Chapter 17

Often when a company introduces a new product or line extension, its promotion will focus on _____ in order to initiate the product-adoption process. a) creating awareness b) stimulating demand c) retaining loyal customers d) combating competitive promotional efforts e) identifying prospects

A

Primary demand is defined as a) demand for a product category. b) demand for a new product. c) consumer awareness of a product category. d) stimulating demand for any products. e) demand for a particular brand.

A

Retro64 distributes free downloadable versions of its computer games for a short time. These efforts have a primary promotional objective of a) encouraging product trial. b) stimulating demand. c) identifying prospects. d) creating awareness. e) reducing sales fluctuations.

A

Selective demand is demand for a a) general type of product. b) particular brand. c) new product. d) competitor's product. e) service.

B

When Blue-ray disc players were first introduced to the market, what would the logical choice for promotion have been? a) Selective demand b) Pioneer promotion c) Comparative promotion d) Primary demand promotion e) Retention promotion

B

___________ links the purchase of an organization's products to support of philanthropic organizations favored by the target market. a) Promotion b) Cause-related marketing c) Charity-related promotion d) Selective demand promotion e) Charitable nonprofit marketing

B

Companies tend to view promotion from many vantage points. Which of the following alternatives is most accurate? a) Promotion costs cause product costs to be higher. b) Promotion activities make up the bulk of marketing. c) The role of promotion is to stimulate product demand. d) Promotion should be directed toward numerous audiences. e) Most promotional efforts are performed through advertising.

C

When a marketer makes an effort in promotion to point out the strengths and benefits of a specific brand, it is an attempt to build _________ demand. a) primary b) secondary c) selective d) economic e) competitive

C

Although a radio announcer can read several hundred words a minute, a one-minute advertising message should not exceed 150 words because most announcers cannot articulate words into understandable messages at faster rates. This illustrates the ___________ consideration in effective communication.

Channel Capacity

Claire Nevsky is in charge of advertising for her company and has produced a 30-second television spot to promote one of the company's new products. One of her assistants just out of college believes that the commercial has too much visual and audio information packed into such a small amount of time. The assistant is specifically concerned about limits in the receiver's

Channel Capacity

OES Office Systems' use of fax machines to carry its advertising messages to its business customers is which component of the communication process?

Communication channel

During the introduction stage of the product life cycle, which type of promotion would a firm focus on? a) Reminder b) Competitive c) Comparative d) Pioneer e) Repetitive

D

Threatt Production makes low-priced, convenience products that are widely available. It is most likely to focus its promotion efforts on a) public relations. b) personal selling. c) viral marketing. d) advertising. e) sales promotion.

D

To gain maximum benefit from promotional efforts, marketers must strive to a) become directly involved rather than indirectly involved. b) obtain information about the marketing environment through their MIS. c) realize the needs of their target market and try to meet them. d) properly plan, implement, coordinate, and control communications. e) use promotion during the growth stage of the product's life cycle.

D

Which of the following types of promotion informs potential customers about a product and what it is? a) Reminder b) Competitive c) Comparative d) Pioneer e) Repetitive

D

When Yoplait Yogurt gives a portion of its profits to Breast Cancer Research, it is using a) promotion. b) integrated marketing communications. c) charity marketing. d) charitable promotion. e) cause-related marketing.

E

Chris sees a television commercial for Arby's promoting its roast beef sandwiches at 5 for $5.95. Later that day he goes to the nearest Arby's for a roast beef feast, but is told that the special offer is not available at that location. Arby's seems to lack

Intergraded Marketing communications

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines

Intergraded marketing communications

Which is the best example of noise that originates with the receiver in the communication process?

Kevin simply tunes out pop-up ads on the Internet so that they don't even enter his awareness.

Anything that reduces the accuracy and clarity of communication is called

Noise

A paid form of nonpersonal communication about an organization and/or its products that is transmitted to a target audience through a mass medium is a) advertising. b) public relations. c) sales promotion. d) personal selling. e) campaigning.

a

Advertising, personal selling, sales promotion, and public relations are called a) promotion mix ingredients. b) marketing mix components. c) characteristics of a product. d) advertising tools. e) nonpersonal communication.

a

Andrea receives an e-mail from her sister-in- law that is actually a recommendation for a website with a demonstration of a new home hair-coloring system. She later discovers that her sister-in- law received a free trial kit for passing Andrea's and four other friends' e-mail addresses along to the marketer. This is known as a) viral marketing. b) buzz marketing. c) guerilla marketing. d) a word-of- mouth pyramid. e) personal advertising.

a

By promoting the fact that "orange juice is not just for breakfast anymore," the Florida Orange Growers Association attempted to stimulate a) primary demand. b) secondary demand. c) competition. d) comparison of orange juices. e) demand elasticity.

a

Head nodding, winking, hand gestures, and arm motions are all forms of _________ communication. a) kinesic b) spacing c) proxemic d) touching e) tactile

a

If a marketer of a perfume ad develops a commercial involving a man being attracted to a woman who wears a particular perfume, it is attempting to influence one's need for a) love and affection. b) safety. c) self-esteem. d) self-actualization. e) respect from others.

a

If a pull policy is to be used in promoting a product, the firm a) promotes directly to consumers. b) promotes only to the next marketing institution down the marketing channel. c) promotes the product to retail stores only. d) promotes the product to wholesalers only. e) must also use the push policy to be effective.

a

If promotion does not do its job of stimulating demand, then the a) price of the promoted product is likely to increase. b) price of the promoted product will remain reasonably stable. c) price of the promoted product will decrease. d) cost of promotion will decline. e) cost will remain about the same.

a

Slow feedback, high absolute-dollar outlay, and difficulty in measuring effects on sales are disadvantages of which promotion mix ingredient? a) Advertising b) Public relations c) Sales management d) Sales promotion e) Personal selling

a

The use of a pull policy may require heavy expenditures for a) advertising and sales promotion. b) public relations and distribution. c) personal selling and public relations. d) distribution and advertising. e) sales promotion and personal selling.

a

When Hamburger Helper introduced its Oven Varieties, it gave special offers to supermarkets to purchase the new product and supplemented these offers with consumer advertising. Hamburger Helper's primary objective is to a) facilitate reseller support. b) reduce sales fluctuations. c) combat competitive promotional efforts. d) encourage product trial. e) retain loyal customers.

a

When McDonald's uses the Monopoly game in which customers receive game pieces with each visit and try to assemble a set of properties to win prizes, McDonald's is utilizing a) sales promotion. b) advertising. c) guerilla marketing. d) personal selling. e) public relations.

a

Which of the following industries is most likely to employ combative promotional efforts? a) Fast food b) Computer processors c) Tax-preparation services d) Television producers e) Automotive paints

a

Which of the following target market characteristics are most important to consider before determining the promotion mix ingredients? a) The size, geographic distribution, and demographic characteristics b) The cultural diversity and population size c) The age, sex, religion, and race characteristics d) Existing product adoption categories e) Existing levels of price consciousness

a

116. If the push policy is used in promoting a product, the firm a) promotes directly to consumers. b) promotes only to the next marketing institution down the marketing channel. c) promotes the product to wholesalers only. d) promotes the product to retailers only. e) will be assured of having an effective promotional mix.

b

A consumer contest is an example of a) personal selling. b) sales promotion. c) advertising. d) indirect selling. e) public relations.

b

Blockbuster offers its customers a Blockbuster Rewards Card that allows them to rent every sixth movie free and provides various discounts throughout the year. The primary promotional objective of programs such as this is a) encouraging product trial. b) retaining existing customers. c) stimulating demand. d) combating competitive promotional offers. e) reducing sales fluctuations.

b

Brandon walks around behind purchasing agent Shannon Wise as she looks at the pamphlet describing Hyster's new conveyer system. Shannon stands up and walks to a table on the other side of her office. Brandon follows, but he does not understand the ___________ communication Shannon is sending. a) tactile b) proxemic c) kinesic d) verbal e) promotional

b

Cost efficiency, repetition, and adding product value are all potential benefits of a) public relations. b) advertising. c) personal selling. d) promotion. e) guerilla marketing.

b

High-priced products usually depend heavily on which promotion mix ingredient? a) Advertising b) Personal selling c) Public relations d) Sales promotion e) Telemarketing

b

Hunt's decided to put a much larger share of its promotion budget into ___________ because of the heavy reliance it will be placing on coupons in the second quarter. a) advertising b) sales promotion c) public relations d) telemarketing e) personal selling

b

If a manufacturer decides to use a push policy to promote its products, it is most likely to focus its efforts on a) retailers. b) wholesalers. c) ultimate consumers. d) other producers. e) institutional users.

b

Marketers of highly seasonal products tend to have more irregular use of a) advertising. b) sales promotion. c) public relations. d) personal selling. e) marketing.

b

One of the biggest problems associated with ___________ as an element of promotion is the high absolute dollar outlay often required. a) personal selling b) advertising c) public relations d) sales promotion e) packaging

b

Promotion can help keep prices lower because a) demand for the product does not increase. b) promotion of prices intensifies price competition. c) promotion of prices leads to nonprice competition. d) promotion tends to reduce consumers' price sensitivity. e) promotion tends to stabilize a product's price elasticity of demand.

b

Promotion tends to a) create needs. b) capitalize on existing needs. c) be overly focused on the self-actualization needs. d) overemphasize physiological and safety needs. e) avoid focusing on people's needs.

b

Promotional efforts designed to reduce the risk to consumers for using a product for the first time seek to a) stimulate demand. b) encourage product trial. c) create awareness. d) combat competitive promotional efforts. e) retain loyal customers.

b

Public relations a) should be used mostly to counteract any competitive promotions or negative publicity. b) is an element of promotion that should be handled on a continuous basis. c) should be used solely to respond to emergencies that could significantly damage the company's reputation. d) is paid communication that helps enhance a company's image by highlighting its philanthropic efforts. e) is generally not given much weight because the information is generated by the company itself.

b

Sweepstakes, free samples, coupons, and rebates are examples of a) advertising. b) sales promotion techniques. c) publicity. d) personal selling techniques. e) packaging methods.

b

The use of heavy advertising in the promotion mix is least likely to occur in which product life cycle stage? a) Introduction b) Decline c) Maturity d) Growth e) Plateau

b

Which of the following are personal informal exchanges of communication that customers share with one another about products, brands, and companies? a) Guerilla communication b) Word-of- mouth communication c) Buzz marketing d) Viral marketing e) Conversational promotion

b

A commercial for a weight-loss program that explains that the customer pays only one dollar for every pound he or she wants to lose but specifies in fine print that the cost of meals is extra exemplifies ____________ advertising. a) unfair b) illegal c) deceptive d) push e) pull

c

A common form of tactile communication in U.S. business activities is a) hugging. b) kissing. c) handshaking. d) eye contact. e) head nodding.

c

An advertisement from a ski lodge extolling the benefits of a summer getaway in the mountains uses promotion to a) combat competitive promotional efforts. b) stimulate demand. c) reduce sales fluctuations. d) encourage product trial. e) retain loyal customers.

c

An attempt to create a trend or acceptance of a product through word-of- mouth communication is called a) guerilla marketing. b) viral marketing. c) buzz marketing. d) personal publicity. e) conversational promotion.

c

As their meeting concludes, Jamal rises and thanks Gina for taking the time to come by and explain her firm's new line of industrial fasteners. A(n) ___________, which is a form of tactile communication, concludes the session. a) smile b) walk to the door c) handshake d) exchange of business cards e) pleasant good-bye

c

As they walk to the car, Erin Brandeis tells her sales representative, Joachin Perez, that they may need to modify the price structure they just presented to the prospect. Erin bases her statement on the way the prospect folded his arms when Joachin quoted him the prices on the new system. Joachin says he didn't notice. Erin recommends a book on ___________ communication to Joachin. a) tactile b) proxemic c) kinesic d) verbal e) signal

c

Bowflex uses infommercials to demonstrate its fitness products and encourage customers to call and receive a free video with more information about its products. This promotional effort is directed at a) creating awareness. b) encouraging product trial. c) identifying prospects. d) stimulating demand. e) retaining loyal customers.

c

Communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization more positively and to accept its product is the role of a) the vice president of sales. b) manipulation. c) promotion. d) information. e) sales promotion.

c

Frequently, Burger King restaurants offer 32-ounce glasses depicting currently popular movie characters free with the purchase of a large drink. This example illustrates Burger King's use of which one of the following elements of the promotion mix? a) Packaging b) Personal selling c) Sales promotion d) Public relations e) Telemarketing

c

If children and teenagers are insisting on wearing expensive name-brand apparel, a criticism of promotion can be made that promotion a) forces people to spend too much. b) forces prices to go up. c) encourages materialism. d) creates needs. e) can be harmful.

c

Kinesic communication is an element in which type of promotional method? a) Advertising b) Public relations c) Personal selling d) Packaging e) Sales promotion

c

Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is a) personal promotion. b) advertising. c) personal selling. d) public relations. e) individual promotion.

c

Procter & Gamble periodically sends out coupons and free samples of products like Downy fabric softener. This illustrates P&G's use of which of the following elements of the promotion mix? a) Advertising b) Personal selling c) Sales promotion d) Public relations e) Telemarketing

c

Some critics, including consumer groups and government officials, suggest that certain products should not be promoted because they a) cost too much. b) are illegal. c) are potentially harmful. d) do not last. e) are not competitive.

c

The cost of _____ is usually substantially lower than the cost of _____. a) stimulating primary demand; stimulating selective demand b) identifying prospects; encouraging product trial c) retaining existing customers; acquiring new customers d) comparative advertising; pioneer promotion e) personal selling; public relations

c

For many consumers, the pages near the back of magazines with dozens of very small black and white advertisements exceed their

channel Capcity

Each communication channel has a limit on the volume of information it can handle effectively. This limit is called

channel capacity

A sharing of meaning defines

communication

The Barrister's Deli decides to run advertisements for its lunch specials on a local FM radio station. Marketing research later reveals that the restaurant's target market listens primarily to satellite radio stations. This promotion program suffered from an error in the selection of

communication channel

The vehicle through which the coded message is transmitted from the source to the receiver is called a(n)

communication channel

Radio and television signals as well as ink on the paper of a magazine or newspaper are all considered

communication channels.

All of the following are examples of publicity-based public relations tools except a) press conferences. b) feature articles. c) news releases. d) annual reports. e) news stories.

d

An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers is a) advertising. b) personal selling. c) public relations. d) sales promotion. e) packaging.

d

Cooperative advertising efforts between manufacturers and retailers demonstrate the promotional objective of a) stimulating demand. b) reducing sales fluctuations. c) combating competitive promotional efforts. d) facilitating reseller support. e) retaining loyal customers.

d

Generally, promotion mixes for companies with extremely limited promotional budgets tend to concentrate on a) advertising. b) publicity. c) sales promotions. d) personal selling. e) distributor incentives.

d

If a firm's promotional budget were extremely limited, for which of the following reasons would it be more likely to rely on personal selling as its main promotional tool? a) People are more likely to believe a human being than a print ad. b) TV and radio ads are not feasible for smaller companies. c) It can achieve more sales through business customers than through individual consumers. d) It is easier to measure a salesperson's effects on sales than advertising's effects on sales. e) The firm is charging a higher price to cover the expensive salaries of its salespeople.

d

Pioneer promotion is most likely to be used during the _____ stage of the product life cycle. a) maturity b) decline c) growth d) introduction e) presentation

d

Promotion helps consumers because it a) costs billions of dollars each year, which stimulates the U.S. economy. b) always stresses wholesome values, which benefits society. c) persuades consumers to make the right choices. d) informs consumers and places them in a position to specify the products that they seek. e) tends to be informative and not persuasive.

d

The Sharper Image likes to use nonpersonal communication in news story form such as press releases for its new and improved products. This is an example of a) sales promotion. b) advertising. c) personal selling. d) publicity. e) kinesic communication.

d

When Hershey Dark Chocolate Kisses were introduced, Hershey promoted directly to consumers and told them to ask for the product at their favorite stores. This is an example of a _________ policy. a) reseller promotional b) push c) customer promotional d) pull e) channel promotional

d

Which of the following is the best example of the promotional objective of combating competitive promotional efforts? a) Joy advertises that its dish soap has more suds than Dawn, Sunlight, and other leading dish soaps. b) Joe Boxer and Kmart collaborate to promote Joe Boxer's lines of clothing and housewares. c) The Pork Council advertises pork as the "other white meat" and a healthier alternative to beef. d) After Ford promotes the towing capacity of its F-series trucks, DaimlerChrysler soon emphasizes the towing capacity of its Dodge trucks. e) Hyundai offers 10-year/100,000 mile warranties on its vehicles in order to give customers confidence in its brand name and automotive offerings.

d

Which promotion mix ingredient costs considerably more than advertising to reach just one person but can provide more immediate feedback? a) Publicity b) Sales management c) Sales promotion d) Personal selling e) Public relations

d

Communication can be viewed as a circular process because

during feedback, the receiver can be viewed as the source of the message while the original source becomes the receiver.

A direct-response information form found in a magazine advertisement that allows customers to send for more information has a primary objective of a) encouraging product trial. b) retaining loyal customers. c) stimulating demand. d) creating awareness. e) identifying prospects.

e

A spokesperson for Mott's apple juice encourages television audiences to use its juice in the winter by serving it hot with a cinnamon stick. In this instance, Mott's is using promotion to a) stimulate primary demand. b) offset competitors' promotional efforts. c) facilitate reseller support. d) retain loyal customers. e) reduce sales fluctuations.

e

Communication through the use of brochures, annual reports, event sponsorships, and news stores is referred to as a) advertising. b) personal selling. c) sales promotion. d) publicity. e) public relations.

e

Factors such as climate, seasons, and holidays tend to lead to the promotional objective of a) combating competitive promotional offers. b) facilitating reseller support. c) encouraging product trial. d) retaining loyal customers. e) reducing sales fluctuations.

e

Newspaper ads for Blue Haven Pools offering discounted prices during October are examples of which of the following uses of promotion? a) Retaining loyal customers b) Promoting new product uses c) Making salespeople more effective d) Stimulating primary demand e) Reducing sales fluctuations

e

Organizations that sell products to industrial markets or a few wholesalers tend to focus their promotion efforts on a) advertising. b) word-of- mouth communication. c) public relations. d) sales promotion. e) personal selling.

e

The basic promotional objective underlying a magazine advertisement with a direct-response information form that requests the reader to complete and mail the form to receive additional information is to a) retain loyal customers. b) facilitate reseller support. c) reduce sales fluctuations. d) stimulate primary demand. e) identify prospects.

e

The two main reasons for criticism of promotional activities are that promotion a) has some flaws, and it is deceptive. b) is deceptive, and it causes prices to rise. c) pervades our daily lives, and it creates needs in us. d) creates needs in us, and it encourages materialism. e) has some flaws, and it pervades our daily lives.

e

When Sears promotes the benefits and strengths of its Kenmore brand appliances, it is attempting to build a) primary demand. b) pioneer promotion. c) prospects. d) brand awareness. e) selective demand.

e

When a salesperson varies the physical distance between himself and a customer he is using a) kinesic communication. b) personal selling. c) tactile communication. d) comfort relations. e) proxemic communication.

e

_____ is a broad set of communication efforts used to create and maintain favorable relationships between a company and its stakeholders. a) Stakeholder management b) Personal selling c) Integrated marketing communications d) Sales promotion e) Public relations

e

As Emily Jeffries prepares the script for a radio commercial for her boutique, she is engaging in the _______ stage of the communication process.

encoding

In one corner of its magazine advertisement for office copiers, Epson places a small box asking for the names and addresses of individuals or companies seeking more information. Epson has included this box to facilitate ___________ for this communication.

feedback

The receiver's response to a message is ___________ for the source.

feedback

In order for customers to receive greater customization and service, they must be willing to

give information about themselves and their tastes.

Effective management of integrated marketing communications is based upon

information about customers

If FedEx-Kinko's decided to outsource all of its marketing efforts to the MaxPro Company, which specializes in advertising, sales promotion activities, and public relations, FedEx-Kinko's would likely be striving to practice

integrated marketing communications

Channel capacity is determined by the

least efficient component of the communication process.

The message that a source originally encodes and the meaning a receiver ultimately decodes

may be different because of noise.

When encoding the message, the source should use signs that have

meanings that the target market will understand.

During a one-minute television ad for Nike, the National Weather Service interrupts to announce a flash flood warning for surrounding counties. Such an occurrence is an example of ___________ in the communication process.

noise

Sonya is watching the six o'clock news as she prepares dinner. As commercial breaks come on, Sonya's dinner preparation would be considered

noise

Sara Dickson is concerned about the effectiveness of Magnum, Inc.'s promotional messages, and is seeking an approach with immediate feedback. Sara is most likely to achieve this through

personal selling

Reba Vincent is employed as a consultant for Mary Kay Cosmetics. This illustrates

personal selling.

The individual or group that decodes a coded message is called a

receiver

During the decoding process, the

receiver attempts to convert signs or symbols into concepts and ideas.

Sierra is driving to work on I-95 and notices a billboard for new salads at Wendy's. She reads the message and sees the pictures of the new salads. In this case, Sierra is the _____ and Wendy's is the _____ of this communication.

receiver; source

A person, group, or organization that has a meaning it intends and attempts to share with a receiver or an audience is a

source

In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette is the communication

source

The process of putting one's thoughts (meaning) into signs (symbols) is called

the coding process.

When a source converts meaning into a series of signs or symbols representing ideas or concept, the source is undergoing

the coding process.

What is the overall role of promotion?

to stimulate product demand