Promotion

Which of the following is an example of personal selling: a. A business manager holds a press conference to explain a new product. b. A salesperson places an ad in a local newspaper. c. An employee hands out coupons to customers who are attending a trade show. d. A financial planner discusses retirement plans with a group of employees.

A financial planner discusses retirement plans with a group of employees. Personal selling uses personalized communication to influence purchase decisions and enhance future business opportunities. It involves interaction between the client or customer and the salesperson and can take place between individuals or between an individual and a group. Placing an ad in the newspaper is advertising. Holding a press conference is publicity. Passing out coupons is a form of sales promotion.

Which of the following statements about television advertising is true: a. Even fast-forwarded, television ads reach their target audience. b. Television ad slots are inexpensive to purchase. c. Local television advertising has the broadest reach of all broadcast media. d. Due to the popularity of DVRs, network television ads only reach a small audience.

Even fast-forwarded, television ads reach their target audience. While fast-forwarding through commercials, viewers may actually pay more attention to the ads than they would otherwise because they don't want to go too far and miss any of their show. So, these television ads still reach their target audience, albeit at a much faster speed. While DVRs are extremely popular, network television ads still reach a very broad audience, probably the broadest audience of all broadcast media. Network television ad slots are extremely expensive to purchase. Local television advertising reaches a small, highly specific audience, not a broad one.

Which of the following is an example of a general business magazine: a. Fortune b. BrandWeek c. TV Guide d. Teen

Fortune

A business's promotion can present facts in a creative way, but it must remain

Honest. A business's promotion can present facts in a creative way, but it must remain honest. Promotions must be truthful and factual. They may or may not be competitive or positive. Being honest does not always mean being literal—sometimes exaggerated promotions can be creative, as long as they are still factual.

Which of the following is an example of institutional promotion: a. A company's donation of blankets to the homeless b. Infomercial for jewelry c. Pitch from a jet-ski salesperson d. Advertisement for a local mattress superstore

A company's donation of blankets to the homeless. A company's donation of blankets to the homeless is an example of institutional promotion. Institutional, or corporate, promotion does not attempt to sell a good or service; rather, it attempts to create a certain image of the company in the eyes of the customer. An infomercial for jewelry, an advertisement for a local mattress superstore, and a pitch from a jet-ski salesperson are all examples of product promotion.

Which of the following is a false statement about the promotional mix: a. A variety of communication channels can be used to promote goods, services, or ideas. b. The promotional mix plays a key role in obtaining customers. c. The promotional mix may need to be changed from time to time. d. Advertising is the best promotional mix element.

Advertising is the best promotional mix element. No one promotional mix element is the best. Many factors affect the selection of a promotional mix. Marketers know that a promotional mix that is appropriate for one business may be totally inappropriate for another. Likewise, a promotional mix that was successful for a company at one time may need to be changed to a new combination of elements.

Any paid form of nonpersonal presentation of ideas, images, goods, or services is known as

Advertising. It is usually the most expensive element of the promotional mix. Personal selling is that form of promotion which responds to customer needs and wants through planned, personalized communication in order to influence purchase decisions and to enhance future business opportunities. Sales promotion consists of promotional activities other than advertising, personal selling, and publicity which stimulate customer purchases. Publicity is a nonpersonal form of promotion that is not paid for by the company or the individual which benefits from it.

VISA promotes its services on other companies' web sites. These promotions are examples of

Advertising. VISA pays to have its promotions appear on other companies' web sites. These promotions are nonpersonal and delivered through a mass medium. Personal selling responds to customer needs and wants through planned, personalized communication. Publicity is any unpaid form of nonpersonal presentation of ideas, goods, or services. Sales promotion consists of promotional activities other than advertising, personal selling, and publicity which stimulate customer purchases.

Some companies purchase 800-numbers to

Allow customers to call in toll free. Many companies purchase 800-numbers so that customers can call them toll free. Providing customers with a number to call is part of telemarketing. Companies do not use 800-numbers to qualify as non-profit organizations. There is no relationship between 800-numbers, calling customers, and earning a profit on these calls. A listing in the Yellow Pages costs money regardless of whether an advertiser's telephone number is a local, long distance, 800-, or 900- number.

Which of the following is an example of publicity: a. A radio announcer delivers a paid message about the grand opening of a business. b. A fashion show is held highlighting the latest in bridal fashions. c. An author appears on a talk show to discuss his/her new book. d. Free samples are given to customers entering a business.

An author appears on a talk show to discuss his/her new book. Publicity is a nonpersonal form of promotion that is not paid for by the company or individual which benefits from it. A radio announcer delivering a paid nonpersonal message is an example of advertising. The remaining alternatives are examples of sales promotion activities designed to stimulate consumer purchases.

To advertise its batteries globally, Energizer created a graphical representation of its trade character, the Energizer Bunny, to use in the virtual world Second Life. In that web environment, the Energizer Bunny is a( n )

Avatar. An avatar is a graphical representation of a person or company that is used in a web environment. In this instance, the Energizer Bunny is an avatar used by the Energizer company in the virtual world Second Life. A directional, specifically a human directional, is a person who wears or holds a sign to advertise a business or product. A portal is a popular starting point for surfing the Web. A portal typically offers a variety of functions such as news, chats, weather, etc. A web host is a service that stores web pages on a server for a monthly fee.

Businesses receive positive feedback about the effectiveness of their promotional messages when consumers

Buy their products. The purpose of a promotional message is to tell customers about certain goods, services, or ideas and persuade them to buy or form an opinion. A business receives positive feedback about the effectiveness of its promotional message when customers buy its products. Customers might ask specific questions, but they are giving positive feedback only when they buy. A business receives negative feedback if consumers buy from a competitor. When consumers see an advertisement, they are receiving a promotional message rather than giving feedback.

Special interest groups often use promotion to

Communicate ideas. Any organization that has something to sell uses promotion at one time or another. Special interest groups are communicating information about ideas rather than about products. They use promotion to communicate their ideas and encourage the public to accept those ideas. Special interest groups usually do not sell products or services. Their main goal is to promote a specific idea rather than to publicize their images.

The end result of promotion is that information about goods, services, images, or ideas will be

Communicated. The basic purpose of promotion is communication. Those who prepare promotional material may gather opinions, research data, or organize their information, but the purpose of their efforts is to communicate information to customers.

Advertising media are channels of

Communication. Advertising media provide the tools for delivering a message to an identified market and, therefore, are channels of communication. Distribution is an element of the marketing mix that involves moving or transferring the ownership of goods or services from producers to consumers. Production is the process or activity of producing goods and services. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relations in ways that benefit the organization and its stakeholders.

Promotions that convince customers to buy are especially important for __________ products.

Competitive. Promotions that convince customers to buy are especially important for competitive products. Marketers need to persuade customers to buy their product over all the similar ones on the market. Persuasive promotions are not as important for new, old, or noncompetitive products.

Promotional messages should __________ the company's other promotional messages.

Coordinate with. Promotional messages should coordinate with other promotional messages about the same product or company. Each message should support the objectives the company is trying to achieve by engaging in promotion. Promotions need not be exactly the same or different from each other. They just should not conflict.

Which of the following factors is most important for marketers to consider when planning promotions? a. Colors b. Costs c. Music d. Job titles

Costs. When marketers plan promotions, they know there are costs associated with each task involved. Considering these costs ahead of time helps marketers to create reasonable promotional budgets for each promotional effort. Costs are more important than the music or colors involved in a particular promotion. Costs are also more important than marketers' job titles.

Which of the following is an example of product promotion: a. Philip Morris' youth smoking prevention program b. Recruiting event for a large technology firm c. Coupon for the purchase of Ritz crackers d. Press conference announcing a major corporate merger

Coupon for the purchase of Ritz crackers. A coupon for the purchase of Ritz crackers is an example of product promotion. Product promotion is an attempt to persuade customers to buy a particular good or service—in this case, the crackers. A press conference announcing a major corporate merger, a youth smoking prevention program, and a recruiting event for a large technology firm are all examples of institutional promotion, not product promotion. Institutional promotion attempts to create a certain image of the company in the eyes of the customer.

Promotions that convince customers to buy often use incentives such as

Coupons. Promotions that convince customers to buy often use incentives such as coupons, free samples, and contests. Press releases, product demonstrations, and advertisements are types of promotions, but they are not incentives.

Which of the following is a way that promotion benefits society and the economy: a. Increases prices b. Adds value c. Builds inventory d. Creates jobs

Creates jobs. Promotion benefits society and the economy by providing many job opportunities. Today, millions of people are employed in the field of promotion. Promotion also increases demand for a product, which results in an increase in production. The need for mass production creates additional jobs which also benefit society and the economy. Increasing prices, building inventory, and adding value are not ways that promotion benefits society and the economy.

A long-range benefit that a business may derive from promoting its company image is

Customer loyalty. The images that are created by promotions affect customers' attitudes toward a company and/or its products. Loyalties to products or businesses are often the direct result of promotional activities. New customers and immediate sales are short-range benefits of promotion. Promotional activities generally increase rather than reduce a company's expenses.

In which stage of a product's life cycle would the least money be invested in product promotion?

Decline. Decline is the product life cycle stage in which sales and profits fall rapidly. During the decline stage, companies reduce production of the declining products and invest little money in product promotion. During pioneering, maturity, and growth, more money is invested in the product to gain customer awareness, to compete effectively, and to keep customers.

Text-message advertising is most likely to be successful when the ads are

Delivered to the cell-phone numbers of people interested in the product. All ads, regardless of their type, are the most successful when they are targeted at interested people. However, this is especially true with text-message advertising because cell-phone plans are based on a certain minute-usage, which means that customers might become very angry if they end up paying for advertisements they are not interested in. Additionally, it is illegal to send unsolicited commercial text messages. Advertisers must get permission to send text-messages to consumers; therefore, the consumers who receive these text-message ads must be interested since they opted in for the messages. Text-message advertising is done with a minimum number of characters. Otherwise, the messages will be too tedious for the recipient to read. Random, unsolicited cell-phone ads are not much different from spam mail; they are intrusive and a hassle for customers to deal with. To be successful, text-message ads must contain the name of the business or product being advertised.

When the promotional mix for a product is affected by the path the product takes from the producer to the ultimate consumer, the mix is being influenced by the product's

Distribution channel. The distribution channel is the path, or channel, a product takes from the producer to the consumer. The promotional mix must be appropriate for the number of intermediaries, or middlemen, in the channel of distribution. Other factors that affect the promotional mix for products include the type, number, and location of consumers who make up the market for the product and the stage of the product in its life cycle.

A way by which newspapers can be classified as advertising media is by

How often they are published. Newspapers are usually published daily or weekly, often depending on whether they are distributed to a metropolitan, suburban, or rural area. Advertising costs vary depending upon the size and the quality of the ad placed in specific newspapers, but these costs are not the basis of how newspapers are classified. The amount of effort required to place an ad in a newspaper varies depending on the type of newspaper and type of ad, but the effort required to place an ad is not the basis of how newspapers are classified, either. Newspapers are not put into separate categories based on where they reach people because it would be too tedious to print separate editions for home delivery and newsstand delivery.

To help pay for her son's college education, Jenna agreed to wear a temporary tattoo on her forearm that advertises the Rusty Nail Restaurant. Jenna is serving as the restaurant's

Human billboard. A human billboard is an individual such as Jenna who is hired to wear a tattoo that advertises a business or product. A smisher is someone who poses as a financial institution in order to send fraudulent text messages requesting personal information such as account numbers and passwords. An avatar is a graphical representation of a person or company that is used in web environments including virtual worlds and chat rooms. A human directional is a person who wears or holds a sign to advertise a business or product.

During the tax season each year, Miranda gets paid to dress as the Statue of Liberty, stand on a street corner, and hold a sign advertising Liberty Tax Service. Miranda works as a( n )

Human directional. A human directional is a person who wears or holds a sign to advertise a business or product. An avatar is a graphical representation of a person or company that is used in web environments including virtual worlds and chat rooms. A smisher is someone who poses as a financial institution in order to send fraudulent text messages requesting personal information such as account numbers and passwords. A human billboard is someone who has been hired to wear a tattoo that advertises a specific company or product.

If a manufacturer has chosen to advertise on national radio and in magazines, which of the following factors has influenced the promotional mix

If a manufacturer has chosen to advertise on national radio and in magazines, which of the following factors has influenced the promotional mix:Geographical location of the market. A company would advertise nationally to deliver a promotional message to customers who are widely scattered. Neither radio nor magazines would bring customers into face-to-face contact with the promotion. A product with technical aspects would require personal selling. If the company's promotional funds were limited, it could not afford national advertising.

Which of the following is an advantage of personal selling over advertising in the promotional mix: a. Less costly per contact b. Immediate feedback c. Less flexible d. No face-to-face contact

Immediate feedback. In personal selling, the salesperson is able to learn immediately what the customer likes or dislikes about a product, whether the salesperson is helping the customer in person or over the telephone. This enables the salesperson to be flexible and to tailor the presentation to meet the needs of the particular customer. Personal selling is more costly on a per contact basis than advertising.

To qualify as a specialty medium, an item must be

Imprinted with the business's name/logo. Specialty items must pass three criteria. They must have the business's name or logo printed on it. An example would be a Century 21 key chain. Also, they should be given away freely, not sold to a customer for any price. Finally, they should be a useful item (as opposed to simply decorative) such as a pen or baseball cap. A item does not need to be delivered through the postal service to be considered a specialty item.

The way that business benefits directly from promotion is through

Increased sales. The most direct way that business benefits from the use of promotion is through increased sales, which provide the opportunity for increased profits. Competition will not necessarily be decreased by promotion. Promotion also educates consumers about products, but the business doesn't benefit directly from this unless consumers buy its products. Promotion's increase of job opportunities benefits the economy.

Johnson Quittles developed a new digital music player that made them innovators in the music industry. Considering the life cycle stage of the product, the company should design a promotional mix that will

Inform customers about the new product. In the introduction stage of the product life cycle, all forms of promotion are used to gain customer awareness of the product. In the growth stage, the promotional mix needs to meet new competition making similar products. In the maturity stage, promotion should encourage consumers to purchase a specific brand. In the decline stage, the promotional mix helps to phase out the product.

Information on the back of a product label, such as money-back guarantee information, is intended to __________ the customer.

Inform. Companies use promotion to inform the customer or to show how their products can be used. A money-back guarantee printed on a label gives information that might encourage customers to buy. Reminding the customer involves reminding the customer that the company exists. Persuading the customer involves trying to persuade the customer to purchase the product, sometimes involving phrases such as "new and improved" or "extra strength." The guarantee itself, not the information about the guarantee, is intended to protect customers.

Which of the following is a use of product promotion: a. Highlighting social or environmental issues b. Changing attitudes toward the company c. Informing customers about product features d. Recruiting new employees

Informing customers about product features. Informing customers about product features is a use of product promotion. Product promotion is an attempt to persuade customers to buy a particular good or service. It can be used to create awareness of a good or service, inform customers about product features, encourage interest in and inquiries about a good or service, inform customers where a product can be purchased, build a reputation for a product, and create excitement and motivate retailers and salespeople. Recruiting new employees, highlighting social or environmental issues, and changing attitudes toward the company are all uses of institutional promotion, not product promotion.

Which of the following is a use of institutional promotion: a. Encouraging interest in a good or service b. Building a reputation for a product c. Informing the public about the company's future d. Creating awareness of a good or service

Informing the public about the company's future. Informing the public about the company's future is a use of institutional promotion. Institutional promotion attempts to create a certain image of the company in the eyes of the customer. It can be used to change a particular attitude toward a firm or its products; inform customers of the company's interest in social or environmental issues; inform the public about the company's future; inform customers of the company's name and its type of business; show the company's commitment to quality, technology, or research; enhance company morale and recruit new employees; and build or reinforce a favorable company image. Creating awareness of a good or service, encouraging interest in a good or service, and building a reputation for a product are all uses of product promotion, not institutional promotion.

Which of the following characteristics is shared by advertising and publicity: a. Receives close attention b. Presents the same message c. Is impersonal d. Must be paid for

Is impersonal. Like advertising, publicity is impersonal. There is no interaction between the customer and the company or individual when the promotional message is received. All of the other alternatives are points of difference between advertising and publicity.

An advertisement for nutritional supplements features a man with a bodybuilder's physique. What criticism of promotion might this illustrate?

It can be deceptive. The advertisement featuring the man with the bodybuilder's physique might be criticized for being a deceptive promotion. It is unlikely that the nutritional supplement is responsible for the way he looks, although the company is suggesting that consumers can look this way by using its product. This promotion probably would not receive criticism for being offensive, having limited abilities, or playing upon people's fears.

A magazine advertisement for cleaning supplies pictures a woman scrubbing the kitchen floor. What criticism of promotion might this illustrate?

It can create or reinforce stereotypes. The advertisement for cleaning supplies picturing a woman scrubbing the floor might receive criticism for creating or reinforcing certain stereotypes of women (such as, they are responsible for household chores). This promotion probably would not receive criticism for playing upon people's fears, being deceptive, or having limited abilities.

A television advertisement shows a person who has bad breath from not using a specific brand of toothpaste. What criticism of promotion does this illustrate?

It can play upon people's fears. The advertisement for toothpaste might receive criticism for playing upon people's fears, trying to make them believe they will have bad breath if they do not use this particular product. This promotion probably would not receive criticism for being deceptive, having limited abilities, or being offensive.

In what way does promotion have limited abilities?

It cannot substitute for salespeople. Promotion has limited abilities in that it cannot substitute for salespeople. For many goods and services, promotion just cannot take the place of qualified, talented, well-trained salespeople. Promotion cannot achieve immediate success or make up for poor-quality products. It is often criticized for playing upon people's fears.

How does promotion help the economy grow?

It creates jobs. Promotion helps the economy grow by creating jobs. Educating customers and encouraging a higher standard of living is a benefit to customers themselves. Creating awareness of companies is a benefit to the companies themselves.

Which of the following is a specific criticism of product promotion: a. It does not add value to the product. b. It stirs up unnecessary debates. c. It's inexpensive. d. It's easily measurable.

It does not add value to the product. Product promotion is specifically criticized for not adding value to the product itself. In other words, the product is not improved or made better in any way by the money spent on promotion. Stirring up unnecessary debates is a criticism of institutional promotion, not product promotion. Promotion is not always easily measurable and can be expensive.

How does promotion benefit customers?

It educates them. Promotion benefits customers by educating them on companies and products and enabling them to make more intelligent purchasing decisions. Supporting the mass media is a benefit to the mass media itself. Creating jobs is a benefit to the economy. Enhancing a company's image is a benefit to the company itself.

Which of the following is a specific criticism of institutional promotion: a. It may take money away from product promotion. b. It does not stir up unnecessary debates. c. It's inexpensive. d. It's easily measurable.

It may take money away from product promotion. Taking money away from product promotion is a specific criticism of institutional promotion. Institutional promotion is not easily measured and may be expensive. At times, it may stir up unnecessary debates.

Personal selling would be a cost-effective form of promotion for which of the following products: a. Garden rake b. Newspaper c. Soft drink d. Laptop computer

Laptop computer. Personal selling is the form of promotion that uses planned, personalized communication to influence purchase decisions and enhance future business opportunities. Certain industrial and retail products with hidden or complex features require technical explanation by skilled salespeople. The garden rake, soft drink and newspaper are not complicated or sophisticated products. Consequently, personal selling would not be cost effective for these products.

To effectively advertise his local pet-daycare business on the radio, Maurice should select a radio station with

Listeners who fit his business's market demographics. To effectively advertise on the radio, a business should select the radio station with listeners who are mostly the business's target market. While popular morning deejays and a music format may draw more listeners to a particular radio station, if those listeners don't match the business's target market, then advertising on that station may not make sense. A business should not necessarily select a radio station based on inexpensive advertising rates. Instead, the business needs to consider who listens to that radio station. Since Maurice's business is a local business, there is really no need to advertise on a national radio station. He should select a local radio station instead.

One reason why television is popular with advertisers is because it is the

Medium that delivers more memorable, believable ads. The experience of color, sound, and action makes television ads easy to remember and believe. However, these qualities also make the ads more expensive to produce. Also, it is costly to advertise on television because it can reach such a large audience. Radio is another type of broadcast medium that offers local programming. Television is the most influential type of advertising media.

Promotion benefits customers by making them

More informed. Promotion benefits customers by making them more informed. Informed customers are in a better position to choose between or among products and make buying decisions that will best satisfy their needs. The goal of promotion is not necessarily to entertain customers, although many promotions may do so. Customers don't benefit from buying products they don't need.

Promotions that educate customers are especially important for __________ products.

New. Promotions that educate customers are especially important for new products. Customers must learn about the products before they can become interested in buying them. Informative promotions are not as important for old, competitive, or noncompetitive products.

Should businesses rely solely on their previous promotional mixes?

No, there may be other, more successful mixes to try. A promotional mix is a combination, or blend, of marketing communication channels that a business uses to send its messages to customers. A company should continually analyze its promotional mix to be sure it is using the most appropriate, efficient mix. In some cases, a promotional mix that has been successful in the past may continue to be successful in the future, but this is not always the case. There is no one promotional mix that is best for all businesses, and a promotional budget does not necessarily decrease each year.

With their permission, Cassandra sends out a monthly electronic newsletter to past customers to advertise her bed-and-breakfast's special events and discounted rates. This is known as

Opt-in e-mail marketing. Cassandra sends electronic promotional messages to former customers with their permission. This is known as opt-in e-mail marketing. Telemarketing is an advertising medium that utilizes telephone service to promote a product, either by phoning prospective customers or providing a number for them to call. A podcast, typically used to avoid advertising, is a digital recording that is distributed over the Internet and downloaded to a computer or mobile device for playback. Publication advertising is advertising in printed materials such as newspapers and magazines.

A local grocery store announces its extended hours and plans to expand its in-store pharmacy. This is an example of what type of institutional promotion?

Patronage. The store's announcement of extended hours and pharmacy expansion is an example of a patronage promotion. Patronage promotions are designed to promote a firm's prestige or its features. Primary product promotion aims to stimulate demand, or desire, for an entire class of goods or services. Public-service promotions inform customers about noncontroversial issues that are in the public's best interest. Public-relations promotions are created to deal with issues that are in the public's interest but are also related to the company or its products.

On a per contact basis, which of the following elements of the promotional mix is most expensive: a. Personal selling b. Publicity c. Advertising d. Sales promotion

Personal selling. On a per contact basis, personal selling is the most costly promotional mix element. Trends indicate that this cost will continue to rise. While the cost of an advertisement may be high, advertising costs less on a per contact basis. Sales promotion includes promotional activities other than advertising, personal selling, and publicity which stimulate customer purchases. Examples include coupons, fashion shows, and displays. Publicity is free.

What form of promotion is generally emphasized for complex, technical products sold to industrial users?

Personal selling. Products sold to industrial customers are usually complex, technical, expensive, and require demonstration. Because of these characteristics, personal selling should be emphasized. The alternatives could be used to support personal selling.

A promotion is considered to be successful if prospective customers are __________ to buy the product.

Persuaded. Businesses use persuasive language in their promotions in an effort to convince customers that they should buy the product. Businesses cannot require customers to buy products. Customers do not need permission from the business to buy. Customers usually do not respond well to pressure.

Competing businesses within the same industry usually react to each other's promotional mixes by

Playing follow the leader. Competing businesses within the same industry usually use quite similar promotional mixes because many of the factors affecting the promotional mix are the same for those businesses. Businesses also use the same promotional activities in order to prevent losing customers to competitors. Changing the distribution channel would not necessarily make the business more competitive. Reducing the promotional budget or trying not to outdo the competition would make the business less competitive.

When a company uses promotion so customers will perceive it in a certain way, it is strengthening its

Position. When a company uses promotion so customers will perceive it in a certain way, it is strengthening its position. It may want to be perceived as customer friendly, hard-working, etc. By using promotion, the company is not necessarily strengthening its profits or its workforce. It is not strengthening its competition.

Gabrielle saw two different beverage advertisements—one for the orange juice industry and one for the grape juice industry. Each was trying to persuade her to purchase its type of beverage. This is an example of

Primary product promotion. The advertisements that Gabrielle saw for orange juice and grape juice are examples of primary product promotion. Primary product promotion aims to stimulate demand, or desire, for an entire class of goods or services. The emphasis is on the product and its uses, rather than on a particular brand. Institutional, or corporate, promotion does not attempt to sell a good or service; rather, it attempts to create a certain image of the company in the eyes of the customer. Secondary, or selective, product promotion is used to stimulate demand for a specific brand of a product. It is used to compete against other makers of the same type of product.

A company reacts to media reports that its product has been tampered with and is unsafe. This is an example of what type of institutional promotion?

Public-relations. The company's reaction to reports about its product is an example of public-relations promotion. Public-relations promotions are created to deal with issues that are in the public's interest but are also related to the company or its products. Patronage promotions are designed to promote a firm's prestige or its features. Primary product promotion aims to stimulate demand, or desire, for an entire class of goods or services. Public-service promotions inform customers about noncontroversial issues that are in the public's best interest.

A company sponsors an advertisement on local television, highlighting the importance of parents reading to their children. This is an example of what type of institutional promotion?

Public-service. The company's sponsorship of an advertisement highlighting the importance of parents reading to their children is an example of a public-service promotion. Public-service promotions inform customers about noncontroversial issues that are in the public's best interest. They build goodwill for the company, especially when they depict the company as a friend of the community. Patronage promotions are designed to promote a firm's prestige or its features. Primary product promotion aims to stimulate demand, or desire, for an entire class of goods or services. Public-relations promotions are created to deal with issues that are in the public's interest but are also related to the company or its products.

Newspapers and magazines are categorized as _____________ media.

Publication. Newspapers and magazines are publication media because they are printed on a regular basis. Radio and television are broadcast media because the message is transmitted through the air, cable, or Internet. These two types of broadcast media are also thought of as time media because their advertisements last for only as long as they are on the air. Direct mail is an advertising medium that comes to customers in the form of letters, catalogs, folders, booklets, postcards, and e-mails.

Cool Cola recently developed a new flavor of soda. The company has generated customer interest in the new product via television commercials and coupons. As a result, wholesalers and retailers are buying the new soda from Cool Cola to meet customer demand. This is an example of a(n) __________ promotional strategy.

Pull. Producers who adopt pull promotional strategies promote their products directly to the ultimate consumer or industrial user to generate customer interest in the products. Intermediaries then purchase the products from manufacturers to meet customer demand. Producers who utilize push promotional strategies promote their products to intermediaries who then promote the products to customers. Increasing and decreasing promotional strategies are fictitious terms.

The Sandlot Company promotes its products to intermediaries who then promote the products to customers. The Sandlot Company is using a(n) __________ promotional strategy.

Push. In addition to determining which promotional mix elements to emphasize when promoting their products, manufacturers must also decide to whom they want to promote their products. Producers who utilize push promotional strategies promote their products to intermediaries who then promote the products to customers. Rather than promoting their products to intermediaries, producers who adopt pull promotional strategies promote their products directly to the ultimate consumer or industrial user to generate customer interest in the products. Intermediaries then purchase the products from manufacturers to meet customer demand. Increasing and decreasing promotional strategies are fictitious terms.

A characteristic of effective promotion is that it should be __________ to the intended audience.

Relevant. The promotion must have meaning to the intended audience if it is to be effective. Most companies target their promotions to the persons most likely to buy their products. It is not necessary to restrict it to this group; however, the promotion should be appealing.

One of the purposes of promotion is to __________ consumers about the existence of a company or a product.

Remind. Some companies need to remind customers that they and their products exist. Promotion might be used to reassure customers about a problem product, but customers would already be aware of its existence. A business would want the customer to be attracted to the product, not warned or cautioned about it.

To be effective, promotional messages need to be

Repeated frequently. Most people would not remember a promotional message if they heard it only once. It should not need to be rewritten frequently if it is properly prepared in the beginning. The most effective promotions are easy to remember.

Which of the following is a true statement about inexpensive, self-service products: a. Examples of these products are computers and automobiles. b. Sales promotion could promote these products successfully. c. They are in the decline stage of their life cycles. d. Their promotional mix should emphasize personal selling.

Sales promotion could promote these products successfully. Sales promotion or advertising is adequate promotion for inexpensive, self-service products that customers purchase with very little effort. Although some of these products may be in the decline stage, others may be in the introduction, growth, or maturity stages. Computers and automobiles are expensive and require demonstration; therefore, they are not examples of inexpensive, self-service items.

Cookie's Palace, a new boutique for children, wanted to attract more customers. The manager planned a puppet show, a new window display, and bought balloons to give to children. This is an example of

Sales promotion. Sales promotion is activities other than advertising, personal selling, and publicity which stimulate customer purchases. Personal selling is the form of promotion that uses planned, personalized communication to influence purchase decisions and enhance future business opportunities. Publicity is a nonpersonal form of promotion that is not paid for by the company or individual that receives it. Advertising is any paid form of nonpersonal presentation of ideas, images, goods, or services.

Contests, samples and coupons are all examples of

Sales promotion. Sales promotion is promotional activities other than advertising, personal selling, and publicity which stimulate customer purchases. Other examples are prizes, premiums, and novelty items. Personal selling is the form of promotion that uses planned, personalized communication in order to influence purchase decisions and enhance future business opportunities.

Which element of the promotional mix is being used by a business that builds a display to show a new line of products? a. Publicity b. Advertising c. Sales promotion d. Personal selling

Sales promotion. Sales promotion is the promotional activities other than advertising, personal selling, and publicity which stimulate customer purchases. Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for by the company which benefits from it. Advertising is a paid form of nonpersonal presentation of ideas, images, goods, or services. Personal selling is planned, personalized communication used to influence purchase decisions and enhance future business opportunities.

Chris saw two different car advertisements—one for a Chevrolet and one for a Saturn. Each was trying to persuade him to purchase its particular brand of car. This is an example of

Secondary product promotion. The Chevrolet and Saturn advertisements that Chris saw are examples of secondary product promotion. Secondary, or selective, product promotion is used to stimulate demand for a specific brand of a product. It is used to compete against other makers of the same type of product. Institutional, or corporate, promotion does not attempt to sell a good or service; rather, it attempts to create a certain image of the company in the eyes of the customer. Primary product promotion aims to stimulate demand, or desire, for an entire class of goods or services. The emphasis is on the product and its uses, rather than on a particular brand.

Michael is visiting an electronics store, where a salesperson is trying to convince him to buy an Apple computer. This is an example of

Secondary product promotion. The salesperson trying to convince Michael to buy an Apple computer is an example of secondary product promotion. Secondary, or selective, product promotion is used to stimulate demand for a specific brand of a product. It is used to compete against other makers of the same type of product. Institutional, or corporate, promotion does not attempt to sell a good or service; rather, it attempts to create a certain image of the company in the eyes of the customer. Primary product promotion aims to stimulate demand, or desire, for an entire class of goods or services. The emphasis is on the product and its uses, rather than on a particular brand.

Nick recently received a text message that appeared to be from his bank. The message stated that there had been a security breach at the bank, and he was asked to text back with his ATM pin number to confirm his account. Because the message seemed a bit odd, Nick called his bank and found out that the message was a hoax. Nick was a victim of

Smishing. Smishing is an illegal activity that involves posing as a financial institution or other business and sending fraudulent text messages requesting personal information such as account numbers and passwords. Phishing is similar to smishing, but it is done via e-mail instead of text messages. Soliciting typically involves approaching people without permission and attempting to sell something to them. Trespassing means entering someone else's property without permission and without a right to be there.

The way in which the promotional message is communicated should be

Suited to the product. The method of communicating the promotional message must be appropriate to the product being promoted. The right method for one product might be wrong for another. The message should also be appropriate to the market, but it would not be selected by the market. If a method of communication is effective, it would not need to be different each time.

A primary benefit that magazine advertising offers is the ability to a. target a group of individuals interested in specialized content. b. reach almost all homes throughout the United States. c. get an ad published at the last minute. d. deliver a low-cost message.

Target a group of individuals interested in specialized content. People read magazines of specific interest to them, which makes it possible to advertise to people who are most likely to buy the products. Magazine ads are somewhat expensive because they are colorful, glossy, and printed on high-quality paper. Businesses that want to take advantage of magazines must place their ads several months in advance. Even popular magazines such as TV Guide and Reader's Digest do not reach practically all homes throughout the United States, but rather very specific groups of individuals.

Which of the following is an example of a newspaper that focuses primarily on the business world: a. The Atlanta Voice b.The Wall Street Journal c. USA Today d. El Nuevo Herald

The Wall Street Journal

Which advertising medium is the wisest choice for advertisers who want to track user response?

The Web. Advertising on the Web would be best for advertisers who want to track user response and find out who is responding to their ads online. It is difficult, if not impossible, to efficiently track user response to advertising in electronic direct mail, radio, or newspapers.

When planning the promotional mix, a business should consider which of the following target market factors: a. The type of product b. The stage of the product's life cycle c. The type and number of customers and their location d. The company history

The type and number of customers and their location. These are all elements of the product's target market—the particular group of customers who want or need a given product. Businesses must know their target markets well so that appropriate promotional mixes can be planned. The company history is a company factor. The product type and life cycle are product factors.

Which of the following statements best defines the term promotional mix: a. The rotation technique used for promoting employees b. The "magic formula" used in developing promotional plans c. The way in which businesses combine promotional methods d. The confusion of too many promotional techniques

The way in which businesses combine promotional methods. The kinds of promotion used and the proportions will vary from business to business. Since it is very hard to determine the relative effectiveness of the different promotional methods, there is no "magic formula" that managers can use. Promotional techniques that are combined effectively will not create confusion. The promotion of employees is referred to as promotion or advancement.

Which of the following is NOT a criticism of promotional activities: a. They do not support the mass media. b. They can be overly honest. c. They can be manipulative. d. They can be offensive.

They can be overly honest. Promotional activities are not usually criticized for being overly honest. As a matter of fact, they are often criticized for being manipulative and offensive. Promotional activities do support the mass media, an advantage.

Which of the following is a benefit of promotional activities: a. They help support the mass media. b. They are all immediate and measurable. c. They are deceiving. d. They are the foundation of the economy.

They help support the mass media. Support of the mass media is a benefit of promotional activities. The mass communication media—radio, television, newspapers, and magazines—are either partially or completely supported by promotional dollars. Without this money, financial support of the media would probably be passed along to customers. Promotional activities can be deceiving, and they are not all immediate and measurable. These are disadvantages of promotion, rather than advantages. While promotional activities contribute to the economy, they are not the foundation of the economy.

Because their advertisements last only as long as they are on the air, broadcast media are considered ____________ media.

Time. Broadcast media (television and radio) are considered "time" media, as opposed to "space" media, because their advertisements last only as long as they are on the air. Printed publications such as newspapers and magazines are "space" media, because the cost and impact of their advertisements can depend on the ads' sizes—the space that they take up on the page. Broadcast media are not considered short-term media, and they are not necessarily affordable media, because some television advertisements are highly expensive.

Which of the following is an overall goal of the promotional mix: a. To convey a message inexpensively b. To have the right goods available c. To decrease operating expenses d. To persuade consumers to buy

To persuade consumers to buy. Businesses combine or mix the different forms (elements) of promotion to create the most effective promotional mix. These elements are advertising, display, personal selling, publicity, and sales promotion. It is not always possible to convey promotional messages inexpensively. Reducing the business's operating expenses is not an overall goal of the promotional mix. Having the right goods available is a responsibility of product/service management.

Pop-up blockers and spam filters help individuals to avoid

Unwanted web advertising. Pop-up ad blockers and spam e-mail filters help individuals to avoid unwanted advertising while they are online. They do not prevent individuals from receiving unsolicited publications, direct print mail, or telemarketing calls. Adding your telephone number(s) to a Do-Not-Call registry can stop telemarketers from contacting you.