chapter 16

Encoding is the process by which a receiver takes the coded message received from the source and converts it into ideas and concepts. True False

False

If a pull policy is used in promoting a product, the producer promotes the product only to the next marketing institution down the channel. True False

False

Product placement is illegal in all countries outside of the United States. True False

False

Viral marketing is an attempt to incite publicity and public excitement surrounding a product through a creative event. True False

False

While the specific communication vehicles employed in promotion have not changed, the fundamental role of promotion is changing. True False

False

A promotion mix is a blend of four possible ingredients, which are advertising, personal selling, public relations, and sales promotion. True False

True

Firms that link the purchase of their product to philanthropic efforts practice cause-related marketing. True False

True

One reason that promotion suffers from widespread criticism is that promotional efforts are highly visible and affect our everyday lives. True False

True

You are the marketing manager for a soft drink manufacturer. You recommend that the company should try to get the actors and actresses in television shows to drink its products. What type of promotion activity are you suggesting with your idea? a.Product placement b.Public relations c.Advertising d.Personal selling

a.Product placement

You are meeting with the head of a consumer advocacy group that claims your firm's promotion activities are causing food prices to rise. Naturally, you disagree with this claim, and you are meeting with this individual to make your case. Which of the following statements would be a strong defense against this advocacy group's claim? a.Promotion can help keep prices lower by facilitating price competition. b.Promotion is not related to economic factors like prices. c.We actively promote our products because we have to make a profit. d.Prices are rising because our competitors are not socially conscious.

a.Promotion can help keep prices lower by facilitating price competition.

Apple regularly holds events where the company CEO announces the latest products in front of a large group of stakeholders. This type of event is best categorized under which of the following types of promotion? a.Public relations b.Sales promotions c.Advertising d.Social media

a.Public relations

What is the primary motivation when a retailer such as Home Depot offers a discount on lawn mowers in September and October? a.Reduce sales fluctuations b.Encourage product trial c.Retain loyal customers d.Identify prospects

a.Reduce sales fluctuations

Which of the following is the best example of noise that originates with the receiver in the communication process? a.Tony checks his e-mail when the television commercial break begins. b.Kim is watching an online advertisement when her building's smoke alarm starts ringing. c.Dennis receives a postcard printed in Spanish but does not speak or read Spanish. d.Bernard does not drive on the highway and does not see a new billboard.

a.Tony checks his e-mail when the television commercial break begins.

Which of the following is the best example of the promotional objective of combating competitive promotional efforts? a.When McDonald's advertises that it has the best fries based on the number of fries sold, Burger King advertises it has the best fries based on taste tests. b.Lilly Pulitzer collaborates with Target to offer a special line of Lilly Pulitzer products sold exclusively through Target stores. c.BMW offers no-cost maintenance for its cars for the first four years or 50,000 miles on all of its cars if customers have their cars serviced by BMW rather than another location MW offers no-cost maintenance for its cars for the first four years or 50,000 miles on all of its cars if customers have their cars service by BMW rather than another location. d.Jif peanut butter uses the slogan that "Choosy Moms Choose Jif."

a.When McDonald's advertises that it has the best fries based on the number of fries sold, Burger King advertises it has the best fries based on taste tests.

Tombstone Pizza is planning on starting a new online advertising campaign to reach consumers where it will develop banner ads and increase its social media presence. It also plans on increasing its spending on personal selling with its wholesalers. Tombstone is using _______ with the online campaign and _______ with the increase in personal selling. a.a pull policy; a push policy b.publicity; a pull policy c.a push policy; a pull policy d.sales promotions; public relations

a.a pull policy; a push policy

Target gives a portion of its profits to local organizations. This is an example of _______. a.cause-related marketing b.promotion c.charitable promotion d.integrated marketing communications

a.cause-related marketing

Ashley is currently working on a video to introduce a new line of athletic wear for women. She is using signs and symbols to represent the concept and meaning of the new athletic wear. Ashley is most likely working on the _______ for this promotional video. a.coding process b.conversion process c.decoding process d.communication strategy

a.coding process

A minor league baseball team communicates to its target market by advertising on local television and radio stations, in local newspapers, on its own website, through postings on social media, and on banner ads. These vehicles through which the baseball team transmits its coded messages to potential customers are called _______. a.communication channels b.fields of reference c.decoders d.relay channels

a.communication channels

A commercial for a piece of exercise equipment says that customers can become fit like the models in the commercial if they use the equipment but does not disclose that the models were already in shape before using the equipment. This could be considered _______ advertising. a.deceptive b.push c.pull d.unfair

a.deceptive

the circular is partially paid for by manufacturers that are included in the advertisements. The manufacturers are helping pay for the advertising expenses as a way to _______. a.facilitate reseller support b.reduce sales fluctuations c.identify prospects d.encourage product trial

a.facilitate reseller support

Effective management of integrated marketing communications is based upon _______. a.information about customers b.budgetary allowances c.the communication process model d.consumer attitudes toward promotion

a.information about customers

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines _______. a.integrated marketing communications b.cohesive marketing communications c.consistent message marketing d.coordinated marketing communications

a.integrated marketing communications

Sam is meeting with a purchasing agent about an order for his company's forklifts. As he is describing the features of the newest version, the purchasing agent nods her head to signal that she understands the features. Sam does not notice the _______ communication the purchasing agent is sending and goes into more detail about the new features. a.kinesic b.tactile c.verbal d.proxemic

a.kinesic

While watching a television commercial, Chloe receives a text message from her friend and responds immediately. This is an example of _______ in the communication process. a.noise b.inaccuracy c.communication channels d.decoding

a.noise

In many television shows and movies, you will see characters using Apple computers and laptops during the show. This promotion strategy is called _______. a.product placement b.product display c.product endorsement d.product positioning

a.product placement

When a company is trying to communicate with its suppliers, employees, stockholders, the media, potential investors, government officials, and society in general, it is important to use _______. a.public relations b.advertising c.sales promotions d.personal selling

a.public relations

Promotional efforts designed to allow a manufacturer of a seasonal product to operate at peak efficiency year-round seek to _______. a.reduce sales fluctuations b.encourage product trial c.facilitate reseller support d.identify prospects

a.reduce sales fluctuations

When a soft drink manufacturer offers digital coupons that customers can use in retail stores, it is using _______. a.sales promotions b.social media c.advertising d.public relations

a.sales promotions

When Lean Cuisine promotes the quality, taste, and calorie contents of its line of frozen meals, it is attempting to develop _______. a.selective demand b.new introductory promotion c.prospects d.primary demand

a.selective demand

In the McDonald's advertisements that state, "I'm Lovin' It," McDonald's is the communication _______. a.source b.decoder c.transmitter d.noise

a.source

Amazon's "Alexa Lost Her Voice" commercial was shared by thousands of people through social media and watched millions of times on YouTube. This is an example of _______. a.viral marketing b.personal selling c.public relations d.sales promotion

a.viral marketing

Kristen received an email from a friend that linked to a video of a funny commercial made by Old Spice. Kristen thought it was so funny that she shared the video on her Facebook page and on Twitter so that all of her friends and followers could see the video as well. This is an example of _______. a.viral marketing b.buzz marketing c.personal promotions d.conversational promotion

a.viral marketing

Rob is working on the promotional plan for a new bicycle helmet that has added technology to sense when a bicycler has fallen and has a head injury. The technology then releases an audible signal that will help others know that there is an injury that needs treatment. This is considered to be a new product that is in the introduction stage of the product life cycle. Which type of promotion should Rob focus on? a.Competitive b.New introductory c.Comparative d.Reminder

b.New introductory

Proxemic communication is an element of which form of promotion method? a.Social media b.Personal selling c.Public relations d.Sales promotion

b.Personal selling

Kohler, a manufacturer of bathroom fixtures such as sinks and toilets, has uploaded several videos to YouTube that help demonstrate how to install its fixtures. These videos are best categorized under which of the following types of promotion? a.Social media b.Public relations c.Personal selling d.Sales promotions

b.Public relations

Ralph Lauren is planning a promotion in which it will showcase all of its clothing lines to buyers at retail stores. It also plans to develop a direct marketing campaign that will use social media to introduce its new seasonal styles. Ralph Lauren is using _______ with the retail showcase and _______ with the social media campaign. a.personal selling; a pull policy b.a push policy; a pull policy c.guerilla marketing; a push policy d.a pull policy; a push policy

b.a push policy; a pull policy

In its commercials, the mattress company Sealy focuses on the comfort and quality of its brand of mattress. This advertisement is best described as being designed to _______. a.retain loyal customers b.build selective demand c.stimulate primary demand d.encourage product trial

b.build selective demand

Adam is in charge of advertising for his company and he has designed a magazine ad to promote one of his company's new products. When he shares the ad with his manager, the manager tells him that the ad has too much visual information. The manager is concerned with the _______ of the receiver. a.feedback b.channel capacity c.noise d.encoding

b.channel capacity

In order to increase sales of its fishing poles, Corinthian Fishing Supplies launched a social media campaign. After the campaign ended, Corinthian learned through marketing research that most of its target market is not active on social media and instead visit fishing websites. The promotion program suffered from an error in the selection of _______. a.noise b.communication channel c.target market d.channel capacity

b.communication channel

The internet, mobile apps, and billboards are all considered _______. a.communication links b.communication channels c.communication resources d.decoding sources

b.communication channels

You work for a company that has just launched a new line of juice drinks. Customers are aware of the product but have not decided to purchase your company's brand of juice. You decide to give out free samples in grocery stores in an attempt to _______. a.stimulate primary demand b.encourage product trial c.facilitate reseller support d.identify prospects

b.encourage product trial

When Birds Eye introduced its Steamfresh line of microwaveable frozen vegetables, it likely gave incentives to grocery stores to purchase the product. This effort was primarily designed to _______. a.identify prospects b.facilitate reseller support c.retain loyal customers d.encourage product trial

b.facilitate reseller support

In an effort to practice _______, Gammons International is hiring an external marketing company to handle its marketing efforts. These efforts will include advertising, public relations, and sales promotions. a.all-in-one marketing b.integrated marketing communications c.coordinated promotions d.efficiency in marketing

b.integrated marketing communications

When flat-screen televisions were first introduced, manufacturers tried to increase customer awareness of the new product by using _______ to build _______. a.comparative promotion; competitive advantage b.new introductory promotion; primary demand c.primary promotion; customer demand d.new introductory promotion; selective demand

b.new introductory promotion; primary demand

Carlos is listening to the radio while driving with his kids in the back seat. During the commercial break, one of the children repeatedly asks Carlos if they have arrived at their destination. The child's questions would be considered _______ in the communication process. a.decoding distraction b.noise c.channel capacity d.interference

b.noise

Word-of-mouth communications are most effective for _______ products. a.inexpensive b.personal services c.convenience d.mature

b.personal services

The strategic location of products or product promotions within entertainment media content to reach the product's target market is known as product _______. a.exhibition b.placement c.positioning d.integration

b.placement

For her sixteenth birthday, Josie has asked her parents for a new handbag from Coach. She insists that she must have a Coach bag, which has a high price and recognizable brand name. This insistence on the Coach brand supports the criticism of promotion that _______. a.promotion creates needs for consumers b.promotion encourages materialism c.harmful products should not be promoted d.promotion increases prices for consumers

b.promotion encourages materialism

When Glade introduced its Wax Melts line of air fresheners, if it offered coupons available in the newspaper that consumers would then take to their favorite stores, this would be an example of a _______ policy. a.channel promotional b.pull c.consumer promotional d.push

b.pull

A bed and breakfast inn holds crafting getaways where all of the people staying at the property are interested in the same activity. These getaways are typically done during the fall when fewer people typically visit. These getaways are designed to _______. a.facilitate reseller support b.reduce sales fluctuations c.identify prospects d.encourage product trial

b.reduce sales fluctuations

The Colorado Tourism Office advertises that people can visit Colorado ski slopes and mountains for hiking, ziplining, and horseback riding during the summertime in an effort to _______. a.facilitate reseller support b.reduce sales fluctuations c.encourage product trial d.retain loyal customers

b.reduce sales fluctuations

Each year, Doritos holds a contest for customers to create a commercial. The winning commercial, as decided by internet voters, airs during the Super Bowl. This contest is an example of Doritos using _______ for its promotion strategy. a.advertising b.sales promotions c.public relations d.social media

b.sales promotions

When a salesperson shakes a potential customer's hand, she is using _______. a.kinesic communication b.tactile communication c.verbal communication d.proxemic communication

b.tactile communication

Consumers are increasingly going online for information and opinions about goods and services as well as about companies. Research has shown that _______ is the most important attribute about a ratings website. a.the graphic design of the page b.the site's credibility c.number of reviews per product d.ease of use

b.the site's credibility

If Honda gives one of its new motorcycles to a popular blogger so that the blogger would share information on the blog, this is best described as an example of _______. a.personal selling b.word-of-mouth communication c.sales promotion d.advertising

b.word-of-mouth communication

Which of the following is not one of the disadvantages of using advertising as a promotion method? a.High absolute dollar outlay b.Difficulty in measuring effects on sales c.High cost per person reached d.Slow feedback

c.High cost per person reached

Tony is on the marketing team for a new line of self-heating soups designed for mountain climbers. The soups come in a convenient pouch that hooks on to a mountain climber's gear and collapses for easy storage when empty. The product is considered a new product in the introductory stage of the product life cycle. What type of promotion should the marketing team focus on? a.Reminder b.Comparative c.New introductory d.Repetitive

c.New introductory

Mary is currently working on updating her company's website, incorporating signs and symbols that will help represent the ideas that the company is trying to express. Mary is most likely working on the _______ for the website. a.decoding process b.conversion process c.coding process d.communication strategy

c.coding process

ClearView Windows sends out postcards containing an advertisement and a coupon to potential residential customers. This is part of the _______ component of the communication process. a.decoding process b.channel capacity c.communication channel d.encoding process

c.communication channel

The Barrister's Deli decides to run advertisements for its lunch specials on a local FM radio station. Marketing research later reveals that the restaurant's target market listens primarily to satellite radio stations. This promotion program suffered from an error in the selection of _______. a.targeted customers b.decoded meanings c.communication channel d.shared symbols

c.communication channel

If Frito-Lay introduces a new line extension of its famous potato chips, it is likely going to engage in promotions that focus on _______ in order to have customers start the product adoption process. a.stimulating demand b.combating competitive promotional efforts c.creating awareness d.identifying prospects

c.creating awareness

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

c.encourages materialism

During a television commercial, the announcer reads a toll-free telephone number that viewers can call to order the product. The announcer has included the phone number to facilitate _______ for this communication. a.encoding b.noise reduction c.feedback d.decoding

c.feedback

A contractor who specializes in upgrading kitchens has a table set up at the county fair where he offers people a free estimate in exchange for their contact information. This promotional effort is directed at _______. a.encouraging product trial b.creating awareness c.identifying prospects d.stimulating demand

c.identifying prospects

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

c.identifying prospects

Chris sees a television commercial for Arby's promoting its gyros at 2 for $6. Later that day he goes to the nearest Arby's but is told that the special offer is not available at that location. Arby's seems to lack _______. a.promotional efforts b.channel capacity c.integrated marketing communications d.communication

c.integrated marketing communications

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

c.kinesic

The use of a push policy may require heavy expenditures for _______. a.public relations b.advertising c.personal selling d.coupons

c.personal selling

Tiffany is creating a promotion plan for Owens Corning, which manufactures fiberglass insulation. Her company is trying to promote the insulation to home builders to use in the building of new residential homes. She is most likely to recommend _______ because it allows marketers to adjust their message to improve communication. One downside is that it costs _______ than advertising to reach one customer. a.personal selling; less b.direct marketing; more c.personal selling; more d.sales promotion; less

c.personal selling; more

Government officials and consumer groups suggest products that _______ should not be promoted. a.fulfill self-actualization needs b.are too expensive c.potentially have harmful effects d.encourage materialism

c.potentially have harmful effects

In episodes of America's Got Talent, the judges drink out of cups featuring the Dunkin' Donuts logo. The promotion strategy being used by Dunkin' Donuts is known as _______. a.product integration b.product positioning c.product placement d.product promotion

c.product placement

If an auto manufacturer creates an ad showing that the people in the car can feel secure in case of an accident, it is attempting to influence the customer's _______ need. a.self-esteem b.self-actualization c.safety d.love and affection

c.safety

In the weeks leading up to Thanksgiving, Butterball turkey may allocate more of its promotion budget to _______ in order to account for the coupons it will be issuing to consumers. a.personal selling b.public relations c.sales promotions d.advertising

c.sales promotions

All of the following are reasons a company would likely emphasize personal selling in its promotion mix, except _______. a.the size of the product's target market is limited b.the company's customers are concentrated in a small area c.the company's products are seasonal in nature d.the company's promotion budget is extremely limited

c.the company's products are seasonal in nature

If a manufacturer decides to use a pull policy to promote its products, it is likely to focus its efforts on _______. a.wholesalers b.other manufacturers c.ultimate consumers d.retailers

c.ultimate consumers

The use of advertising to create awareness for a product is most likely to occur in which stage of the product life cycle? a.Growth b.Plateau c.Maturity d.Introduction

d.Introduction

When tablet computers were first introduced to the market, which of the following would have been the logical choice for promotion? a.Primary demand promotion b.Selective demand c.Comparative promotion d.New introductory promotion

d.New introductory promotion

You are working with a sales management consultant to improve your company's sales performance of its line of juices. You and the consultant agree your promotional activities should include a greater attempt at inducing trial of the products being sold. Based on this information, which of the elements of promotion should you emphasize more? a.Advertising b.Social media c.Public relations d.Sales promotion

d.Sales promotion

When sales representatives for Owens Corning meet potential customers, it offers stuffed pink panthers to promote its insulation. This example illustrates Owens Corning's use of which of the following elements of the promotion mix? a.Social media b.Public relations c.Personal selling d.Sales promotions

d.Sales promotions

You are leading a meeting of your marketing team during which you are deciding on the promotion mix for your flagship product. You are working your way through the various factors that should be considered when determining an appropriate promotion mix. You are currently focused on the characteristics of your target market. Because of the nature of your product, your target market represents millions of potential customers. Which of the following best describes the appropriate promotion mix for your product? a.Your promotion mix should emphasize personal selling only. b.Your promotion mix should emphasize public relations and personal selling. c.Your promotion mix should emphasize public relations only. d.Your promotion mix should emphasize advertising and sales promotion.

d.Your promotion mix should emphasize advertising and sales promotion.

Leo is working on finalizing the promotion plan for his company's line of air fresheners. They plan on using a nonpersonal communication method that will use a mass medium for transmission to the target audience. Leo's company is using _______ as its promotion method. a.social media b.sales promotion c.public relations d.advertising

d.advertising

One of the problems associated with _______ is that it is often difficult to measure its effect on sales. a.price b.sales promotion c.personal selling d.advertising

d.advertising

Paula is working on a promotional program for her company's line of designer dog collars. Her company needs to promote the dog collars to pet owners, so she is likely to use _______ because it reaches a vast number of people at a low cost per person. a.public relations b.direct marketing c.personal selling d.advertising

d.advertising

Promotions help consumers because they _______. a.create new needs for consumers b.only focus on products that have no harmful effects for consumers c.increase the focus on brand names d.allow customers to make more intelligent buying decisions

d.allow customers to make more intelligent buying decisions

Kellogg's uses a promotional program that incorporates both pull and push policies. Kellogg's will most likely use _______ for the push policy and _______ for the pull policy. a.personal selling and advertising to the customer; rebates to the customer b.advertisements to the consumer; coupons and rebates for the consumer c.coupons and rebates for the consumers; an allowance for retailers d.an allowance to retailers for promoting the cereals; advertisements to the customer

d.an allowance to retailers for promoting the cereals; advertisements to the customer

As Lynn is working on writing the text that will be incorporated into a new magazine ad for her company's line of handbags, she is engaging in the _______ stage of the communication process. a.sourcing b.receiving c.decoding d.encoding

d.encoding

In the _______, concepts and ideas are converted into signs or symbols by the source. a.message creation process b.marketing process c.advertising process d.encoding process

d.encoding process

Various food products for sale at Costco are offered as small portions for consumers to taste while shopping in the store. These efforts have a primary promotional objective of _______. a.stimulating demand b.identifying prospects c.creating awareness d.encouraging product trial

d.encouraging product trial

A car dealership airs a television ad in which it tells customers to visit its website to sign up for special offers. This ad has the primary objective of _______. a.stimulating demand b.encouraging product trial c.reducing sales fluctuations d.identifying prospects

d.identifying prospects

An advertisement is more likely to be unintentionally deceptive if it _______. a.stimulates demand b.is part of a viral marketing campaign c.does not stimulate demand d.is directed at children

d.is directed at children

Michael is planning a promotional program for AirFam. AirFam is a supplier of new energy-saving engines used to produce air conditioners. His company needs to promote these engines to manufacturers of air conditioners, so he is most likely to use _______, because it provides immediate feedback. The disadvantage is that it is _______ than advertising to reach one customer. a.direct marketing; less effective b.sales promotion; more costly c.sales promotion; less effective d.personal selling; more costly

d.personal selling; more costly

The National Cattlemen's Beef Association tries to generate _______ by airing advertisements with the slogan "Beef: It's What's for Dinner." a.demand elasticity b.comparisons of types of beef c.competition d.primary demand

d.primary demand

Suppose that Samsung has decided to contract with the producers of The Avengers to have characters in the movie exclusively use Samsung tablets and smartphones. This would best be an example of _______. a.viral marketing b.personal selling c.public relations d.product placement

d.product placement

While in a sales meeting, Andre notices that the customer he is speaking to takes a step backward during the conversation. Feeling that the customer is disinterested in his sales pitch, Andre changes his approach to make the conversation more interesting to the customer. Andre is paying attention to _______ communication from the customer. a.kinesic b.tactile c.verbal d.proxemic

d.proxemic

Jack is watching television when an infomercial for a vacuum cleaner begins. As he watches the infomercial, he sees the power of the vacuum being demonstrated. In this case, Jack is the _______ and the company selling the vacuum cleaner is the _______. a.communicator; communicator b.audience; producer c.decoder; advertiser d.receiver; source

d.receiver; source

ValueCut has a Haircut Club that gives customers their eighth haircut for free after they have bought seven at regular price. The primary objective of this type of program is _______. a.reducing sales fluctuations b.encouraging product trial c.stimulating demand d.retaining loyal customers

d.retaining loyal customers

Valpak is a company that mails out packets of coupons to consumers. These coupons mostly include discounts for local and regional businesses. Valpak is helping these companies with their _______. a.personal selling b.public relations c.social media d.sales promotions

d.sales promotions

Gordon is driving on the highway and sees a billboard for a local auto dealership. On the billboard he sees pictures of three of the dealership's cars and an announcement of a current promotion. In this situation, the auto dealership is a _______, which is one who _______. a.receiver; decodes b.sender; encodes c.messenger; encodes d.source; encodes

d.source; encodes

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

d.viral marketing

Generally, companies whose customers are numerous and geographically dispersed will find promotion mixes featuring _______ to be more practical. a.advertising b.public relations c.personal selling d.viral marketing

d.viral marketing