15 Chapter INTEGRATED MARKETING COMMUNICATIONS AND DIRECT MARKETING Test Item Table
Major Section of the Chapter Level 1: Definition (Knows Basic Terms & Facts) Integrated Marketing Communications Make Magic at Disney! (pp. 323-324) The Communication Process (pp. 324-325) The Promotional Elements (pp. 326-328) Integrated Marketing Communications Developing the Promotional Mix (pp. 329-332) Developing the Promotion Program (pp. 332-335) 1 2 Level of Learning Level 2: Conceptual (Understands Concepts & Principles) Level 3: Application (Applies Principles)
3, 5, 6, 7, 9, 11, 13, 14, 17, 18, 21, 22, 23, 27, 29, 31, 162 41, 42, 53, 56, 57, 61, 62, 64, 67, 73, 82, 165 88, 102, 103, 105, 106, 109, 168
4, 24, 34
8, 10, 12, 15, 16, 19, 20, 25, 26, 28, 30, 32, 33, 35, 36, 37 44, 46, 47, 49, 50, 51, 60, 65, 66, 68, 72, 75, 79, 80, 81 91, 94, 97, 99, 101, 104, 107, 108, 111
39, 40, 43, 45, 48, 52, 54, 55, 58, 59, 63, 69, 70, 71, 74, 76, 77, 78, 83, 84, 85, 163, 164 86, 87, 89, 90, 92, 93, 95, 96, 98, 100, 110, 112, 166, 167
Executing and Evaluating the Promotion Program (pp. 335) Direct Marketing (pp. 335-338) Video Case: Airwalk, Inc. (pp. 339-341)
113, 114, 115, 116, 117, 118, 120, 122, 123, 124, 126, 127, 129, 132, 133, 136, 137, 140, 141, 142, 170 174, 175
119, 138, 143, 144, 145, 146, 147, 148, 169, 171, 172
121, 125, 128, 130, 131, 134, 135, 139,
149, 173
176, 177
153, 154, 157,
151, 152, 158, 159, 178, 179
150, 155, 156,
160, 161,
180
Note: Bold numbers indicate short essay questions.
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CHAPTER 15 INTEGRATED MARKETING COMMUNICATIONS AND DIRECT MARKETING MULTIPLE CHOICE QUESTIONS
15-1 CHAPTER OPENING EXAMPLE: DISNEY DEFINITION
To celebrate the 100th anniversary of its founder, Disney used advertising, direct marketing, Internet promotion, and partnerships with other companies. In other words, Disney is using: a. b. c. d. e. implemented market codes (IMC). interactive media convergence (IMC). an infrastructure of market customization (IMC). integrated marketing communications (IMC). integrated media convergence (IMC).
Answer: d Page: 323-234 Rationale: The concept of designing marketing communications programs that coordinate all promotional activitiesadvertising, personal selling, sales promotion, public relations, and direct marketingto provide a consistent message across all audiences is referred to as integrated marketing communications. Disney employs an integrated marketing communications (IMC) program to help its audiences remember the 100th anniversary by using a consistent message via advertising, direct marketing, etc. 15-2 CHAPTER OPENING EXAMPLE: DISNEY CONCEPTUAL
Disney used an integrated marketing communications program (IMC) to promote the 100th anniversary of its founder because: a. b. c. d. e. it needs to be sure that all of its promotional activities are delivering a consistent message. it does not want to reach any member of its target audience more than once. IMC is less expensive than other forms of promotion such as public service announcements. if it didn't, Disney would have to use indirect personal selling. it is more concerned about frequency than reach.
Answer: a Page: 323-324 Rationale: In order to reach all of its audiences with a consistent message, Disney must coordinate all of its promotional activities.
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15-3 PROMOTIONAL MIX
DEFINITION
The __________ includes advertising, personal selling, sales promotion, public relations and direct marketing. a. b. c. d. e. promotion channel communication chain marketing matrix promotional mix media mix
Answer: d Page: 324 Rationale: Key term definitionpromotional mix 15-4 PROMOTIONAL MIX The promotional mix can be used to: a. b. c. d. e. discourage, inform, persuade inform, persuade, remind remind, inform, reduce price persuade, discourage, reduce price choose the media used CONCEPTUAL
Answer: b Page: 324 Rationale: The promotional mix can be used to (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using he product. 15-5 COMMUNICATION DEFINITION
__________ is the process of conveying a message to others that requires six elementsa source, a message, a channel of communication, a receiver, and the processes of encoding and decoding. a. b. c. d. e. Exchange Dialogue Communication Encoding Feedback
Answer: c Page: 324 Rationale: Key term definitioncommunication
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15-6 COMMUNICATION
DEFINITION
Communication is the process of conveying a message to others and requires six elements. Those elements are a source, a(n) __________, a channel of communication, a receiver, and the processes of encoding and decoding. a. b. c. d. e. sender message trademark slogan offer
Answer: b Page: 324 Rationale: Key term definitioncommunication 15-7 SOURCE In terms of the communication process, the source is: a. b. c. d. e. any information which is paid for. consumers who read, hear, or see the message. similar understanding and knowledge. a company or person who has information to share. any knowledgeable group of individuals. DEFINITION
Answer: d Page: 324 Rationale: Key term definitionsource 15-8 SOURCE APPLICATION
LOral created an advertisement for its Visible Lift makeup. In terms of the communication process, the __________ for the information in the Visible Lift makeup advertisement is L'Oral, its manufacturer. a. b. c. d. e. communication channel message decoder source feedback
Answer: d Page: 324 Other Location: web Rationale: The source is a company or person who has information to convey.
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15-9 MESSAGE
DEFINITION
In terms of the communication process, information sent by the source is referred to as: a. b. c. d. e. source material. promotional material. the message. feedback. publicity.
Answer: c Page: 324 Rationale: Key term definitionmessage 15-10 MESSAGE APPLICATION
LOral created an advertisement for its Visible Lift makeup. In terms of the communication process, the __________ in the ad for Visible Lift makeup informed prospective customers that the makeup reduced fine facial lines after 30 days of use and evened out skin tones. a. b. c. d. e. channel message decoder source feedback
Answer: b Page: 324 Rationale: A message is information sent by the source. In this case, the message is the ad for Visible Lift makeup and LOral is the source. 15-11 CHANNEL OF COMMUNICATION DEFINITION
A message is conveyed by means of a __________ such as a salesperson, advertising media, or public relations tools. a. b. c. d. e. encoding device promotional program channel of communication direct feedback loop publicity and PSA program
Answer: c Page: 324 Rationale: Key term definitionchannel of communication
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15-12 CHANNEL OF COMMUNICATION
APPLICATION
LOral created an advertisement for its Visible Lift makeup. The magazine in which the ad for L'Oral Visible Lift makeup appeared is a: a. b. c. d. e. communication channel. message. decoder. source. feedback.
Answer: a Page: 324 Rationale: The channel of communication conveys the message. In this case the channel of communication is the magazine in which the ad appeared. 15-13 RECEIVERS DEFINITION
In the communication process, consumers who read, hear, or see the message are called: a. b. c. d. e. clients. the target market. receivers. transmitters. encoders.
Answer: c Page: 324 Rationale: Key term definitionreceivers 15-14 ENCODING Encoding is the: a. b. c. d. e. reception of a message with a common field of experience. reception of a message that requires integration of new information. process of the sender transforming an idea into a set of symbols. process of selecting a communication channel. creation of a common field of experience. DEFINITION
Answer: c Page: 324 Rationale: Key term definitionencoding
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15-15 ENCODING
APPLICATION
In a brainstorming session for a new drug to lower cholesterol, the members of the marketing department agreed the benefits of the new drug could best be promoted by comparing the drug to those currently on the market. In terms of the communication process, the transformation of this idea into an ad campaign is an example of: a. b. c. d. e. lead generation. receiving. decoding. messaging. encoding.
Answer: e Page: 324 Rationale: Encoding is the process of having the sender transform an idea into a set of symbols. 15-16 ENCODING APPLICATION
In a brainstorming session for a new drug to lower cholesterol, the members of the marketing department agreed the benefits of the new drug could best be promoted by comparing the drug to those currently on the market. In terms of the communication process, the encoding of the message would most likely be undertaken by its: a. b. c. d. e. communication channel. medium. decoder. source. feedback recipient.
Answer: d Page: 324 Rationale: Encoding is usually done by the sourcein this case, the company selling the product. 15-17 ENCODING Encoding is usually done by the: a. b. c. d. e. source. receiver. user. decoder. medium. DEFINITION
Answer: a Page: 324 Rationale: Key term definitionencoding
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15-18 DECODING Decoding is the process of: a. b. c. d. e.
DEFINITION
receiving a message that contains a common field of experience. receiving a message which requires integration of new information. having the sender transform an abstract idea into a set of symbols. having a receiver take a set of symbols, the message, and transform them back to an abstract idea. creating a common field of experience.
Answer: d Page: 324 Rationale: Key term definitiondecoding 15-19 DECODING APPLICATION
After watching the 30-minute infomercial on Oxy-Clean, Mariah was certain the cleaning product would remove the grape juice stain from her white carpet. In terms of the communication process, Mariah has engaged in: a. b. c. d. e. lead generation. receiving. decoding. messaging. encoding.
Answer: c Page: 324 Other Location: web Rationale: Decoding is the process of having a receiver take a set of symbols, the message, and transform them back to an abstract idea. Receiving is not one of the elements in the communication process even though there is a receiver. 15-20 DECODING APPLICATION
After watching the 30-minute infomercial on Oxy-Clean, Mariah was certain the cleaning product would remove the grape juice stain from her white carpet. In terms of the communication process, Mariah is a(n): a. b. c. d. e. lead generator. channel of communication. source. receiver. encoder.
Answer: d Page: 324 Rationale: Receivers typically engage in decoding. In this case Mariah is the receiver and the decoding refers to watching the infomercial and transforming the idea of the infomercial (OxyClean is a good cleaning product) into the idea that it would remove the grape juice stain from her while carpet.
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15-21 DECODING Decoding is usually done by the: a. b. c. d. e. source. receiver. user. decoder. medium.
DEFINITION
Answer: b Page: 324 Rationale: Key term definitiondecoding 15-22 FIELD OF EXPERIENCE DEFINITION
For a message to be communicated effectively, the sender and receiver must have a mutually shared: a. b. c. d. e. length and breadth of experience with a given product. promotional mix. area of expertise. learning curve. field of experience.
Answer: e Page: 325 Rationale: Key term definitionfield of experience 15-23 FIELD OF EXPERIENCE DEFINITION
For a message to be communicated effectively, the sender and receiver must have a mutually shared field of experience, which means similar: a. b. c. d. e. genetic composition. national, regional, or ethnic origin. understanding and knowledge. talents and abilities. tastes and desires.
Answer: c Page: 325 Rationale: Key term definitionfield of experience
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15-24 FIELD OF EXPERIENCE
CONCEPTUAL
Communication problems, which are the result of misinterpretation, can be attributed to: a. b. c. d. e. incorrect grammatical usage. poor photographic reproduction. different fields of experience. the use of a medium with too much noise. all of the above.
Answer: e Page: 324-325 Rationale: For the message to be communicated effectively, the sender and receiver must have a mutually shared field of experiencesimilar understanding and knowledge. But, all of the alternatives describe conditions which can cause communication problems. 15-25 FIELD OF EXPERIENCE APPLICATION
The ad for Microsoft Office XP emphasized how employees could be reading a document on the computer monitor, and the document be updated as they read it. For people who rely on computers on a daily basis, this ad described a remarkably useful benefit. People who prefer paper documentation and do not use the computer daily were unimpressed by the feature, and some believed the new feature was actually a hindrance. The different interpretations of the ad are due to differing: a. b. c. d. e. mission statements. fields of experience. channels of distribution. educational systems. views of advertising.
Answer: b Page: 325 Other Location: web Rationale: For the message to be communicated effectively, the sender and receiver must have a mutually shared field of experiencesimilar understanding and knowledge. The computer users understood how useful the update feature could be, while the non-computer users did not understand and some drew the conclusion that the update feature could actually cause problems.
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15-26 FIELD OF EXPERIENCE
APPLICATION
Cardiac Science is a California-based company that makes defibrillators, heart monitors, and other medical equipment. It is preparing to market its products in Greece. The company's marketing manager is responsible for the promotional campaign in Greece, and she wants to avoid any problems that might arise because her field of experience does not coincide with that of her Greek target audience. Which of the following is the best example of a communications problem that might arise because her field of experience is different from that of her audience? a. b. c. d. e. The name of the product, when translated into Greek, has an unintentional meaning. Her target audience is strongly ethnocentric. The trade journals in which it wants to run its ads do not accept ads from foreign companies. A Greek bureaucrat who is responsible for determining that the Cardiac Science products meet national standards has taken a personal dislike to her. The ads are in trade journals that Greek hospital administrators don't read.
Answer: a Page: 325 Rationale: Many mistakes due to dissimilar fields of experience are merely the result of bad translations, as when KFC made a mistake when its "finger-lickin good" slogan was translated into Mandarin Chinese as "eat your fingers off"! The language barrier is the dissimilar field of experience in the case of Cardiac Sciences marketing manager. 15-27 RESPONSE DEFINITION
A __________ is the impact the message had on the receiver's knowledge, attitude, or behaviors. a. b. c. d. e. response noise filter source reaction feedback source decoding bottleneck
Answer: a Page: 325 Rationale: Key term definitionresponse 15-28 RESPONSE APPLICATION
Ann recently saw an ad for Claritin, a medicine perfect for counteracting her allergy symptoms. She called her doctor and asked for a prescription. In terms of the communication process, Ann had a __________ to the Claritin ad. a. b. c. d. e. response noise filter source reaction feedback source decoding bottleneck
Answer: a Page: 325 Rationale: A response is the impact the message had on the receiver's knowledge, attitude, or behaviors.
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15-29 FEEDBACK
DEFINITION
The communication flow from receiver back to sender, which indicates whether the message was decoded and understood as intended, is called: a. b. c. d. e. encoding. a receiver response. feedback. an exchange cycle. a message loop.
Answer: c Page: 325 Rationale: Key term definitionfeedback 15-30 FEEDBACK APPLICATION
Dwayne saw an ad promoting Texas as a tourist destination. The ad contained a postage-paid reply card which could be used to request more information. In terms of the communication process, the mailing in of the postcard with a request for further information is an example of: a. b. c. d. e. encoding. a receiver response. feedback. an exchange cycle. a message loop.
Answer: c Page: 325 Rationale: The communication flow from receiver back to sender, which indicates whether the message was decoded and understood as intended, is called feedback. Sending the card back, requesting more information, would indicate the message was understood. 15-31 NOISE DEFINITION
__________ is defined as extraneous factors that can work against effective communication by distorting a message or the feedback received. a. b. c. d. e. A communication barrier A source inconsistency Feedback Noise An encoding bottleneck
Answer: d Page: 325 Rationale: Key term definitionnoise
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15-32 NOISE
APPLICATION
An ad for Visible Lift makeup by L'Oral informed prospective customers that the makeup reduced fine facial lines after 30 days of use and evened out skin tones. Marcia did not see the ad because she is 18 years old and has flawless skin. In terms of the communication process, the fact that Marcia has no need for the product acted as: a. b. c. d. e. a communication barrier. a source inconsistency. feedback. noise. an encoding bottleneck.
Answer: d Page: 325 Rationale: Noise is defined as any extraneous factors that can work against effective communication by distorting a message or the feedback received. In this case Marcia is 18 with flawless skin, and would not even see the message so L'Oral would not effectively communicate with Marcia. 15-33 NOISE APPLICATION
The marketing manager from Dallas, Texas, selling for a heavy-equipment manufacturer, was attending an international trade show in Japan. During the first day of the trade show, she noticed that a number of prospective customers from different countries seemed to have trouble following her explanations of product features. The factor working against effective communication was probably: a. b. c. d. e. noise. culture shock. fatigue. convention overload. static.
Answer: a Page: 325 Rationale: Noise can occur when a salesperson's accent or use of slang terms or communication style make hearing and understanding the message difficult. So, even if the audience understood English, they may have had trouble following her if she had a Southern accent.
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15-34 NOISE Within the communication channel, noise refers to: a. b. c. d. e. printing mistakes. a passenger in the car talking during radio commercials. pictures that fail to communicate. a salesperson smoking. all of the above.
CONCEPTUAL
Answer: e Page: 325 Rationale: Noise includes any and all extraneous factors that can work against effective communication, such as distorting a message or the feedback received. All of the items mentioned can work against effective communication. 15-35 NOISE Which of the following occurrences might be construed as noise? a. b. c. d. e. The secretary interrupts the sales presentation just as the salesperson was ready to ask the buyer about her color preference. The radio commercial gives the wrong address for the advertiser's store. The salesperson tells the buyer that the software he is selling contains smart tags, and the customer does not understand. Mack does not see the ad for the new Route 66 club because he is more interested in the news article on the opposite page. All of the above could be construed as noise. APPLICATION
Answer: e Page: 325 Other Location: web Rationale: Noise includes any and all extraneous factors that can work against effective communication, such as distorting a message or the feedback received.
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15-36 THE COMMUNICATION PROCESS
APPLICATION
The marketing professor wanted to do everything possible to ensure her students understood her lectures. Accordingly, she used examples of marketing activities with which most students had recent experience. For example, the professor discussed the marketing exchanges between students and grocers, college bookstores, convenience stores and clothiers. The examples used by the professor were her attempt to __________ her message so as to encourage understanding on the part of her students. a. b. c. d. e. effectively initiate effectively encode effectively decode eliminate noise in pre-communicate
Answer: b Page: 325 Rationale: The process of communication is designed to foster understanding between a sender and a receiver. In an attempt to increase the likelihood of successful communication between the sender and receiver, the sender attempts to encode the message in a manner that is easily decoded by the receiver. One way of accomplishing this is for the sender to use examples, language, and speaking styles that are familiar to the receiver. 15-37 THE COMMUNICATION PROCESS APPLICATION
Each year, advertisers spend millions of dollars during the half-time show of the Super Bowl. Those marketers hope to reach the millions of sports enthusiasts tuned into the NFL's greatest extravaganza. Unfortunately, during the half-time festivities, many viewers dash to the kitchen for a sandwich and a soda. The persuasive promotional messages of the marketer are not received by those consumers who are busy satisfying their need for food and drink. The need for food and drink is an example of __________, which inhibits effective communication. a. b. c. d. e. feedback ineffective advertising noise ineffective encoding ineffective decoding
Answer: c Page: 325 Other Location: web Rationale: Noise in the channel of communication can take many formsanything that inhibits effective communication between the marketer and the consumer. Examples of noise in the channel of communication include the use of slang terms, printing errors, rudeness on the part of a salesperson, a consumer's bad mood or high emotions, and even the need for food and drink. Noise is, in essence, anything that distracts the receiver from the senders intended message.
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15-38 PROMOTIONAL ELEMENTS
CONCEPTUAL
Advertising, personal selling, sales promotion, public relations and direct marketing are marketing communications alternatives that individually or collectively make up a firm's: a. b. c. d. e. cooperative advertising. decoding strategy. message center. promotional elements. communication source.
Answer: d Page: 326 Rationale: A company can use one or more of five promotional alternatives to communicate to its customers: advertising; personal selling; sales promotion; public relations; and direct marketing. 15-39 PROMOTIONAL ELEMENTS Which of the following is NOT a promotional element? a. b. c. d. e. advertising personal selling public relations sales promotion production line CONCEPTUAL
Answer: e Page: 326; Figure 15-2 Rationale: To communicate to consumers, a company can use one or more of the promotional elements: advertising, personal selling, sales promotion, public relations, and direct marketing. 15-40 MASS SELLING Which of the following would be LEAST likely to be used for mass selling? a. b. c. d. e. advertising personal selling public relations sales promotion publicity CONCEPTUAL
Answer: b Page: 326: Figure 15-2 Rationale: Three of these elements--advertising, sales promotion, and public relationsare often said to use mass selling because they are used with groups of prospective buyers. Publicity is a form of public relations. Personal selling would be least likely used for mass selling because it is extremely expensive per exposure.
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15-41 ADVERTISING Advertising is: a. b. c. d. e.
DEFINITION
nonpersonal, indirectly paid presentation of an organization, service, or product. a short-term inducement of value offered to arouse interest in buying a good or service. methods used to get a nonpersonal, indirectly paid presentation of a company or its products. any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. any paid form of interpersonal presentation of goods and services.
Answer: d Page: 326: Figure 15-2 Rationale: Key term definitionadvertising 15-42 ADVERTISING DEFINITION
__________ is a paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. a. b. c. d. e. Sales promotion Publicity Advertising Direct marketing Personal selling
Answer: c Page: 326; Figure 15-2 Rationale: Key term definitionadvertising 15-43 ADVERTISING CONCEPTUAL
Which element of the promotional mix has the inherent weakness of high absolute costs and an inability to obtain direct feedback? a. b. c. d. e. advertising personal selling sales promotion publicity direct marketing
Answer: a Page: 326; Figure 15-2 Rationale: Advertising is a mass vehicle that is efficient for reaching large numbers of people, but has high absolute costs and for which it is difficult to receive good feedback.
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15-44 ADVERTISING
APPLICATION
When Sears places a multiple-page booklet in the local newspaper about its President's Day sale, it is an example of the use of which element of the promotional mix? a. b. c. d. e. advertising sales promotion publicity personal selling direct marketing
Answer: a Page: 326 Rationale: Advertising is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. 15-45 ADVERTISING Which of the following statements about advertising is true? a. b. c. d. e. Advertising allows a firm to reach large numbers of people. Advertising allows the firm to decide when and where an advertisement will be used. Advertisers can usually assume the same message will be sent to all receivers in the market. Advertising can be a very effective "attention getter." All of the above statements about advertising are true. CONCEPTUAL
Answer: e Page: 326; Figure 15-2 Rationale: As shown in Figure 15-2, advertising is a mass media vehicle, paid for space or time, and is an efficient means for reaching large numbers of people. Because it is paid for, it is likely that a firm will be able to decide when and where an advertisement will be used. 15-46 ADVERTISING APPLICATION
New Balance recently spent $13 million for time on television and space in selected magazines to promote its athletic shoes. What form of marketing communication did it use? a. b. c. d. e. public relations personal selling publicity sales promotion advertising
Answer: e Page: 326; Figure 15-2 Rationale: Advertising is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. New Balance paid $13 million to advertise its athletic shoes on TV and in magazines.
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15-47 ADVERTISING
APPLICATION
When Procter & Gamble introduced Swiffer, a new product to make it easier to clean increasingly popular hardwood floors, it knew it had to achieve a high brand awareness among its potential consumers because the product was low-tech and fairly easily imitated. Which promotional element did P&G emphasize? a. b. c. d. e. advertising personal selling sales promotion public relations all of the above equally
Answer: a Page: 326 Other Location: web Rationale: Advertising is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. Advertising is appropriate when there is a need to reach and create awareness in a large market. 15-48 ADVERTISING/PUBLICITY CONCEPTUAL
Which of the following statements describes a key difference between advertising and publicity? a. b. c. d. e. Publicity is more expensive on a cost-per-contact basis than advertising. Publicity is usually directly paid, and advertising is usually indirectly paid. Advertising is usually directly paid, and publicity is usually indirectly paid. Advertising provides an immediate feedback loop, and publicity does not. Publicity always has a much greater reach than advertising.
Answer: c Page: 327 Other Location: web Rationale: Advertising is more expensive on a cost-per-contact basis than publicity. Advertising is a paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. A nonpersonal, indirectly paid presentation of an organization, good or service is termed publicity. Publicity is indirectly paid, because the company must support a public relations staff. 15-49 PERSONAL SELLING APPLICATION
When a company telephones people to ask them to contribute to the Police Benevolent Association (PBA), the calling company is using: a. b. c. d. e. advertising. personal selling. sales promotion. public relations. publicity.
Answer: b Page: 327 Rationale: Personal selling is a two-way flow of communication between buyer and seller, designed to influence a persons or groups purchase decision. In this case, the telemarketer is trying to influence the individual to donate to the PBA.
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15-50 PERSONAL SELLING
APPLICATION
Companies vary as to the amount of security they require or can afford for their computer files. Firewalls are a type of software that protects computer files from unauthorized entry. A company that had developed a complete line of firewalls from a no-frills version to a version that uses retinal scans for admittance would most likely need to employ which promotional element? a. b. c. d. e. advertising sales promotion public relations personal selling all of the above equally
Answer: d Page: 327 Rationale: Personal selling is defined as the two-way flow of communication between a buyer and seller, designed to influence a persons or groups purchase decision. Personal selling is a very persuasive communication method that can transmit complex information. 15-51 PERSONAL SELLING APPLICATION
A firm produces the tools for replacing the rivets used in assembling airplanes, heavy-equipment, and specialized rail cars. The key to making a sale is communicating the application information to the line engineers who oversee repairs and the cost savings information to the accountants in charge of service maintenance budgets. Which promotional element would be most appropriate? a. b. c. d. e. advertising personal selling sales promotion public relations all of the above equally
Answer: b Page: 327 Rationale: Personal selling is defined as the two-way flow of communication between a buyer and seller, designed to influence a persons or groups purchase decision. 15-52 PERSONAL SELLING: WASTED COVERAGE CONCEPTUAL
Wasted coverage can most easily be reduced by which of the methods of promotion? a. b. c. d. e. sales promotion public relations advertising public service announcements personal selling
Answer: e Page: 327 Rationale: Wasted coverage is coverage of those outside the target market. Wasted coverage can be reduced with personal selling because a salesperson can control to whom the presentation is made.
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15-53 PERSONAL SELLING: WASTED COVERAGE
DEFINITION
People outside a companys target audience who see, hear, or read the companys advertising are: a. b. c. d. e. wasted coverage. public relations. advertising targets. public service targets. personal selling.
Answer: a Page: 327 Rationale: Text term definitionwasted coverage 15-54 PERSONAL SELLING CONCEPTUAL
Which promotional mix alternative has the advantage of allowing the seller to see and/or hear the potential buyer's reaction to the message? a. b. c. d. e. advertising personal selling public relations sales promotion publicity
Answer: b Page: 327 Rationale: Personal selling is the two-way flow of communication between a buyer and seller, designed to influence a persons or groups purchase decision. Personal selling allows the seller to see or hear the potential buyer's reaction to the message. If the feedback is unfavorable, the salesperson can modify the message. 15-55 PERSONAL SELLING CONCEPTUAL
Which of the following statements describes a disadvantage associated with personal selling? a. b. c. d. e. Presentations often provide little opportunity for consumer feedback. Personal selling permits far too much wasted coverage. There may be inconsistency from one salesperson to another. A salesperson cannot control to whom a presentation is made. Personal selling is subject to extensive federal, state, and company regulation.
Answer: c Page: 327; Figure 15-2 Rationale: Personal selling is the two-way flow of communication between a buyer and seller, designed to influence a persons or groups purchase decision. The flexibility of personal selling can be a disadvantage. Different salespeople can change the message so that no consistent communication is given to all customers.
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15-56 PERSONAL SELLING Personal selling is: a. b. c. d. e.
DEFINITION
a nonpersonal, indirectly paid presentation of an organization, service, or product. a short-term inducement of value offered to arouse interest in buying a good or service. the preferred method for placing nonpersonal promotions for a company and/or its products. a paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. the two-way flow of communication between a buyer and a seller, designed to influence a person's or group's purchase decision.
Answer: e Page: 327 Other Location: web Rationale: Key term definitionpersonal selling 15-57 PERSONAL SELLING DEFINITION
The two-way flow of communication between a buyer and a seller, designed to influence a person's or group's purchase decision is called: a. b. c. d. e. sales promotion. publicity. advertising. public relations. personal selling.
Answer: e Page: 327 Rationale: Key term definitionpersonal selling 15-58 PERSONAL SELLING Which of these promotional elements has the highest cost-per-contact? a. b. c. d. e. advertising personal selling sales promotion publicity public service announcements CONCEPTUAL
Answer: b Page: 327; Figure 15-2 Rationale: Personal selling is the two-way flow of communication between a buyer and seller, designed to influence a persons or groups purchase decision. On the cost-per-contact basis, personal selling is generally the most expensive of the promotional elements.
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15-59 PERSONAL SELLING
CONCEPTUAL
Which of these promotional elements has the inherent weakness of extremely high expenses per exposure? a. b. c. d. e. advertising personal selling sales promotion publicity direct marketing
Answer: b Page: 327; Figure 15-2 Rationale: Personal selling is the two-way flow of communication between a buyer and seller, designed to influence a persons or groups purchase decision. On the cost-per-contact basis, personal selling is generally the most expensive of the promotional elements. 15-60 PERSONAL SELLING APPLICATION
When a representative for Pampered Chef cooking utensils invites friends to her home and spends 30 minutes demonstrating the superiority of the Pampered Chef products, she is engaging in: a. b. c. d. e. direct marketing. sales promotion. public relations. personal selling. a public service announcement.
Answer: d Page: 327 Rationale: Personal selling is the two-way flow of communication between buyer and seller, designed to influence a person's or a group's purchase decision. In this case the Pampered Chef representative is using personal selling to convince her friends to buy Pampered Chef products. 15-61 PUBLIC RELATIONS DEFINITION
__________ is the form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and others about a company and its products or services. a. b. c. d. e. Sales promotion Publicity Advertising Public relations Personal selling
Answer: d Page: 327 Rationale: Key term definitionpublic relations
988
15-62 PUBLIC RELATIONS
DEFINITION
When companies use tools such as special events, lobbying efforts, and annual reports for communication, they are using: a. b. c. d. e. advertising. sales promotion. direct marketing. public relations. personal selling.
Answer: d Page: 327 Rationale: Key term definitionpublic relations 15-63 PUBLIC RELATIONS CONCEPTUAL
Which of the promotional elements has the greatest difficulty in getting media cooperation? a. b. c. d. e. advertising personal selling consumer promotion public relations trade promotion
Answer: d Page: 327; Figure 15-2 Rationale: Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service. Because the media is not paid to run the story, publicity is the promotional element that has the greatest difficulty in getting media cooperation. 15-64 PUBLICITY Publicity is: a. b. c. d. e. a nonpersonal, indirectly paid presentation of an organization, good, or service. a short-term inducement of value offered to arouse interest in buying a good or service. methods used to get a nonpersonal, directly paid presentation of a company or its products. a paid form of nonpersonal communication about an organization, good, service, or idea, by an identified sponsor. any paid form of interpersonal presentation of goods and services. DEFINITION
Answer: a Page: 327 Rationale: Key term definitionpublicity
989
15-65 PUBLICITY
APPLICATION
A small film company is releasing a documentary based on the efforts of a group dedicated to saving endangered species. The company believes the credibility of its film is critical to its financial success. Which promotional element should it employ? a. b. c. d. e. Invite members of the group to speak to local school children. Use publicity. Give away free posters to all movie attendees. Use direct sales. Send postcards to all people within a 25-mile radius of a theater showing the movie.
Answer: b Page: 327 Other Location: web Rationale: Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service. To the consumer, publicity is often the most credible source of information. 15-66 PUBLICITY APPLICATION
Imagine a small agrichemical laboratory with a very small marketing budget develops a seed that produces grass, which grows two-inches high and no higher. Which promotional element should it use to communicate its discovery? a. b. c. d. e. advertising personal selling sales promotion publicity all of the above equally
Answer: d Page: 327 Rationale: Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service. Publicity is appropriate when there is a limited budget, and there is a need for a credible source. 15-67 PUBLICITY DEFINITION
__________ is a nonpersonal, indirectly paid presentation of an organization, good, or service that can take the form of a news story, editorial, or product announcement. a. b. c. d. e. Direct sales Publicity Direct marketing Public service announcement Personal selling
Answer: b Page: 327 Rationale: Key term definitionpublicity
990
15-68 PUBLICITY
APPLICATION
Every issue of Taste of Home magazine features two or three entrepreneurs who have turned some skill or other resource into a successful small business. Since these featured businesses do not pay for this exposure, they are benefiting from: a. b. c. d. e. publicity. advertising. direct marketing. personal selling. a public service announcement.
Answer: a Page: 327 Rationale: Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service. A difference between publicity and both advertising and personal selling is the indirectly paid dimension. Publicity is generally indirectly paid in that the organization must have a public relations department. An advantage of publicity is credibility. 15-69 PUBLICITY CONCEPTUAL
When a television critic writes a newspaper article in which she expresses exasperation that Once and Again, one of the finest written and acted shows on television, is likely to be cancelled unless it can attract more viewers, it is an example of __________ for the ABC television show. a. b. c. d. e. publicity advertising direct marketing personal selling a public service announcement
Answer: a Page: 327 Other Location: web Rationale: Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service that can take the form of a news story, editorial, or product announcement. 15-70 PUBLICITY An advantage of publicity is its: a. b. c. d. e. credibility. control. empathy. intrusiveness. high cost. CONCEPTUAL
Answer: a Page: 327 Rationale: Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service. An advantage of publicity is credibility. For example, when you read a favorable story or review of a product, there is a tendency to believe it.
991
15-71 PUBLICITY The lack of __________ is a disadvantage of publicity. a. b. c. d. e. credibility control exposure intuitive reasoning color
CONCEPTUAL
Answer: b Page: 327 Rationale: Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service. A disadvantage of publicity is lack of control over what is said, to whom, or when. 15-72 PUBLICITY APPLICATION
When Mike Clark and Jack Curry rate current movies for USA Today newspaper using a possible one to four star rating, it is an example of: a. b. c. d. e. direct selling. publicity. advertising. direct marketing. personal selling.
Answer: b Page: 327 Other Location: web Rationale: Publicity is a nonpersonal, indirectly paid presentation of an organization, good, or service. A disadvantage of publicity such as movie reviews is the lack of control over what is said. 15-73 SALES PROMOTION DEFINITION
__________ is a short-term offer of value offered designed to arouse interest in buying a good or service. a. b. c. d. e. A public service announcement Publicity Advertising Sales promotion Personal selling
Answer: d Page: 328 Rationale: Key term definitionsales promotion
992
15-74 SALES PROMOTION Which of the following is an example of a sales promotion? a. b. c. d. e. coupons sweepstakes rebates samples all of the above
CONCEPTUAL
Answer: e Page: 328 Rationale: Sales promotion is a short-term offer of value offered to arouse interest in buying a good or service. Coupons, sweepstakes, rebates and samples are all examples of sales promotion. 15-75 SALES PROMOTION APPLICATION
You are being influenced by __________ when you redeem a 50-cents-off coupon for Crest toothpaste at your local supermarket. a. b. c. d. e. advertising sales promotion public relations publicity personal selling
Answer: b Page: 328 Rationale: Sales promotion is a short-term offer of value (such as the coupon) offered to arouse interest in buying a good or service (the toothpaste). 15-76 SALES PROMOTION CONCEPTUAL
Sales promotions cannot be the sole basis for a promotional campaign because: a. b. c. d. e. sales promotions are too costly. sales promotions alone have very limited reach. sales promotions are regulated by law. gains from sales promotion are often temporary and sales drop off when the deal ends. all of the above.
Answer: d Page: 328 Rationale: Sales promotions are short-term offers of value designed to arouse interest in buying a good or service. Sales promotions are effective at changing behavior in the short run and stimulating sales for the duration of the promotion.
993
15-77 SALES PROMOTION
CONCEPTUAL
Which of the promotional elements has the potential to create promotion wars, be easily abused, and easily duplicated? a. b. c. d. e. advertising personal selling sales promotion publicity direct marketing
Answer: c Page: 328; Figure 15-2 Rationale: Sales promotions are short-term offers of value designed to arouse interest in buying a good or service. Sales promotions are effective at changing behavior in the short run and stimulating sales for the duration of the promotion. Sales promotions also have the potential to create promotion wars, be easily abused, and easily duplicated. 15-78 SALES PROMOTION CONCEPTUAL
Which of the promotional elements has the inherent weaknesses of being temporary, losing effectiveness in time, and causing customers to question the product's value? a. b. c. d. e. advertising personal selling sales promotion publicity direct marketing
Answer: c Page: 328 Rationale: Sales promotions are short-term offers of value designed to arouse interest in buying a good or service. Sales promotions are effective at changing behavior in the short run and stimulating sales for the duration of the promotion. However, they are also temporary, lose effectiveness in time, and cause customers to question the products value.
994
15-79 SALES PROMOTION
APPLICATION
Allegra is an antihistamine that is only available through prescription, but to create brand awareness, it is offering people who request information about the product a cushion to use at their favorite sporting event plus a coupon for $10 off their next purchase of the medication. This free cushion and coupon are examples of: a. b. c. d. e. advertising. personal selling. sales promotions. publicity. direct sales.
Answer: c Page: 328 Rationale: Sales promotions are short-term offers of value designed to arouse interest in buying a good or service. Sales promotions are effective at changing behavior in the short run and stimulating sales for the duration of the promotion. 15-80 SALES PROMOTION APPLICATION
A food warehouse gets a very good buy on a brand of frozen orange juice and, rather than maintain it as extra inventory, would like to sell it quickly to retailers. Which promotional element should be used? a. b. c. d. e. advertising personal selling sales promotion publicity direct marketing
Answer: c Page: 328 Rationale: Sales promotions are short-term offers of value designed to arouse interest in buying a good or service. Sales promotions are effective at changing behavior in the short run and stimulating sales for the duration of the promotion.
995
15-81 SALES PROMOTION
APPLICATION
The Hair Cuttery, a hair salon chain, is opening a new store in an area where there are already five independently owned hair salons operating. To draw people into the store for its grand opening, the Hair Cuttery can use: a. b. c. d. e. some form of advertising. some form of sales promotion. some form of publicity. some form of personal selling. any of the above equally since all have the same effect on the customers at this stage of the new store's life.
Answer: b Page: 328 Other Location: web Rationale: Sales promotions are short-term offers of value designed to arouse interest in buying a good or service. Sales promotions are effective at changing behavior in the short run and stimulating sales for the duration of the promotion. 15-82 DIRECT MARKETING DEFINITION
__________ uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. a. b. c. d. e. Advertising Personal selling Sales promotion Publicity Direct marketing
Answer: e Page: 328 Rationale: Key term definitiondirect marketing 15-83 DIRECT MARKETING CONCEPTUAL
Which of the promotional elements requires expensive database management and is experiencing a declining response rate? a. b. c. d. e. advertising personal selling sales promotion publicity direct marketing
Answer: e Page: 328; Figure 15-2 Rationale: Direct marketing uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. The communication can take many forms, including face-to-face selling, direct mail, catalogs, telephone solicitations, direct response advertising, and online marketing. Direct marketing has the inherent weaknesses of having expensive database management and declining customer response.
996
15-84 DIRECT MARKETING
CONCEPTUAL
Like personal selling, __________ often consists of interactive communication. a. b. c. d. e. direct marketing advertising a sales promotion publicity a public service announcement
Answer: a Page: 328 Rationale: Direct marketing uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. The communication can take many forms, including face-to-face selling, direct mail, catalogs, telephone solicitations, direct response advertising, and online marketing. 15-85 DIRECT MARKETING CONCEPTUAL
Like personal selling, __________ has the advantage of being customized to match the needs of specific target markets. Messages can be developed and adapted quickly to facilitate one-to-one relationships with customers. a. b. c. d. e. direct marketing advertising a sales promotion publicity a public service announcement
Answer: a Page: 328 Rationale: Direct marketing uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. The communication can take many forms, including face-to-face selling, direct mail, catalogs, telephone solicitations, direct response advertising, and online marketing. Direct marketing has the advantage of being customized to match the needs of specific target markets.
997
15-86 MARKETING NEWSNET
CONCEPTUAL
Generation Y is often found listening to the radio, looking at Internet advertising, and using a magazine to locate Web addresses. This ability to multitask means advertisers that want to reach this market segment must use a shotgun approach. This means the advertising must be: a. b. c. d. e. empathetic. entropic. limited and well-timed. targeted to achieve time and place utility. in many places.
Answer: e Page: 329 Rationale: Members of Gen Y typically do not give their full attention to anything. Therefore, marketers must communicate with them through a variety of promotional tools that echo the same message. 15-87 PROMOTIONAL MIX CONCEPTUAL
In putting together the promotional mix, which of the following factors would affect the decision? a. b. c. d. e. the target audience the stage in the products life cycle the channel of distribution coordinating a consistent promotional effort all of the above
Answer: e Page: 329 Rationale: In putting together the promotional mix, a marketer must consider two issues: (1) the balance of the elements, and (2) coordinating a consistent promotional effort. The balance of the promotional elements is affected by the target audience, the stage in the products life cycle, and the channel of distribution. 15-88 PROMOTIONAL MIX DEFINITION
A firms __________ is the combination of one or more of the promotional elements it chooses to use. a. b. c. d. e. target audience stage in the products life cycle public relations promotional mix sales promotions
Answer: d Page: 329 Rationale: Key-term definitionpromotional mix
998
15-89 TARGET AUDIENCE: CONSUMERS
CONCEPTUAL
Which of the following is true of promotional programs targeted to the ultimate consumer? a. b. c. d. e. The programs often use mass media. Personal selling is used at the place of purchase. Direct marketing may be used to encourage first-time or repeat purchases. Combinations of many media alternatives are a necessity for some target audiences today. All of the above statements are true of promotional programs targeted to the ultimate consumer.
Answer: e Page: 329 Rationale: Promotional programs directed to buyers of consumer products often use mass media because the number of potential buyers is large. Personal selling is used at the place of purchase, generally the retail store. Direct marketing may be used to encourage first-time or repeat purchases. Combinations of many media alternatives are a necessity for some target audiences today. Generation Y consumers give media only partial attention but can be reached through integrated programs. 15-90 TARGET AUDIENCE: BUSINESS BUYERS Which promotional element is particularly important to business buyers? a. b. c. d. e. advertising personal selling publicity sales promotion rebates CONCEPTUAL
Answer: b Page: 329 Rationale: Because business buyers often have specialized needs or technical questions, personal selling is particularly important. The salesperson can provide information and the necessary support after sales. 15-91 TARGET AUDIENCE: BUSINESS BUYERS Personal selling would most likely be used to sell: a. b. c. d. e. dog dandruff shampoo. a retail website design. fresh produce. a bottle of soda. computer paper for home use. APPLICATION
Answer: b Page: 329 Rationale: Because business buyers often have specialized needs or technical questions, personal selling is particularly important. The salesperson can provide information and the necessary support after sales. All of the other items are generally thought of as consumer products.
999
15-92 TARGET AUDIENCE: INTERMEDIARIES Which promotional element is particularly important to intermediaries? a. b. c. d. e. advertising personal selling publicity sales promotion rebates
CONCEPTUAL
Answer: b Page: 329 Rationale: Because intermediaries often have specialized needs or technical questions, personal selling is particularly important. The salesperson can provide information and the necessary support after sales. The salespeople assist intermediaries in making a profit by coordinating promotional campaigns sponsored by the manufacturer and by providing marketing advice and expertise. Intermediaries questions often pertain to the allowed markup, merchandising support, and return policies. 15-93 PRODUCT LIFE CYCLE: INTRODUCTION STAGE CONCEPTUAL
At which stage in the product life cycle would a company's promotional objective most likely be to increase the level of consumer awareness? a. b. c. d. e. introduction growth maturity decline harvesting
Answer: a Page: 330; Figure 15-3 Rationale: Informing consumers in an effort to increase their level of awareness is the primary promotional objective in the introduction stage of the product life cycle. In general, all the promotional mix elements are used at this time. 15-94 PRODUCT LIFE CYCLE: INTRODUCTION STAGE APPLICATION
Theres a new prescription drug on the market that helps reduce common allergy symptoms. Ads for the medicine in magazines and in medical journals would be primarily used to: a. b. c. d. e. remind customers that such a product exists. increase the level of customer awareness of the product. differentiate the product from all other medications. support a product penetration distribution strategy. help in harvesting the product.
Answer: b Page: 330; Figure 15-3 Rationale: Informing consumers in an effort to increase their level of awareness is the primary promotional objective in the introduction stage of the product life cycle. In general, all the promotional mix elements are used at this time.
1000
15-95 PRODUCT LIFE CYCLE: GROWTH STAGE
CONCEPTUAL
At which stage in the product life cycle would your promotional objective be to gain brand preference and solidify the channel of distribution? a. b. c. d. e. introduction growth incubation decline maturity
Answer: b Page: 330; Figure 15-3 Rationale: The primary promotional objective of the growth stage is to persuade the consumer to buy the product. Advertising is used to communicate brand differences, and personal selling is used to solidify the channel of distribution. 15-96 PRODUCT LIFE CYCLE: GROWTH STAGE CONCEPTUAL
Which promotional element would you most likely use during the growth stage of the product life cycle to solidify channels of distribution? a. b. c. d. e. advertising personal selling sales promotion publicity direct marketing
Answer: b Page: 330; Figure 15-3 Rationale: The primary promotional objective of the growth stage is to persuade the consumer to buy the product. Advertising is used to communicate brand differences, and personal selling is used to solidify the channel of distribution.
1001
15-97 PRODUCT LIFE CYCLE: GROWTH STAGE
APPLICATION
Albert Corporate Searchware is a type of search engine that companies use at their websites to handle customer questions. The company is trying to determine what promotional strategy should be employed with its flagship product. It has determined that search engine software is in the growth stage. Which of the following options should it employ? a. b. c. d. e. Devote 40 percent of the promotional budget to sales promotion that supply the public with demonstration diskettes to prove the merits of Albert Searchware. Spend 30 percent of the budget in the effort to generate publicity for Albert Searchware. Use the majority of its promotional budget on advertising that focuses on creating brand awareness. Try to use a very balanced budget and spend equally for each of the four promotional choices in the attempt to even out sales growth. Encourage its sales force to emphasize the superiority of Albert Searchware and their aftersale support.
Answer: e Page: 330; Figure 15-3 Rationale: Albert Corporate Searchware is targeted to business buyers. (It is a search engine that companies use at their websites to handle customer questions.) Because business buyers often have specialized needs or technical questions, personal selling is particularly important. The can salesperson provide information and the necessary support after sales. 15-98 PRODUCT LIFE CYCLE: MATURITY STAGE CONCEPTUAL
At which stage in the product life cycle are discounts and coupons offered to both consumers and intermediaries to maintain loyal buyers? a. b. c. d. e. introduction growth maturity incubation decline
Answer: c Page: 330; Figure 15-3 Rationale: In the maturity stage the need is to maintain existing buyers and advertising's role is to remind the buyer of the product's existence. Sales promotion, in the form of discounts and coupons offered to both ultimate consumers and intermediaries, is important in maintaining loyal buyers.
1002
15-99 PRODUCT LIFE CYCLE: MATURITY STAGE
APPLICATION
Cake mix is in the maturity stage of its product life cycle. A manufacturer selling cake mixes would most likely use advertising to: a. b. c. d. e. create product category awareness. differentiate one type of dessert from another. create selective distribution channels. reposition cake mixes. remind buyers of a product's existence.
Answer: e Page: 330 Rationale: In the maturity stage the need is to maintain existing buyers. Advertisings role is to remind buyers of the products existence. Sales promotion, in the form of discounts and coupons, is important in maintaining loyal buyers. 15-100 PRODUCT LIFE CYCLE: DECLINE STAGE CONCEPTUAL
At which stage of the product life cycle is the least amount of money spent on the promotional mix? a. b. c. d. e. growth harvesting maturity decline introduction
Answer: d Page: 330 Other Location: web Rationale: The decline stage of the product life cycle is usually a period of phase-out for the product, and little money is spent on the promotional mix. 15-101 PRODUCT LIFE CYCLE APPLICATION
The Olympus Eye Trek is a device which provides a high-quality personal TV experience. It resembles a pair of glasses and when worn makes the user think he or she is watching a 52-inch television. An ad for the device contains both a telephone number that can be called and a website that can be visited for further information on how the gadget works. This gadget is most likely high in the __________ stage of the product life cycle. a. b. c. d. e. introduction growth maturity decline accessibility
Answer: a Page: 330; Figure 15-3 Rationale: Informing consumers in an effort to increase their level of awareness is the primary promotional objective in the introduction stage of the product life cycle. Because the Olympus Eye Trek is somewhat complex, personal selling via the telephone, and via the websitedirect chat and frequently asked questionsmay be used.
1003
15-102 PUSH STRATEGY A push strategy is when: a. b. c. d. e.
DEFINITION
a manufacturer blitzes its wholesalers, retailers, and ultimate consumers with the use of nationwide promotional and advertising campaigns. a manufacturer forces a retailer to promote its product by placing national ads in local newspapers. a manufacturer directs its efforts in the form of advertising and sales promotions to ultimate consumers to encourage them to ask their retailer for the product. a manufacturer directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product. the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.
Answer: d Page: 331; Figure 15-4A Rationale: Key term definitionpush strategy 15-103 PUSH STRATEGY DEFINITION
When a manufacturer directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product, it is using a(n) __________ strategy. a. b. c. d. e. push pull inertia exclusivity logistics
Answer: a Page: 331; Figure 15-4A Rationale: Key term definitionpush strategy 15-104 PUSH STRATEGY APPLICATION
Like many consumer products manufacturers, Frito-Lay gives its resellers discounts to encourage them to carry and promote its products. When doing so, Frito-Lay uses a __________ strategy. a. b. c. d. e. intensity push inertia gravity pull
Answer: b Page: 331 Other Location: web Rationale: When a manufacturer directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product, it is using a push strategy. Sales promotions in the form of discounts are being used by Frito-Lay in this example.
1004
15-105 PULL STRATEGY
DEFINITION
When a manufacturer directs its promotional mix at ultimate consumers to encourage them to ask retailers for the product, the strategy is called a: a. b. c. d. e. push strategy. pending strategy. demand strategy. finance allowance. pull strategy.
Answer: e Page: 331; Figure 15-4B Rationale: Key term definitionpull strategy 15-106 PULL STRATEGY A pull strategy occurs when: a. b. c. d. e. a manufacturer blitzes its wholesalers, retailers, and ultimate consumers with the use of nationwide promotional and advertising campaigns. a manufacturer forces a retailer to promote its product by placing national brand ads in local newspapers. a manufacturer directs its promotional mix at ultimate consumers to encourage them to ask retailers for the product. a manufacturer directs the promotional mix toward channel members to gain their cooperation in ordering and stocking its product. the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. DEFINITION
Answer: c Page: 331; Figure 15-4B Rationale: Key term definitionpull strategy 15-107 PULL STRATEGY APPLICATION
Pharmaceutical companies historically marketed only to doctors. More recently they have spent millions of dollars to advertise prescription drugs directly to consumers. These pharmaceutical companies are using a(n) __________ strategy. a. b. c. d. e. push inertia intensity gravity pull
Answer: e Page: 331 Other Location: web Rationale: A pull strategy is when a manufacturer directs its promotional mix at ultimate consumers, encouraging them to ask retailers for the product. In this case, the strategy is to encourage consumers to ask their physicians for a specific drug by namepulling it through the channel.
1005
15-108 PULL STRATEGY
APPLICATION
An advertisement for Stanley brand hammers features a headline, which proclaims, "In a durability test, the competitor's hammer lasted 60 seconds. If you happen to need one for longer than that, buy a Stanley hammer." The advertisement is an element of the promotional mix which is directed towards the ultimate consumer, not towards retailers or wholesalers. This is an example of a(n) __________ strategy. a. b. c. d. e. push promotional integration pull promotional aggregation sales promotion
Answer: c Page: 331 Rationale: A pull strategy is when a manufacturer directs its promotional mix at ultimate consumers, encouraging them to ask retailers for the product. In this case, the strategy is to encourage consumers to ask their hardware store for a specific hammer by namepulling it through the channel. 15-109 INTEGRATED MARKETING COMMUNICATIONS DEFINITION
The concept of designing marketing communications programs that coordinate all promotional activitiesadvertising, personal selling, sales promotion, public relations, and direct marketing to provide a consistent message across all audiences is referred to as: a. b. c. d. e. media convergence. niche marketing. integrated marketing communications (IMC). marketing management. marketing by objectives (MBO).
Answer: c Page: 332 Rationale: Key term definitionintegrated marketing communications 15-110 INTEGRATED MARKETING COMMUNICATIONS CONCEPTUAL
Disney's use of an integrated marketing communications (IMC) program shows that: a. b. c. d. e. such a program can be used internationally. the competition immediately follows the leader's strategy. print and broadcast media alone cannot create an IMC program. sales promotions should not be included in an IMC program. Internet marketing is not sophisticated enough to be an element of an effective IMC program.
Answer: a Page: 332 Rationale: The concept of designing marketing communications programs that coordinate all promotional activitiesadvertising, personal selling, sales promotion, public relations, and direct marketingto provide a consistent message across all audiences is referred to as integrated marketing communications. Disney uses IMC to promote its theme parks.
1006
15-111 INTEGRATED MARKETING COMMUNICATIONS
APPLICATION
Allegra is an antihistamine that is only available through prescription, but to create brand awareness, it is offering people who request information about the product a cushion to use at their favorite sporting event. Its television ad shows a woman half-heartedly watching some sporting event. The voiceover asks if she is bored or congested. Next scene, the person is having a great time and is uncongested after taking Allegra. This use of the same promotional theme throughout a company's promotion is an example of how marketers use: a. b. c. d. e. media convergence. niche marketing. integrated marketing communications (IMC). marketing management. marketing by objectives (MBO).
Answer: c Page: 332 Rationale: The concept of designing marketing communications programs that coordinate all promotional activitiesadvertising, personal selling, sales promotion, public relations, and direct marketingto provide a consistent message across all audiences is referred to as integrated marketing communications. In this case, the advertising is located around a sporting event and the sales promotion is giving away sports cushionscoordinating two types of promotional activities. 15-112 INTEGRATED MARKETING COMMUNICATIONS The key to developing successful IMC programs is to: a. b. c. d. e. create a process that makes it easier to design and use them. develop staff positions. provide advertising department approval. include necessary environmental capabilities. have a static corporate culture. CONCEPTUAL
Answer: a Page: 332 Rationale: The key to developing successful IMC programs is to create a process that makes it easier to design and use them.
1007
15-113 PROMOTION DECISION PROCESS
DEFINITION
Because media costs are high, promotion decisions must be made carefully, using a systematic approach. The __________ is divided into (1) developing, (2) executing, and (3) evaluating the promotion program. a. b. c. d. e. budgeting process the audience identification process promotion decision process the IMC process the media decision process
Answer: c Page: 332 Rationale: Because media costs are high, promotion decisions must be made carefully, using a systematic approach. The promotion decision process is divided into (1) developing, (2) executing, and (3) evaluating the promotion program. 15-114 DEVELOPING A PROMOTION PROGRAM The first decision in developing a promotion program is to: a. b. c. d. e. set the budget. state the mission. identify the target audience. select the appeal. select the media. DEFINITION
Answer: c Page: 332 Rationale: The steps in the promotion program are: (1) identify the target audience, (2) specify promotion objectives, (3) setting the promotion budget, (4) selecting the right promotional tools, (5) designing the promotion, and (6)scheduling the promotion. 15-115 DEVELOPING A PROMOTION PROGRAM DEFINITION
All of the following steps are part of the process used to develop an organization's promotion program EXCEPT: a. b. c. d. e. identify the target audience. specify the promotion objectives. set the promotion budget. pretest the advertising. schedule the promotion.
Answer: d Page: 332 Rationale: The steps in the promotion program are: (1) identify the target audience, (2) specify promotion objectives, (3) setting the promotion budget, (4) selecting the right promotional tools, (5) designing the promotion, and (6)scheduling the promotion. Alternative d is a part of the implementation process when the promotion program is executed.
1008
15-116 TARGET AUDIENCE Promotional programs are specifically directed to: a. b. c. d. e. source receivers. diffusers. encoders. media convergences. target audiences.
DEFINITION
Answer: e Page: 332 Rationale: Text term definitiontarget audience 15-117 TARGET AUDIENCE DEFINITION
The group of prospective buyers toward which a promotion program is directed is called: a. b. c. d. e. source receivers. diffusers. encoders. media convergences. target audiences.
Answer: e Page: 332 Rationale: Text term definitiontarget audience 15-118 HIERARCHY OF EFFECTS DEFINITION
The sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action (either trial or adoption of the product) is referred to as: a. b. c. d. e. the purchase continuum. the hierarchy of effects. the consumer-product cycle. the consumer purchasing hierarchy. Maslow's hierarchy.
Answer: b Page: 333 Rationale: Key term definitionhierarchy of effects
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15-119 HIERARCHY OF EFFECTS The first stage in the hierarchy of effects is: a. b. c. d. e. interest. awareness. consumer development. evaluation. diffusion.
CONCEPTUAL
Answer: b Page: 333 Rationale: The hierarchy of effects is the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action, either trial or adoption of the product. The stages include: (1) awareness, (2) interest, (3) evaluation, (4) trial, and (5) adoption. 15-120 AWARENESS In the hierarchy of effects, awareness is defined as: a. b. c. d. e. the consumer's ability to recognize and remember the product or brand name. the consumer's appraisal of the product or brand on important attributes. an increase in the consumer's desire to learn about some of the features of the product or brand. a favorable experience on the first trial, resulting in the consumer's repeated purchase and use of the product or brand. the consumer's first actual purchase and use of the product or brand. DEFINITION
Answer: a Page: 333 Rationale: Text term definitionawareness 15-121 HIERARCHY OF EFFECTS APPLICATION
Ann's young son suffers from allergies and complains about his watery eyes and drowsiness. Ann feels bad because she thought there was nothing she could do to help him. When Ann saw the ad for a new drug that counters these symptoms in Ladies Home Journal magazine, she vowed to ask his doctor about this product on his next visit. At which stage in the hierarchy of effects is Ann? a. b. c. d. e. She is the trial stage and will move to the interest stage soon. She has moved quickly from the awareness stage to the interest stage. She was in the consumer development stage and will more than likely move to the transition stage. She is in the evaluation stage and will move to the interest stage soon. She is in the interest stage first and then moved quickly to the diffusion stage.
Answer: b Page: 333 Other Location: web Rationale: Awareness is defined as the consumer's ability to recognize and remember the product or brand name. Interest is defined as an increase in the consumer's desire to learn about some of the features of the product or brand. Ann learned of the drug's existence and then almost immediately decided to learn more about the drug.
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15-122 INTEREST In the hierarchy of effects, interest is defined as: a. b. c. d. e.
DEFINITION
the consumer's ability to recognize and remember the product or brand name. the consumer's appraisal of the product or brand on important attributes. an increase in the consumer's desire to learn about some of the features of the product or brand. a favorable experience on the first trial, resulting in the consumer's repeated purchase and use of the product or brand. the consumer's first actual purchase and use of the product or brand.
Answer: c Page: 333 Rationale: Text term definitioninterest 15-123 EVALUATION In the hierarchy of effects, evaluation is defined as: a. b. c. d. e. the consumer's ability to recognize and remember the product or brand name. the consumer's appraisal of the product or brand on important attributes. an increase in the consumer's desire to learn about some of the features of the product or brand. a favorable experience on the first trial, resulting in the consumer's repeated purchase and use of the product or brand. the consumer's first actual purchase and use of the product or brand. DEFINITION
Answer: b Page: 333 Other Location: web Rationale: Text term definitionevaluation 15-124 TRIAL In the hierarchy of effects, trial is defined as: a. b. c. d. e. the consumer's ability to recognize and remember the product or brand name. the consumer's appraisal of the product or brand on important attributes. an increase in the consumer's desire to learn about some of the features of the product or brand. a favorable experience on the first trial, resulting in the consumer's repeated purchase and use of the product or brand. the consumer's actual first purchase and use of the product or brand. DEFINITION
Answer: e Page: 333 Rationale: Text term definitiontrial
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15-125 TRIAL
APPLICATION
CoolMax Alta is a fabric made by Dupont. It is used in the manufacture of exercise clothes because it keeps the user cool and dry. The ads for the fabric in health and fitness ads convinced Kumar to buy a pair of socks made of the material. Since he had never before owned anything made of this fabric, Kumar was in which stage of the hierarchy of effects? a. b. c. d. e. trial diffusion innovation evaluation interest
Answer: a Page: 333 Rationale: Trial is defined as the consumer's actual first purchase and use of the product or brand. 15-126 ADOPTION In the hierarchy of effects, adoption is defined as: a. b. c. d. e. the consumer's ability to recognize and remember the product or brand name. the consumer's appraisal of the product or brand on important attributes. an increase in the consumer's desire to learn about some of the features of the product or brand. through a favorable experience on the first trial, the consumer's repeated purchase and use of the product or brand. the consumer's actual first purchase and use of the product or brand. DEFINITION
Answer: d Page: 333 Rationale: Text term definitionadoption 15-127 PERCENTAGE OF SALES BUDGETING Percentage of sales budgeting is a budgeting method: a. b. c. d. e. that allocates funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. that matches the competitor's absolute level of spending or the proportion per point of market share. that allocates funds to promotion only after all other budget items are covered. whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the advertising cost of performing these tasks. that allocates funds to promotion based on the greatest percentage of possible available revenue. DEFINITION
Answer: a Page: 333 Rationale: Text term definitionpercentage of sales budgeting
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15-128 PERCENTAGE OF SALES BUDGETING
APPLICATION
Imagine you have overheard the owner of a medium-sized manufacturing company saying, "We had a good year, and I think next year will be even better. I'm going to raise this year's promotion budget to 4.5 percent of last year's gross sales. That will let me do more advertising than the 3.5 percent I budgeted last year. From this information, you know the owner used __________ budgeting. a. b. c. d. e. percentage of sales competitive parity all-you-can-afford objective and task relative scale
Answer: a Page: 333 Rationale: In the percentage of sales budgeting approach, the amount of money spent on promotion is a percentage of past or anticipated sales. The owner used this years sales to decide to increase the percentage of sales allocated to promotion for next year. 15-129 PERCENTAGE OF SALES BUDGETING DEFINITION
__________ budgeting is a budgeting method which allocates funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. a. b. c. d. e. Percentage of sales Competitive parity All-you-can-afford. Objective and task Relative scale
Answer: a Page: 333 Rationale: Text term definitionpercentage of sales budgeting 15-130 PERCENTAGE OF SALES BUDGETING APPLICATION
A major fallacy of __________ budgeting is that by tying budget to sales, a company may have the least amount to spend when it actually needs the greatest amount of promotion dollars (when sales are decreasing). a. b. c. d. e. percentage of sales competitive parity all-you-can-afford. objective and task relative scale
Answer: a Page: 333 Rationale: Using percentage of sales budgeting, a company may reduce its promotion budget when it needs it the most because of a downturn in past sales or a forecast downturn in future ones.
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15-131 PERCENTAGE OF SALES BUDGETING
APPLICATION
When sales go down, many firms try to correct the problem by increasing promotion. However, the use of __________ budgeting would instead cause its user to decrease promotion budgets after a downturn in sales. a. b. c. d. e. percentage of sales competitive parity all-you-can-afford objective and task relative scale
Answer: a Page: 333 Rationale: Since the promotion budget depends on previous year's sales, any downturn will result in a reduced promotion budget at just the time when promotion should probably be increased. 15-132 COMPETITIVE PARITY BUDGETING Competitive parity budgeting is a budgeting method: a. b. c. d. e. that allocates funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. that matches the competitor's absolute level of spending or the proportion per point of market share. that allocates funds to promotion only after all other budget items are covered. whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the promotion cost of performing these tasks. that allocates funds to promotion based on the greatest percentage of possible available revenue. DEFINITION
Answer: b Page: 333 Other Location: web Rationale: Text term definitioncompetitive parity budgeting 15-133 COMPETITIVE PARITY BUDGETING DEFINITION
__________ budgeting is the allocation funds to promotion to match the competitor's absolute level of spending or proportion per point of market share. a. b. c. d. e. Percentage of sales Competitive parity All-you-can-afford Objective and task Relative scale
Answer: b Page: 333 Other Location: web Rationale: Text term definitioncompetitive parity budgeting
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15-134 COMPETITIVE PARITY BUDGETING
APPLICATION
After reading the daily newspaper, the restaurant owner said, "The owner of Fellini's House of Noodles ran a quarter-page ad in today's paper. We'll just have to find enough money to run our own ad day after tomorrow." What budgeting technique is the restaurant owner most likely using? a. b. c. d. e. relative scale budgeting sell you can afford budgeting competitive parity budgeting comparative budgeting matched media budgeting
Answer: c Page: 333 Rationale: Competitive parity budgeting is matching the competitor's absolute level of spending or the proportion per point of market share a competitor has. 15-135 COMPETITIVE PARITY BUDGETING APPLICATION
In which of the following situations would use of the competitive parity budget-setting method be most appropriate? a. b. c. d. e. Two or more companies are competing with similar products and similar promotional goals. Two or more companies are introducing a totally new product to the market. Two or more companies exist in an oligopoly, and are planning on a product diversification strategy. Two or more companies exist in pure competition and compete on the basis of product differentiation. Two or more companies are in direct competition with products in all stages of the product life cycle.
Answer: a Page: 333 Rationale: Competitive parity budgeting matches the competitors absolute level of spending or the proportion per point of market share. Competitive parity makes sense if the competitors have similar promotional goals.
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15-136 ALL-YOU-CAN-AFFORD BUDGETING All-you-can-afford budgeting is a budgeting method: a. b. c. d. e.
DEFINITION
that allocates funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. that matches the competitor's absolute level of spending or the proportion per point of market share. that allocates funds to promotion only after all other budget items are covered. whereby the company determines its promotion objectives, outlines the tasks necessary to accomplish these objectives, and determines the promotion cost of performing these tasks. that allocates funds to promotion based on the greatest percentage of possible available revenue.
Answer: c Page: 333 Rationale: Text term definitionall-you-can-afford budgeting 15-137 ALL-YOU-CAN-AFFORD BUDGETING DEFINITION
__________ budgeting is the allocation of funds to promotion only after all other budget items are covered. a. b. c. d. e. Percentage of sales Competitive parity All-you-can-afford Objective and task Relative scale
Answer: c Page: 333 Rationale: Text term definitionall-you-can-afford budgeting 15-138 ALL-YOU-CAN-AFFORD BUDGETING CONCEPTUAL
Which method of promotion budgeting would most likely be used by small businesses? a. b. c. d. e. percentage of sales budgeting competitive parity budgeting all-you-can-afford objective and task budgeting relative scale budgeting
Answer: c Page: 333 Rationale: Common to many small businesses is all-you-can-afford budgeting in which money is allocated to promotion only after all other budget items are covered.
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15-139 ALL-YOU-CAN-AFFORD BUDGETING
APPLICATION
Imagine a small retailer saying, "Well, after budgeting for all of our expenses for next year, we still have about $7500 remaining for emergencies. How about if we budget 20 percent of that amount for advertising?" What budgeting technique is the small retailer using? a. b. c. d. e. percentage of sales budgeting competitive parity budgeting all-you-can-afford budgeting objective and task budgeting relative scale budgeting
Answer: c Page: 333 Rationale: Common to many small businesses is all-you-can-afford budgeting in which money is allocated to promotion only after all other budget items are covered. 15-140 OBJECTIVE AND TASK BUDGETING Objective and task budgeting is a budgeting method: a. b. c. d. e. that allocates funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. that matches the competitor's absolute level of spending or the proportion per point of market share. that allocates funds to promotion only after all other budget items are covered. whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the promotion cost of performing these tasks. that allocates funds to promotion based on the greatest percentage of possible available revenue. DEFINITION
Answer: d Page: 333 Rationale: Text term definitionobjective and task budgeting 15-141 OBJECTIVE AND TASK BUDGETING DEFINITION
The best approach to promotion budgeting is __________ budgeting method whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the promotion cost of performing these tasks. a. b. c. d. e. percentage of sales competitive parity all-you-can-afford objective and task relative scale
Answer: d Page: 333 Rationale: Text term definitionobjective and task budgeting
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15-142 OBJECTIVE AND TASK BUDGETING
DEFINITION
The best approach to budgeting is objective and task budgeting, whereby the company determines its promotion objectives, outlines the tasks to accomplish those objectives, and: a. b. c. d. e. asks the ad agency for an estimate. asks the media to propose a program. determines the promotion cost of performing those tasks. determines what spending level top management will allow for the proposed program. surveys customers to determine what spending levels they think appropriate.
Answer: c Page: 333 Rationale: Text term definitionobjective and task budgeting 15-143 OBJECTIVE AND TASK BUDGETING Which of the following is the best approach to promotion budgeting? a. b. c. d. e. percentage of sales budgeting competitive parity budgeting all-you-can-afford objective and task budgeting relative scale budgeting CONCEPTUAL
Answer: d Page: 333 Rationale: The best approach to promotion budgeting is objective and task budgeting, whereby the company (1) determines its promotion objectives, (2) outlines the tasks to accomplish these objectives, and (3) determines the promotion cost of performing these tasks. This method takes into account what the company wants to accomplish and requires that the objectives be specified. 15-144 OBJECTIVE AND TASK BUDGETING CONCEPTUAL
Which form of promotion budgeting most closely relates to the marketing concept? a. b. c. d. e. percentage of sales budgeting competitive parity budgeting all-you-can-afford objective and task budgeting relative scale budgeting
Answer: d Page: 333 Rationale: The marketing concept assesses needs and then takes the necessary steps to satisfy them. Objective and task budgeting assesses what needs to be done and then identifies the method and (budget) by which to achieve them.
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15-145 OBJECTIVE AND TASK BUDGETING
CONCEPTUAL
Which of the following steps in the objective and task approach to promotion budgeting must be done correctly in order for any of the others to have the proper effect? a. b. c. d. e. accurately estimate costs of tasks identify promotion objectives accurately estimate what task will accomplish each objective accurately total the budget from costs of separate tasks perform tasks as intended
Answer: b Page: 333 Rationale: The best approach to budgeting is objective and task budgeting, whereby the company (1) determines its promotion objectives, (2) outlines the tasks to accomplish these objectives, and (3) determines the promotion cost of performing these tasks. The difficulty with objective and task budgeting is the objectives are wrong, everything that follows will be misguided. 15-146 SELECTING THE RIGHT PROMOTIONAL TOOLS CONCEPTUAL
Which of the following statements about selecting the right promotional tools is true? a. b. c. d. e. Promotional tools include advertising and personal selling. Many combinations of promotional tools can achieve the same objective. An analytical approach is especially important in this step of the pricess. It is important to assess the relative importance of the various tools in this stage. All of the above statements about selecting the right promotional tools are true.
Answer: e Page: 334 Rationale: Once a budget has been determined, the combination of the five basic IMC tools advertising, personal selling, public relations, sales promotion, and direct marketingcan be specified. While many factors provide direction for selection of the appropriate mix, the large number of possible combinations of the promotional tools means that many combinations can achieve the same objective. Thus, an analytical approach and experience are particularly important in this step of the process. At this stage, it is also important to assess the relative importance of the various tools. While it may be desirable to use several forms of promotion, one may deserve emphasis.
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15-147 DESIGNING THE PROMOTION Which of the following statements about designing the promotion is true? a. b. c. d. e.
CONCEPTUAL
The design of the promotion will play a primary role in determining the message that is communicated to the audience. The design activity is frequently viewed as the step requiring the least creativity. Successful designs are often the result of the skill of the artists and copywriters. Most of the promotion tools have only one design alternative. All of the above statements about designing the promotion are true.
Answer: a Page: 334 Rationale: The central element of a promotion program is the promotion itself. The design of the promotion will play a primary role in determining the message that is communicated to the audience. This design activity is frequently viewed as the step requiring the most (not the least!) creativity. In addition, successful designs are often the result of insight regarding consumers interests and purchasing behavior (not the skill of the artists and copywriters). All of the promotion tools have many (not one) design alternatives. One of the challenges of IMC is to design each promotional activity to communicate the same message. 15-148 SCHEDULING THE PROMOTION CONCEPTUAL
Which of the following statements about scheduling the promotion program is true? a. b. c. d. e. Timing of the use of promotional elements is not very important. The promotional schedule describes only the tools to be used. The scheduling of the various promotions is designed to generate interest. The scheduling of the various promotions encourages no additional purchases. Seasonality and competitive promotion activity are really irrelevant when scheduling the promotion program.
Answer: c Page: 334 Rationale: Once the design of each of the promotional program elements is complete, it is important to determine the most effective timing of their use. The promotion schedule describes the order in which each promotional tool is introduced and the frequency of its use during the campaign. Overall, the scheduling of various promotions is designed to generate interest and encourage additional purchases. Several factors such as seasonality and competitive promotion activity can also influence the promotion schedule.
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15-149 EXECUTING AND EVALUATING PROMOTION
CONCEPTUAL
Which of the following statements about executing and evaluating the promotion program is true? a. b. c. d. e. The most sophisticated pretests and posttests are used with public relations. Most IMC programs rely on posttests and use no pretests. The most sophisticated pretests and posttests have been developed for advertising. The ideal IMC program does not need any evaluation if it is executed according to plan. Most IMC programs rely on pretests and use no posttests.
Answer: c Page: 335 Rationale: The ideal execution of a promotion program involves pretesting each design before it is actually used to allow for changes and modifications that improve its effectiveness. Similarly, posttests are recommended to evaluate the impact of each promotion and the contribution of the promotion toward achieving the program objectives. The most sophisticated pretest and posttest procedures have been developed for advertising (not public relations).To fully benefit from IMC programs, companies must create and maintain a test-result database that allows comparisons of the relative impact of the promotional tools, and their execution options, in varying situations. Information from the database will allow informed design and execution decisions and provide support for IMC activities during internal reviews by financial or administrative personnel. 15-150 DIRECT MARKETING APPLICATION
Amazon.com, a successful online retailer, manages an extensive database, which includes customers' names and their tastes in books and music. This information is used to determine which products are suggested to each customer. This is an example of how Amazon.com uses: a. b. c. d. e. advertising. sales promotion. publicity. personal selling. direct marketing.
Answer: e Page: 335 Rationale: Direct marketing is a promotional element that uses direct communication with consumers to encourage them to place an order, request more information, or visit a store. Amazon.com practices this when they suggest books and music that may appeal to their customers as additional purchases.
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15-151 GROWTH IN DIRECT MARKETING
CONCEPTUAL
The increasing interest in customer relationship management is reflected in the dramatic growth of __________ a. b. c. d. e. advertising. sales promotion. publicity. personal selling. direct marketing.
Answer: e Page: 336 Rationale: Direct marketing is a promotional element that uses direct communication with consumers to encourage them to place an order, request more information, or visit a store. Amazon.com practices this when they suggest books and music that may appeal to their customers as additional purchases. The increasing interest in customer relationship management is reflected in the dramatic growth of direct marketing. 15-152 VALUE OF DIRECT MARKETING What is (are) the benefit(s) consumers report from direct marketing? a. b. c. d. e. They dont have to go to a store. Buying direct saves time. They can save money. Its fun and entertaining. All of the above are benefits of direct marketing reported by consumers. CONCEPTUAL
Answer: e Page: 336 Rationale: Consumers report many benefits, including the following: they dont have to go to a store, they can usually shop 24 hours a day, buying direct saves time, they avoid hassles with salespeople, they can save money, its fun and entertaining, and direct marketing offers more privacy than in-store shopping. Many consumers also believe that direct marketing provides excellent customer service. 15-153- DIRECT ORDERS DEFINITION
With direct marketing, __________ are the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. a. b. c. d. e. direct orders lead generation bottlenecks traffic generation problems indirect orders first mover advantages
Answer: a Page: 336 Rationale: Key term definitiondirect orders
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15-154 LEAD GENERATION
DEFINITION
With direct marketing, ___________ is the result of an offer designed to generate interest in a product or service, and a request for additional information. a. b. c. d. e. direct order fulfillment lead generation traffic generation indirect order consignment follower generation
Answer: b Page: 336 Rationale: Key term definitionlead generation 15-155 LEAD GENERATION APPLICATION
A paid advertisement for the Texas Department of Economic Development, Tourism Division invited readers of a magazine to mail in a postage-paid reply card that was included with the ad, visit the state's website, or use a toll-free number to request more information about vacation destinations in Texas. The primary purpose of this ad was as a(n): a. b. c. d. e. direct order fulfillment. lead generator. public service announcement. indirect order consignment. follower generator.
Answer: b Page: 336 Rationale: Lead generation is the result of an offer designed to generate interest in a product or service, and a request for additional information. In this case the reply card would generate a lead for the Department of Economic Development and the consumer would get information about vacationing in Texas. 15-156 TRAFFIC GENERATION APPLICATION
Pauline received a postcard from a local antique mall. The card invited her to attend an invitation-only open house at the mall and receive a 10 percent discount on her first purchase that day. The antique mall was using the postcard for: a. b. c. d. e. direct order fulfillment. lead generation. traffic generation. indirect order consignment. follower generation.
Answer: c Page: 336 Rationale: Traffic generation is the outcome of an offer designed to motivate people to visit a business, such as the antique mall.
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15-157 TRAFFIC GENERATION
DEFINITION
___________ is the outcome of an offer designed to motivate people to visit a business. a. b. c. d. e. Direct order consignment Lead generation Traffic generation Indirect order fulfillment Follower generation.
Answer: c Page: 336 Other Location: web Rationale: Key term definitiontraffic generation 15-158 ETHICS AND SOCIAL RESPONSIBILITY ALERT The two general approaches to managing unsolicited e-mail are: a. b. c. d. e. opt-in and opt-out. customization and generalized. relevant headings and blind headings. personalization and mass marketing. read and unread. CONCEPTUAL
Answer: a Page: 337 Rationale: Opt-out recipients decline further messages after the first contact. Opt-in requires advertisers to obtain e-mail addresses from registration questions on websites, business reply cards, and even sweepstakes entry forms. 15-159 TECHNOLOGY, GLOBAL, AND ETHICAL ISSUES Which of the following statements are true regarding direct marketing? a. b. c. d. e. Compared with the U.S., other countries direct marketing systems are undeveloped. Mail and telephone systems in many countries are likely to improve. When using direct marketing globally, payment can be an issue. The Data Protection Directive involves privacy issues in the EU. All of the above statements are true. CONCEPTUAL
Answer: e Page: 337 Rationale: Compared with the U.S., other countries direct marketing systems are undeveloped. The mail and telephone systems in many countries are likely to improve, however, creating many new direct marketing opportunities. Another issue for global direct marketers is payment. Because fewer consumers have credit cards, alternatives such as C.O.D. and bank deposits are needed. The EU recently passed a consumer privacy law, called the Data Protection Directive, after several years of discussion with the Federation of European Direct Marketing and the UKs Direct Marketing Association.
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15-160 VIDEO CASE: AIRWALK, INC.
CONCEPTUAL
George Yohn, founder of Airwalk, Inc., developed a special athletic shoe that had extra layers of leather, more rubber in the sole and double stitching to add longer life. He got this idea from: a. b. c. d. e. watching skateboarders drag their feet to turn and brake. his own athletic shoes that seemed to get holes in the soles. his podiatrist who noticed that many patients injured their feet because the soles of athletic shoes were so thin. watching children "brake" their bikes with their feet. his grandmother who taped foam on the bottom of her athletic shoes for extra comfort.
Answer: a Page: 340 Rationale: George Yohn watched skateboarders drag their feet to turn and brake, so he developed a special shoe targeted at skateboarders and named the company Airwalk. 15-161 VIDEO CASE: AIRWALK, INC. CONCEPTUAL
Which of the following statements about Airwalk shoes and the company that makes them is true? a. b. c. d. e. Airwalk shoes were first targeted to skateboarders. Airwalk's website displays its latest line of shoes and also provides graphics, animation and recent TV commercials that can be downloaded. Bands and musicians wear Airwalk shoes, which gains great visibility for the brand. George Yohn, founder of Airwalk, Inc., was unsuccessful in marketing an aerobic shoe. All of the above statements about Airwalk are true.
Answer: e Page: 339-340 Rationale: Alternatives a, b, c, and d all describe Airwalk and its shoes.
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CHAPTER 15 INTEGRATED MARKETING COMMUNICATIONS AND DIRECT MARKETING SHORT ESSAY QUESTIONS
15-162 THE COMMUNICATION PROCESS List the key elements of the communication process. Briefly describe each. Answer: Communication requires six elements. A source is a company or salesperson who has information to convey. A message is information. A channel of communication is exemplified by a salesperson, advertising media, or public relations tools. Receivers are people who read, hear, or see the message. Encoding is the process of having the sender transform an abstract idea into a set of symbols. Decoding is the process whereby the receiver transforms the set of symbols (the message) back to an abstract idea. Page: 324; Figure 15-1 15-163 ADVERTISING CONCEPTUAL DEFINITION
What are the advantages and disadvantages of using advertising in the promotional mix? Answer: There are several advantages to using advertising: First, it can be attention getting and it can communicate specific product benefits to prospective buyers. Second, a company can control: a) the contents of a message b) who receives the message c) when and how often the message is sent. In addition, once a message is created the same message is sent to all receivers. Disadvantages include the high cost of producing and sending a message and the lack of direct feedback. Page: 326-327; Figure 15-2
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15-164 PERSONAL SELLING
CONCEPTUAL
What are the advantages and disadvantages of using personal selling in the promotional mix? Answer: Because personal selling usually involves face-to-face communication between the sender and receiver, it has several advantages over every other promotional mix element. A salesperson can react to feedback from the potential buyer and modify the message. The salesperson can also control to whom the presentation is made, reducing wasted coverage. Disadvantages include the potential for inconsistent messages from different salespeople, and a very high cost (per contact). Page: 327; Figure 15-2 15-165 THE PROMOTIONAL MIX DEFINITION
What is the promotional mix? Briefly describe each of the five promotional alternatives. Answer: The promotional mix is the combination of one or more of five promotional alternatives. They are advertising, personal selling, public relations, sales promotion, and direct marketing. Advertising is a paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. Personal selling is the two-way flow of communication between a buyer and a seller. Public relations is a form of communication management that seeks to influence the feelings, opinions or belief held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services. Sales promotion is a short-term inducement of value offered to arouse interest in buying a good or service. Direct marketing is direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. Page: 326-328; Figure 15-2
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15-166 PRODUCT LIFE CYCLE
CONCEPTUAL
Name the four stages of the product life cycle. Discuss the role of promotion in the four stages of the product life cycle. Answer: The first stage is introduction. The primary job for promotion here is to inform and increase awareness of the product among consumers. In general all of the promotional mix elements are used at this stage. The second stage is growth. Here the primary task is to persuade the consumer to buy the product. Advertising is used to communicate brand differences, and personal selling is used to solidify the channel of distribution. The third stage is maturity. In this stage the need is to maintain existing buyers, and remind consumers of the product's existence through advertising. Sales promotion in the form of discounts and coupons, is important in maintaining loyal buyers. The fourth and final stage is decline. This is usually a period of phase-out for the product and little effort or money are expended, especially in the promotional mix. Page: 330; Figure 15-3 15-167 CHANNEL STRATEGIES CONCEPTUAL
Compare push and pull strategies as alternative promotional methods of moving a product through a channel of distribution. Answer: Promotional strategies can assist in moving a product through the channel of distribution. A manufacturer uses a push strategy directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product. In this approach, personal selling and sales promotion play major roles. By pushing the product through the channel, the goal is to get channel members to push it to their customers. A pull strategy requires a manufacturer to direct its promotional mix at ultimate consumers. In this instance, the manufacturer has usually faced some resistance from channel members who do not want to order a new product or increase inventory levels of an existing brand. Seeing demand from ultimate consumers, retailers order the product from wholesalers, and thus the item is pulled through the intermediaries. Page: 331; Figure 15-4A, B
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15-168 INTEGRATED MARKETING COMMUNICATION
DEFINITION
Explain what integrated marketing communication (IMC) is and the most likely way to develop a successful IMC program. Answer: 1) IMC is defined as the concept of designing marketing communications programs that coordinate all promotional activitiesadvertising, personal selling, sales promotion, public relations, and direct marketingto provide a consistent message across all audiences. 2) The key to developing successful IMC programs is to create a process that makes it easier to design and use them. The combined use of all of the promotional tools creates a synergy that should be the focus of the assessment. Page: 332 15-169 DEVELOPING THE MARKETING PROGRAM What six steps should be used in the development of a promotional program? Answer: 1) Identifying the Target Audience 2) Specifying Promotion Objectives 3) Setting the Promotion Budget 4) Selecting the Right Promotional Tools 5) Designing the Promotion 6) Scheduling the Promotion Page: 333-334 15-170 HIERARCHY OF EFFECTS Explain what the hierarchy of effects is and why it is used. Answer: The hierarchy of effects is the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action, either trial or adoption of the product. It is used as a guideline for developing promotion objectives. The stages a buyer goes through include: 1) Awareness 2) Interest 3) Evaluation 4) Trial 5) Adoption Page: 333 DEFINITION CONCEPTUAL
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15-171 OBJECTIVE AND TASK BUDGETING
CONCEPTUAL
What is best approach for determining a promotion budget? What advantages does this method offer that other methods do not? Answer: The best approach for determining a promotion budget is objective and task budgeting. This method takes into account what the company wants to accomplish and requires that the objectives be specified. Strengths of the other budgeting methods are integrated into this approach. Page: 333 15-172 PROMOTIONAL BUDGETING Explain three approaches to promotional budgeting. Answer: 1) Percentage of salesthe amount of money spent on promotion is a percentage of past or anticipated sales. 2) Competitive parity budgeting matches the competitors absolute level of spending or the proportion per point of market share. 3) All you can afford budgeting is common to many small businesses and allows money to be spent on promotion only after all other budget items are covered. 4) Objective and task budgeting (1) determines its promotion objectives, (2) outlines the tasks to accomplish these objectives, and (3) determines the promotion cost of performing these tasks. Page: 333 15-173 VALUE OF DIRECT MARKETING CONCEPTUAL CONCEPTUAL
The value of direct marketing can be described in terms of the responses it generates. Name and explain the responses generated by direct marketing. Answer: 1) Direct orders are the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. 2) Lead generation is the result of an offer designed to generate interest in a product or service and a request for additional information. 3) Traffic generation is the outcome of an offer designed to motivate people to visit a business. Page: 335
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15-174 EXECUTING AND EVALUATING THE PROMOTION PROGRAM
DEFINITION
What are the steps in the promotion decision process that correspond to planning, implementation and control? Answer: 1) Developing the promotion program 2) Executing the promotion program 3) Evaluating the promotion program Page: 335; Figure 15-5 15-175 EXECUTING AND EVALUATING THE PROMOTION PROGRAM List the execution and promotion steps of the promotion decision process. Answer: 1) Executing the promotion program: pretest the promotion; carry out the promotion 2) Evaluating the promotion program: posttest the promotion, make needed changes Page: 335; Figure 15-5 DEFINITION
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15-176 EXECUTING AND EVALUATING THE PROMOTION PROGRAM APPLICATION The AICPA (the public accountancy Council) will soon kick off a five-year, multi-million dollar direct marketing initiative to stem the tide of young adults moving away from the accounting profession. The campaign will target the 60 million people aged 16 to 22 known as Generation Y. The market research showed that barriers to entering the accounting field included ignorance about CPAs different career paths, misinformation about broader opportunities offered within the profession, and negative attitudes about the profession that overshadow the positive ones. The IMC solution that has been proposed includes (1) improving awareness of the CPA profession among high school and college student groups (2) improving perceptions of the profession among these groups, and (3) encouraging enrollment in basic accounting courses leading to majoring in accounting. Using the promotion decision process, execution and evaluation steps, (1) how would you implement the IMC program and (2) how would you know if it was successful? Answer: 1) The execution steps include pretesting the promotion and carrying it out. To pretest the tools to be used (advertising and direct marketing) [NOTE: the student may choose others; the important point is that the student recognizes the tools must be pretested before carrying them out.] several focus groups that represent the target market of Generation Y people could be conducted. In this pretest, the members of the focus groups would be asked about their opinions regarding the accounting profession, shown the ad and/or direct mail piece, and then asked again for their opinions. They could also be asked to give feedback on the pieces, including how they might be improved. Once the promotion was decided upon, it would be carried out: rolled out in major cities first, then moved to less populous ones. 2) The evaluation step includes posttesting the promotions and making needed changes. The evaluation would include: (1) comparing the number of accounting majors in higher education after the promotion with those prior to the promotion; (2) comparing the number of CPA candidates after the promotion with those prior to the promotion. Page: 335; Figure 15-5
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15-177 EXECUTING AND EVALUATING THE PROMOTION PROGRAM APPLICATION De Beers uses a Shadows diamond campaign developed by J. Walter Thompson in 23 countries on TV, in print, and in other media and is supported by an extensive range of public relations, point-of-sale, and educational materials. Using the promotion decision modelexecution and evaluation stepshow would you suggest that De Beers evaluate this campaign? Answer: De Beers should evaluate this campaign by comparing diamond sales prior to the campaign with those at present to see that the additional sales covered the cost of the campaign as well as adding to De Beers profitability. Page: 335; Figure 15-5 15-178 TECHNOLOGICAL ISSUES IN DIRECT MARKETING What are the technological issues in direct marketing? Answer: Information technology and databases are key elements in any direct marketing program. Databases are the result of organizations efforts to collect demographic, media, and consumption profiles of customers so that direct marketing toolssuch as catalogscan be directed at specific customers. Technology may also prove to be important in the global growth of direct marketing. The mail and telephone systems in many countries are likely to improve creating many new direct marketing opportunities. Page: 337 15-179 GLOBAL ISSUES IN DIRECT MARKETING What are the global issues in direct marketing? Answer: Technology may also prove to be important in the global growth of direct marketing. The mail and telephone systems in many countries are likely to improve creating many new direct marketing opportunities. Another issue is payment. Because fewer consumers have credit cards, alternatives such as COD and bank deposits are needed. Developments in international marketing research and database management will also increase global growth. Finally, privacy issues are of concern and have been addressed in the EU with passage of the Data Protection Directive. Page: 337 CONCEPTUAL CONCEPTUAL
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15-180 VIDEO CASE: AIRWALK, INC.
APPLICATION
How did Airwalk's integrated marketing communications (IMC) program reach new, broader, cool segments for its shoes without diluting its image among its existing core segment? Answer: Airwalk's TV commercials and print ads are alive with humor, irreverence, and unrestrained attitude. Its outdoor posters are so appealing that they are often stolen. Airwalk's website not only displays shoes but also provides graphics, animation, and recent TV commercials that can be downloaded. Airwalk sponsors teams of competitive skateboarders, snowboarders, mountain bike riders, and surfers. It uses product placement everywhere from movies and music videos to popular bands and fashion magazine photos. Page: 339-340
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