other colleges, builds intent to apply, and gets the target audience to attend, its a do-feel-learn experience

false

if the product class is mature, then the advertising objective is to convince the market of the brand's superiority

false

in general, a company prefers to enter countries that have high market attractiveness and high market risk, regardless of whether it possesses a competitive advantage

false

in the new connection environment, advertising is often the single most important element of a marketing communications program for sales and building brand and consumer equity

false

indirect exports are characterized by high investment, and therefore high risk

false

it is difficult for marketers to trace the effects of online marketing communications

false

lot size refers to the total number of units a channel can transmit from the manufacturers place to the service outlet

false

manufacturers can obtain greater control over the selling process by using a sales agency

false

marketers should assume that buyers will pass through the classic hierarchy of affective, cognitive, and behavioral stages, in that order

false

marketing channel functions such as storage and movement and communications constitute a backward flow of activities

false

microsites are less relevant for companies selling low-interest products

false

more stocking locations mean goods can be delivered to customers more quickly, and warehousing and inventory costs are lower

false

non-digital media provides marketers and consumers with opportunities for much greater individualization than digital media

false

one-sided presentations that praise a product are found to be more effective than two-sided arguments that also mention shortcomings

false

personal selling refers to person-to-person oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services

false

persuasive advertising aims to create brand awareness and knowledge of new products or new features of existing products

false

preparing separate, unrelated online and offline communications improves consistency by sending distinct messages

false

private-label or store brands are also known as generics

false

problem removal and normal depletion are examples of positively oriented relevant brand needs

false

product adaptation not only involves altering the product to meet local preferences, but also calls for a change in the communication strategy

false

regional economic integration has intensifies in recent years, so companies are less likely to enter entire regions at the same time

false

retailer cooperatives allow nonmember retailers to buy through them and share the profits

false

retailers are increasingly likely to reach their consumers by using a single channel

false

social media ads prompt purchase at least 3 times more often than emails, and the average order value from social media ads is thought to be 17% higher

false

the higher the forgetting rate associated with a brand, product category, or message, the lower the warranted level of repetition

false

the macroscheduling decision calls for allocating advertising expenditures within a short period to obtain maximum impact

false

the main disadvantage of direct investment is that the partners might disagree over investment, marketing, or other policies

false

the more favorable a country's image, the less prominently the "Made in..." label should be displayed

false

the percentage-of-sales method leads to a budget set by market opportunities rather than by the availability of funds

false

the product-management organization replaces the functional organization in the firm

false

the public relations function of lobbying involves advising management about public issues as well as company positions and image during good times and bad

false

the rapid diffusion of multipurpose smart phones, broadband and wireless internet connections, and ad-skipping digital video recorders (DVRs) have augmented the effectiveness of the mass media

false

the redemption rate for paper coupons (10 percent) far exceeds that of mobile coupons (1 percent)

false

the supply-side method identifies the effect sponsorship has on consumers' brand knowledge

false

the two-step flow supports the notion that consumption styles are primarily influenced by a "trickle down" or "trickle up" effect from mass media

false

transforming into a true market-driven company involves organizing around products

false

wholesalers exclude manufacturers and farmers because they are engaged primarily in production, but include retailers, as they are selling to the end consumer

false

BUYING PROCESS?

problem recognition, information search, alternative evaluation, purchase decision, post purchase behavior

WHAT IS MARKETING?

the activity, set of institutions, and processes for creating, communicating, delivering VALUE TO CUSTOMER AND FOR MANAGING CUSTOMER RELATIONSHIP IN WAYS THAT BENEFIT THE ORGANIZATION AND ITS STAKEHOLDERS

WHAT IS MARKETING MANAGEMENT?

the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value

"pop-up" stores let retailers promote brands to seasonal shoppers for a limited time

true

Companies should first think of the target market and then design the supply chain backward from that point. This strategy is called demand chain planning

true

a "do-feel-learn" response sequence is considered appropriate when the audience has high involvement but perceives little or no differentiation within the product category

true

a corporate vertical marketing system combines successive stages of production and distribution under single ownership

true

a marketing channel overcomes the time, place, and possession gaps that separate goods and services from those who need or want them

true

a public is any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives

true

a web site's ease of use means the site downloads quickly, the first page is easy to understand, and its easy to navigate to other pages that open quickly

true

advertising can build up a long-term image for a product or trigger quick sales

true

after a company has chosen a channel system, it must select, train, motivate and evaluate individual intermediaries for each channel

true

all functions in a marketing channel use up scarce resources and can be shifted among channel members

true

although supply-side exposure methods provide quantifiable measures of sponsorship activities, equating media coverage with ad exposure ignores the content of the respective communications

true

an advertising objective is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time

true

an ideal event is unique but not encumbered with many sponsors, lends itself to ancillary marketing activities, and reflects or enhances the sponsor's brand or corporate image

true

an intensive distribution strategy serves well for products such as snack foods and soft drinks

true

because of insincere firms jumping on the "green" bandwagon, consumers bring a healthy skepticism to environmental claims, but they are also unwilling to sacrifice product performance and quality

true

channel power is the ability to alter channel members' behavior so that they take actions they would not have taken otherwise

true

companies are trying to give their customers more control over their shopping experiences by bringing web technologies into the store via mobile apps

true

companies must adopt and disseminate a written code of ethics, build a company tradition of ethical behavior, and hold their people fully responsible for observing ethics and legal guidelines if they wish to demonstrate ethical behavior

true

companies who want to carry near-zero inventory should build for order, not for stock

true

concentrated advertising is well suited for products with one selling season or related holiday

true

consumers are more likely to discuss brands online if they are salient and come easily to mind

true

electronic shopping is a form of direct marketing

true

featuring exclusive national brands that are not available at competing retailers is a way of differentiating a retailer

true

firms are increasingly recognizing the importance of influencing consumers at the point of purchase

true

if the Coolest Cooler introduced its cooler to the general market and developed communications around the idea that it was going to develop awareness, interest, evaluation, trial, and then adoption, it would be anticipating a learn-feel-do sequence of consumer responses

true

in general, personal selling is one of the most helpful tools for closing sales

true

in mobile ads, calls to action should be highlighted with a bright color

true

in the growth stage of a product's lifestyle, demand has its own momentum through word of mouth and interactive marketing

true

internal marketing requires that everyone in the organization buy into the concepts and goals of marketing and engage in choosing, providing, and communicating customer value

true

inventory cost increases at an accelerating rate as the customer service level approaches 100 percent

true

manufacturers that add online channels may avoid alienating retailers or other intermediaries by offering different brands or products through online channels than in stores

true

market managers are staff people, with duties like those of a product manager

true

marketing channels are the set of pathways a product or service follows after production, culminating in purchase and consumption by the final end user

true

marketing communications allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things

true

marketing communications in almost every medium and form have been on the rise, and some consumers feel they are increasingly invasive

true

media coordination can occur across and within media types, but marketers should combine personal and nonpersonal communication channels through multiple-vehicle, multiple-stage campaigns to achieve maximum impact and increase message reach and impact

true

mobile and copy should occupy only 50 percent of the screen

true

multichannel conflicts are common when the members of one channel obtain a lower price based on larger-volume purchases

true

of the time U.S. consumers spend with all media, almost half is spent online

true

only four percent of online content cascades to more than one person beyond the initial recipient

true

reach of an advertising message is most important when launching new products, flanker brands, extensions of well-known brands, or infrequently purchased brands

true

sales promotions in markets of high brand similarity can produce a high sales response in the short run but little permanent gain in brand preference over the long term

true

search engine optimization (SEO) describes activities designed to improve the liklihood that a link for a brand is as high as possible in the rankn order all nonpaid links when consumers search for relevant terms

true

services represent the fastest-growing sector of the global economy and account for two-thirds of the global output

true

shopper marketing is the way manufacturers and retailers use stocking, displays, and promotions to affect customers while they are in store

true

social media allow marketers to build or tap into online communities, inviting participation from consumers and creating a long-term marketing asset in the process

true

social media plays a key role in earned media

true

some high-volume products may have such high standing costs that they are less profitable and deserve less shelf space than low-volume products

true

supply chain management starts before physical distribution

true

the actual success of a social marketing program should be evaluated in terms of the program objectives

true

the aim of place advertising is to reach people where they work, play and shop

true

the flow of materials to refurbish products for resale constitutes a reverse flow

true

the historical approach correlates past sales to past advertising expenditures using advanced statistical techniques

true

the lower price of generics is made possible by lower-cost labeling and packaging and minimal advertising, and sometimes lower-quality ingredients

true

the network marketing sales system works by recruiting independent businesspeople who act as distributors

true

the supply-side of measurement method focuses on potential exposure to a brand by assessing the extent of media coverage of an event, and the demand-side focuses on exposure reported by consumers

true

when it comes to social media, only some consumers want to engage with some brands, and even then, only some of the time

true

wholesaling includes all the activities in selling goods or services to those who buy for resale or business use

true

136) Explain the classification of advertising objectives.

(1) Informative advertising aims to create brand awareness and knowledge of new products or new features of existing products. (2) Persuasive advertising aims to create liking, preference, conviction, and purchase of a product or service. Some persuasive advertising uses comparative advertising, which makes an explicit comparison of the attributes of two or more brands. Comparative advertising works best when it elicits cognitive and affective motivations simultaneously, and when consumers are processing advertising in a detailed, analytical mode. (3) Reminder advertising aims to stimulate repeat purchase of products and services. (4) Reinforcement advertising aims to convince current purchasers that they made the right choice. Page Ref: 504-505 Objective: 1 Difficulty: Moderate

135) In developing an advertising program, marketing managers can make the five major decisions known as the five Ms. List and explain each of these Ms.

(1) Mission—sales goals and advertising objectives; (2) Money—factors to consider: stage in PLC, market share and consumer base, competition and clutter, advertising frequency, and product substitutability; (3) Message—message generation, message evaluation and selection, message execution, and social-responsibility review; (4) Media—reach, frequency, impact, major media types, specific media vehicles, media timing, and geographical media allocation; and (5) Measurement—communication impact and sales impact. Page Ref: 504 Objective: 1 Difficulty: Moderate

CONSUMER BEHAVIOR IS INLFUENCED BY 4 SYCHOLOGIAL PROCESS?

-MOTIVATION -PERCEPTION LEARNING -MEDALING?

B

1) ________ includes all the activities in selling goods or services directly to final consumers for personal, nonbusiness use. A) Wholesaling B) Retailing C) Procurement D) Promoting E) Warehousing Page 447

B

1) ________ refers to the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell. A) Human resource development B) Marketing communications C) Financial management D) Operations management E) Planning

138) Give a brief description of the various factors that affect advertising budget decisions.

1. Stage in the product life cycle — New products typically merit large advertising budgets to build awareness and to gain consumer trial. Established brands usually are supported with lower advertising budgets, measured as a ratio to sales. 2. Market share and consumer base — High-market-share brands usually require less advertising expenditure as a percentage of sales to maintain share. To build share by increasing market size requires larger expenditures. 3. Competition and clutter — In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard. Even simple clutter from advertisements not directly competitive to the brand creates a need for heavier advertising. 4. Advertising frequency — The number of repetitions needed to put the brand's message across to consumers has an obvious impact on the advertising budget. 5. Product substitutability — Brands in less-differentiated or commodity-like product classes (beer, soft drinks, banks, and airlines) require heavy advertising to establish a unique image. Page Ref: 505 Objective: 1 Difficulty: Moderate

148) List the major objectives of events and experiences as promotion tools.

1. To identify with a particular target market or lifestyle 2. To increase salience of company or product name 3. To create or reinforce perceptions of key brand image associations 4. To enhance corporate image 5. To create experiences and evoke feelings 6. To express commitment to the community or on social issues 7. To entertain key clients or reward key employees 8. To permit merchandising or promotional opportunities Page Ref: 524-525 Objective: 3 Difficulty: Easy

Answer: The marketing communications mix consists of eight major modes of communication: 1. Advertising — Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media. 2. Sales promotion — A variety of short-term incentives to encourage trial or purchase of a product or service including consumer promotions, trade promotions, and business and sales force promotions. 3. Events and experiences — Company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers, including sports, arts, entertainment, and cause events as well as less formal activities. 4. Public relations and publicity — A variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications. 5. Direct marketing — Use of mail, telephone, fax, e-mail, or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects. 6. Interactive marketing — Online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services. 7. Word-of-mouth marketing — People-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services. 8. Personal selling — Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders.

120) What are the elements of the marketing communications mix?

Answer: The macromodel of the communications process has nine key factors in effective communication. Two represent the major parties — sender and receiver. Two represent the major tools — message and media. Four represent major communication functions — encoding, decoding, response, and feedback. The last element in the system is noise, random and competing messages that may interfere with the intended communication. Senders must know what audiences they want to reach and what responses they want to get. They must encode their messages so the target audience can decode them. They must transmit the message through media that reach the target audience and develop feedback channels to monitor the responses. The more the sender's field of experience overlaps that of the receiver, the more effective the message is likely to be.

121) Briefly describe the macromodel of the marketing communications process.

Answer: The macromodel of the communications process comprises of nine key factors in effective communication. Two represent the major parties - sender (Gravity) and receiver (audience). Two represent the major tools - message (content of the ad) and media (print, TV, radio, etc). Four represent the major communications functions - encoding (creation and transmission of the ad by Gravity), decoding (the reception and comprehension of the ad by the audience), response (either ignoring the message or buying Gravity shirts), and feedback (customers providing information about the ad to measure its effectiveness). The last element is noise, random and competing messages that may interfere with the intended communication. Examples of noise in this case could be misunderstood messages from the ad, similar ads from competitors, etc.

122) Gravity is a company that markets customized T-shirts to its customers. Gravity runs an ad that seeks to attract more customers. Apply the macromodel of the communications process to describe the communication between Gravity and its target customers.

Answer: All the four classic response hierarchy models assume that the buyer passes through cognitive (learn), affective (feel), and behavioral stages (do), in that order. Since buying a car, used or new, represents a significant investment for the buyer, it can be said that the buyer has involvement in the purchase decision and perceives high differentiation with the product category. Hence a "learn-feel-do" sequence is considered appropriate for the used-car showroom account. Similarly, a buyer intending to purchase home appliances, such as a dishwasher or a refrigerator, has high involvement in the purchase decision, even though he perceives little differentiation within the product category. Hence, a "do-feel-learn" approach may be appropriate when planning communications for the home appliances account. Finally, a buyer has low involvement in purchasing soap that has very little differentiation within its category. For the soap company account, Alan should consider a "learn-do-feel" sequence for planning communications.

123) Alan is an executive with an ad agency that has been entrusted with accounts for a used-car showroom, a home appliances maker, and a soap company. With reference to response hierarchy models, how does Alan plan communication strategies for the three accounts effectively?

Answer: Student answers may vary. Since customers are comfortable with their present electronic razors, Derek's communications strategy should aim to build preference for Glazers. Customers have already developed a liking for Glazers. So, Derek should focus on comparing the quality of Glazers with that of competing brands. This can be done by illustrating the improved features of Glazers that provide clean and hassle-free use. Derek could do well to compare the Glazers with other brands in terms of value, utility, and performance factors as well.

124) Derek is working on promoting his company's Glazer brand of electronic razors. Preliminary surveys have revealed that even though a sizable portion of the target market has developed a liking for the product due to innovative advertising, few customers would actually consider replacing their current razors with Glazers. How can Derek modify the communications program to get customers to favor Glazers over other brands?

Answer: Student answers may vary. Derek's task, once the intent to make a purchase has been fostered in the consumers, is to lead the them to the actual buying action. This can be achieved by offering the razors at a low introductory purchase to encourage initial use among customers, offering a discount on the price, or holding a promotional event where they can actually try out the product first-hand.

125) Derek is working on promoting his company's Glazer brand of electronic razors. Market research suggests that the target audience possesses an intent to use Glazers, but is dithering over actually making the purchase. How can Derek modify the communications program to get customers to purchase Glazer razors?

B

18) Which of the following is an example of direct marketing? A) E&OE sells its herbal skincare products exclusively through its stand-alone stores. B) TCJ is a telemarketing firm that sells products from a number of different suppliers. C) Jayne's sells most of its products to customers through home sales parties. D) J3 is a storeless retailer that organizes the retail activity of the employees of four firms. E) Reynold's tries to minimize its staff costs by installing vending machines in its stores. Page 449

Answer: Micromodels of marketing communications concentrate on consumers' specific responses to communications. All the response hierarchy models assume the buyer passes through cognitive, affective, and behavioral stages, in that order. This "learn-feel-do" sequence is appropriate when the audience has high involvement with a product category perceived to have high differentiation, such as an automobile or house. An alternative sequence, "do-feel-learn," is relevant when the audience has high involvement but perceives little or no differentiation within the product category, such as an airline ticket or personal computer. A third sequence, "learn-do-feel," is relevant when the audience has low involvement and perceives little differentiation, such as with salt or batteries. By choosing the right sequence, the marketer can do a better job of planning communications.

126) Provide a general description of the four classic response hierarchy models.

Answer: To increase the odds for a successful marketing communications campaign, marketers must attempt to increase the likelihood that each step occurs. For example, the ideal ad campaign would ensure that: 1. The right consumer is exposed to the right message at the right place and at the right time. 2. The ad causes the consumer to pay attention but does not distract from the intended message. 3. The ad properly reflects the consumer's level of understanding of and behaviors with the product and the brand. 4. The ad correctly positions the brand in terms of desirable and deliverable points-of-difference and points-of-parity. 5. The ad motivates consumers to consider purchase of the brand. 6. The ad creates strong brand associations with all these stored communications effects so they can have an impact when consumers are considering making a purchase.

127) What are the features of an ideal advertising campaign?

Answer: 1. Identify target audience 2. Determine objectives 3. Design communications 4. Select channels 5. Establish budget 6. Decide on media mix 7. Measure results 8. Manage integrated marketing communications

128) What are the steps involved in developing effective marketing communications?

Answer: The objective for Nissin's marketing communications objective should be to build brand awareness, i.e. fostering the consumer's ability to recognize or recall the brand within the category, in sufficient detail to make a purchase. Recognition is easier to achieve than recall—consumers asked to think of a brand of frozen entrées are more likely to recognize Stouffer's distinctive orange packages than to recall the brand. Brand recall is important outside the store; brand recognition is important inside the store. Brand awareness provides a foundation for brand equity.

129) When asked about their preferred brand of instant noodles outside a supermarket setting, customers could not remember Nissin's name, but relied on the distinct packaging to help them spot the noodles while shopping. Describe how this problem can be addressed through the objective of Nissin's marketing communications.

C

13) H&A is a retail chain that specializes in selling goods at very low prices. To achieve this, it stocks a very narrow assortment of basic necessities and offers customers a "no-frills" shopping experience. H&A is an example of a(n) ________ store. A) off-price B) specialty C) hard-discount D) superstore E) convenience Page 449

C

13) Which of the following is an example of an events and experiences platform? A) fairs and trade shows B) continuity programs C) factory tours D) sales presentations E) community relations

Answer: Brand awareness refers to fostering the consumer's ability to recognize or recall the brand within the category, in sufficient detail to make a purchase. Recognition is easier to achieve than recall. Brand recall is important outside the store; brand recognition is important inside the store. Brand awareness provides a foundation for brand equity.

130) Write a short note on "brand awareness" as an objective of marketing communications.

Answer: Communicators use negative appeals such as fear, guilt, and shame to get people to do things (brush their teeth, have an annual health checkup) or stop doing things (smoking, abusing alcohol, overeating). Fear appeals work best when they are not too strong, when source credibility is high, and when the communication promises, in a believable and efficient way, to relieve the fear it arouses. Messages are most persuasive when moderately discrepant with audience beliefs. Stating only what the audience already believes at best just reinforces beliefs, and if the messages are too discrepant, audiences will counterargue and disbelieve them. Communicators also use positive emotional appeals such as humor, love, pride, and joy. Motivational or "borrowed interest" devices—such as the presence of cute babies, frisky puppies, popular music, or provocative sex appeals—are often employed to attract attention and raise involvement with an ad. These techniques are thought necessary in the tough new media environment characterized by low-involvement consumer processing and competing ad and programming clutter. Attention-getting tactics are often too effective. They may also detract from comprehension, wear out their welcome fast, and overshadow the product.

131) Compare and contrast the use of negative and positive appeals in advertising messages.

Answer: Student answers may vary. Negative appeals such as fear, guilt, and shame are used by communicators to get people to do things (brush their teeth) or stop doing things (smoking). The cooking oil ad can use fear appeals to get consumers to start using its product. This can be achieved by depicting health risks associated with using cooking oils other than Savola, such as hypertension, heart attacks, etc. Guilt appeal can be used to depict a family grieving the death of someone who did not use Savola. Shame appeal could illustrate the case of a parent who cannot play catch with his kids because his fitness is compromised by not using Savola. However, the ad agency should take care to ensure that the negative appeals do not come across as too strong to the audiences, the credibility of the source in the ads is high, and the ad promises to relieve fears of health risks in a believable and efficient way. The ad is most persuasive when moderately discrepant with audience beliefs. If the ad merely says that using unhealthy oil leads to health risks, it only serves to reinforce the belief, and if the message exaggerates the health risks of not using Savola, audiences will only counterargue and disbelieve the ad.

132) An ad agency has landed an account for Savola, a brand of healthy cooking oil. Describe how the ad can incorporate negative appeals in its messages effectively.

D

19) Along which of the following parameters should marketers evaluate communication options when building brand equity? A) popularity B) innovativeness C) technological sophistication D) efficiency E) novelty

Answer: Celebrities are likely to be effective when they are credible or personify a key product attribute. Tiger Woods' personal problems have resulted in the erosion of his credibility as a product's spokesperson. The three most important sources of a spokesperson's credibility are expertise, trustworthiness, and likability. Following revelations about his personal life and his past indiscretions, his trustworthiness (how objective and honest the source is perceived to be) was negatively affected and also his likability (the source's attractiveness). The most highly credible source would score high on all three dimensions—expertise, trustworthiness, and likability. Scoring high on only one or two dimensions would still negatively affect his credibility. Also, the principle of congruity implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience. The converse also holds true, i.e. a product's positive brand image is likely to be hit by virtue of being associated with a communicator with a negative image.

133) Tiger Woods' endorsement deals were terminated by a host of sponsors, including Accenture, Gillette, AT&T, and General Motors. What are the reasons for these companies dropping Woods from their promotional efforts?

Answer: Personal influence carries especially great weight (1) when products are expensive, risky, or purchased infrequently, and (2) when products suggest something about the user's status or taste. On that count, life insurance, real estate, health services, automobiles, luxury items, consultation services, etc. can be expected to be significantly influenced by word-of-mouth and endorsements by credible sources.

134) Name a few products for which personal influence plays a significant role in marketing communications.

Answer: Using the objective-and-task method, Derek can arrive at the marketing communications budget by following these steps: 1. The company estimates 50 million potential users and sets a target of attracting 8 percent of the market—that is, 4 million users. 2. The percentage of the market that should be reached by advertising is determined. Derek hopes to reach 80 percent (40 million prospects) with his advertising message. 3. The percentage of aware prospects that should be persuaded to try the brand is then calculated. Derek would be pleased if 25 percent of aware prospects (10 million) tried Glazers. He estimates that 40 percent of all triers, or 4 million people, will become loyal users. This is the market goal. 4. Next, the number of advertising impressions per 1 percent trial rate is estimated. Derek estimates that 40 advertising impressions (exposures) for every 1 percent of the population will bring about a 25 percent trial rate. 5. The number of gross rating points that would have to be purchased is now calculated. A gross rating point is one exposure to 1 percent of the target population. Because Derek wants to achieve 40 exposures to 80 percent of the population, he will want to buy 3,200 gross rating points. 6. Finally, the necessary advertising budget on the basis of the average cost of buying a gross rating point is estimated. To expose 1 percent of the target population to one impression costs an average of $4,500. Therefore, 3,200 gross rating points will cost $14,400,000 (= $4,500 × 3,200) in the introductory year.

135) Derek is working on promoting his company's Glazer brand of electronic razors. The company estimates 50 million potential users and sets a target of attracting 8 percent of the market. Derek hopes to reach 80 percent of the potential customers with an advertising message. He would be pleased if 25 percent of the prospects that were aware, tried the Glazer. According to further estimates, 40 percent of all triers will become loyal users. If the cost of exposing 1 percent of the target population to one impression is $4500 on an average, determine the necessary advertising budget, according to the objective-and-task method.

Answer: Companies use sales promotion tools—coupons, contests, premiums, and the like—to draw a stronger and quicker buyer response, including short-run effects such as highlighting product offers and boosting sagging sales. Sales promotion tools offer three distinctive benefits: 1. Ability to be attention-getting—They draw attention and may lead the consumer to the product. 2. Incentive—They incorporate some concession, inducement, or contribution that gives value to the consumer. 3. Invitation—They include a distinct invitation to engage in the transaction now.

136) What are the major characteristics of sales promotions as an element of the marketing communications mix?

Answer: Although marketers rely more on sales calls in business markets, advertising still plays a significant role: 1. Advertising can provide an introduction to the company and its products. 2. If the product has new features, advertising can explain them. 3. Reminder advertising is more economical than sales calls. 4. Advertisements offering brochures and carrying the company's phone number or Web address are an effective way to generate leads for sales representatives. 4. Sales representatives can use copies of the company's ads to legitimize their company and products. 5. Advertising can remind customers how to use the product and reassure them about their purchase.

137) What is the role of advertising as a communications tool in marketing for business markets?

Answer: Communication tools vary in cost-effectiveness at different stages of buyer readiness. Advertising and publicity play the most important roles in the awareness-building stage. Customer comprehension is primarily affected by advertising and personal selling. Customer conviction is influenced mostly by personal selling. Closing the sale is influenced mostly by personal selling and sales promotion. Reordering is also affected mostly by personal selling and sales promotion, and somewhat by reminder advertising.

138) How do the stages of buyer readiness affect the composition of a product's marketing communications mix?

Answer: In the introduction stage of the product life cycle, advertising, events and experiences, and publicity have the highest cost-effectiveness, followed by personal selling to gain distribution coverage and sales promotion and direct marketing to induce trial. In the growth stage, demand has its own momentum through word of mouth and interactive marketing. Advertising, events and experiences, and personal selling all become more important in the maturity stage. In the decline stage, sales promotion continues strong, other communication tools are reduced, and salespeople give the product only minimal attention.

139) How do the stages in a product's life cycle influence the marketing communications mix?

B

14) E&OE produces and markets its own brand of skincare products using herbal remedies and natural ingredients through standalone stores as well as an online portal. E&OE is a(n) ________ retailer. A) off-price B) specialty C) discount D) department E) extreme value Page 449

A

14) Which of the following is an example of a public relations and publicity communication platform? A) lobbying B) company museums C) street activities D) company blogs E) incentive programs

B

19) The ________ marketing sales system works by recruiting independent businesspeople who act as distributors. A) catalog B) multilevel C) direct-response D) corporate E) direct Page 449

Answer: Mobile phones have relatively short life cycles. In the introduction stage of the phones' life cycle, advertising, events and experiences, and publicity have the highest cost-effectiveness. In-store personal selling helps improve distribution coverage, while sales promotions such as discounted accessories, freebies etc., help induce trial. In the growth stage, demand has its own momentum through word of mouth and interactive marketing. Web sites are effective tools during the growth stage. As the phones reach the maturity stage, advertising, promotional events and experiences, and personal selling again become more important. As the phones enter the decline stage of their life cycle, sales promotion takes over as the most important tool in the marketing communications mix, even as other communication tools are reduced, and salespeople give the phones only minimal attention.

140) Karl Lipton is marketing communications coordinator for a major electronics manufacturer. He is assigned with charting out a communications strategy for a new range of mobile phones developed by his company. How will Karl's communications strategy look like over the course of the mobile phones' life cycle?

Answer: Senior managers want to know the outcomes and revenues resulting from their communications investments. Too often, however, their communications directors supply only inputs and expenses: press clipping counts, numbers of ads placed, media costs. In fairness, communications directors try to translate inputs into intermediate outputs such as reach and frequency (the percentage of target market exposed to a communication and the number of exposures), recall and recognition scores, persuasion changes, and cost-per-thousand calculations. Ultimately, behavior-change measures capture the real payoff. After implementing the communications plan, the communications director must measure its impact. Members of the target audience are asked whether they recognize or recall the message, how many times they saw it, what points they recall, how they felt about the message, and what are their previous and current attitudes toward the product and the company. The communicator should also collect behavioral measures of audience response, such as how many people bought the product, liked it, and talked to others about it.

141) Briefly describe the process of measuring the results of marketing communications.

Answer: Many companies still rely on only one or two communication tools. This practice persists in spite of the fragmenting of mass markets into a multitude of minimarkets, each requiring its own approach; the proliferation of new types of media; and the growing sophistication of consumers. The wide range of communication tools, messages, and audiences makes it imperative that companies move toward integrated marketing communications. Companies must adopt a "360-degree view" of consumers to fully understand all the different ways that communications can affect consumer behavior in their daily lives. The American Marketing Association defines integrated marketing communications (IMC) as "a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time." This planning process evaluates the strategic roles of a variety of communications disciplines—for example, general advertising, direct response, sales promotion, and public relations—and skillfully combines these disciplines to provide clarity, consistency, and maximum impact through the seamless integration of messages.

142) What is integrated marketing communications? What is its significance in the current marketing environment?

Answer: Media coordination can occur across and within media types, but marketers should combine personal and nonpersonal communications channels through multiple-vehicle, multiple-stage campaigns to achieve maximum impact and increase message reach and impact. Promotions can be more effective when combined with advertising, for example. The awareness and attitudes created by advertising campaigns can increase the success of more direct sales pitches. Advertising can convey the positioning of a brand and benefit from online display advertising or search engine marketing that offers a stronger call to action. Many companies are coordinating their online and offline communications activities. Web addresses in ads (especially print ads) and on packages allow people to more fully explore a company's products, find store locations, and get more product or service information. Even if consumers don't order online, marketers can use Web sites in ways that drive them into stores to buy.

143) How is coordination of media achieved through integrated marketing communications?

A

15) A factory outlet is an example of a(n) ________ retailer. A) off-price B) specialty C) discount D) department E) catalog Page 449

D

15) Which of the following is an example of an interactive marketing communication platform? A) product demonstrations B) factory tours C) company museums D) TV shopping E) community relations

B

16) Companies who sell products door-to-door or at home sales parties are engaging in ________. A) franchising B) network marketing C) direct-response marketing D) corporate selling E) direct marketing Page 449

A

16) Which of the following is an example of a word-of-mouth marketing communication platform? A) chat rooms B) billboards C) factory tours D) incentive programs E) trade shows

A

17) Which of the following is an example of a personal selling communication platform? A) sales presentations B) company blogs C) telemarketing D) TV shopping E) press kits

C

17) Which of the following is an example of direct selling? A) E&OE sells its herbal skincare products exclusively through its stand-alone stores. B) TCJ is a telemarketing firm that sells products from a number of different suppliers. C) Jayne's sells most of its products to customers through home sales parties. D) J3 is an online shopping portal where customers can buy directly from manufacturers. E) Reynold's tries to minimize its staff costs by installing vending machines in its stores. Page 449

B

18) The starting point in planning marketing communications is a ________ that profiles all interactions customers in the target market may have with the company and all its products and services. A) marketing budget B) communications audit C) market research program D) publicity campaign E) product launch

A

2) Which of the following elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media? A) advertising B) personal selling C) sales promotion D) direct marketing E) public relations

D

54) Which of the following statements is true of the two-step approach to mass communications? A) The influence of mass media on public opinion is more direct, powerful, and automatic than marketers have supposed. B) Communications through mass media bypasses opinion leaders and reaches the individual buyers. C) The two-step flow supports the notion that consumption styles are primarily influenced by a "trickle-down" or "trickle-up" effect from mass media. D) According to the two-step flow, people interact primarily within their own social groups and acquire ideas from opinion leaders in their groups. E) Two-step communication suggests that mass communicators should direct messages to groups of buyers who interpret the message and act accordingly.

D

55) Which of the following is a characteristic of the affordable method of establishing a marketing communications budget? A) fixed annual budget B) suitable for long-range planning C) priority given to role of promotion as an investment D) calculated to reflect what the company can spare for marketing communications E) based on the immediate impact of promotion on sales volume

C

55) ________ are independently owned businesses that take title to the merchandise they handle. They are full-service and limited-service jobbers, distributors, and mill supply houses. A) Brokers B) Agents C) Merchant wholesalers D) Specialized wholesalers E) Retailers' branches Page 462

E

56) Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. After extensive discussions, they decide that the size of the budget will be calculated as a fraction of the overall turnover. What method did Kelly and Trent use to arrive at the marketing communications budget? A) affordable method B) objective-and-task method C) competitive-parity method D) activity-based method E) percentage-of-sales method

D

56) ________ serve bulk industries such as coal, lumber, and heavy equipment, assuming title and risk from the time an order is accepted to its delivery. A) Producers' cooperatives B) Cash and carry wholesalers C) Truck wholesalers D) Drop shippers E) Rack jobbers Page 462

A

57) Which of the following is an advantage of using the percentage-of-sales method to determine the marketing communications budget? A) The percentage-of-sales method encourages stability when competing firms spend approximately the same portion of their sales on communications. B) The percentage-of-sales method views sales as the determiner of communications rather than as the result. C) The percentage-of-sales method leads to a budget set by market opportunities rather than the availability of funds. D) The percentage-of-sales method encourages experimentation with countercyclical communication or aggressive spending. E) The percentage-of-sales method encourages building the communication budget by determining what each product and territory deserves.

C

57) ________ sell and deliver a limited line of semiperishable goods to supermarkets, grocery stores, hospitals, restaurants, and hotels. A) Producers' cooperatives B) Cash and carry wholesalers C) Truck wholesalers D) Drop shippers E) Rack jobbers Page 462

E

58) The owner of supermarket chain Reynold's has realized that customers want a wider variety of goods than is currently available. However, Reynold's cannot afford the costs of storing excess inventory. Additionally, the owner is not willing to take the risk that the new products will remain unsold. Which of the following types of wholesalers can help Reynold's meet customer demand while minimizing costs? A) Producers' cooperatives B) Cash and carry wholesalers C) Truck wholesalers D) Drop shippers E) Rack jobbers Page 462

D

58) Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget? A) It discourages stability when competing firms spend approximately the same percentage of their sales on communications. B) By using a percentage-of-sales method, communication expenditures tend to be extremely high irrespective of what a company can afford. C) It discourages management from thinking of the relationship among communication cost, selling price, and profit per unit. D) Dependence of the percentage-of-sales method on year-to-year sales fluctuations interferes with long-range planning. E) The percentage-of-sales method views sales as the result in itself rather than the determiner of communications.

B

59) Agricultural assemblers, petroleum bulk plants and terminals, and auction companies are examples of ________. A) full-service wholesalers B) specialized wholesalers C) limited-service wholesalers D) merchant wholesalers E) brokers Page 462

B

59) Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They pore over the sales reports and other financial records and determine the amount of resources they can spare for marketing communications, after resources have been allocated to other functions, such as R&D, logistics, etc. What method did Kelly and Trent use to arrive at the marketing communications budget? A) objective-and-task method B) affordable method C) competitive-parity method D) activity-based method E) percentage-of-sales method

D

6) A large staff, along with a higher proportion of specialty goods and slower-moving items and many services, are usually features of ________ retailing. A) self-service B) self-selection C) limited service D) full-service E) limited-selection Page 448

E

6) ________ refer to the marketing communications element that involves company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers. A) Publicity campaigns B) Trade promotions C) Advertisements D) Public relations E) Events and experiences

C

60) Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They decide to trust in the prevailing collective wisdom of the industry as a whole, and not wanting to instigate a communications war, settle on spending only as much as their nearest market rival does on marketing communications. What method did Kelly and Trent use to arrive at the marketing communications budget? A) objective-and-task method B) affordable method C) competitive-parity method D) activity-based method E) percentage-of-sales method

66) Firms benefit when they democratize innovations and replace groundbreaking ideas with lowest-common-denominator solutions.

FALSE

117) Which of the following is the "third screen"? A) mobile phones B) in-vehicle entertainment systems C) televisions D) computers E) elevator screens

A

120) ________ are bite-sized software programs that can be downloaded to smart phones. A) Mobile apps B) Mini-billboards C) Loyalty programs D) Virtual maps E) Cookies

A

56) ________ are a means for consumers to share text, images, audio and video information with each other and with companies, and vice versa. A) Social media B) Interstitials C) Microsites D) Pay-per-click ads E) Mobile ads

A

57) Dollar Shave Club's irreverent online video on YouTube is an example of ________. A) social media B) an interstitial C) a microsite D) a pay-per-click ad E) a mobile ad

A

60) For which of the following product categories are consumers least likely to engage with on social networks? A) Purex laundry detergent B) USA Today C) Red Cross D) Salvation Army E) NBC News

A

63) Faith is a big fan of a popular musical group, so she created a place for other fans to communicate with each other online. Faith created a ________. A) forum B) microblog C) blog D) social network E) microsite

A

77) ________ is a form of online word of mouth, or "word of mouse," that encourages consumers to pass along company-developed products and services or audio, video or written information to others online. A) Viral marketing B) Guerrilla marketing C) Microsite marketing D) Interstitial marketing E) Public relations

A

85) Which of the following is NOT a limitation of online reviews? A) People trust and value positive reviews more than negative reviews. B) Online reviews can be biased. C) Raters are influenced by previous, positive ratings. D) Social influence can lead to disproportionally positive online ratings. E) Online reviews can be fake.

A

87) Which of the following is NOT one of the steps that can improve the likelihood of starting positive buzz? A) Identify underserved, inactive individuals and devote extra effort to them. B) Supply key people with product samples. C) Work through community influentials. D) Develop word-of-mouth referral channels to build business. E) Provide compelling information that customers want to pass along.

A

9) Which of the following is NOT one of the seven design elements featured in effective Web sites (as identified by Rayport and Jaworski)? A) change B) context C) content D) customization E) commerce

A

42) Moonburst is a newly-launched brand of energy drinks, one among many other recently introduced competing brands. The advertising agency handling Moonburst's account decides that to promote Moonburst better, it has to zero in on an advertising medium that would offer immunity from the clutter of other brands, flexibility to alter its advertising message, and fit in with the modest advertising budget. Also, the medium has to provide a high repeat exposure of the advertising message to the target audience. The advertising agency would be happy to trade-off audience selectivity and creative possibilities, if the medium satisfies the above criteria. Which of the following would be the best option for Moonburst? A) outdoor media B) radio C) magazines D) television E) Yellow Pages

A Page Ref: 513 Objective: 1 AACSB: Analytic skills Difficulty: Moderate

30) Which of the following is an advantage of using television as an advertising medium? A) high attention and reach B) low absolute cost C) absence of clutter D) long duration of ad exposure E) high audience selectivity

A Page Ref: 513 Objective: 1 Difficulty: Moderate

31) Which of the following is a disadvantage of using television as an advertising medium? A) high absolute cost B) low audience attention C) lack of reach among audience D) high audience selectivity E) absence of clutter

A Page Ref: 513 Objective: 1 Difficulty: Moderate

34) Which of the following is an advantage of using magazines as an advertising medium? A) high-quality reproduction B) short ad purchase lead time C) high efficiency in circulation D) no ad competition in same medium E) low cost of advertising

A Page Ref: 513 Objective: 1 Difficulty: Moderate

38) Which of the following is a disadvantage of using Yellow Pages as an advertising medium? A) high competition B) poor local market coverage C) low believability D) lack of adequate reach E) high total costs

A Page Ref: 513 Objective: 1 Difficulty: Moderate

45) Which of the following media timing factors expresses the rate at which new customers enter the market? A) buyer turnover B) purchase frequency C) media reach D) weighted number of exposures E) advertising impressions

A Page Ref: 517 Objective: 1 Difficulty: Easy

55) ________ seeks to determine whether an ad is communicating effectively. A) Copy testing B) Flighting C) Pulsing D) Frequency capping E) Square inch analysis

A Page Ref: 518 Objective: 1 Difficulty: Easy

64) Which of the following is a sales promotion tool that typically does not build brand image? A) consumer refund offers B) free samples C) premiums related to the product D) frequency awards E) coupons that include a selling message

A Page Ref: 520 Objective: 2 Difficulty: Moderate

67) ________ are consumer promotion tools that provide a price reduction after purchase rather than at the retail shop. A) Rebates B) Cents-off deals C) Price packs D) Coupons E) Premiums

A Page Ref: 521 Objective: 2 Difficulty: Easy

72) Which of the following consumer promotion tools refers to explicit or implicit promises by sellers that the product will perform as specified or that the seller will fix it or refund the customer's money during a specified period? A) product warranties B) coupons C) free trials D) rebates E) patronage awards

A Page Ref: 521 Objective: 2 Difficulty: Easy

74) Which of the following retailer practices involves buying more units than needed of a product under a sales promotion in a region where the manufacturer offers a promotion deal and shipping the surplus to their stores in nondeal regions? A) diverting B) panic buying C) hoarding D) stockpiling E) forward buying

A Page Ref: 522 Objective: 2 Difficulty: Easy

85) ________ is a marketing communications tool that includes a variety of programs to promote or protect a company's image or individual products. A) Public relations B) Advertising C) Sales promotion D) Personal selling E) Direct marketing

A Page Ref: 527 Objective: 4 Difficulty: Easy

89) When a public relations department of a company advises management about public issues, and company positions and image during good times and bad, it is performing the function of ________. A) counseling B) corporate communications C) product publicity D) lobbying E) press relations

A Page Ref: 527 Objective: 4 Difficulty: Easy

100) Consumers are more likely to transmit negative WOM and pass on information about their own negative consumption experiences.

FALSE

MAJOR SEGMENTATION VARIABLES ARE?

GEOGRAPHIC DEMOGRAPHIC PSYCHOGRAPHIC BEHAVIORIAL ** MAY BE USED ALONE OR IN COMBINATION

108) What are four pieces of advice for getting a viral ad shared?

According to a viral advertising expert from Harvard Business School: Utilize brand pulsing so the brand is not too intrusive within the video; open with joy or surprise to hook those fickle viewers who are easily bored; build an emotional roller coaster within the ad to keep viewers engaged throughout; and surprise but don't shock — if an ad makes viewers too uncomfortable, they are unlikely to share it.

47) What are the advantages and disadvantages of online marketing communications?

Advantages — companies can offer or send tailored information or messages that engage consumers by reflecting their special interests and behavior; marketers can easily trace their effects by noting how many unique visitors or "UVs" click on a page or ad, how long they spend with it, what they do on it, and where they go afterward; the Internet offers contextual placement, which means marketers can buy ads on sites related to their own offerings; marketers can place advertising based on keywords customers type into search engines to reach people when they've actually started the buying process. Disadvantages — consumers can screen out messages; software-powered Web sites generate bogus clicks, which can throw off metrics; marketers can lose control of online messages, which can be hacked or vandalized.

awareness-building

Advertising and publicity tools play the most important roles in influencing buying decisions at the ________ stage of buyer readiness.

MARKETERS CAN MARKET WHAT?

GOODS, SERVICES, EVENTS, EXPERIENCES PERSONS, PLACE, PROPERTY, ORGNIZATIONS, INFO, IDEAS...

1) ________ advertising aims to create brand awareness and knowledge of new products or new features of existing products. A) Informative B) Corporate C) Reinforcement D) Persuasive E) Reminder

Answer: A Diff: 1 LO: 15.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

24) ________ seeks to determine whether an ad is communicating effectively. A) Copy testing B) Flighting C) Pulsing D) Frequency capping E) Square inch analysis

Answer: A Diff: 1 LO: 15.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

70) ________ is a marketing communications tool that includes a variety of programs to promote or protect a company's image or individual products. A) Public relations B) Advertising C) Sales promotion D) Personal selling E) Direct marketing

Answer: A Diff: 1 LO: 15.4: How can companies exploit the potential of public relations? AACSB: Reflective thinking

15) Which of the following is a disadvantage of using television as an advertising medium? A) high absolute cost B) low audience attention C) lack of reach among audience D) high audience selectivity E) absence of clutter

Answer: A Diff: 2 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking

19) Which of the following is a disadvantage of using Yellow Pages as an advertising medium? A) high competition B) poor local market coverage C) low believability D) lack of adequate reach E) high total costs

Answer: A Diff: 2 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking

48) Which of the following is a sales promotion tool that typically does NOT build brand image? A) consumer refund offers B) free samples C) premiums related to the product D) frequency awards E) coupons that include a selling message

Answer: A Diff: 2 LO: 15.2: How should sales promotion decisions be made?

21) Moonburst is a newly launched brand of energy drinks, one among many other recently introduced competing brands. The advertising agency handling Moonburst's account decides that to better promote Moonburst, it has to zero in on an advertising medium that would offer flexibility to alter its advertising message and the ability to fit in with the modest advertising budget. Also, the medium has to provide a high repeat exposure of the advertising message to the target audience. The advertising agency would be happy to trade off audience selectivity and creative possibilities if the medium satisfies the above criteria. Which of the following would be the best option for Moonburst? A) outdoor media B) radio C) magazines D) television E) Yellow Pages

Answer: A Diff: 3 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking; Application of knowledge

11) The number of times within a specified time period that an average person or household is exposed to an advertising message is known as ________. A) impact B) frequency C) amplitude D) reach E) depth

Answer: B Diff: 1 LO: 15.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

7) Place advertising, or out-of-home advertising, is a broad category that includes many creative and unexpected forms to grab consumers' attention, including all of the following EXCEPT ________. A) billboards B) yellow pages C) public spaces D) product placement E) point of purchase

Answer: B Diff: 1 LO: 15.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

72) What function does a company's public relations department perform when it promotes understanding of the organization through internal and external communications? A) lobbying B) corporate communications C) press relations D) product publicity E) counseling

Answer: B Diff: 1 LO: 15.4: How can companies exploit the potential of public relations? AACSB: Reflective thinking

18) Which of the following is a disadvantage of using magazines as an advertising medium? A) low geographic and demographic selectivity B) long ad purchase lead time C) low-quality reproduction D) small "pass-along" readership E) lack of credibility

Answer: B Diff: 2 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking

4) The "Got Milk" campaign was intended to boost sagging milk consumption among Californians in the 1990s. The campaign ads highlighted the inconvenience of running out of milk when intended to be used with certain foods, such as cookies or muffins, advising consumers to stock up on milk to avoid such inconveniences. The "Got Milk?" campaign is an example of ________ advertising. A) informational B) reminder C) institutional D) comparative E) reinforcement

Answer: B Diff: 2 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking; Application of knowledge

61) JBJ Sports is a leading sporting goods manufacturer from Atlanta. It has recently initiated a program in association with the Food4Kids Foundation, which raises funds to promote nutritional awareness of young children. The company plans to donate $1 for every item it sells in the North American market. Also, JBJ has roped in professional sports teams associated with it to wear the Food4Kids logo on their team gear. Which of the following best describes the motivation for JBJ's involvement in the program? A) entertaining key clients or rewarding key employees B) expressing commitment to the community or on social issues C) permitting merchandising or promotional opportunities D) stimulating quicker or greater purchase of particular brands E) identifying with a particular target market or lifestyle

Answer: B Diff: 2 LO: 15.3: What are the guidelines for effective brand-building events and experiences? AACSB: Analytical thinking

20) Pepe Homes manufactures a range of bathroom accessories and fittings that include bath tubs, shower stalls, etc. While deciding on an effective advertising media vehicle for its planned advertising campaign, the marketing department decides that its advertising objectives would be best achieved if they used a medium that would portray their brand as prestigious and a symbol of luxury. To this effect, the medium should offer marketers a high degree of audience selectivity and high-quality reproduction. Which of the following advertising media would best serve the advertising purposes of Pepe Homes? A) outdoor media B) radio C) magazines D) television E) newspapers

Answer: C Diff: 3 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking; Application of knowledge

3) Comparative advertising works best when ________. A) it elicits cognitive and behavioral motivations simultaneously B) the firm is trying to minimize brand dilution C) consumers are processing advertising in a detailed, analytical mode D) it elicits affective motivation, followed by cognitive motivation E) the advertising message uses negative fear appeals

Answer: C Diff: 3 LO: 15.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

6) Which of the following statements is TRUE of the factors that affect an advertising budget? A) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share. B) Brands in less-differentiated or commodity-like product classes require less advertising to establish a unique image. C) New products typically merit large advertising budgets to build awareness and to gain consumer trial. D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard. E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales.

Answer: C Diff: 3 LO: 15.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

62) Which of the following factors forms the basis of assessing sponsorship activities through supply-side methods? A) consumers' brand knowledge B) impact on sponsor's bottom line C) extent of media coverage D) brand exposure reported by consumers E) sales pattern of sponsored products

Answer: C Diff: 3 LO: 15.3: What are the guidelines for effective brand-building events and experiences?

10) The number of different persons or households exposed to a particular media schedule at least once during a specified time period is known as ________. A) range B) impact C) intensity D) reach E) frequency

Answer: D Diff: 1 LO: 15.1: What steps are required in developing an advertising program? AACSB: Reflective thinking

51) Which of the following consumer promotion tools involves using one brand to advertise another noncompeting brand? A) tie-in promotion B) frequency programs C) specialty advertising D) cross-promotion E) patronage awards

Answer: D Diff: 1 LO: 15.2: How should sales promotion decisions be made? AACSB: Reflective thinking

73) ________ refers to the task of securing editorial space-as opposed to paid space-in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization. A) Advertising B) Media planning C) Communication design D) Publicity E) Copy testing

Answer: D Diff: 1 LO: 15.4: How can companies exploit the potential of public relations? AACSB: Reflective thinking

17) Which of the following is a disadvantage of using direct mail as an advertising medium? A) low audience selectivity B) lack of flexibility C) high competition within same medium D) relatively high cost E) lack of personalization of advertising message

Answer: D Diff: 2 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking

23) Dante is a media buyer with Shelvey Partners, an ad agency in San Francisco. He is currently working on charting a media plan for the ads of a department store chain to target the upcoming Thanksgiving weekend. Which of the following advertising timing patterns is best suited for running these ads? A) continuity B) flighting C) pulsing D) concentration E) frequency capping

Answer: D Diff: 2 LO: 15.1: What steps are required in developing an advertising program? AACSB: Analytical thinking

50) Premiums, as a consumer promotion tool, are defined as ________. A) offers to consumers of savings off the regular price of a product, flagged on the label or package B) certificates entitling the bearer to a stated saving on the purchase of a specific product C) programs providing rewards related to the consumer's frequency and intensity in purchasing the company's products or services D) merchandise offered at a relatively low cost or free as an incentive to purchase a particular product E) values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors

Answer: D Diff: 2 LO: 15.2: How should sales promotion decisions be made? AACSB: Reflective thinking

53) ________ time is the time necessary to prepare a promotional program prior to launching it. A) Sell-in B) Link C) Setup D) Lead E) Hold

Answer: D Diff: 2 LO: 15.2: How should sales promotion decisions be made? AACSB: Reflective thinking

60) Mountain Dew is a brand known for sponsorships of adventure events such as snowboarding and skateboarding competitions. What is the most likely objective of Mountain Dew's sponsorship of these events? A) to enhance corporate image B) to express commitment to the community or on social issues C) to entertain key clients or reward key employees D) to create perceptions of key brand image associations E) to become part of a personally relevant moment in consumers' lives

Answer: D Diff: 2 LO: 15.3: What are the guidelines for effective brand-building events and experiences? AACSB: Analytical thinking; Application of knowledge

online communities

Apple hosts a large number of forums, which become customers' primary source of product information after warranties expire and are organized by product lines and type of user (consumer or professional). These forums are an example of ________.

12) The average click-through in terms of the percentage of consumers who click on a link for ________ is about 2 percent. A) search engine optimization B) pay-per-click ads C) standard banner ads D) microsites E) rich media banner ads

B

121) VW chose to launch its GTI in the United States with a(n) ________, which was downloaded 2 million times in three weeks. A) interstitial B) app C) mini-billboard D) Facebook page E) LinkedIn ad

B

131) A pioneer in China, ________ created a national campaign asking Beijing residents to send text messages guessing the high temperature in the city every day for just over a month for a chance to win a one-year supply of its products. A) PepsiCo B) Coca-Cola C) Red Bull D) Poland Spring E) Unilever

B

93) When Gerard and his team seek to evaluate blogs according to three dimensions — relevance, sentiment, and authority — they are focused on characterizing the ________ of word of mouth. A) speed B) source C) scale D) share E) space

B

96) One of the measures of online word of mouth at DuPont was the effort's ________, or how fast it spread. A) authority B) speed C) relevance D) scale E) sustainability

B

10) Which of the following is one of the elements of a site's ease of use? A) Individual pages are clean and not crammed with content. B) The first page is easy to understand. C) Typefaces and font sizes are very readable. D) The site makes good use of color. E) The site has user-centric privacy controls.

B

way marketers translate their messages into a specific communication

Creative strategies refer to the ________.

1) An ________ is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time. A) advertising medium B) advertising objective C) advertising channel D) advertising budget E) advertising copy

B Page Ref: 504 Objective: 1 Difficulty: Easy

7) The "Got Milk" campaign was intended to boost the sagging milk consumption among Californians in the 1990s. The campaign ads highlighted the inconvenience of running out of milk when intended to be used with certain foods, such as cookies or muffins, advising consumers to stock up on milk to avoid such inconveniences. The "Got Milk?" campaign an example of ________. A) informational advertising B) reminder advertising C) institutional advertising D) comparative advertising E) reinforcement advertising

B Page Ref: 505 Objective: 1 AACSB: Analytic skills Difficulty: Moderate

20) The number of times within a specified time period that an average person or household is exposed to an advertising message is known as ________. A) impact B) frequency C) amplitude D) reach E) depth

B Page Ref: 511 Objective: 1 Difficulty: Easy

39) Which of the following is a disadvantage of using the Internet as an advertising medium? A) limited audience selectivity B) increasing clutter C) lack of interactive possibilities D) relatively high costs involved E) fleeting ad exposure time

B Page Ref: 513 Objective: 1 Difficulty: Easy

35) Which of the following is a disadvantage of using magazines as an advertising medium? A) low geographic and demographic selectivity B) long ad purchase lead time C) low-quality reproduction D) small "pass-along" readership E) lack of credibility

B Page Ref: 513 Objective: 1 Difficulty: Moderate

37) Which of the following is an advantage of using Yellow Pages as an advertising medium? A) low competition B) high believability C) short ad purchase lead time D) greater scope for creativity E) lack of clutter

B Page Ref: 513 Objective: 1 Difficulty: Moderate

40) Which of the following is a disadvantage of using newsletters as an advertising medium? A) low audience selectivity B) high chances of runaway costs C) lack of adequate control D) relatively high costs E) lack of interactive possibilities

B Page Ref: 513 Objective: 1 Difficulty: Moderate

44) The popular music talent show, American Idol, has been generally acknowledged as the most profitable TV series in U.S. history, in terms of advertising and merchandising revenue. Major sponsors of the show include Coca-Cola, AT&T Wireless, and iTunes, among many others. Cups bearing the logo of Coca-Cola were a prominent prop found on the show's judges' tables. The show also urged viewers to vote for contestants using AT&T sms services. Contestants were routinely shown rehearsing for their performances with the help of Apple iPods. Which of the following advertising practices is apparent in this example? A) ambush advertising B) product placement C) angel dusting D) co-branding E) subliminal advertising

B Page Ref: 514 Objective: 1 AACSB: Analytic skills Difficulty: Moderate

46) ________ is the number of times the average buyer buys a product during the period. A) Buyer turnover B) Purchase frequency C) Customer retention rate D) Advertising impressions E) Total number of exposures

B Page Ref: 517 Objective: 1 Difficulty: Easy

66) ________ are certificates that entitle the bearer to a stated saving on the purchase of a specific product. A) Samples B) Coupons C) Rebates D) Price packs E) Premiums

B Page Ref: 521 Objective: 2 Difficulty: Easy

78) Becoming part of a personally relevant moment in consumers' lives through ________ can broaden and deepen a company or brand's relationship with the target market. A) advertisements B) events and experiences C) sales promotions D) public relations E) direct marketing efforts

B Page Ref: 524 Objective: 3 Difficulty: Easy

82) JBJ Sports is a leading sports goods maker from Atlanta. It has recently initiated a program in association with the Children of God Foundation, which bids to raise funds to promote nutritional awareness and education of young children from Bangladesh. The company plans to donate $1 for every item it sells in the North American market. Also, JBJ has roped in professional sports teams associated with it to wear the Children of God logo on their team gear. Which of the following best describes the motivation for JBJ's involvement in the program? A) entertaining key clients or rewarding key employees B) expressing commitment to the community or on social issues C) permitting merchandising or promotional opportunities D) stimulating quicker or greater purchase of particular brands E) identifying with a particular target market or lifestyle

B Page Ref: 525 Objective: 3 AACSB: Analytic skills Difficulty: Moderate

88) What function does a company's public relations department perform when it promotes understanding of the organization through internal and external communications? A) lobbying B) corporate communications C) press relations D) product publicity E) counseling

B Page Ref: 527 Objective: 4 Difficulty: Easy

91) Which of the following is a medium of visual identity for a company? A) annual reports B) dress codes C) press releases D) seminars E) trade shows

B Page Ref: 529 Objective: 4 Difficulty: Easy

118) Which of the following best characterizes average consumers' current media consumption patterns? A) Consumers spend more time listening to the radio than on their mobile phones, but less time on magazines and newspapers. B) Consumers spend more time reading magazines and newspapers than on their mobile phones, but less time listening to the radio. C) Consumers spend more time on mobile devices than on radio, magazines, and newspapers combined. D) Consumers spend an average of two hours and 52 minutes on radio, magazines, and newspapers combined. E) Consumers spend an average of one hour and 46 minutes on mobile devices.

C

10) Which of the following statements is true of the factors that affect an advertising budget? A) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share. B) Brands in less-differentiated or commodity-like product classes require very less advertising to establish a unique image. C) New products typically merit large advertising budgets to build awareness and to gain consumer trial. D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard. E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales.

C Page Ref: 505 Objective: 1 Difficulty: Moderate

5) Comparative advertising works best when ________. A) it elicits cognitive and behavioral motivations simultaneously B) the firm is trying to minimize brand dilution C) consumers are processing advertising in a detailed, analytical mode D) it elicits affective motivation, followed by cognitive motivation E) the advertising message uses negative fear appeals

C Page Ref: 505 Objective: 1 Difficulty: Moderate

13) TV advertising is considered to be particularly advantageous because ________. A) the low volume of nonprogramming material on television makes it difficult for consumers to ignore or forget ads B) it provides detailed product information and effectively communicates user and usage imagery C) it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits D) TV channels are very targeted, ads are relatively inexpensive to produce and place, and short closings allow for quick response E) it lets companies achieve a balance between broad and localized market coverage

C Page Ref: 507 Objective: 1 Difficulty: Moderate

17) Which of the following organizations uses top-notch industry talent to produce and distribute public service announcements for nonprofits and government agencies? A) the Association of National Advertisers B) the International Advertising Association C) the Ad Council D) the National Advertising Review Council E) the Advertising Research Foundation

C Page Ref: 510 Objective: 1 Difficulty: Easy

27) What is the weighted number of exposures of a media schedule that reaches 80 percent of the target audience, with an exposure frequency of 4 and impact value of 2? A) 320 B) 10 C) 640 D) 160 E) 240

C Page Ref: 511 Objective: 1 AACSB: Analytic skills Difficulty: Easy

18) ________ is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience. A) Media scheduling B) Content analysis C) Media selection D) Communication design E) Copy testing

C Page Ref: 511 Objective: 1 Difficulty: Moderate

23) The weighted number of exposures (WE) of an advertising message over a given medium is given by ________. A) WE = reach * frequency B) WE = (reach * frequency) / impact C) WE = reach * frequency * impact D) WE = (reach + frequency) / impact E) WE = frequency / reach

C Page Ref: 511 Objective: 1 Difficulty: Moderate

24) Under which of the following conditions is the reach of media the most important factor in media selection? A) when introducing frequently purchased brands B) when going into a defined target market C) when launching extensions of well-known brands D) when there are strong competitors to a brand E) when there is high consumer resistance to the product

C Page Ref: 511 Objective: 1 Difficulty: Moderate

41) Pepe Homes manufactures a range of bathroom accessories and fittings that include bath-tubs, shower stalls, etc. While deciding on an effective advertising media vehicle for its planned advertising campaign, the marketing department decides that its advertising objectives would be best achieved if they used a medium that would portray their brand as prestigious and a symbol of luxury. To this effect, the medium should offer the marketers a high degree of audience selectivity and high-quality reproduction. Which of the following advertising media would best serve the advertising purposes of Pepe Homes? A) outdoor media B) radio C) magazines D) television E) newspapers

C Page Ref: 513 Objective: 1 AACSB: Analytic skills Difficulty: Moderate

29) Which of the following is a disadvantage of using newspapers as an advertising medium? A) lack of flexibility B) high costs of advertisement space C) poor reproduction quality D) low believability E) absence of local market coverage

C Page Ref: 513 Objective: 1 Difficulty: Moderate

36) Which of the following is a disadvantage of using outdoor media for advertising? A) low flexibility B) low repeat exposure C) limited audience selectivity D) high costs E) greater competition

C Page Ref: 513 Objective: 1 Difficulty: Moderate

50) Advertisements for which of the following products categories would merit a continuous advertising timing pattern the most? A) air conditioners B) life insurance C) breakfast cereal D) automobiles E) holiday package tours

C Page Ref: 517 Objective: 1 AACSB: Analytic skills Difficulty: Moderate

48) Which of the following types of advertising timing patterns calls for spending all the advertising dollars in a single period? A) frequency capping B) flighting C) concentration D) pulsing E) continuity

C Page Ref: 517 Objective: 1 Difficulty: Easy

51) ________ is an advertising timing pattern that calls for advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity. A) Pulsing B) Continuity C) Flighting D) Concentration E) Frequency capping

C Page Ref: 517 Objective: 1 Difficulty: Easy

54) ________ is continuous advertising at low-weight levels, reinforced periodically by waves of heavier activity. A) Flighting B) Frequency capping C) Pulsing D) Concentration E) Session capping

C Page Ref: 517 Objective: 1 Difficulty: Easy

52) Flighting as an advertising timing pattern is most useful when ________. A) purchase cycle is rather frequent B) substantial advertising budget is available C) items are seasonal D) tightly defined buyer categories exist E) there are expanding market situations

C Page Ref: 517 Objective: 1 Difficulty: Moderate

56) ________ represents the proportion of company advertising of a product to all advertising of that product. A) Share of wallet B) Share of mind C) Share of voice D) Share of market E) Share of cost

C Page Ref: 519 Objective: 1 Difficulty: Easy

145) Describe the communication-effect research method of evaluating advertising effectiveness.

Communication-effect research, called copy testing, seeks to determine whether an ad is communicating effectively. Marketers should perform this test both before an ad is put into media and after it is printed or broadcast. Pretest critics maintain that agencies can design ads that test well but may not necessarily perform well in the marketplace. Proponents maintain that useful diagnostic information can emerge and that pretests should not be used as the sole decision criterion anyway. Many advertisers use posttests to assess the overall impact of a completed campaign. If a company hoped to increase brand awareness from 20 percent to 50 percent and succeeded in increasing it to only 30 percent, then the company is not spending enough, its ads are poor, or it has overlooked some other factor. Page Ref: 518 Objective: 1 Difficulty: Moderate

9) Which of the following conditions necessitates that the objective of advertising should be to stimulate more usage of a product? A) the advertised product belongs to a nascent product category B) the company is not the market leader C) the advertised brand is superior to the market leader D) the product class is mature E) brand usage for the product is very high

D Page Ref: 505 Objective: 1 Difficulty: Moderate

15) Which of the following is the main advantage of radio as an advertising medium? A) low competition B) more attention than television C) longer duration of ad exposure D) flexibility E) standardized rate structures

D Page Ref: 509 Objective: 1 Difficulty: Easy

26) What is the gross rating points (GRP) for a media schedule that reaches 60 percent of homes with an average exposure frequency of 4 and impact of 1.5? A) 15 B) 160 C) 360 D) 240 E) 10

D Page Ref: 511 Objective: 1 AACSB: Analytic skills Difficulty: Easy

19) The number of different persons or households exposed to a particular media schedule at least once during a specified time period is known as ________. A) range B) impact C) intensity D) reach E) frequency

D Page Ref: 511 Objective: 1 Difficulty: Easy

21) The qualitative value of an exposure through a given medium is known as ________. A) frequency B) reach C) amplitude D) impact E) range

D Page Ref: 511 Objective: 1 Difficulty: Easy

25) Under which of the following conditions is the frequency the most important factor in media selection? A) when introducing flanker brands B) when launching infrequently purchased brands C) when going into undefined target markets D) when there is high consumer resistance to the product E) when there is modest competition to the brand in the market

D Page Ref: 511 Objective: 1 Difficulty: Moderate

33) Which of the following is a disadvantage of using direct mail as an advertising medium? A) low audience selectivity B) lack of flexibility C) high competition within same medium D) relatively high cost E) lack of personalization of advertising message

D Page Ref: 513 Objective: 1 Difficulty: Easy

social media

Dollar Shave Club attracted attention and comments by posting an irreverent online video on YouTube. This is an example of using ________.

scale

DuPont measures online word of mouth in terms of how far its social media campaign reached. This is an example of measuring the ________ of word of mouth.

127) When it comes to ad design and copy, mobile ads should use which of the following guidelines? A) Use lots of bright colors but limit ad copy to a pair of phrases. B) Do not use color and limit ad copy to one phrase. C) Use no more than three bright colors and use as much copy as you want. D) Use four bright colors and limit ad copy to one phrase. E) Use at least one bright color, but no more than two, and limit ads to a pair of phrases.

E

58) Apple hosts a large number of ________, which become customers' primary source of product information after warranties expire and are organized by product lines and type of user (consumer or professional). A) niche networks B) social networks C) microblogs D) blogs E) online communities

E

136) What are some challenges associated with mobile marketing and how should advertisers overcome them?

Even with newer-generation smart phones, the Web experience can be very different for users given smaller screen sizes, longer download times, and the lack of some software capabilities. Marketers should design simple, clear, and clean sites, paying even greater attention than usual to user experience and navigation. Mobile ad copy should occupy only 50 percent of the screen, avoiding complex viewing experiences that may take a toll on consumers' battery and data availability as well as on their time. Brands should limit their ads to a pair of phrases — the offer and the tagline. Brands should place their logo in the corner of the mobile ad frame. Finally, ads should use at least one bright color, but no more than two. Calls to action should be highlighted with a bright color.

50

Experts recommend mobile ad copy should occupy ________ percent of the screen.

134) What are four distinctive characteristics of a mobile device?

Four distinctive characteristics of a mobile device include: 1. it is uniquely tied to one user 2. it is virtually always "on" given it is typically carried everywhere 3. it allows for immediate consumption because it is in effect a channel of distribution with a payment system 4. it is highly interactive given it allows for geotracking and picture and video taking

74) Why should firms avoid too much democratization of innovation?

Groundbreaking ideas can be replaced by lowest-common-denominator solutions.

HIGH SATISFACTION LEADS TO?

HIGH CUSTOMER LOYALTY

being concise, keeping site design simple, highlighting calls to action

How should marketers address the different Web experience provided by mobile devices?

"BIGGNESS" SCALE ADVANTAGE =

IF YOU ARE THE BIGGEST IN YOUR INDUSTRY YOU'LL BE ADNVANTAGED ON COST THE 3 LARGEST COMPANIES RAE ONLY 7% ARE MOST PROFITABLE

EACH "P" =

IMPORTANT ELEMENT OF MARKETING - NEED TO WORK TOGETHER -

144) What are the four types of advertising timing patterns available to marketers when launching a new product?

In launching a new product, the advertiser must choose among continuity, concentration, flighting, and pulsing. • Continuity means exposures appear evenly throughout a given period. Generally, advertisers use continuous advertising in expanding market situations, with frequently purchased items, and in tightly defined buyer categories. • Concentration calls for spending all the advertising dollars in a single period. This makes sense for products with one selling season or related holiday. • Flighting calls for advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity. It is useful when funding is limited, the purchase cycle is relatively infrequent, or items are seasonal. • Pulsing is continuous advertising at low-weight levels, reinforced periodically by waves of heavier activity. It draws on the strength of continuous advertising and flights to create a compromise scheduling strategy. Those who favor pulsing believe the audience will learn the message more thoroughly, and at a lower cost to the firm. Page Ref: 517 Objective: 1 Difficulty: Moderate

54) Compare and contrast paid search ads, banner ads, and interstitials. In your response, please identify the advantages and disadvantages of each advertising format.

In paid search ads, a marketer's ad is shown based on keywords the consumer is searching, and the ads may appear above or next to the results, depending on the amount the company bids and an algorithm the search engines use to determine an ad's relevance to a particular search. Marketers pay only if the consumer clicks through on the ad. Marketers believe that consumers who click the ads are pre-screened prospects. Search ads have a 2 percent click-through rate, which is higher than banner ads or interstitials. However, Internet users only spend about 5 percent of their time online searching for information. Further, the increased popularity of search ads means popular keywords are more expensive. Marketers must be creative with their ad placements and keyword bids. Banner ads are small, rectangular boxes containing text and perhaps a picture that companies pay to place on relevant Web sites. The larger the audience, the higher the cost. In the early days of the Internet, viewers clicked on 2 percent to 3 percent of the banner ads they saw, but that percentage has quickly plummeted, and advertisers have explored other forms of communication. They are important because of the amount of time consumers spend online when they are not searching, but they have to be more attention-getting and influential, better targeted, and more closely tracked than they used to be. Interstitials are advertisements, often with video or animation, that pop up between page changes within a Web site or across Web sites. They can be targeted based on a consumer's needs or anticipated needs, as opposed to what the consumer is looking for. Because consumers find such pop-up ads intrusive and distracting, many use software to block them.

Hong Kong, Japan, Singapore, South Korea

In which developed Asian market is mobile marketing becoming a central component of customer experiences?

mircorsites

Individual Web pages or clusters of pages that function as supplements to a primary site are ________.

149) Describe the methods used to measure sponsorship activities.

It's a challenge to measure the success of events. The supply-side measurement method focuses on potential exposure to the brand by assessing the extent of media coverage, and the demand-side method focuses on exposure reported by consumers. Supply-side methods approximate the amount of time or space devoted to media coverage of an event, for example, the number of seconds the brand is clearly visible on a television screen or the column inches of press clippings that mention it. These potential "impressions" translate into a value equivalent to the dollar cost of actually advertising in the particular media vehicle. Although supply-side exposure methods provide quantifiable measures, equating media coverage with advertising exposure ignores the content of the respective communications. The advertiser uses media space and time to communicate a strategically designed message. Media coverage and telecasts only expose the brand and don't necessarily embellish its meaning in any direct way. Although some public relations professionals maintain that positive editorial coverage can be worth 5 to 10 times the equivalent advertising value, sponsorship rarely provides such favorable treatment. The demand-side method identifies the effect sponsorship has on consumers' brand knowledge. Marketers can survey event spectators to measure recall of the event as well as resulting attitudes and intentions toward the sponsor. Page Ref: 526 Objective: 3 Difficulty: Moderate

interstitial

Johnson & Johnson had an ad for Tylenol headache reliever that would pop up on brokers' Web sites whenever the stock market fell by 100 points or more. This is an example of a(n) ________.

MARKET SEGMENTATION IS?

LARGE IDENTIFIABLE DISTINCT GROUPS WITHIN A MARKET THAT SHARE A SIMILIAR SET OF NEEDS AND WANTS

sales promotions

Luke is considering the various options available to him to promote an energy drink, Turbozade, that has decreasing sales volumes after having peaked some time back. Which of the following marketing communications tools should Luke focus marketing efforts on to keep the sales volume up?

MARKETING CONTROL IS USED TO?

MANAGEMENT CAN ASSESS AND MAKE IMPROVEMENTS IF YOU KNOW WHERE THE BUSINESS STANDS.

Target Market INCLUDES 3 ACTIVITES?

MARET SEGMENTATION MARKET TARGETING MARKET POSITIONING

MARKET SEGMENTS MUST BE,,,

MEASURABLE, SUBSTANTIAL, EXCESSABLE, DIFFERENTIABLE, ACTIONABLE

MODULE 1 POWERPOINT

MODULE 1 POWERPOINT

MODULE 2 POWERPOINT

MODULE 2 POWERPOINT

Module 2 TED TALK 1

MODULE 2 TED TALK 1

module 3 PPT

MODULE 3 PPT

150) What are the major functions performed by marketing public relations? Illustrate with examples.

MPR goes beyond simple publicity and plays an important role in the following tasks: • Launching new products: The amazing commercial success of toys such as LeapFrog, Beanie Babies, and even the latest kids' craze, Silly Bandz, owes a great deal to strong publicity. • Repositioning a mature product: In a classic PR case study, New York City had extremely bad press in the 1970s until the "I Love New York" campaign. • Building interest in a product category: Companies and trade associations have used MPR to rebuild interest in declining commodities such as eggs, milk, beef, and potatoes and to expand consumption of such products as tea, pork, and orange juice. • Influencing specific target groups: McDonald's sponsors special neighborhood events in Latino and African American communities to build goodwill. • Defending products that have encountered public problems: PR professionals must be adept at managing crises, such as those weathered by such well-established brands as Tylenol, Toyota, and BP in 2010. • Building the corporate image in a way that reflects favorably on its products: Steve Jobs's heavily anticipated Macworld keynote speeches have helped to create an innovative, iconoclastic image for Apple Corporation. Page Ref: 527-528 Objective: 4 Difficulty: Moderate

142) What are the adjustments that marketers need to apply to the cost-per thousand measure when selecting specific media vehicles?

Marketers need to apply several adjustments to the cost-per-thousand measure. First, they should adjust for audience quality. For a baby lotion ad, a magazine read by 1 million young mothers has an exposure value of 1 million; if read by 1 million teenagers, it has an exposure value of almost zero. Second, adjust the exposure value for the audience-attention probability. Readers of Vogue may pay more attention to ads than do readers of Newsweek. Third, adjust for the medium's editorial quality (prestige and believability). People are more likely to believe a TV or radio ad and to become more positively disposed toward the brand when the ad is placed within a program they like. Fourth, consider ad placement policies and extra services (such as regional or occupational editions and lead-time requirements for magazines). Page Ref: 516 Objective: 1 Difficulty: Moderate

brand knowledge

Marketing communication strategy can be decided by conducting an image analysis, which profiles the target audience in terms of ________.

differentiated products and nonhomogeneous customer needs

Marketing communications budgets tend to be higher when conditions include ________.

51) What is a microsite? Provide an example of a firm that is likely to benefit from the use of a microsite.

Microsites are individual Web pages or clusters of pages that function as supplements to a primary site. They're particularly relevant for companies selling low-interest products. People rarely visit an insurance company's Web site, for example, but the company can create a microsite on used-car sites that offers advice for buyers of used cars and a good insurance deal at the same time.

135) What are mobile apps and how are they used?

Mobile apps are bite-sized software programs that can be downloaded to smart phones. Apps can perform useful functions — adding convenience, social value, incentives, and entertainment and making consumers' lives a little or a lot better.

normal depletion

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a negatively oriented relevant brand need?

recommendations from friends and family

Online customer reviews are the second-most trusted source of brand information. What is the most trusted source?

48) Given the disadvantages associated with online marketing communications, is it worth it for companies to use them? In your response, please identify the disadvantages of online marketing communications.

Online marketing communications are challenging because consumers can screen out messages; software-powered Web sites generate bogus clicks, which can throw off metrics; marketers can lose control of online messages, which can be hacked or vandalized. Consumers control the flow of information by selecting who they interact with and engaging selectively in the information. However, almost half of consumer media time is spent online, and marketers must reach consumers where they are.

110) From a consumer's perspective, what are the limitations of getting information from an online review?

Online reviews can be biased or fake. Research has shown that social influence can lead to disproportionally positive online ratings, and subsequent raters are more likely to be influenced by previous positive ratings than negative ones. Consumers posting reviews are susceptible to conformity pressures and adopting norms of others.

PRICE IS?

PRICE IS NOT SIMPLY THE PRICE YOU CHARGE CUSTOMERS WHEN THEY PURCHASE IT. PRICE INCLUDES: RETAIL PRICE DISCOUNTS - LOWER PRICE OF ITEM SPECIAL OFFERS BONUS - ALSO LOWERS PRICE PAYMENT PLANS - MAKE IT EASIER FOR CUSTOMER TO PAY PRICE CREDIT TERMS - ALSO MAKES IT EASIER FOR YOUR CUSTOMER TO PAY THE PRICE ****ANYTHING EVEN REMOTELY RELATED TO MONEY

4 P'S ARE?

PRODUCT PLACE PRICE PROMOTION

46) Social media play a key role in earned media. Distinguish between earned media and paid media.

Paid media includes company-generated advertising, publicity, and other promotional efforts. Earned media is all the PR and word-of-mouth benefits a firm receives without having directly paid for anything — all the news stories, blogs, and social network conversations that deal with a brand.

to monitor the Gatorade brand on social networks around the clock

PepsiCo created a Mission Control Center-set up like a broadcast television control room-in the middle of the marketing department in its Chicago headquarters. What was the purpose of this effort?

140) What is the role of print media in advertising? What are the major advantages and disadvantages associated with print advertising media?

Print media offer a stark contrast to broadcast media. Because readers consume them at their own pace, magazines and newspapers can provide detailed product information and effectively communicate user and usage imagery. At the same time, the static nature of the visual images in print media makes dynamic presentations or demonstrations difficult, and print media can be fairly passive. The two main print media—magazines and newspapers—share many advantages and disadvantages. Although newspapers are timely and pervasive, magazines are typically more effective at building user and usage imagery. Newspapers are popular for local—especially retailer—advertising. Although advertisers have some flexibility in designing and placing newspaper ads, relatively poor reproduction quality and short shelf life can diminish the ads' impact. Page Ref: 507-508 Objective: 1 Difficulty: Moderate

146) Compare and contrast advertising and sales promotion as marketing communication tools.

Sales promotion expenditures increased as a percentage of budget expenditure for a number of years, although its growth has recently slowed. Several factors contributed to this growth, particularly in consumer markets. Promotion became more accepted by top management as an effective sales tool, the number of brands increased, competitors used promotions frequently, many brands were seen as similar, consumers became more price-oriented, the trade demanded more deals from manufacturers, and advertising efficiency declined. But the rapid growth of sales promotion created clutter. Loyal brand buyers tend not to change their buying patterns as a result of competitive promotions. Advertising appears to be more effective at deepening brand loyalty, although we can distinguish added-value promotions from price promotions. Price promotions may not build permanent total-category volume. Small-share competitors may find it advantageous to use sales promotion, because they cannot afford to match the market leaders' large advertising budgets, nor can they obtain shelf space without offering trade allowances or stimulate consumer trial without offering incentives. Dominant brands offer deals less frequently, because most deals subsidize only current users. Page Ref: 519-520 Objective: 2 Difficulty: Moderate

143) Describe the adjustments that a advertiser of high-end laptops has to make to the cost-per-thousand measure.

Student answers may vary. The advertiser needs to apply several adjustments to the cost-per-thousand measure. First, they should adjust for audience quality. The product being high-end laptops, it is better advertised in a magazine read by 1 million college-going kids rather than 2 million housewives, in which case it would have an exposure value of almost zero. Second, the exposure value for the audience-attention probability must be accounted for. Readers of Chip or Digit may pay more attention to gadget ads than do readers of Newsweek. Third, the medium's editorial quality (prestige and believability) should be considered. People are more likely to believe a TV or radio ad and to become more positively disposed toward the brand when the ad is placed within a program they like. To this effect, the ads can be placed within a program like Big Bang Theory. The fourth adjustment should be made in relation to ad placement policies and extra services (such as regional or occupational editions and lead-time requirements for magazines). Laptop ads would be better received and responded in magazines that have greater circulation in urban areas with an office-going population or university towns with sizable student populations. Page Ref: 516 Objective: 1 AACSB: Analytic skills Difficulty: Moderate

75) Identify three reasons social media are rarely the only source of communications for a brand.

Student answers will vary. Here are five possible reasons social media are rarely the only source of communications for a brand: • Social media may not be as effective in attracting new users and driving brand penetration. • Research by DDB suggests that brands and products vary widely in how social they are online. Consumers are most likely to engage with media, charities, and fashion and least likely to engage with consumer goods. • Although consumers may use social media to get useful information or deals and promotions or to enjoy interesting or entertaining brand-created content, a much smaller percentage want to use social media to engage in two-way "conversations" with brands. • Technology limitations may affect the ability to execute a high quality experience. The Facebook app for contest submissions crashed the first day due to high traffic. • The Internet permits scrutiny, criticism, and even "cheap shots" from consumers and organizations.

107) What is viral marketing? Please provide an example.

Student answers will vary. Viral marketing is a form of online word of mouth, or "word of mouse," that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online. Student examples will vary, but an example from the text is Blendtec's Will It Blend? videos.

53) Identify two general guidelines for Search Engine Optimization and paid search ads.

Student answers will vary. Here are four general guidelines: • Broader search terms ("MP3 player" or "iPod") are useful for general brand building; more specific ones identifying a particular product model or service ("Apple iPod classic 160GB") are useful for generating and converting sales leads. • Search terms need to be spotlighted on the appropriate pages of the marketer's Web site so search engines can easily identify them. • Any one product can usually be identified by means of multiple keywords, but marketers must bid on each keyword according to its likely return on revenue. It also helps to have popular sites link back to the marketer's Web site. • Data can be collected to track the effects of paid search.

55) Identify three ways marketers can maximize marketing effectiveness of e-mails.

Student answers will vary. Here are seven possible ways marketers can maximize marketing effectiveness of e-mails: • Give the customer a reason to respond (e.g., powerful incentives for reading e-mail pitches and online ads, such as trivia games, scavenger hunts, and instant-win sweepstakes). • Personalize the content of your e-mails and use an engaging subject line. • Offer something the customer can't get via direct mail like time-sensitive information. • Make it easy for customers to opt in as well as unsubscribe. • Run controlled split tests to explore how location, color, and other factors affect "Sign Up Now" messages. Controlled split tests assemble online matched samples of consumers with one sample given a test message that manipulates one factor and the other being a status quo control. • Combine e-mail with other communications such as social media. • Employ "heat mapping," which tracks eye movements with cameras to measure what people read on a computer screen.

113) Provide five examples of things a marketer might track to measure buzz.

Student answers will vary. Marketers might track scale (how far the campaign reached), speed (how fast it spread), share of voice in that space, share of voice in that speed, whether it achieved positive lift in sentiment, whether the message was understood, whether it was relevant, whether it had sustainability (and was not a one-shot deal), and how far it moved from its source. Other marketers might characterize the source of the word of mouth. One example evaluates blogs by their relevance, sentiment, and authority. Another group measures the types of investments customers make in engaging with brands (e.g., efforts on blogs, microblogs, cocreation, forums and discussion boards, product reviews, social networks, photo and video sharing.

139) Write a brief note on the role of television as an advertising medium.

Television is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure. TV advertising has two particularly important strengths. First, it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits. Second, it can dramatically portray user and usage imagery, brand personality, and other intangibles. Because of the fleeting nature of the ad, however, and the distracting creative elements often found in it, product-related messages and the brand itself can be overlooked. Moreover, the high volume of nonprogramming material on television creates clutter that makes it easy for consumers to ignore or forget ads. Page Ref: 507 Objective: 1 Difficulty: Moderate

137) Identify the 7Cs of design elements. Do you feel they are relevant in a mobile advertising context? Why or why not?

The 7Cs of design elements are context, content, community, customization, communication, connection, and commerce. Student opinions may vary regarding their relevance in a mobile advertising context, but they should recognize the advice for mobile advertising: Brands should limit their ads to a pair of phrases — the offer and the tagline. Brands should place their logo in the corner of the mobile ad frame. Finally, ads should use at least one bright color, but no more than two. Calls to action should be highlighted with a bright color.

click-throughs

The Gilt Groupe sends more than 3,000 variations of its daily e-mail for its flash-sale site based on recipients' past ________, browsing history, and purchase history.

137) Describe how advertising objectives are set to reflect the product class.

The advertising objective should emerge from a thorough analysis of the current marketing situation. If the product class is mature, the company is the market leader, and brand usage is low, the objective is to stimulate more usage. If the product class is new, the company is not the market leader, but the brand is superior to the leader, then the objective is to convince the market of the brand's superiority. Page Ref: 505 Objective: 1 Difficulty: Moderate

147) What challenges do marketers face in managing trade promotions?

The growing power of large retailers has increased their ability to demand trade promotion at the expense of consumer promotion and advertising. The company's sales force and its brand managers are often at odds over trade promotion. The sales force says local retailers will not keep the company's products on the shelf unless they receive more trade promotion money, whereas brand managers want to spend their limited funds on consumer promotion and advertising. Manufacturers face several challenges in managing trade promotions. First, they often find it difficult to police retailers to make sure they are doing what they agreed to do. Manufacturers increasingly insist on proof of performance before paying any allowances. Second, some retailers are doing forward buying—that is, buying a greater quantity during the deal period than they can immediately sell. Retailers might respond to a 10 percent-off-case allowance by buying a 12-week or longer supply. The manufacturer must then schedule more production than planned and bear the costs of extra work shifts and overtime. Third, some retailers are diverting, buying more cases than needed in a region where the manufacturer offers a deal and shipping the surplus to their stores in nondeal regions. Manufacturers handle forward buying and diverting by limiting the amount they will sell at a discount, or by producing and delivering less than the full order in an effort to smooth production. Ultimately, many manufacturers feel trade promotion has become a nightmare. It contains layers of deals, is complex to administer, and often leads to lost revenues. Page Ref: 520, 522 Objective: 2 Difficulty: Moderate

personal selling

The most effective communications mix tool at later stages of the buying process is ________ because it is particularly effective at building buyer preference, conviction, and action.

111) According to researchers, what steps can improve the likelihood of starting a buzz?

The steps that can improve the likelihood of starting a buzz include: • Identify influential individuals and companies and devote extra effort to them. • S Supply key people with product samples. • Work through community influentials. • Develop word-of-mouth referral channels to build business. • Provide compelling information that customers want to pass along.

73) What are the three main platforms for social media?

The three main platforms for social media include: 1. online communities and forums 2. blogs (individual blogs and blog networks such as Sugar and Gawker) 3. social networks (like Facebook, Twitter, and YouTube)

50) Identify three ways a marketer might transform online marketing touch points related to privacy on the Web site into a positive customer experience.

The three ways include: 1. develop user-centric privacy controls to give customer control 2. avoid multiple intrusions 3. prevent human intrusion by using automation whenever possible

52) What is paid search advertising and why is it increasing in popularity?

Thirty-five percent of all searches are reportedly for products or services. Marketers bid in a continuous auction on search terms that serve as a proxy for the consumer's product or consumption interests. When a consumer searches for any of the words with Google, Yahoo!, or Bing, the marketer's ad may appear above or next to the results, depending on the amount the company bids and an algorithm the search engines use to determine an ad's relevance to a particular search. Advertisers pay only if people click on the links, but marketers believe consumers who have already expressed interest by engaging in search are prime prospects. Average click-through in terms of the percentage of consumers who click on a link is about 2 percent, much more than for comparable online display ads, which range from 0.08 for standard banner ads with graphics and images to 0.14 for rich media (expandable banners) ads that incorporate audio and/or video.

141) What are the legal and social issues associated with advertising?

To break through clutter, some advertisers believe they have to be edgy and push the boundaries of what consumers are used to seeing in advertising. In doing so, marketers must be sure advertising does not overstep social and legal norms or offend the general public, ethnic groups, racial minorities, or special-interest groups. A substantial body of laws and regulations governs advertising. Under U.S. law, advertisers must not make false claims, such as stating that a product cures something when it does not. They must avoid false demonstrations, such as using sand-covered Plexiglas instead of sandpaper to demonstrate that a razor blade can shave sandpaper. It is illegal in the United States to create ads that have the capacity to deceive, even though no one may actually be deceived. The challenge is telling the difference between deception and "puffery"—simple exaggerations that are not meant to be believed and that are permitted by law. Sellers in the United States are legally obligated to avoid bait-and-switch advertising that attracts buyers under false pretenses. Advertising can play a more positive broader social role. The Ad Council is a nonprofit organization that uses top-notch industry talent to produce and distribute public service announcements for nonprofits and government agencies. From its early origins with "Buy War Bonds" posters, the Ad Council has tackled innumerable pressing social issues through the years. One of its recent efforts featured beloved Sesame Street stars Elmo and Gordon exhorting children to wash their hands in the face of the H1N1 flu virus. Page Ref: 510 Objective: 1 Difficulty: Moderate

49) A Web site's ease of use and physical attractiveness are important to marketers because consumers use them to judge a site's performance. Please explain three things marketers should do to ensure high ratings on each.

Two criteria consumers use to judge a site's performance are ease of use and physical attractiveness. • Ease of use means: The site downloads quickly, the first page is easy to understand, and it is easy to navigate to other pages that open quickly. • Physical attractiveness is ensured when: Individual pages are clean and not crammed with content, typefaces and font sizes are very readable, and the site makes good use of color (and sound).