Marketing Chapter 8
Public relations
Communication focused on promoting positive relations between a firm and its stakeholders.
We can set up a ________________ to see what message and visuals relate best with our target audience on the social media platform.
Communication test.
Percentage of sales method
Companies that use the percentage of sales method allocate a specific percentage of a previous period's sales or an upcoming period's forecasted sales to the promotion budget for that period. The method has the advantage of being simple because the promotion budget increases at the same rate that firm sales increase. The disadvantage of the percentage of sales method arises when a firm's sales decline.
What is a disadvantage of using banner ads in Internet advertising?
Consumers can simply ignore them.
The maker of Lays potato chips wanted its customers to choose the next new flavor of its chips. Contestants would submit their ideas along with an idea for an advertising jingle and the winner would receive a cash prize and have their chip idea placed into production. This is an example of which sales promotion technique?
Contest
__________ are the most common type of sales promotion.
Coupons
Coupons
Coupons are documents that entitle the customers who carry them to a discount on a product or service. A disadvantage of coupons includes coupon fraud in the form of misredemption practices.
As it pertains to marketing, all of the activities that communicate the value of a product and persuade consumers to buy it is referred to as _______.
promotion
Annual reports, speeches, blogs, and brochures are tools used in which promotional strategy?
public relations
Because of advances in technology that cause information to spread faster than ever before, _______ is now a 24-hours-a-day, 7-days-a-week job for marketers across government entities, for-profit industries, and nonprofit organizations.
public relations
The aim of a(n) _____________ ____________ campaign is to promote positive relations between a firm and its stakeholders.
public relations
As a public relations tool, _______________ involves disseminating unpaid news items through some form of media to gain attention and support.
publicity
Along with being one of the most cost-effective media available, another major advantage of ___________ advertising is the ability to market to small geographic regions including very small or rural communities.
radio
A measure of the percentage of the target market that has been exposed to a promotional message at least once during a specific time period is referred to as _______.
reach
An advertiser that shows a commercial once during the Super Bowl is most likely trying to increase _______ by exposing as much of the target market as possible to its promotional message.
reach
Which marketing metric measures the percentage of the target market that has been exposed to a promotional message at least once during a specific time period?
reach
Jared was shopping for a new lawnmower. One of the brands he was looking at would give him $25 back on his purchase if he mailed in a form with a copy of his receipt. This type of sales promotion is called a _______.
rebate
Because customers often fail to redeem them, marketers like to use ___________ as a sales promotion tactic.
rebates
A(n) _______ test is a performance metric that involves showing consumers an advertisement and asking if they recognize it.
recognition
The process of building a trusting relationship with a customer over a long period of time is referred to as
relationship selling.
An unaided recall test is a performance metric that _______.
requires consumers to recall advertisements from memory without any clues
The strategy of cultivating high-frequency advertising at a low cost is aimed at improving _______.
revenue per ad dollar
Companies that use the percentage-of-sales method allocate a specific percentage of a period's _________________ to the promotional budget for that period.
sales
Activities centered around _______ account for the bulk of most firms' promotional budgets.
sales promotion
Marketers of a pet food company are distributing free samples of its newest line of dog treats. The company hopes that the strategy will result in an increase in sales if the sample is a hit. Which promotion mix element is the pet food company using in this case?
sales promotion
Your text defines _______ as the set of nonpersonal communication tools designed to stimulate quicker and more frequent purchases of a product.
sales promotion
Even though it is an expensive sales promotion technique, the use of __________________ can be a powerful tool for getting customers to actually buy the product after they have tried it.
samples or sampling
Which promotional tool is used in the advertising element of the promotion mix?
social media
During its annual Black Friday sale, a local electronics store gave customers a chance to win a new laptop computer. Customers only had to fill out a card with their name and address and drop it into a box. One winner would be chosen at random. This is an example of a _______.
sweepstakes
According to your text, perhaps the biggest disadvantage of _______ advertising is its high cost.
television
An advantage of _______ is that this is often what people think of first when they hear the term marketing.
television advertising
Which of the following should be taken into consideration when determining a promotion mix budget?
the types of products being sold by the firms, the geographic location of the firm's customers, and the level of competition in the industry
There are different methods to determining a promotional budget that firms typically use.
three
Sales promotions directed to B2B firms including wholesalers and retailers are called __________ sales promotions.
trade
One of the major disadvantages of outdoor advertising is that the viewers of the advertisement may not be part of the target market. This is a situation known as ______________ coverage.
wasted
Which of the following are advantages to television advertising?
-ability to demonstrate a product in use -ability to target specific markets -ability to combine various senses to appeal to consumers
Which of the following is a form of advertising that exemplifies narrowcasting?
A commercial for Barilla pasta shown on the Food Network
Mobile advertising
A growing type of nontraditional advertising is mobile advertising, advertising that is communicated tot he consumer via a handheld device. Over 75 percent of U.S. adults use smartphones, and most keep their devices within arm's reach for the majority of the day.
What is a major advantage of television advertising?
A major advantage of television advertising is the ability to combine sight, sound, and motion to appeal to consumer senses. Television ads can develop messages that entertain or emotionally appeal to consumers in ways that radio and print media cannot. In addition, television ads can demonstrate a product in use.
Revenue per ad dollar
A performance metric that is calculated by comparing total revenue to the amount of money spent on advertising.
What two measures help the firm gauge the ad campaign's success.
A pretest and a posttest.
Which tool should companies use to understand the effectiveness of their advertising, public relations, and other promotional programs.
A qualitative research tool. Techniques like focus groups and consumer interviews often generate in depth responses. These responses give marketers insight into consumers' subtle likes and dislikes and can be valuable as the firm refines its promotion message.
A recognition test
A recognition test involves showing consumers the print advertisement and asking if they recognize the ad. While recognition tests can help the firm determine whether its ad has caught the attention of the target market, recognition alone may not prompt consumers to buy a product.
Sales promotion
A set of nonpersonal communication tools designed to stimulate quicker and more frequent purchases of a product.
According to the data outlined in your text regarding the percentage share of global advertising expenditures, most advertising mediums are projected to _______, while _______ advertising is projected to double.
According to the data outlined in your text regarding the percentage share of global advertising expenditures, most advertising mediums are projected to remain relatively stable, while internet advertising is projected to double.
Posttest
After the ad campaign, marketers conduct a posttest, an evaluation after the campaign of the ads by the same targeted segment of consumers.
_________________ typically involve paying retailers for financial losses associated with consumer sales promotions or reimbursing a retailer for an in-store or local expense to promote a specific product.
Allowances
Which of the following sales promotion techniques are directed to B2B firms, but not to individual consumers?
Allowances Trade shows Training
Which of the following is an example of narrowcasting?
An advertisement for a set of golf clubs shown on the Golf channel
Advertising campaigns
An advertising campaign is a collection of coordinated advertisements that share a single theme. Marketers use advertising campaigns to achieve three primary objectives: to inform, to persuade, and to remind.
Integrated marketing communications (IMC)
An integrated marketing communications strategy involves coordinating the various promotion-mix elements to provide consumers with a clear and consistent message about a firm's products.
Which public relations tool best allows a firm to highlight financial successes as well as charitable and philanthropic work that portray the organization in a positive light?
Annual reports
What two categories does marketers divide magazines into?
Business magazines (e.g. Bloomberg Business week) and consumers magazines (e.g. Better Homes and Gardens).
Which of the following tools are used specifically for measuring the effectiveness of social media?
Buzzsumo Kred Google Analytics
__________ is how the customer interprets the sender's message and is the most important part of the communication process.
Decoding
Which of the following technological advances have created disadvantages for radio advertising?
Digital presets MP3 players Smartphones Satellite music radio stations
_______ is defined as advertising that communicates directly with consumers and organizations in an effort to provoke a response.
Direct marketing
Direct marketing
Direct marketing is advertising that communicates directly with consumers and organizations in an effort to provoke a response. By individually customizing their advertising using direct marketing strategies, firms seek to increase interest and awareness and, ultimately, generate additional revenue.
Marketers using Buzzsumo are analyzing and monitoring which social media outlet?
True or false: Public relations is not as important today as it was years ago.
False
True or false: The use of recognition tests always leads to consumers buying a product.
False
True or false: Once a promotion mix has been selected, a company should not change it.
False. Marketers should utilize marketing research to measure how successful each element of the promotion mix is and make adjustments as necessary to maximize the value of each promotional dollar spent.
What is the affordable method?
Firms that use the affordable method set their promotion budget based on what they believe they can afford. The affordable method is a top-down approach that is particularly common in small businesses. A major disadvantage of the affordable method is that it is not tied to specific organizational objectives.
Search advertising
Paid search advertising typically involves offering consumers advertising links to brand content based on what they're searching for.
Advertising
Paid, nonpersonal promotional communication about goods, services, or ideas.
Frequency
Frequency measures how often the audience is exposed to a promotional message during a specific time period.
What are the key tools for measuring the effectiveness of social media?
Google analytics, Kred, and Buzzsumo.
Which of the following are disadvantages of television advertising?
High cost of creating television ads High cost of airing advertisements The use of DVRs by potential viewers
According to your text, the sales promotion technique that is especially popular in the airline and hotel business sectors is _____________ ______________________ .
loyalty programs
Aided recall tests
In aided recall tests, respondents receive clues to help stimulate their memory. If consumers don't recognize or recall the firm's print advertisements, marketers may change the size or message of the ad or deliver it through an alternative medium.
According to your text, which form of advertising is especially important in the introductory stage of the product life cycle?
Informative advertising
Informative advertising
Informative advertising attempts to develop initial demand for a product. It's especially important in the introductory stage of the product life cycle. A flyer for a new bank that opened a branch in your neighborhood classifies as informative advertising.
At one time, Nike's product was targeted mainly to marathon runners. When Nike sought to capitalize on the fitness craze, it launched its Just Do It campaign. The company used television commercials and print advertisements showcasing athletes of all types attaining their fitness goals. It sponsored local sporting events and secured celebrity spokespersons to promote its products. This exemplifies the promotional strategy referred to as _______.
Integrated marketing communications
Your text outlined the percentage of global advertising delivered by each major medium. Which one is projected to see an increase in use in the near future?
Internet
Internet Advertising
Internet advertising combines desktop and mobile advertising and is now the second largest global advertising medium and is growing every year. Internet advertising takes many forms such as search advertising and display advertising.
In the context of promotion mix budgeting strategies, which statement is true of the objective-and-task approach?
It estimates the cost of each task involved in promotion.
Which of the following are the two major advantages of radio advertising?
It is cost-effective. It allows for effective market segmentation.
When done correctly, what is the major advantage of publicity as a promotion mix tool?
It is low in cost.
LumiNight is an outdoor home lighting system. The company's sales have declined by 30 percent over the past year due to an increase in competition. LumiNight must now decide about its promotional budget. According to the objective-and-task method, what would the best strategy for LumiNight to follow?
It should define specific objectives, determine the tasks required, and estimate the cost of each task.
Which tool for evaluating social media marketing strategies measures both social influence and outreach, providing a score for each on a user's profile?
Kred
Pretest
Marketers typically conduct a pretest in which a sample of targeted consumers evaluates advertisements before an ad campaign begins. Pretests help set a baseline measure for marketers, against which to evaluate the subsequent campaign.
________ is best defined as the dissemination of information, often by television, to a fairly small, select audience that is defined by its shared values, preferences, or demographic attributes.
Narrowcasting
Narrowcasting
Narrowcasting is the dissemination of information to a fairly small, select audience that is defined by its shared values, preferences, or demographic attributes. For example, firms that marketed products to tennis fans a generation ago might have advertised heavily on ESPN, which at the time was the only all sports channel on many basic cable subscriptions.
Of the following, what two words are key to understanding how advertising fits into the promotion mix?
Nonpersonal and paid.
Advertising
Nonpersonal communication about goods, services, or ideas that is paid for by the firm identified in the message.
Public relations
Nonpersonal communication focused on promoting positive relations between a firm and its stakeholders.
According to your text, business spending on which form of advertising has been increasing over the past decade?
Nontraditional
Which method takes a bottom-up approach to promotional budgeting?
Objective-and-task
Which of the following are disadvantages of Internet advertising?
Online ads can delay customers from finding desired content Pop-up ads can be intrusive Consumers can ignore banner advertisements
Of the following forms of advertising, which is generally considered to be the most cost-efficient form?
Outdoor advertising
While browsing online, Lizzie noticed a graphic display advertising shoes at low prices. When she clicked on the advertisement, it took her to a website where she could view and purchase the shoes. This is an example of what type of Internet advertising?
Paid display
Display advertising
Paid display advertising typically consists of banner advertising a graphic display that appears on a website in an effort to get you to click on the content.
_______ advertising typically involves offering consumers advertising links to brand content based on what they're searching for.
Paid search
_______ is the two-way flow of communication between a salesperson and a customer that is paid for by the firm and seeks to influence the customer's purchase decision.
Personal selling
________ results in immediate feedback from the customer since a salesperson can observe the nonverbal communication of the customer.
Personal selling
Personal Selling
Personal selling is the two way flow of communication between a buyer and a seller that is paid for by the seller and seeks to influence the buyer's purchase decision.
_______________ advertising attempts to increase demand for an existing product and is common in the growth stage of the product life cycle.
Persuasive
Persuasive advertising
Persuasive advertising attempts to increase demand for an existing product. Persuasive advertising is common during the growth stage of the product life cycle. At this stage, firms compete directly and attempt to take market share from one another. Persuasive advertising would include a television commercial highlighting the benefits of becoming a member of a local gym that is trying to grow.
Ted's Taco Bar is opening a new location on campus. The first 100 customers to visit the new location will receive a free taco with their order. This is an example of which sales promotion tool?
Premium
Print advertising
Print advertising media typically consists of newspapers and magazines. Advertising in print media requires a greater degree of involvement on the part of the consumer than in broadcast media. Newspapers have been a valuable tool for marketers, especially retailers, for well over a century. Approximately half of all U.S. adults look through at least one magazine on a regular basis.
Product placement
Product placement is an advertising technique in which a company promotes its products through appearances in movies or on television shows or other media. Product placement has expanded beyond television and movies in recent years.
The marketing mix element where most of a firm's communications with the marketplace occur is called _________________.
Promotion
Promotion
Promotion consists of all the activities that communicate the value of a product and persuade customers to choose it over other options.
______ is a combination of tools used by marketers to promote goods, services, and ideas to accomplish their communication objectives.
Promotional mix
________ is defined as nonpersonal communication focused on promoting positive relations between a firm and its stakeholders.
Public relations
_________________ ______________ strategies provide information and build a firm's image with the public, including customers, employees, stockholders, and communities.
Public relations
Reach
Reach is the percentage of the target market that has been exposed to a promotional message at least once during a specific time period. A prime example is the super bowl, which serves as a powerful tool to increase reach.
________ allow consumers to recoup a specified amount of money after making a single purchase.
Rebates
Rebates
Rebates allow consumers to recoup a specified amount of money after making a single purchase. Most rebates require customers to mail their receipt and proof of purchase to manufacturers. Only 40 - 60 percent of all rebates are not redeemed.
What are the 3 ways in which a customer can respond to direct marketing?
Receiving a discount, Registering for further information, Making a purchase.
_______ selling involves building a trusting relationship with a customer over a long period of time.
Relationship
Relationship selling
Relationship selling is a sales approach that involves building and maintaining customer trust over a long period of time. Relationship selling is increasingly important: very few firms can survive on the profits generated from one time transactional sales.
_______________ advertising seeks to keep the product before the public in an effort to reinforce previous promotional activity.
Reminder
Remind advertising
Reminder advertising seeks to keep the product before the public in an effort to reinforce previous promotional activity. Reminder advertising is most common in the maturity and decline stages of the product life cycle. A facebook ad from the athletic department of your college, encouraging you to renew your season tickets to support one of your college's sports teams, is an example of reminder advertising.
Which of the following are elements of the promotion mix?
Sales promotion Personal selling Public relations Advertising
While in the grocery store, a clerk entices customers to buy a new type of pizza by offering them a small taste. This is an example of which sales promotion technique?
Sample
List all of the aspects included in the communication process.
Sender, Message, channel, receiver, encoding, and decoding.
Which of the following are disadvantages of outdoor advertising?
Short exposure time Limited number of words or images Wasted coverage
Which of the following is an advantage of using magazines as an advertising medium?
The ability to target specific audiences
In which approach to budgeting do firms set their promotion budget based on what they believe they can afford?
The affordable method
What is the biggest disadvantage of television advertising?
The biggest disadvantage of television advertising is cost. The cost to air a single 30 second ad on a major broadcast network during prime time averages well over $100,000 and be much higher for popular shows.
When a company promotes its product by having it make an appearance in a television show, movie, or other media, it is referred to as _______.
product placement
What is the objective and task method?
The objective and task method takes a bottom up approach to promotional budgeting: It defines specific objectives, determines the tasks required to achieve those objectives, and then estimates how much each task will cost. By focusing on what the organization wants to achieve, the marketing department invests each dollar in the specific promotion mix elements that best deliver on those objectives.
Promotion Mix
The promotion mix consists of four main elements of marketing communication: advertising, sales promotion, personal selling, and public relations.
Personal selling
The two way flow of personal communication betweena salesperson and a customer that is paid for by the firm and seeks to influence the customer's purchase decision.
Which of the following are the three primary objectives marketers hope to achieve when utilizing an advertising campaign?
To inform To persuade To remind
True or false: While there are many positive aspects to the use of social media in public relations, it can also have negative effects for a firm.
True
Which of the following are disadvantages of magazine advertising?
Turnaround time between ad creation and placement Lack of control marketers have in ad placement Long lead time necessary to place ads
Personal selling
Two way flow of communication between a salesperson and a customer that seeks to influence the customer's purchase decision.
Unaided recall tests
Unaided recall tests require consumers to recall ads from memory, without any clues.
What would be a helpful question to ask before starting the communication process?
What method would most appeal to our target market?
A firm that posts a video on Facebook showing how its product had a positive impact on someone's life is using _______ as a public relations tool.
a case study
The pretest goes out to...
a sample of the target market.
According to your text, the element of the promotion mix that most consumers think of first is _______________ .
advertising
A collection of coordinated advertisements that share a single theme is called a(n) ____________ ________________.
advertising campaigns
A major disadvantage of the _________________ method of budgeting is that firms who allocate a random dollar amount to the promotion mix guarantee virtually nothing except that the money will be spent.
affordable
The makers of Aquafina ask a group of consumers the following question: "Which of the following brands of bottled water do you recognize - Aquafina, Dasani, Ice Mountain, or Perrier?" This is an example of a(n) _______.
aided recall test
A good rule of thumb marketers should use when determining the optimal promotion mix is to _______.
always consider the target market
By allowing customers to accumulate points or other benefits for doing business with the same company, the goal behind the use of __________ programs is to strengthen customer relationships.
loyalty or rewards
When the detectives in a television crime show stop each morning at a Dunkin' Donuts to get coffee, it is an example of _______.
product placement
Overall, the biggest disadvantage of radio advertising is that radio ads are _______.
audio-only
Now widely available on smartphones, _______ are documents that entitle the holder to a discount on a product.
coupons
Which promotion tool commonly involves problems due to misredemption practices?
coupons
A manufacturer of yogurt found that its product was responsible for a breakout of E. coli. In response, the company issued refunds to consumers who bought its product, and immediately had all of its production plants cleaned and sanitized. In addition, the company donated money to help raise awareness of the disease as well as compensate those who became sick. This is an example of _________________ management.
crisis
In 2010, BP was responsible for a massive oil spill in the Gulf of Mexico. When the company realized it was facing a serious problem, it updated its website with details on the company's efforts to contain the leak. The company also donated money to help a food bank feed people whose incomes were depleted by the oil spill and it hired laid-off workers to help clean the beaches and animals contaminated with oil. BP's actions can be classified as _______.
crisis management
The primary disadvantage of the percentage-of-sales method arises when a firm's sales ____________.
decline, decrease, fall, or drop
Because you have eaten at Red Lobster restaurants in the past and provided them with your e-mail address, you now get notifications from them of upcoming specials and coupons for discounted menu items. This is an example of _______.
direct marketing
A measure of how often the audience is exposed to a promotional message during a specific time period is referred to as _______.
frequency
Marketers strive to use their advertising budgets in the smartest way possible by ensuring that the target market is exposed to a particular ad as many times as possible. By doing so, marketers are trying to increase the _______ of the advertisement.
frequency
One of the biggest challenges involved with personal selling is
having to deal with the high cost of sales calls.
A manufacturer of pet products decides to advertise on the Animal Planet channel instead of on the three main networks, because it is less expensive to do so. As a result, the manufacturer can run its advertisement more frequently, and will hopefully increase the frequency that the target market will see the advertisement. This type of strategy is aimed at _______.
increasing revenue per ad dollar
Pam has just started a business where she sells handmade jewelry. To let people know about her business, she mailed a flyer to the residents of her subdivision announcing her product line and holiday sale. The flyer contained the date and time of the sale, as well as a description of the items being sold. The flyer is a form of _______ advertising.
informative
A firm decides to coordinate the various promotion mix elements in order to provide its consumers with a clear and consistent message about it products. This firm is engaged in _______.
integrated marketing communications
A(n) ________ strategy involves coordinating the various promotion mix elements to provide consumers with a clear and consistent message about a firm's products.
integrated marketing communications
Informative advertising is especially important during the ________ stage of the product life cycle as it helps to develop initial demand for a product.
introductory
It can be really hard to measure the success of public relations because...
it is not tied to a specific promotion or selling of the service.
Right On is a leading retailer of clothing, footwear, and accessories. It has a chain of department stores across the United States. Right On offers its customers a Right Way Card to which points are added every time the customer's bill amount exceeds $100. These points can be accumulated and used for purchases at any of its locations. What promotion mix element is the retail company using?
loyalty programs
One advantage of advertisements printed in ______________ is that they have a longer shelf life than daily newspaper advertisements.
magazines
Reminder advertising is most common in the _______ stages of the product life cycle.
maturity and decline
A package of information provided to reporters and the general press that promotes a new product or promotion is referred to as a _____________ _________________.
media kits
The nontraditional form of advertising that is communicated to the consumer via a handheld device is referred to as _____________ advertising.
mobile
Often used in television advertising, ______________ is described as the dissemination of information to a fairly small, select audience that is defined by its shared values, preferences, or demographic attributes.
narrowcasting
When marketers disseminate information to a select audience that is unique in its demographic attributes and preferences, they are using _______.
narrowcasting
Because it incorporates many of the strengths of the other budgeting methods without falling prey to their weaknesses, the _______ method is typically considered the best of the budgeting methods.
objective-and-task
Being able to locate the ad close to where it will most likely be seen is an advantage of _______________ advertising.
outdoor
While sitting at a baseball game, Kendra notices that the area near the scoreboard periodically changes to display advertisements for various things. This is a type of advertising known as __________________ advertising.
outdoor
Billboards, signs in sports arenas, and ads on the sides of buildings are all forms of ____________ advertising.
outdoor or outside
Since very few firms can survive on the profits generated from one-time transactional sales, ________________ selling has become an increasingly important way for firms to develop personal relationships with their customers.
personal
If a firm is looking to establish and develop a personal relationship with its customers, the single most effective approach it can use is ___________ ____________.
personal selling
Which promotion mix element involves prospecting, presenting, closing, and follow-up?
personal selling
Posters that depict Uncle Sam pointing a finger at the reader with the wording "I want You for the U.S. Army" is a type of _______ advertisement.
persuasive
Mr. Wilson is a professor of marketing at the local university. In the student orientation program, he addressed the first-year students regarding the advantages of taking marketing as a major course and how marketing would benefit the students personally. What type of advertising did Mr. Wilson use?
persuasive advertising
A ___________ is a promotional item that is given as an incentive for performing a particular act, typically buying a product.
premium
A___________ is a promotional item that is given as an incentive for performing a particular act, typically buying a product.
premium
In order for marketers to evaluate an ad campaign, they set a baseline measure before the ad campaign begins. This is referred to as a _______.
pretest
To measure the effectiveness of an advertising campaign, marketers typically conduct a(n) _______ before the ad campaign begins and a(n) _______ after the campaign.
pretest; posttest
Advertisements that are placed in newspapers and magazines fall under the category of ___________ advertising.
Because it requires a greater degree of involvement on the part of the consumer, _______ advertising is especially appealing for high-involvement (significant) consumer products, such as a house or a car.
The major disadvantage of advertising in all types of print media is that _______.
print media is declining as a primary information source
Refresh is a sports hydration drink. Its manufacturer is sponsoring a rugby match between the two most-popular local schools in Chicago. The rugby match will be shown on television and viewed by many. The company's logo will be shown as a banner on the TV announcers' broadcast table and the announcers will have Refresh drinks in front of them. What promotion technique is Refresh using in this case?
product placement
