Marketing Chapter 12

In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. A) direct marketing B) advertising C) public relations D) predictive analytics E) indirect procurement A) direct marketing

a

Which of the following is a disadvantage of using a magazine as an advertising medium? A) It has a poor pass-along readership. B) It involves high costs. C) It has low geographic selectivity. D) It has low credibility and image. E) It consists of low-quality reproduction.

b

Remington Motors releases a new line of hybrid electric vehicles called Electra. The line promises superior mileage and excellent horsepower in an environmentally friendly automobile. Remington decides to use advertising as the promotional tool for the car's launch. Which of the following would qualify as an advertisement for Electra? A) a front-page notice of the release of Electra in all leading newspapers with the caption "Green Speed" B) a press conference to discuss the various safety issues, actual mileage, and environmental features of Electra C) the use of dedicated sales personnel in dealer showrooms to explain the qualities of Electra to potential customers D) the involvement of a celebrity at the launch of Electra to endorse the hybrid car E) a buyers-only lottery where Electra buyers have a chance of winning a prize

a

What is the primary advantage of using television as an advertising medium? A) It involves a low cost per exposure. B) It supports a high degree of audience selectivity. C) It involves low absolute costs. D) It contains low ad clutter. E) It permits prominent exposure.

a

Which of the following is an example of branded entertainment? A) a company placing its product in a movie scene B) a company using a celebrity to endorse a product C) a company airing its advertisements in movie theaters D) a company using an acclaimed movie director to film an advertisement E) a company using a famous song in its advertisement

a

Which of the following is true of advertising in the new marketing communications model? A) Advertisers are increasingly shifting toward digital media. B) Advertisers are spending more on broadcast advertising. C) Advertisers are finding traditional media less expensive. D) Advertisers are using less targeted media to reach customers. E) Advertisers have replaced print catalogues with digital versions.

a

Which of the following is true of marketing strategies that are being developed in the new marketing communications model? A) They are more targeted, social, and engaging. B) They target much larger customer segments. C) They rely more on mass-media marketing techniques. D) They use very little alternative media. E) They include a greater number of print media ads.

a

Which of the following media is most suitable for advertising a product that needs to be demonstrated? A) television B) radio C) newspaper D) magazine E) billboard

a

Which statement is most likely true about the affordable method of setting an advertising budget? A) It typically overlooks how promotion affects sales. B) It always results in overspending on advertising. C) It is especially ideal for long-range market planning. D) It leads to an overly fixed annual promotion budget. E) It is most often used by firms with large advertising budgets.

a

Zephyr Inc., an electronics manufacturer, wants to enter the commercial tracking device market with its latest product, FindIt. Unlike other tracking devices, FindIt is very small and relatively cheap, but it can be used only within small areas as it has a low detection-range. Which type of advertising would be best for FindIt? A) informative advertising B) reminder advertising C) classified advertising D) comparative advertising E) personalized advertising

a

According to the text, the most logical budget-setting method in advertising is the ________ method. A) adaptive-control B) objective-and-task C) competitive-parity D) affordable E) percentage-of-sales

b

An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising. A) scientific evidence B) testimonial evidence C) technical expertise D) mood or image E) fantasy

b

In a marketing communications mix, ________ refers to any short-term incentives to encourage the purchase of a product or service. A) advertising B) sales promotion C) personal selling D) crowdsourcing E) public relations

b

The ________ style of advertising shows ordinary people clearly using a product in a normal setting. A) personality symbol B) slice of life C) mood or image D) testimonial evidence E) technical expertise

b

The aim of ________ is to make ads so engaging or useful that people want to watch them. A) branded entertainment B) advertainment C) social advertising D) subliminal advertising E) infotainment advertising

b

Which of the following is a shortcoming of advertising? A) It does not allow dramatization of the brand or company. B) It only provides one-way communication with customers. C) It is too customized and only attracts small, niche markets. D) It reaches targeted customers too slowly in most cases. E) It is the most costly promotion tool for companies.

b

Which of the following is an example of narrowcasting using advertisements? A) running an ad for a new line of cars on cable TV B) showing ads for diapers to would-be mothers in hospitals C) handing out promotional leaflets for a new restaurant to passers-by D) showing video game ads at a college football game E) uploading movie ads on Web sites like YouTube

b

Which of the following is most likely a difference between advertising and sales promotions? A) Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. B) Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy the product immediately. C) Advertising can be used to dramatize product offers, but sales promotion cannot be used for this purpose. D) Advertising can trigger quick sales, while sales promotions cannot. E) Advertising is not as effective in building long-term brand preferences as sales promotions are.

b

Which of the following is true of direct marketing? A) Its marketing message is fixed and does not change according to the customer's requirements. B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships. C) It is presented as company news rather than as a sales-directed communication. D) It does not involve any interaction between the company and its customers. E) It is an impersonal promotion tool that hinders two-way communication.

b

Which of the following is true of public relations? A) It provides quick incentives to make product purchases. B) It is not a sales-directed form of communication. C) It involves training a dedicated sales force to meet customers. D) It cannot be used to dramatize a product or company. E) It is the most widely used promotional tool.

b

Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn promote the product to customers? A) direct marketing B) a push strategy C) the publish-subscribe method D) a pull strategy E) vertical integration

b

Which of the following promotion tools will most likely make a consumer feel the need to listen and immediately respond to a seller? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

b

Which of the following types of promotion tools requires the most interaction with a customer? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

b

Which statement is most likely true about the affordable method of setting an advertising budget? A) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish. B) Spending on advertising is calculated after operating expenses, and capital outlays are deducted from total revenues. C) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year. D) Spending on advertising is calculated as a percentage of the unit sales price. E) Spending on advertising is based on a competitor's advertising outlays.

b

________ advertising would most likely result in advertising wars between competitors. A) Reminder B) Comparative C) Personal D) Informative E) Classified

b

nglast, a chocolate producer, is faced with a class action suit when customers find pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used? A) classified B) informative C) comparative D) personalized E) reminder

b

A company that uses telephone marketing to sell its products to customers is most likely using the promotion tool of ________. A) advertising B) public relations C) direct marketing D) retailing E) merchandising

c

A company which uses a press release to explain the resignation of a former CEO is using ________ to maintain its brand image. A) personal selling B) sales promotion C) public relations D) direct marketing E) advertising

c

Dazed is a bar which mostly plays trance music and has a dedicated day every week for local bands to perform. To build strong customer relations, Dazed sends text messages to customers, telling them about happy hours, bands playing that week, dedicated genre nights, and other activities. Which of the following promotion mix tools does Dazed employ to reach target customers in this scenario? A) public relations B) personal selling C) direct marketing D) crowdcasting E) retailing

c

In the competitive-parity method of setting an advertising budget, the budget is set based on ________. A) a percentage of future sales B) the total revenues that a company makes C) the amount spent by similar companies in the same industry D) objectives set by the company and the cost required to accomplish them E) a percentage of current sales

c

Lazer Telecom, a cell phone manufacturer, has signed a contract with a production house to fund a new movie. The conditions of the agreement state that the movie will feature Lazer Telecom phones onscreen. What kind of advertising technique has Lazer Telecom most likely adopted in this example? A) geofencing B) advertainment C) product placement D) vertical integration E) subliminal advertising

c

Pearl Sands is a resort in the town of Willington. It attracts the maximum number of customers in the summer. In the spring, Pearl Sands sponsors shows on TV and puts up billboards in Willington and the surrounding towns. The billboards advertise Pearl Sands as an ideal holiday spot, whether for a weekend getaway in the summer heat or for a family vacation. This is an example of a ________ strategy. A) push B) vertical integration C) pull D) publish-subscribe E) direct marketing

c

Which of the following best describes the personality symbol style of advertising? A) using ordinary people to show how a product affects them in their daily lives B) using scientific evidence to support claims about a product in an advertisement C) using an animated character or mascot to represent a product in an advertisement D) using a technical expert to recommend a product in an advertisement E) using a celebrity to endorse a product in an advertisement

c

Which of the following is a disadvantage of standardization of advertising messages? A) It gives rise to higher advertising costs. B) It complicates the advertising process. C) It is less responsive to local market needs. D) It tends to suffer from poor coordination. E) It gives rise to inconsistent messages.

c

Which of the following is a disadvantage of using online, mobile, and social media for advertising? A) The costs are high. B) Audience selectivity is low. C) The audience controls ad exposure. D) The interactive capabilities are low. E) There is little scope for personalization.

c

Which of the following is an effect of the advancement of technology on marketing? A) Fragmented markets have assimilated into a few mass markets. B) Marketers go through more intermediaries to connect with consumers. C) Consumers rely less on marketer-supplied information than in the past. D) Marketers have increasingly moved toward mass-marketing techniques. E) Marketers tend to supply less information to consumers than in the past.

c

Which of the following is true of personal selling? A) It is the most effective promotional tool for geographically dispersed buyers. B) It allows firms to dramatize product offers through arts and visuals. C) It is the most expensive promotional tool for companies to utilize. D) It is an ineffective method for building long-term customer relationships. E) It presents a firm's message as news rather than as a sales-directed communication.

c

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing

c

A ________ strategy involves a company spending a lot of money on advertising and promotion to induce consumers into buying the product by creating a demand vacuum. A) push B) direct marketing C) vertical integration D) pull E) publish-subscribe

d

Which of the following is an example of a combination of sales promotions and direct marketing? A) a company giving discounts on their product prices in order to gain a brand image B) a company releasing a nationwide television ad about every buyer having a chance to win a lottery prize C) a company holding a press conference to talk about their new product D) a company's sales representatives meeting customers directly to present customized offerings E) a company sending an e-mail to a customer about a discount on a product during a holiday season

e

ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image? A) having well-trained personnel at retail outlets to explain the different ranges of products the company provides B) tying up with local restaurants to promote exclusive sales of ColaBlue soft drinks C) lowering prices of ColaBlue's products in the short term D) holding a press conference to explain the remedial steps that ColaBlue has taken E) making new advertisements for ColaBlue products and sponsoring shows on television

d

Mercury Electric, a leading manufacturer of kitchen appliances, releases a new line of blenders called SpinPro. To boost sales, Mercury Electric gives scratch-and-win coupons to all buyers and provides a three-day trip to Hawaii for the winner. Which element of the promotion mix has Mercury Electric used in this scenario? A) public relations B) crowdsourcing C) advertising D) sales promotion E) personal selling

d

The objective of ________ advertising is to build primary demand. A) reminder B) comparative C) personal D) informative E) persuasive

d

Tilt Entertainment, a gaming design firm, has developed a new game called World Below. In order to get wider distribution, Tilt participates in the Gaming Entertainment Expo, which is attended by both sellers and consumers. Tilt sends a team of representatives for game presentation and negotiation and a team of professional gamers to showcase World Below at the Expo. The company also sends a team to sell its other games to consumers at the Expo. Which promotion mix tool has Tilt used in this scenario? A) crowdsourcing B) public relations C) advertising D) personal selling E) crowdcasting

d

What is the primary disadvantage of outdoor advertising? A) It provides low flexibility. B) It permits low repeat exposure. C) It provides poor positional selectivity. D) It provides little audience selectivity. E) It has high message competition

d

Which of the following best describes the term "Madison and Vine"? A) utilizing the slice of life style of advertising B) emphasizing reach over impact in advertising C) using social media for advertising a brand D) merging advertising with entertainment E) voicing social concerns through advertising

d

Which of the following is a function of an integrated marketing communications system? A) designing products using environmentally friendly techniques B) allowing suppliers or vendors to manage the inventory of products C) controlling production levels by feedback received from customers D) delivering a consistent message on the product to each brand contact E) sharing company forecasting details with shareholders

d

Which of the following is an example of a firm utilizing public relations as a promotion tool? A) a firm using its personal sales force at an expo to sell its products B) a firm sending its catalog directly to customers through e-mail C) a firm informing customers of special discounts on its Web site D) a firm providing interesting information about a product to the news media E) a firm using a celebrity to endorse a product in a television commercial

d

Which of the following is the first step in developing an advertising program? A) setting the advertising budget B) developing an advertising strategy C) developing a brand message D) setting advertising objectives E) evaluating advertising campaigns

d

Which of the following promotion tools would best reach a geographically dispersed mass audience in a short period of time? A) direct mailing B) telephone marketing C) door-to-door selling D) television advertising E) printed-catalog marketing

d

Which technique is used by firms to deliver a unified and consistent image about their organizations and brands to consumers? A) logistics information management B) inventory control segmentation C) niche market penetration D) integrated marketing communications E) global marketing management

d

________ advertising is used heavily when introducing a new product category. A) Reminder B) Comparative C) Personal D) Informative E) Persuasive

d

________ advertising primarily maintains brand relationships and is important for mature products. A) Comparative B) Persuasive C) Personalized D) Reminder E) Classified

d

A company that offers an early bird discount to the first fifty purchasers of a new product is using the promotional tool of ________. A) direct marketing B) public relations C) advertising D) personal selling E) sales promotion

e

In a promotion mix, ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships. A) advertising B) public relations C) crowdsourcing D) merchandising E) personal selling

e

In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events. A) personal selling B) sales promotion C) direct marketing D) advertising E) public relations

e

The primary objective of ________ advertising is to build selective demand. A) reminder B) classified C) personal D) informative E) persuasive

e

Trainstar, a sportswear equipment manufacturer, releases a new line of energy drinks called VitaZing. The television ad for the energy drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink VitaZing, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the VitaZing ad? A) scientific evidence B) technical expertise C) personality symbol D) testimonial evidence E) lifestyle

e

Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit? A) adaptive-control method B) objective-and-task method C) competitive-parity method D) affordable method E) percentage-of-sales method

e

Which of the following is true of consumers in the new marketing communications model? A) They are more reliant on traditional methods of marketing for product information. B) They are less informed than before about companies and product marketing techniques. C) They are more reliant on mass-media marketing methods for product information. D) They are less powerful than before in affecting the way a company markets its products. E) They are better equipped to find product and brand information on their own.

e