MK MG-Chapter 13

What is the most common method used for budgeting promotion expenditures?

Percentage of sales method

Which of the following are typical characteristics of early adopters? (Check all that apply.)

They have fewer contacts outside their own community than innovators. They are opinion leaders. They have the greatest contact with salespeople of all adopter groups.

Which of the following are typical characteristics of innovators? (Check all that apply.)

They willing to take risks. They are eager to try a new idea.

When customers have the choice about whether to stay at a company's website or visit a competitor's site, they are considered ______ customers, and promotion efforts must address their needs at that moment.

inbound

Customers typically want to know something about a product before they consider purchasing it. A(n) ______ objective can show that the product meets consumer needs.

informing

Samsung placed an ad in Rolling Stone magazine announcing the Galaxy Tab, the world's thinnest tablet computer. The ad focused on the benefits that it offered based on common customer needs. Samsung is using a(n) ______ objective for its ad.

informing

By making a decision to search for information in a specific message channel, the customer is ___ communication.

initiating

Customers that are well respected by their peers and often influence the opinions of other consumers with their purchasing decisions are known as ______.

early adopters

Firms spend the least on which of the following promotion methods?

Advertising

Which of the following statements about promotion blends is correct?

Each market segment may require a unique promotion blend.

True or false: A firm should apply the same promotion blend across all marketing situations to maintain consistency.

False; Reason: Recall that each marketing situation requires a unique promotion blend to achieve the firm's objectives.

What is the final element in the traditional communication process?

Feedback

What are typical characteristics of the early majority? (Check all that apply.)

They wait to consider a new idea. They have significant contact with mass media.

The ______ manager is responsible for overseeing a company's mass-selling effort in television, newspapers, magazines, and other media.

advertising

The most common type of mass selling is ______.

advertising

Promotion efforts need to ______ in order to accommodate various adopter groups.

change over time

The ___ process describes attempts by a source to send a message to a receiver.

communication

When a source attempts to transmit a message to a receiver, it is participating in the ______.

communication process

Celebrity endorsements often draw ethics complaints if ______.

consumers do not believe that the celebrity actually uses the product

After receiving an encoded message, a receiver will engage in ___ to translate the message.

decoding or decode

Communications intended to prompt immediate feedback from specific customers are part of a(n) ______ marketing approach.

direct

Promotion for a new product idea should seek to generate interest in the product idea rather than a specific brand. The demand for the general product idea known as ___ demand.

primary

The act of communicating information about a product to potential buyers in an attempt to influence their attitudes and behaviors, otherwise known as ______, is an important part of a firm's marketing mix.

promotion

The source uses ____ when it determines what to say and translates that message into words and symbols.

encoding

An unpaid, nonpersonal presentation of ideas, goods, or services, is called ____.

publicity

Direction of a company's sales promotion effort is the responsibility of the ______.

sales promotion manager

Most of the important communication with wholesalers and retailers are handled by ______.

salespeople

When there are several competing firms in a market, marketers must build ______ demand, or demand for a specific brand rather than a general product idea.

selective

Demand for a specific brand rather than a general product idea is called ______.

selective demand

One method for calculating the promotion budget is to allocate a percentage of past sales or expected future sales to promotion activities. This method is common among firms because of its ______.

simplicity

Many customers called to complain about the NewTrend shoes they had purchased because the bottom of the shoe split in half within days of wearing them. This customer communication is an example of _____.

feedback

The objective of informing is geared to ______.

getting attention

When companies use ______, they promote the product to their own salespeople or other employees who are in regular contact with customers.

internal marketing

Communicating with large numbers of potential customers at the same time is known as ______.

mass selling

The method by which a message is delivered is referred to as the ______.

message channel

A distraction that reduces the effectiveness of the communication process is called ______.

noise

Any disruption of the marketing communication process, also known as ___, reduces the effectiveness of the message.

noise

20th Century Fox focuses a great deal of their promotional efforts toward professional movie critics. The more popular critics are considered ______ and help spread the word, whether good or bad, about upcoming movies.

opinion leaders

A significant difference between advertising and publicity is that publicity does not entail ___.

paying media costs

A(n) ___ is the sender of a message.

source

Customers who tend to avoid risk by accepting new ideas only after they have been recommended by early adopters are known as ______.

the early majority

Customers who are cautious about new ideas and often adopt a new product only after receiving strong social pressure are called ______.

the late majority

Which of the following are examples of advertising? (Check all that apply.)

Roadside billboards Direct mailing campaigns Television commercials

What are the three basic promotion objectives? (Check all that apply.)

Reminding Persuading Informing

Match the adoption process (on the left) to the promotional jobs (on the right) as described in the AIDA model. Instructions

Awareness-Get attention Interest-Hold interest Evaluation-Arouse desire Decision-Obtain action

Ford wants to specifically target drivers who have owned their SUVs for more than three years. The company would use a(n) ______ database to target these specific prospects for its direct-response promotions.

CRM

Apple is a leader in the "smartphone" market. As more competitors have entered the market, the company's focus has changed from building primary demand to stimulating selective demand. In which stage of the product life cycle does this transition take place?

Growth

Managing personal selling is the responsibility of the ______.

sales manager

Any promotional activity outside of advertising, publicity, and personal selling that attracts potential customers is known as ______.

sales promotion

Lindsey is responsible for planning the monthly coupon booklet for her company. The booklet is distributed to customers when they walk into a store so they can take advantage of cost savings as they shop. Lindsey is an example of a(n) _____ manager.

sales promotion

According to the Model of Customer-Initiated Interactive Communication, communication begins when a customer ______.

searches for information

Encoding is the process used by the _____ during communication.

source

The sender of a message is called the ______.

source

Place the parts of the AIDA model in order, beginning with the first of the four promotion jobs.

1. Get attention 2. Hold interest 3. Arouse desire 4. Obtain action

Rank the following adopter groups according to the speed at which they accept new ideas, with the fastest-adopting group at the top.

1. Innovators 2. Early Adopters 3. Early Majority 4. Late Majority 5. Laggards

Which of the following are examples of sales promotion activities aimed at final consumers or users? (Check all that apply.)

Coupons Contests

In the era of digital cameras, Kodak uses targeted promotion to reach those customers who still desire its 35mm cameras and film. In which stage of the product life cycle is Kodak competing?

Decline

In which stage of the product life cycle does a firm eventually decrease the total amount spent on promotion?

Decline

Which of the following groups prefer the status quo to new ideas? (Check all that apply.)

Nonadopters Laggards

Which of the following are possible ethical concerns related to promotion? (Check all that apply.)

Honesty Fairness

In which stage of the product life cycle must a firm build primary demand?

Introduction; Reason: Recall that primary demand stimulates interest in a broad product idea rather than a specific brand. Thus, primary demand is important during the market introduction stage, when there are few brands on the market.

What are two reasons that producers who target business customers emphasize personal selling over other promotion methods? (Check all that apply.)

Larger purchases Fewer customers

Which of the following methods are commonly used to deliver direct marketing materials? (Check all that apply.)

Mail E-mail

In which stage of the product life cycle does mass selling become more economical?

Market growth; Reason: Recall that mass selling becomes more economical by the market growth stage. By the maturity stage products may need more aggressive personal selling and spending on promotion.

In response to widespread competition, Coca-Cola increased its use of reminder-type advertising and implemented more frequent-buyer promotions toward its loyal customers. Based on this promotion blend, it would appear that Coca-Cola is operating in which stage of the product life cycle?

Maturity

In which stage of the product life cycle do personal selling and advertising of business products become more aggressive?

Maturity; Reason: Recall that during market growth, mass selling becomes economical and begins to emerge as the dominant approach. During the market maturity stage, marketers may turn to aggressive personal selling to differentiate themselves from competitors.

Which of the following are ways in which marketing managers can make use of customers' independent searches for information on the web? (Check all that apply.)

Monitor online comments about the product for important feedback Contribute to social media posts about the product

Kendra is a sales representative for a pharmaceuticals company and meets with doctors and other medical personnel daily to share information about the products her company has available. This is an example of which type of promotion?

Personal selling

Which of the following techniques are useful in generating primary demand? (Check all that apply.)

Personal selling Sales promotion

Darin has clicked on the Outdoor Gear website. What should the marketing manager have already done to make sure the site works for Darin? (Check all that apply.)

Provide truly useful information Keep Darin interested in Outdoor Gear's offerings

When Orla Oil company was responsible for a major oil spill, it sent a representative to speak to the media to explain what had occurred and what the company was doing to clean up the spill. The representative also stressed that Orla Oil valued the environment and was truly sorry for what had occurred. What type of communication does this demonstrate?

Public relations

Which of the following are components of the traditional communication process? (Check all that apply.)

Receiver Message channel Noise Feedback Source

Jones Organic Dairy wanted to inform its target customers about the purity of its milk. An advertising agency developed a newspaper ad. The ad showed pictures of happy cows and the ad copy that said the cows were not given certain medications and had adequate pen space. Research showed that parents (the target market) viewed the milk as healthier than nonorganic milk. Many responded by "liking" Jones Organic Dairy's Facebook page. Match the step of the traditional communication process (on the left) with the details from this example (on the right).

Source-Jones Organic Dairy Encoding-Pictures of happy cows Message channel-Newspaper ad Decoding-Parents thought the milk was healthy Receiver-Parents Feedback-"Liking" the Jones' Facebook page

Which of the following are promotion jobs described by the AIDA model? (Check all that apply.)

To arouse desire To obtain action To hold interest

True or false: It is important that customers trust both the message and the source in the marketing communication process.

True; Reason: If the message or source is seen as untrustworthy then the message will not be delivered.

Which of the following are signals that a person is ready to make a purchase that can be monitored and targeted by marketing managers? (Check all that apply.)

Visiting the websites of various vendors who sell a specific product "Liking" a local retailer of a specific product in Facebook Reading articles online about a specific product

In the traditional communication process in order, where does encoding occur?

When the message leaves the source

In order to communicate effectively, it is important that people have

a common frame of reference.

A paid, nonpersonal presentation of ideas, goods, or services by an identified sponsor is known as ______.

advertising

Jeffrey is the ______ manager for an automobile repair facility. Recently, he developed a popular commercial that is running on the local television channels.

advertising

When a firm develops its ______ plan, it can include traditional media, such as magazines, newspapers, radio and TV, signs, and direct mail, as well as new media such as the Internet.

advertising

Most firms spend less money on ______ than on ______.

advertising; sales promotion

Promotion involves telling customers about the right product available at the right place and _____.

at the right price

When a marketing manager pushes a product through a channel, he or she ______.

attempts to sell an entire marketing mix to possible channel members

It is critical that marketers capture customers' ______ in order to differentiate their products from the products of competitors.

attention

Nike purchases sponsored advertising links from Google so their message appears on the side of the first page of results when a customer uses the search term "running shoe." Nike is attempting to capture the customer's ______.

attention

Cheerios is a brand of breakfast cereal by General Mills. The company highlights, in its promotions, that the American Heart Association has certified the cereal as "heart-healthy" and may reduce the risk of heart disease. The immediate goal of this strategy is to ______.

build credibility

The advertising manager asked his team if it was better to place their ad in local newspapers or national magazines. The manager is trying to determine the best message _____.

channel

When a company uses a pulling policy to promote products, it refers to ______.

customers requesting a product from intermediaries

The primary targets of a reminding objective are ______.

customers who already have positive attitudes about the firm or its products

The process by which a receiver translates an encoded message is called ______.

decoding

Jiffy Lube offers auto maintenance services, including everything from oil changes to preventive maintenance. To highlight its services, the company often mails discount coupons to customers. Jiffy Lube is using ______ marketing to generate business.

direct-response

Quiznos produced a commercial using what were called "The Sponge Monkeys." Many people described the characters as "some weird-looking hamster-like creatures." The commercials did not last because of the association of food and rodents. In this case, Quiznos and the audience did not have a common ______.

frame of reference

Gerald is a recent college graduate and is in the market for a new automobile. He searches the Internet for information and then visits different automobile dealerships to speak to the sales people and perform a test drive. By doing these things, Gerald is ______ the communication process.

initiating

The first group to adopt new ideas are called ______.

innovators

According to the adoption curve, ___ are the first to adopt new ideas.

innovators or innovator

Although a firm may engage in several different promotional activities at one time, it should strive to produce ______ marketing communications in order to maintain consistent messaging.

integrated

Frito-Lay is promoting the SunChips brand as being environmentally friendly. This message is communicated in all of its print and television ads, point of purchase displays, and packaging. The company is using a(n) ______ strategy.

integrated marketing communications

Customers who avoid change and are very suspicious of new ideas are called:

laggards.

Mass selling is an ideal promotion strategy to save costs when the market is ______.

large and scattered

Allison has reluctantly purchased a "smartphone." She finally decided after much pressure from her sorority sisters who told her to "catch up to the real world." When it comes to mobile phones, Allison is a member of the ______ group.

late majority

The right promotion blend depends on what the firm wants to achieve; therefore, it is critical that promotion ______ be clearly defined.

objectives

Marketing managers should monitor customers' ___ compliments and complaints by checking social media avenues, like Facebook and Twitter.

online or Internet

When any of Carla's friends need to buy something for their baby, they all turn to Carla for advice, because she always knows about the best new items and where to get them. For baby products, Carla is a(n) ___ leader among her friends. (Enter one word in the blank.)

opinion

Communication with wholesalers and retailers includes information about what promotion will be directed toward the final consumer, each channel member's part in marketing the product, and important financial details. This communication is generally handled through ______.

personal selling

Direct spoken communication between sellers and potential customers is called ______.

personal selling

Sales managers oversee ______.

personal selling

The most common promotion approach in business markets is ______.

personal selling

Famous for his long and thick hair, NFL star Troy Polamalu has a contract with Procter & Gamble to endorse Head and Shoulders shampoo. Procter & Gamble has a(n) ______ objective when it uses Troy to demonstrate that Head and Shoulders shampoo is superior to competing products and thus should be purchased.

persuading

When several firms offer similar products, companies often develop a(n) ______ objective, which tries to convince customers to buy, and continue to buy, their products and not the competitor products.

persuading

Demand for a broad product idea rather than a specific brand is called ______.

primary demand

Communication with noncustomer groups, such as labor, public interest groups, stockholders, and the government, is known as ______.

public relations

When customers demand a certain product from retailers, they are ______ the product through the channel of distribution.

pulling; Reason: Pulling means getting customers to ask intermediaries for the product.

Attempting to sell the whole marketing mix to all possible channel members is known as ______.

pushing

A potential customer, also known as a(n) ___, is the intended target of a promotional message.

receiver

The ______ is the person or persons to whom a message is delivered.

receiver

The traditional communication process consists of a source, encoding, message channel, decoding, and

receiver or receivers

Jackson Air Conditioning & Heating sends out postcards to its previous customers every April alerting them to have their air conditioners checked before the summer months arrive. Jackson's direct mail campaign appears to be guided by a(n) ______ objective.

reminding

The model of customer-initiated interactive communication includes ______.

the source message a search the receiver a message channel

Wayne Co. uses internal marketing to sell or promote products to ______.

their salespeople

Angela is surfing the Internet reading articles about ladies' watches, "liking" different watch makers on Facebook, and examining customer reviews about watch brands. These activities are useful to marketers because ______.

they are a signal that Angela is ready to purchase a watch