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Unformatted text preview: Model 14. If Charles Schwab Mutual Funds Investment Broker were to study its promotional strategies by
looking at sales trends and market research, it would be using direct feedback to evaluate its
Charles Schwab relies on indirect feedback. Direct feedback would imply immediate interaction.
KEY: CB&E Model Marketing Plan OBJ: 16-3 TOP: AACSB MSC: BLOOMS Application 15. All promotions are designed to either inform, persuade, or remind the target audience.
TOP: AACSB Communication
MSC: BLOOMS Knowledge REF: 256
KEY: CB&E Model Promotion 16. Maddie’s Beverage Company has recently introduced Wateroos, eight-ounce servings of water in
juice-style containers with straws, to encourage children to drink more water. Since this product is
in the introductory stage of the product life cycle and as yet has no direct competition, Maddie’s
promotional objective should be persuasion.
Early in the life cycle, the primary focus of promotions should be to inform consumers of the
KEY: CB&E Model Marketing Plan OBJ: 16-4 TOP: AACSB MSC: BLOOMS Application 17. It’s been a few years since odor-free paint hit the market, and a paint manufacturer estimates the
paint to be in the growth stage of its product life cycle. With all the competition in the industry
today, the manufacturer should use promotions that persuade buyers of odor-free paint to
purchase its brand over all others.
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application REF: 256-257
KEY: CB&E Model Product| CB&E Model 18. AIDA is an acronym for attention, interest, desire, and action.
TOP: AACSB Reflective Thinking REF: 257
KEY: CB&E Model Promotion MSC: BLOOMS Knowledge
19. A person buying a Valentine’s Day gift for a significant other is more likely to go through all of
the steps in the AIDA process than a person buying a gift certificate for his or her mail carrier.
The present for Valentine’s Day is more likely to be a high-involvement purchase, and people
engaged in high-involvement purchases typically go through all four stages of the AIDA process.
KEY: CB&E Model Customer OBJ: 16-5 TOP: AACSB Reflective MSC: BLOOMS Application 20. The AIDA concept can be used to explain how all promotions influence purchase decisions.
The order of stages in the model, as well as whether consumers go through all its steps, has been
KEY: CB&E Model Promotion OBJ: 16-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 21. In terms of the AIDA process, public relations has its greatest impact in gaining attention and
interest for a company, good, or service.
See Exhibit 16.4.
KEY: CB&E Model Promotion OBJ: 16-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 22. Allyson Brown is trying...
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- Fall '13