Marketing Chapter 15 & 16

Which of the following statements regarding newspapers as an advertising medium is most accurate? -One benefit of newspapers is that they are often saved indefinitely, meaning their advertising has a long lifespan. -Online news services have rekindled an interest in print media news. -More cities are increasing the number of newspapers available in kiosks at mass transit stations for commuters. -Recycling newsprint has led to dramatic reductions in production costs. -Local retailers often use newspapers as their sole advertising medium.

Local retailers often use newspapers as their sole advertising medium. Explanation: Local retailers often use newspapers as their sole advertising medium. Newspapers are rarely saved by the purchaser, however, so companies are generally limited to ads that call for an immediate customer response.

________ advertising is used in the introductory stage of the product life cycle to tell people what a product is, what it can do, and where it can be found.

Pioneering

Central to integrated marketing communications (IMC) is

a consistent message across all audiences.

As part of its integrated marketing communication strategy, Taco Bell utilized commercials aired during the Super Bowl. This form of ________ has an extremely large reach and hefty price tag.

advertising Explanation: Television commercials are a form of advertising which often carry high costs for air time and production but can be an effective way of reaching a large, diverse audience.

Three commonly used trade promotions are

allowances and discounts, cooperative advertising, and training of distributor's salesforces. Explanation: Three common approaches targeted uniquely to wholesalers, retailers, or distributors include: (1) allowances and discounts; (2) cooperative advertising; and (3) training of distributor's salesforces.

In the hierarchy of effects, the first stage is known as

awareness. Explanation: The five stages in the hierarchy of effects are: awareness, interest, evaluation, trial, and adoption. Awareness is the consumer's ability to recognize and remember the product or brand name.

Which of the following is not a consumer-oriented sales promotion? -rebate -cooperative advertising -premium -point-of-purchase display -sweepstakes

cooperative advertising Explanation: Cooperative advertising is a trade-oriented sale promotion.

At which stage in the product life cycle would a company spend little money on promotion?

decline Explanation: The decline stage in the product life cycle is usually a period of phaseout for the product, and little money is spent on the promotional mix.

The promotional mix consists of communication tools that include advertising, public relations, sales promotion, personal selling, and

direct marketing. Explanation: Promotion is an element of the marketing mix. The promotional element consists of communication tools that include advertising, personal selling, sales promotion, public relations, and direct marketing.

Taco Bell allocates its promotional budget to 70 percent traditional media, which includes television advertising; 20 percent to digital media, which includes website development; and 10 percent to new media channels. The fact that the message consumers receive is the same regardless of which channel delivers it reflects Taco Bell's dedication to

integrated marketing communications. Explanation: Integrated marketing communications is the concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences.

During the creative process, Taco Bell considered a number of different slogans, finally setting on Live Mas! The Live Mas! campaign reinforces Taco Bell's position as a dynamic brand whose customers enjoy experiencing the world and trying things first. Live Mas! is Taco Bell's ________ in the communication process.

message Explanation: Live Mas! is the message in the communication channel, with Taco Bell as the source and the consumer as the receiver.

A marketing manager had a goal to improve market share for his paper plates by 2 percent in the coming year, and he felt he'd need to run television ads for two months as well as create a social media campaign in order to accomplish this. He priced the advertising he planned to use and set the budget accordingly, using which promotional budgeting technique?

objective and task budgeting Explanation: The best approach to budgeting is objective and task budgeting, whereby the company (1) determines its promotion objectives, (2) outlines the tasks it will undertake to accomplish those objectives, and (3) determines the promotion cost of performing those tasks.

Which element of the promotional mix is characterized by a customized interaction that is extremely expensive but very persuasive and likely to yield immediate feedback?

personal selling

Portfolio tests refer to

placing a test ad in a collection with several other ads, asking consumers to read through them, and then asking them for their impressions of the ads. Explanation: Portfolio tests are used to compare copy alternatives. The test ad is placed in a portfolio with several other ads and stories, and consumers are asked to read through the portfolio and share their impressions.

Which element of the promotional mix often has the highest level of credibility in consumers' minds?

public relations Explanation: An advantage of publicity is credibility. When you read a favorable story about a company's product from an unpaid source (such as a glowing restaurant review), there is a tendency to believe it.

A visit to The Tonight Show Starring Jimmy Fallon by Anna Kendrick to promote a new movie would be considered which element of the promotional mix?

public relations Explanation: Today, many high-visibility individuals are used as publicity tools to create visibility for their company, their products, and themselves. As one form of public relations, Anna Kendrick promotes her movies with television appearances on programs like The Tonight Show.

When a pharmaceutical company places an ad in a home and garden magazine for its new arthritis drug, it is using a ________ strategy.

pull Explanation: A manufacturer may elect to implement a pull strategy by directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product. Seeing demand from ultimate consumers, retailers order the product from wholesalers and thus the item is pulled through the intermediaries.

To give consumers an incentive to try its new Doritos Locos tacos, Taco Bell gave out free samples of the new tacos to its customers. The free Doritos Locos tacos giveaway is an example of

sales promotion. Explanation: Sales promotion is a short-term inducement of value offered to arouse interest in buying a product. In this extreme case, the product was given away for free!

Twitter, Facebook, Vine, Instagram, and Snapchat were all utilized to engage customers during the Doritos Locos tacos introduction as part of the ________ component of the campaign.

social media Explanation: Twitter, Facebook, Vine, Instagram, and Snapchat are all social media channels, thus representing the social media component of the campaign.

To accomplish a successful repositioning of the brand, Taco Bell needed to inform its consumers that Taco Bell food should be thought of as an experience rather than as just fuel. In the communication process, Taco Bell would be the ________ and the consumer would be the ________.

source; receiver Explanation: Taco Bell is the source, while the consumer is the receiver. The communication process has six elements in total: source, message, channel of communication, receiver, and the process of encoding and decoding.

Mass selling is

the opposite of customized interaction, meaning a single message is delivered to the whole group of prospective buyers. Explanation: Advertising, sales promotion, and public relations are often said to use mass selling because they are used with groups of prospective buyers. In contrast, personal selling uses customized interaction between a seller and a prospective buyer.

When communicating with its target audience, Taco Bell considered each of its ________, including social media channels, packaging, point of purchase displays, and advertising. These places of contact between a firm and its customers are critical elements for building an integrated marketing communication plan.

touch points Explanation: Touch points are points during which the firm and customer come into contact with one another. Taco Bell's touch points can be found in the restaurant itself in the form of product packaging, physical location, and point of purchase displays. Touch points also occur outside of the restaurant in the form of advertising, promotion, and social media.