Thursday, 1 June 2017

INTEGRATED MARKETING COMMUNICATIONS: ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS

CHAPTER 13

INTEGRATED MARKETING COMMUNICATIONS: ADVERTISING,
SALES PROMOTION, AND PUBLIC RELATIONS


MULTIPLE CHOICE QUESTIONS

1.  Another name for a company’s marketing communications mix is:
     a.  the advertising program.
     b.  the sales force.
     c.  the image mix.
     d.  the promotion mix.

Answer:   (d)  Difficulty:  (1)  Page:  470

2.  Which tool of the promotional mix is defined as any paid form of nonpersonal
     presentation and promotion of ideas, goods, or services by an identified sponsor?
     a.  advertising
     b.  public relations
     c.  direct marketing
     d.  sales promotion

Answer:   (a)  Difficulty:  (2)  Page:  470

3.  The _______________________ is the specific mix of advertising, personal selling,
     sales promotion, public relations, and direct marketing tools that the company uses to
     pursue its advertising and marketing objectives.
     a.  value mix
     b.  integrated dealer mix
     c.  marketing communications mix
     d.  marketing control mix

Answer:   (c)  Difficulty:  (1)  Page:  470

4.  Which tool of the promotional mix consists of short-term incentives to encourage the
     purchase or sale of a product or service?
     a.  advertising
     b.  public relations
     c.  direct marketing
     d.  sales promotion

Answer:   (d)  Difficulty:  (2)  Page:  470



5.  If a company wants to build a good “corporate image,” it will probably use which
     of the following marketing communications mix tools?
     a.  advertising
     b.  public relations
     c.  direct marketing
     d.  sales promotion

Answer:   (b)  Difficulty:  (1)  Page:  470

6.  _________________ is direct communications with carefully targeted individual
     consumers to obtain an immediate response.
     a.  Personal selling
     b.  Public relations
     c.  Direct marketing
     d.  Sales promotion

Answer:   (c)  Difficulty:  (1)  Page:  470

7.  There is an increasing amount of commerce being done via the Internet.  With respect
     to the promotional mix, which of the following categories would be most directly
     concerned with Internet commerce?
     a.  advertising
     b.  public relations
     c.  direct marketing
     d.  sales promotion

Answer:   (c)  Difficulty:  (1)  Page:  470

8.  The personal presentation by the firm’s sales force for the purpose of making sales
     and building customer relationships is called:
     a.  personal selling.
     b.  public relations.
     c.  direct marketing.
     d.  sales promotion.

Answer:   (a)  Difficulty:  (1)  Page:  470

9.  Which of the following major promotional tools use press relations, product
     publicity, corporate communications, lobbying, and public service to communicate
     information?
     a.  advertising
     b.  public relations
     c.  direct marketing
     d.  sales promotion

Answer:   (b)  Difficulty:  (1)  Page:  470

10. Which of the following major promotional tools use the telephone, mail, fax,
     e-mail, and the Internet to communicate directly with specific consumers?
     a.  advertising
     b.  public relations
     c.  direct marketing
     d.  sales promotion

Answer:   (c)  Difficulty:  (1)  Page:  470

11. Although the promotion mix is the company’s primary communication activity, the
     __________________ must be coordinated for greatest communication impact.
     a.  organizational culture
     b.  entire marketing mix
     c.  demand mix
     d.  profit variables in a company

Answer:   (b)  Difficulty:  (2)  Page:  470

12. Two major factors are changing the face of today’s communications.  One of these
     factors is the fact that:
     a.  costs of promotion are rising.
     b.  mass markets are fragmented and marketers are shifting away from mass
          marketing.
     c.  global communications are not growing rapidly enough.
     d.  marcom managers have achieved more power and control.

Answer:   (b)  Difficulty:  (2)  Page:  471

13.  The shift from ________________________ has had a dramatic impact on
     marketing communications.
     a.  brand management to value management
     b.  media manipulation to media control
     c.  mass marketing to segmented marketing
     d.  mass marketing to global marketing

Answer:   (c)  Difficulty:  (3)  Page:  471

14. ____________ fragmentation has resulted in media fragmentation.
     a.  Market
     b.  Purchasing
     c.  Product
     d.  Public relations

Answer:   (a)  Difficulty:  (2)  Page:  472

15. For many years mass-media advertising was king among promotion variables.
     Today, this form of advertising appears to be giving way to:
     a.  product differentiation.
     b.  other elements of the promotion mix.
     c.  nonmanipulative variables.
     d.  a move away from promotion.

Answer:   (b)  Difficulty:  (3)  Page:  472

16. Current trends in communications and promotions indicate that companies are
     doing less:
     a.  marketing and more promotion.
     b.  broadcasting and more narrowcasting.
     c.  selling and more advertising.
     d.  communication and more manipulation.

 Answer:   (b)  Difficulty:  (3)  Page:  472

17. IMC, as presented in the text and in context with promotion, stands for:
     a.  international manufacturing capacity.
     b.  international monetary consistency.
     c.  integrated marketing communications.
     d.  integrated marketing corporations.

Answer:   (c)  Difficulty:  (1)  Page:  472
 
18. _________________ is the concept under which a company carefully integrates and
     coordinates its many communications channels to deliver a clear, consistent, and
     compelling message about the organization and its products.
     a.  The promotion mix
     b.  Integrated international affairs
     c.  Integrated marketing communications
     d.  Integrated demand characteristics

Answer:   (c)  Difficulty:  (2)  Page:  472

19. All of the following are cited by the text as limitations or challenges to marketers
     trying to use the Web to build brands EXCEPT:
     a.  the higher expense of Web advertising versus traditional advertising.
     b.  the Internet doesn’t build mass brand awareness.
     c.  the Web’s format and quality constraints.
     d.  difficulty in achieving advertising-like solutions on the Web.

Answer:   (a)  Difficulty:  (2)  Page:  473, 474, Marketing at Work 13-1



20. Integrated marketing communications involves identifying the target audience
     and shaping a well-coordinated promotional program to elicit the desired audience
     response.  Too often, however:  (Select the most correct statement.)
     a.  costs are too high and profits are too low.
     b.  personnel cannot cope with these responsibilities.
     c.  marketing communications focus on overcoming immediate awareness, image,
          or preference problems.
     d.  integrated communications do not work in the global environment because of
          regulations.

Answer:   (c)  Difficulty:  (3)  Page:  474, 375

21. The communications process should start with:
     a.  a basic belief about the communication piece.
     b.  an audit of all the potential contacts target customers have with the company and
          its brands.
     c.  an evaluation of the history of advertising used by the firm.
     d.  hiring communications experts to handle the communication problems of the firm.

Answer:   (b)  Difficulty:  (2)  Page:  475

22. The concept of ______________ suggests that the company must blend the
     promotion tools carefully into a coordinated promotion mix.
     a.  public relations
     b.  integrated market planning
     c.  integrated marketing communications
     d.  global cultural imperatives

Answer:   (c)  Difficulty:  (2)  Page:  475

23. If a company’s objective were to reach masses of buyers that were geographically
     dispersed at a low cost per exposure, the company would likely choose which of the
     following promotion forms?
     a.  advertising
     b.  personal selling
     c.  public relations
     d.  sales promotion

Answer:   (a)  Difficulty:  (2)  Page:  476

24. Which of the following promotional forms is often described as being too impersonal
     and only a one-way communication form?
     a.  advertising
     b.  personal selling
     c.  public relations
     d.  sales promotion

Answer:   (a)  Difficulty:  (2)  Page:  476

25. Which of the following promotional tools is often the most effective tool at certain
     stages in the buying process, particularly in building up buyers’ preferences,
     convictions, and actions?
     a.  advertising
     b.  personal selling
     c.  public relations
     d.  sales promotion

Answer:   (b)  Difficulty:  (2)  Page:  476

26. Which of the following promotional tools is thought to be the most expensive to use?
     a.  advertising
     b.  personal selling
     c.  public relations
     d.  sales promotion

Answer:   (b)  Difficulty:  (3)  Page:  476

27. Personal selling is an expensive form of promotion.  For example, research shows
     that personal selling costs companies _______ per sales call.
     a.  $170
     b.  $140
     c.  $100
     d.  $75

Answer:   (a)  Difficulty:  (3)  Page:  476

28. The promotion tool that may include coupons, contests, premiums, and other means
     of attracting consumer attention is best described as being which of the following?
     a.  advertising
     b.  personal selling
     c.  public relations
     d.  sales promotion

Answer:   (d)  Difficulty:  (2)  Page:  476

29. Which of the following promotional tools can reach many prospects who otherwise
     avoid salespeople and is received as news rather than as a sales-directed
     communication?
     a.  advertising
     b.  personal selling
     c.  public relations
     d.  sales promotion

Answer:   (c)  Difficulty:  (2)  Page:  477

30. The promotional tool that marketers tend to underuse or use only as an afterthought
     is best described as being which of the following?
     a.  advertising
     b.  personal selling
     c.  public relations
     d.  sales promotion

Answer:   (c)  Difficulty:  (2)  Page:  477

31. No matter which form of direct marketing might be used by a promotional manager,
     all of the forms have several characteristics in common.  Which of the following
     WOULD NOT be among those characteristics?
     a.  nonpublic
     b.  immediate
     c.  producer controlled
     d.  interactive

Answer:   (c)  Difficulty:  (3)  Page:  477

32. __________________ is well suited to highly targeted marketing efforts and to
     building one-to-one customer relationships.
     a.  Advertising
     b.  Public relations
     c.  Sales promotion
     d.  Direct marketing

Answer:   (d)  Difficulty:  (2)  Page:  477

33. A ________________ is a promotion strategy that calls for using the sales force and
     trade promotion to move the product through channels.
     a.  push strategy
     b.  pull strategy
     c.  blocking strategy
     d.  integrated strategy

Answer:   (a)  Difficulty:  (2)  Page:  477, 478, Figure 13-2



34. A __________________ is a promotion strategy that calls for spending a lot on
     advertising and consumer promotion to build up consumer demand.  If the strategy is
     successful, consumer demand will move the product through the channel.
     a.  push strategy
     b.  pull strategy
     c.  blocking strategy
     d.  integrated strategy

Answer:   (b)  Difficulty:  (2)  Page:  477, 478, Figure 13-2

35. Which of the following strategies is usually followed by B2C companies with respect
     to promotion strategy?
     a.  push strategy
     b.  pull strategy
     c.  blocking strategy
     d.  integrated strategy

Answer:   (b)  Difficulty:  (3)  Page:  477, 478, Figure 13-2

36. Which of the following strategies is usually followed by B2B companies with respect
     to promotion strategy?
     a.  push strategy
     b.  pull strategy
     c.  blocking strategy
     d.  integrated strategy

Answer:   (a)  Difficulty:  (3)  Page:  477, 478, Figure 13-2

37. Some of the earliest traces of what could be called advertising were found in:
     a.  Colonial New York.
     b.  16th century England.
     c.  2nd century China.
     d.  ancient Rome.

Answer:   (d)  Difficulty:  (2)  Page:  478

38. Advertising reaches almost all facets of business in the United States.  It has been
     estimated that advertising runs an annual bill of ________________ in the United
     States alone.
     a.  $2 billion
     b.  $244 billion
     c.  $25 billion
     d.  $150 billion

Answer:   (b)  Difficulty:  (2)  Page:  478

39. Marketing management must make four important decisions when developing an
     advertising program.  All of the following would be among those decisions
     EXCEPT:
     a.  setting advertising objectives.
     b.  setting the advertising budget.
     c.  setting procedures for an advertising culture audit.
     d.  developing advertising strategy.

Answer:   (c)  Difficulty:  (1)  Page:  479, Figure 13-3

40. The first step in developing an advertising program should be to:
     a.  set advertising objectives.
     b.  set the advertising budget.
     c.  evaluate advertising campaigns.
     d.  develop advertising strategy.

Answer:   (a)  Difficulty:  (2)  Page:  479, Figure 13-3

41. A specific communication task to be accomplished with a specific target audience
     during a specific period of time is called an:
     a.  advertising campaign.
     b.  advertising objective.
     c.  advertising criterion.
     d.  advertising evaluation.

Answer:   (b)  Difficulty:  (3)  Page:  479

42. Which of the following WOULD NOT be one of the primary advertising objectives
     as classified by primary purpose?
     a.  to inform
     b.  to persuade
     c.  to remind
     d.  to make profits

Answer:   (d)  Difficulty:  (2)  Page:  479

43. ___________________ is used heavily when introducing a new product  
     category.
     a.  Persuasive advertising
     b.  Inferential advertising
     c.  Reminder advertising
     d.  Informative advertising

Answer:   (d)  Difficulty:  (1)  Page:  479



44. Building selective demand is the objective of which type of advertising?
     a.  informative advertising
     b.  persuasive advertising
     c.  reminder advertising
     d.  demand-driven advertising

Answer:   (b)  Difficulty:  (3)  Page:  479

45. If Sony tries to convince consumers that its brand of computer disks is the best
     quality for the money, it is using which of the following forms of advertising?
     a.  informative advertising
     b.  psychological advertising
     c.  reminder advertising
     d.  persuasive advertising

Answer:   (d)  Difficulty:  (3)  Page:  479

46. When Avis positioned itself against market-leading Hertz by claiming, “We’re
     number two, so we try harder,” it was using which of the following forms of
     advertising?
     a.  informative advertising
     b.  psychological advertising
     c.  reminder advertising
     d.  comparative advertising

Answer:   (d)  Difficulty:  (2)  Page:  479

47. Keeping consumers thinking about the product is the objective for which type of
     advertising?
     a.  informative advertising.
     b.  psychological advertising.
     c.  reminder advertising.
     d.  persuasive advertising.

Answer:   (c)  Difficulty:  (1)  Page:  480

48. After determining its advertising objectives, a company next sets its ____________
     for each product.
     a.  advertising strategy
     b.  advertising budget
     c.  advertising goals
     d.  advertising format

Answer:   (b)  Difficulty:  (2)  Page:  480



49. All of the following are commonly recognized promotion budget formats EXCEPT:
     a.  the affordable method.
     b.  the LIFO method.
     c.  the percentage-of-sales method.
     d.  the objective-and-task method.

Answer:   (b)  Difficulty:  (2)  Page:  480

50. Determining the promotion budget on the basis of financial availability of capital is
     characteristic of which of the following budget methods?
     a.  affordable method
     b.  percentage-of-sales method
     c.  competitive-parity method
     d.  objective-and-task method

Answer:   (a)  Difficulty:  (2)  Page:  480

51. Which of the following budget methods ignores the effects of promotion on sales?
     a.  affordable method
     b.  percentage-of-sales method
     c.  competitive-parity method
     d.  objective-and-task method

Answer:   (a)  Difficulty:  (3)  Page:  480

52. Which of the following promotional budget methods wrongly views sales as the
     cause of promotion rather than as the result?
     a.  affordable method
     b.  percentage-of-sales method
     c.  competitive-parity method
     d.  objective-and-task method

Answer:   (b)  Difficulty:  (2)  Page:  481

53. Setting the promotion budget so as to match the budgets of the competition is
     characteristic of which of the following budget methods?
     a.  affordable method
     b.  percentage-of-Sales method
     c.  competitive-parity method
     d.  objective-and-task method

Answer:   (c)  Difficulty:  (1)  Page:  481



54. One of the arguments that supports the competitive-parity method for budgeting
     promotions is that:
     a.  it is the fairest budget method.
     b.  it is generally the cheapest method of allocating funds.
     c.  competitor’s budgets represent the collective wisdom of the industry.
     d.  it is the easiest budget method to use on a global basis.

Answer:   (c)  Difficulty:  (2)  Page:  481

55. The most logical budget setting method is found in the list below.  Which is it?
     a.  affordable method
     b.  percentage-of-sales method
     c.  competitive-parity method
     d.  objective-and-task method

Answer:   (d)  Difficulty:  (2)  Page:  481

56. The first step in using the objective-and-task promotional budgeting method is to:
     a.  define specific advertising tools that can be afforded.
     b.  analyze competitive budgets for perceived weaknesses.
     c.  calculate last year’s sales percentages.
     d.  define specific objectives.

Answer:   (d)  Difficulty:  (2)  Page:  482

57. According to the chapter, all of the following have promoted the importance of the
     media-planning function EXCEPT:
     a.  media fragmentation.
     b.  the development of the Internet.
     c.  soaring media costs.
     d.  more focused target marketing strategies.

Answer:   (b)  Difficulty:  (3)  Page:  482

58. No matter how big the advertising budget, advertising can succeed only if
     commercials:
     a.  are economically feasible.
     b.  gain attention and communicate well.
     c.  are acceptable on a global level.
     d.  are artistically pleasing.

Answer:   (b)  Difficulty:  (2)  Page:  483



59. Developing an effective message strategy begins with identifying customer
     ___________ that can be used as advertising appeals.
     a.  demographics
     b.  lifestyles
     c.  psychographics
     d.  benefits

Answer:   (d)  Difficulty:  (3)  Page:  484

60. Advertising appeals should have three characteristics.  All of the following are among
     those characteristics EXCEPT:
     a.  be meaningful.
     b.  be tasteful.
     c.  be believable.
     d.  be distinctive.

Answer:   (b)  Difficulty:  (2)  Page:  484

61. In evaluating messages for advertising, pointing out the benefits that make the
     product more desirable or interesting to consumers ensures that the message will be:
     a.  meaningful.
     b.  distinctive.
     c.  believable.
     d.  remembered.

Answer:   (a)  Difficulty:  (2)  Page:  484

62. In evaluating messages for advertising, telling how the product is better than the
     competing brands aims at making the ad:
     a.  meaningful.
     b.  distinctive.
     c.  believable.
     d.  remembered.

Answer:   (b)  Difficulty:  (2)  Page:  484

63. In terms of execution styles, a family seated at the dinner table enjoying the
     advertised product would be an example of which of the following types of
     advertising?
     a.  slice of life
     b.  lifestyle
     c.  mood or imagery
     d.  personality symbol

Answer:   (a)  Difficulty:  (2)  Page:  487

64. In terms of execution styles, which type of advertising might show how a product
     contributes to a person’s workout and health regime?
     a.  slice of life
     b.  lifestyle
     c.  mood or imagery
     d.  personality symbol

Answer:   (b)  Difficulty:  (2)  Page:  487

65. In terms of execution styles, which type of advertising makes no claim about the
     product except to suggest that the product is part of such feelings as love or beauty?
     a.  slice of life
     b.  lifestyle
     c.  mood or imagery
     d.  personality symbol

Answer:   (c)  Difficulty:  (2)  Page:  487

66. When a company chooses to use an animated character such as the Jolly Green Giant
     or Garfield the Cat in their commercial, they are using which of the following
     advertising execution formats?
     a.  testimonial evidence
     b.  lifestyle
     c.  mood or imagery
     d.  personality symbol

Answer:   (d)  Difficulty:  (2)  Page:  487

67. The first thing a reader notices in a printed advertising is the:
     a.  headline.
     b.  illustration.
     c.  copy.
     d.  format.

Answer:   (b)  Difficulty:  (2)  Page:  488

68. The measure of the percentage of people in the target market who are exposed to the
     ad campaign during a given period of time is called:
     a.  reach.
     b.  frequency.
     c.  impact.
     d.  performance.

Answer:   (a)  Difficulty:  (2)  Page:  488



69. The measure of how many times the average person in the target market is exposed to
     the message is called:
     a.  reach.
     b.  frequency.
     c.  impact.
     d.  performance.

Answer:   (b)  Difficulty:  (1)  Page:  488

70. Media planners consider many factors when making their media choices.  According
     to the text, all of the following factors would be considered EXCEPT:
     a.  the fashionability of the media.
     b.  the media habits of target consumers.
     c.  the nature of the product.
     d.  the type of message to be used.

Answer:   (a)  Difficulty:  (1)  Page:  489

71. If an advertiser wants flexibility, timeliness, good local market coverage, broad
     acceptability, and high believability, the advertiser will probably choose which of the
     following mass media types?
     a.  newspapers
     b.  television
     c.  direct mail
     d.  radio

Answer:   (a)  Difficulty:  (3)  Page:  489, Table 13-2

72. _________________ combine(s) sight, sound, and motion; appeals to the senses; and,
     has a low cost per exposure as advantages.
     a.  Newspapers
     b.  Television
     c.  Direct mail
     d.  Radio

Answer:   (b)  Difficulty:  (2)  Page:  489, Table 13-2

73. The advantages of audience selectivity, no ad competition, and personalization apply
     to which type of media?
     a.  newspapers
     b.  television
     c.  direct mail
     d.  radio

Answer:   (c)  Difficulty:  (2)  Page:  489, Table 13-2

74. ________________ has the advantage of being high in selectivity, low cost,
     immediacy, and interactive capabilities.
     a.  Direct mail
     b.  Outdoor
     c.  Online
     d.  Radio

Answer:   (c)  Difficulty:  (2)  Page:  489, Table 13-2

75. Which of the following mass media forms has the disadvantages of long
     ad-purchase lead time, high cost, no guarantee of position?
     a.  newspapers
     b.  television
     c.  magazines
     d.  radio

Answer:   (c)  Difficulty:  (2)  Page:  489, Table 13-2

76. To be effective, ads should have some form of pattern (given that more than one
     ad is going to be used).  If an advertiser were to schedule ads evenly over a given
     period of time, this pattern would be called:
     a.  pulsing.
     b.  flow.
     c.  rollout.
     d.  continuity.

Answer:   (d)  Difficulty:  (2)  Page:  490

77. A marketing services firm that assists companies in planning, preparing,
     implementing, and evaluating all or portions of their advertising programs is
     called a(n):
     a.  marketing control group.
     b.  product services unit.
     c.  advertising agency.
     d.  situation consultant.

Answer:   (c)  Difficulty:  (1)  Page:  493

78. The largest U.S. advertising agency is ____________ with an annual gross
     income of $1.8 billion on billings.
     a.  J. Walter Thompson
     b.  Saatchi & Saatchi
     c.  BBD&O Global
     d.  McCann-Erikson Worldwide

Answer:   (d)  Difficulty:  (3)  Page:  493

79. All of the following are benefits of a standardization policy in global advertising
     EXCEPT:
     a.  lower advertising costs.
     b.  greater global advertising coordination.
     c.  an attention to local differences in various global markets.
     d.  more consistent worldwide image.

Answer:   (c)  Difficulty:  (2)  Page:  493

80. _________________ is short-term incentives to encourage purchase or sales of a
     product or service.
     a.  Advertising
     b.  Sales promotion
     c.  Online advertising
     d.  Public relations

Answer:   (b)  Difficulty:  (1)  Page:  495

81. Several factors have contributed to the rapid growth of sales promotion.  All of the
     factors listed below have played a part in that growth EXCEPT:
     a.  greater pressure to increase sales.
     b.  more competition and a decline in differentiation of brands.
     c.  a relaxing of government regulations governing sales promotion.
     d.  advertising efficiency has declined.

Answer:   (c)  Difficulty:  (3)  Page:  496

82. Which type of sales promotion uses free samples, coupons, and rebates?
     a.  consumer promotion
     b.  trade promotion
     c.  sales force promotion
     d.  place promotion

Answer:   (a)  Difficulty:  (1)  Page:  497

83. All of the following are considered to be consumer-promotion tools EXCEPT:
     a.  samples.
     b.  push money.
     c.  coupons.
     d.  patronage reward.

Answer:   (b)  Difficulty:  (2)  Page:  497



84. Which of the following consumer-promotion tools is the most effective, but most
     expensive, way to introduce a new product?
     a.  coupons
     b.  price packs
     c.  contests
     d.  samples

Answer:   (d)  Difficulty:  (3)  Page:  497

85. ___________ are certificates that give buyers a saving when they purchase
     specified products.
     a.  Samples
     b.  Premiums
     c.  Coupons
     d.  Patronage rewards

Answer:   (c)  Difficulty:  (1)  Page:  497

86. If a retailer were to offer the consumer a “two for one” deal in purchasing
     merchandise, which of the following sales promotional techniques would have
     been used?
     a.  samples
     b.  premiums
     c.  coupons
     d.  price packs

Answer:   (d)  Difficulty:  (2)  Page:  498

87. If Cheerios includes a free toy from a Disney movie in its cereal boxes as an
     incentive to purchase cereal, which of the following forms of sales promotion
     was used?
     a.  samples
     b.  premiums
     c.  coupons
     d.  price packs

Answer:   (b)  Difficulty:  (2)  Page:  498, 499
    
88. If an advertiser were to give consumers useful articles (imprinted with the
     advertiser’s name) as gifts (such a pen or calendar), which of the following
     sales promotional forms would the advertiser be using?
     a.  samples
     b.  premiums
     c.  point-of-purchase promotions
     d.  advertising specialties

Answer:   (d)  Difficulty:  (2)  Page:  499

89. Manufacturers direct most of their sales promotional dollars toward which of the
     following groups?
     a.  consumers
     b.  retailers and wholesalers
     c.  lobbyists
     d.  publics such as shareholders

Answer:   (b)  Difficulty:  (2)  Page:  499

90. __________ is defined as being cash or gifts to dealers or their sales forces to
     “push” the manufacturer’s goods.
     a.  A display allowance
     b.  A price-off
     c.  A spiff
     d.  Push money

Answer:   (d)  Difficulty:  (1)  Page:  499, 500

91. Which type of promotion uses buying allowances, push money, and free goods?
     a.  consumer promotion
     b.  trade promotion
     c.  sales force promotion
     d.  place promotion

Answer:   (b)  Difficulty:  (1)  Page:  499

92. The type of trade-promotion tool in which the manufacturer takes a fixed amount
     off the list price on each case purchased during a stated period of time is called a(n):
     a.  discount.
     b.  allowance.
     c.  premium.
     d.  rebate.

Answer:   (a)  Difficulty:  (2)  Page:  499

93. The type of trade-promotion discount in which manufacturers agree to reduce the
     price to the retailer in exchange for the retailer’s agreement to feature the
     manufacturer’s products in some way is called a(n):
     a.  discount.
     b.  allowance.
     c.  premium.
     d.  rebate.

Answer:   (b)  Difficulty:  (2)  Page:  499

94. ________________ is a major promotion function whose objective is to build good
     relations with the company’s various publics.
     a.  Advertising
     b.  Direct marketing
     c.  Public relations
     d.  Specialty events

Answer:   (c)  Difficulty:  (1)  Page:  501

95. All of the following would be considered to be functions performed in public
     relations EXCEPT:
     a.  press relations.
     b.  public affairs.
     c.  bribery (when necessary).
     d.  lobbying.

Answer:   (c)  Difficulty:  (1)  Page:  501

96. Despite its potential strengths, public relations is often described as a(n):
     a.  unethical business.
     b.  marketing stepchild.
     c.  corrupt practice.
     d.  cost drain that is not fruitful.

Answer:   (b)  Difficulty:  (2)  Page:  502

97. All of the following would be considered to be major public relations tools
     EXCEPT:
     a.  news.
     b.  speeches.
     c.  testifying.
     d.  special events such as news conferences.

 Answer:   (c)  Difficulty:  (2)  Page:  503

98. If an advertiser were to use corporate stationery, brochures, signs, and business
     cards to advance the public relations interests of the company, they would be
     using which of the following forms of PR?
     a.  slick-back materials
     b.  audiovisual materials
     c.  corporate identity materials
     d.  public service materials

Answer:  (c)  Difficulty:  (2)  Page:  504


TRUE/FALSE QUESTIONS

99. According to evaluations of American Standard’s integrated direct-marketing
     campaign, the key to success was to get customers who had made inquires to
     purchase at least $400 of merchandise.

Answer:   (False)  Difficulty:  (2)  Page:  469

100. Direct marketing is any paid form of nonpersonal presentation and promotion of
     ideas, goods, or services by an identified sponsor.

Answer:   (False)  Difficulty:  (2)  Page:  470

101. As a form of promotion, personal selling is a personal presentation by the firm’s
     sales force for the purpose of making sales and building customer relationships.

Answer:   (True)  Difficulty:  (1)  Page:  470

102. Short-term incentives to encourage the purchase or sale of a product or
     service is called public relations.

Answer:   (False)  Difficulty:  (1)  Page:  470

103. Vast improvements in information technology are speeding marketing
     communications toward segmented marketing.

Answer:   (True)  Difficulty:  (2)  Page:  471

104. Market fragmentation has also resulted in profit fragmentation.

Answer:   (False)  Difficulty:  (2)  Page:  472

105. Today, companies are doing less broadcasting and more narrowcasting.

Answer:   (True)  Difficulty:  (1)  Page:  472

106. Integrated marketing communications means that all communications (such as
     public relations, sales promotion, and direct marketing) have been adapted to
     television.

Answer:   (False)  Difficulty:  (2)  Page:  472

107. One of the chief limitations of the Internet with respect to communication is
     format and quality constraints.

Answer:   (True)  Difficulty:  (2)  Page:  473, Marketing at Work 13-1

108. The communications process should begin with a creative spark--a big bang.

Answer:   (False)  Difficulty:  (2)  Page:  475

109. If you want to get a mass audience, newspaper is where you have to be.

Answer:   (False)  Difficulty:  (3)  Page:  476

110. One of the shortcomings of advertising is that it is impersonal and cannot be
     as directly persuasive as a company’s salespeople.

Answer:   (True)  Difficulty:  (1)  Page:  476

111. Personal selling is the most expensive promotion tool.

Answer:   (True)  Difficulty:  (2)  Page:  476

112. If a company were to use coupons, contests, and premiums, they would be using
     some of the various forms of advertising.

Answer:   (False)  Difficulty:  (2)  Page:  476

113. Direct marketing is nonpublic.

Answer:   (True)  Difficulty:  (2)  Page:  477

114. The push strategy of promotion suggests a promotion strategy that calls for
     spending a lot (pushing) on advertising and consumer promotions to build up
     consumer demand.

Answer:   (False)  Difficulty:  (2)  Page:  477, 478, Figure 13-2

115. B2B marketers tend to use a push strategy (push more), putting more funds into
     personal selling, followed by sales promotion, advertising, and public relations.

Answer:   (True)  Difficulty:  (2)  Page:  478

116. Advertising can be traced back to the very beginnings of recorded history.

Answer:   (True)  Difficulty:  (1)  Page:  478

117. The largest U.S. advertiser is General Motors.

Answer:   (True)  Difficulty:  (2)  Page:  478

118. Building primary demand is one of the possible objectives of persuasive
     advertising.

Answer:   (False)  Difficulty:  (2)  Page:  479, 480, Table 13-1

119. Advertising objectives can be classified by primary purpose--such as do you eat,
     wear, or drive it.

Answer:   (False)  Difficulty:  (3)  Page:  479

120. The affordable method of establishing an advertising budget is valuable because
     it appreciates the impact of promotion on sales.

Answer:   (False)  Difficulty:  (2)  Page:  480

121. One of the arguments to support the competitive-parity method of setting
     advertising budgets is that spending what competitors spend helps to prevent
     promotion wars.

Answer:   (True)  Difficulty:  (2)  Page:  481

122. One of the characteristics of an advertising appeal is that it should be price-
     oriented.

Answer:   (False)  Difficulty:  (2)  Page:  484

123. Snowboarding using a Burton Snow Board could be a theme incorporated into
     a lifestyle commercial.

Answer:   (True)  Difficulty:  (1)  Page:  487

124. In mood or image advertising, no claim is made about the product except through
     suggestion.

Answer:   (True)  Difficulty:  (2)  Page:  487

125. Reach is a measure of how many times the average person in the target market is
     exposed to the message.

Answer:   (False)  Difficulty:  (1)  Page:  488

126. Some of the very real problems with direct mail are high absolute costs, high clutter,
     fleeting exposure, and less audience selectivity.

Answer:   (False)  Difficulty:  (3)  Page:  489, Table 13-2

127. If a company wants the advantage of no ad competition within the same medium
     when picking a media form for advertising, they would choose direct mail.

Answer:   (True)  Difficulty:  (2)  Page:  489, Table 13-2

128. If a company wants the advantage of high repeat exposure, low cost, low
     message competition, and good positional selectivity when picking a media form
     for advertising, they would choose radio.

Answer:   (False)  Difficulty:  (3)  Page:  489, Table 13-2

129. Pulsing means scheduling ads unevenly over a given time period.

Answer:   (True)  Difficulty:  (1)  Page:  490

130. Sales effects of advertising are often easier to measure than the communication
     effects.

Answer:   (False)  Difficulty:  (2)  Page:  492

131. The largest U.S. advertising agency is now J. Walter Thompson International.

Answer:   (False)  Difficulty:  (2)  Page:  493

132. Most international advertisers think globally and act locally.

Answer:   (True)  Difficulty:  (1)  Page:  493

133. Sales promotion offers reasons to buy in the future since the buyer will probably
     not buy now.

Answer:   (False)  Difficulty:  (1)  Page:  495

134. An example of a consumer promotion tool is an allowance.

Answer:   (False)  Difficulty:  (2)  Page:  497-499

135. Price packs are like coupons except that the price reduction occurs after the
     purchase rather than at the retail outlet.

Answer:   (False)  Difficulty:  (2)  Page:  498



136. Kroger’s grocery stores agreed to feature Coca-Cola products in three end-of-
     aisle displays for two weeks in October.  In return, Coca-Cola agreed to reduce
     the price of their products to Kroger’s by five cents a carton.  This would be called
     an allowance.

Answer:   (True)  Difficulty:  (2)  Page:  499

137. Push money is a bribe in most circumstances and is deemed illegal by the
     Federal Trade Commission.

Answer:   (False)  Difficulty:  (2)  Page:  499, 500

138. One of the functions of advertising is to head off unfavorable rumors, stories,
     and events that might negatively impact a firm and its goods and services.

Answer:   (False)  Difficulty:  (2)  Page:  501

139. The public affairs role of public relations activities is to build and maintain
     national or local community relations.

Answer:   (True)  Difficulty:  (1)  Page:  501

140. Public relations is often described as a marketing stepchild because of its
     limited and scattered use.

Answer:   (True)  Difficulty:  (1)  Page:  502

141. One of the difficulties in transferring marketing and communications functions to
     the Internet and a company’s Web site is the inability of these Web sites to
     perform an adequate public relations role.

Answer:   (False)  Difficulty:  (2)  Page:  504



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