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c. promotion.
The function of informing, persuading, and influencing the consumer’s purchase decision is called:
a. salesmanship.
b. advertising.
c. promotion.
d. communication.
d. customer
The _____ is at the heart of integrated marketing communications.
a. product
b. brand
c. organization
d. customer
b. Standard Chartered bank advertising its newly devised investment solution options in The Economist
Which of the following would be an example of niche marketing?
a. Frito Lay introducing a commercial for its new flavor “Cream-n-Onion” in India
b. Standard Chartered bank advertising its newly devised investment solution options in The Economist
c. A firm hiring people to hand out flyers about its new product at the shopping mall
d. A firm paying college students to try out their new offering of cup-noodles and encouraging their friends to buy it
a. direct sampling.
Sam just received a free trial sample of a bath soap. This is an example of:
a. direct sampling.
b. direct marketing.
c. personal selling.
d. guerrilla marketing.
c. Desire
Johnson & Johnson introduces a new baby lotion which is widely advertised on TV, radio, and the print media. Dana, who has a one year old daughter, decides to buy it the next time she goes to the department store. Which stage of the AIDA process is she in?
a. Attention
b. Interest
c. Desire
d. Action
d. too many competing messages.
In international communications, noise can take the form of:
a. high loyalty to a particular product.
b. nonpurchase of the product.
c. multiple languages spoken in the commercial.
d. too many competing messages.
c. Stabilizing sales
Eric is concerned about one of the products he manages. Sales have declined recently so he begins an intensive promotional campaign. What is Eric’s overall promotional objective likely to be?
a. Increasing selective demand
b. Providing information
c. Stabilizing sales
d. Increasing primary demand
a. advertising.
The ideal form of promotion for large, geographically dispersed audiences that will listen to the same message is:
a. advertising.
b. phishing.
c. public relations.
d. sales promotion.
b. sweepstakes for a year of free gasoline.
Advertising formats can include all of the following except:
a. plastic shopping bags that retailers use to hold merchandise purchased by customers.
b. sweepstakes for a year of free gasoline.
c. billboards.
d. TV monitors at grocery stores.
b. a company pays to have products displayed prominently in a motion picture.
Product placement is a form of non-personal selling where:
a. a company pays to have products displayed prominently at department stores.
b. a company pays to have products displayed prominently in a motion picture.
c. companies engage in promotional tie-ins, such as offering Disney movie toys with every McDonald’s Happy Meal.
d. a company positions its TV commercials during prime hours for its target market.
c. Coupons, rebates
Which group of activities is considered to be a form of sales promotion?
a. Personal selling, advertising
b. Telemarketing, publicity
c. Coupons, rebates
d. Guerrilla marketing, public relations
a. Publicity
_____ is a promotional tool that is generally free, although companies have very limited control over the good or bad company information given by the press or electronic media.
a. Publicity
b. Public relations
c. Sales promotion
d. Advertising
c. a relatively new approach to promotion that avoids orthodox media and attempts to find innovative, low-cost ways to reach a target market.
Guerrilla marketing can best be described as:
a. a defensive strategy that places counter-advertising in a market targeted against strong competitive products.
b. free promotion initiated by fans, loyal customers, or other interested product users.
c. a relatively new approach to promotion that avoids orthodox media and attempts to find innovative, low-cost ways to reach a target market.
d. any negative campaign against a product or a company because of poor performance, initiated by angered consumers who share experiences on blogs and message boards.
a. sponsorship.
The Tostitos BCS National Championship game will feature the top two college football teams competing for the national title. The Tostitos brand name is included in the event’s name because Frito-Lay, the manufacturer, paid for:
a. sponsorship.
b. co-branding rights.
c. direct marketing privileges.
d. cooperative advertising.
b. direct marketing via broadcast channels.
A firm advertised its new line of non-stick 10-piece cookware set on QVC in a 90 second slot with product description and a toll-free number for ordering. This is an example of:
a. personal selling.
b. direct marketing via broadcast channels.
c. direct marketing via infomercials.
d. electronic direct marketing.
c. Cooperative advertising and sales incentives
Which promotional tool would more likely be used by a company adopting a push strategy of product promotion?
a. Print and TV advertising
b. Testimonials and product sampling
c. Cooperative advertising and sales incentives
d. Coupons and rebates
c. product advertising.
When a firm engages in nonpersonal selling of a product or service it is known as:
a. corporate advertising.
b. institutional advertising.
c. product advertising.
d. point-of-sales advertising.
b. institutional
The American Heart Association runs ads in major magazines promoting its mission and successes. These ads are examples of _____ advertising.
a. product
b. institutional
c. reminder
d. persuasive
b. informative
The type of advertising that seeks to develop initial demand for a newly introduced good, service, organization, person, place, idea, or cause is known as _____ advertising.
a. reminder
b. informative
c. comparative
d. advocacy
b. reminder
The type of advertising that strives to reinforce previous promotional activity by keeping the name of the good, service, organization, person, place, idea, or cause before the public is _____ advertising.
a. retentive
b. reminder
c. informative
d. promotional
b. comparative
When Bufferin advertises that its products have a greater pain-relieving effect than aspirin or Tylenol, it is using _____ advertising.
a. cooperative
b. comparative
c. advocacy
d. institutional
b. cooperative
Radio Shack is advertising Sirius satellite radios as gifts for the holiday season. The television ad benefits both companies and is an example of _____ advertising.
a. informative
b. cooperative
c. institutional
d. retail
d. Interactive advertising
Which of the following provides immediate information on products, and helps consumers throughout the purchase and consumption processes?
a. Cooperative advertising
b. Retail advertising
c. Comparative advertising
d. Interactive advertising
a. advertising campaign.
A series of related but different ads that use a single theme and appear in different media within a specified time period is an example of a(n):
a. advertising campaign.
b. reminder advertising.
c. special promotion.
d. advertisement series.
b. frequency.
The number of times a person is exposed to an advertisement during a certain time period is known as:
a. reach.
b. frequency.
c. enumeration.
d. randomization.
d. public relations.
The communication process within a company that builds relationships with customers, employees, stockholders, suppliers, government agencies, and society is called:
a. publicity.
b. stakeholder relations.
c. internal communications.
d. public relations.
b. a promotional presentation conducted on a person-to-person basis with the buyer.
Personal selling can be broadly defined as:
a. selling consumer products.
b. a promotional presentation conducted on a person-to-person basis with the buyer.
c. personalized advertising.
d. the use of promotional material sent directly to the prospective buyer.
c. a consultant and problem solver.
The role of a sales representative in the promotion process has changed from that of persuader to that of:
a. a technician and expert on product repair.
b. a process designer.
c. a consultant and problem solver.
d. a close friend and confidant.
a. who can solve problems, communicate clearly, and be consistent
Company executives usually recognize a good salesperson as a worker:
a. who can solve problems, communicate clearly, and be consistent
b. who has technical expertise in the product.
c. who is focused on achieving quick sales and not on establishing long term customer relationships.
d. who is keen on fostering personal growth.
c. over-the-counter selling.
The personal selling approach that finds a customer coming to the seller’s location and buying desired items largely on their own initiative is:
a. order processing.
b. site selling.
c. over-the-counter selling.
d. relationship selling.
d. field selling, largely because of the travel costs of sales personnel.
The most expensive sales method overall is:
a. over-the-counter sales because of the high overhead in retail operations.
b. telemarketing because of the technology costs.
c. telemarketing because of the high rejection rate from customers who avoid telemarketers.
d. field selling, largely because of the travel costs of sales personnel.
c. Network marketing
Which of the following types of personal selling relies on lists of family members and friends of the salesperson who organizes a gathering of potential customers for an in-home demonstration of products?
a. Missionary selling
b. Cross selling
c. Network marketing
d. Inbound marketing
c. it is cost effective; the average call costs are low.
Although research shows that most consumers dislike the practice of telemarketing and more than 191 million have signed up for the national Do Not Call Registry, organizations still use telemarketing because:
a. it provides employment to a large number of people.
b. it guarantees a sales order with every call.
c. it is cost effective; the average call costs are low.
d. it does not require experienced and trained sales personnel.
b. inside selling.
Telemarketers who combine field selling with a strong customer orientation using both inbound and outbound communications are involved in:
a. customer sampling.
b. inside selling.
c. relationship marketing.
d. outside sales.
a. Understanding customer problems
Which of the following is a part of the consultative selling process?
a. Understanding customer problems
b. Offering multiple goods or services to the same customer
c. Applying pressure to close the sale
d. Concentrating mostly on short-term or quick sales
a. cross-selling.
Jamie works for a local bank. Whenever a new customer opens a checking account, Jamie makes sure to mention some of the other financial services the bank offers. Jamie is engaged in:
a. cross-selling.
b. team selling.
c. transaction selling.
d. virtual selling.
d. presentation.
The stage in the sales process in which the salesperson relates product features to customer needs is the:
a. approach.
b. recall.
c. closure.
d. presentation.
b. the ability to actually demonstrate the good or service.
One important advantage of personal selling over most advertising is:
a. the cost factor; personal selling is much cheaper.
b. the ability to actually demonstrate the good or service.
c. the minimal dependence on technology.
d. the low requirement for skilled salespersons.
b. they are used in conjunction with other forms of advertising.
Sales promotions are most effective when:
a. there is no timeframe to consider.
b. they are used in conjunction with other forms of advertising.
c. the product is new to the market.
d. the company is focused on generating long-term profits.
a. coupon.
The form of sales promotion most commonly distributed by means of free-standing inserts in magazines and Sunday newspapers is called a:
a. coupon.
b. sample.
c. premium.
d. specialty item.
c. price discrimination in sales to wholesalers, retailers, and other producers.
The Robinson-Patman Act specifically prohibits:
a. the accumulation of cost differences in the production of different types of products.
b. earning excess profits, that is, more than the average for an industry.
c. price discrimination in sales to wholesalers, retailers, and other producers.
d. charging the same price to everyone for everything you sell.
a. profitability
Pricing objectives that seek profit maximization or to attain a target return on investment are examples of _____ pricing objectives.
a. profitability
b. volume
c. competitive
d. prestige
a. Pure competition
In which of the following types of market structures would a producer have the least amount of flexibility in setting prices?
a. Pure competition
b. Monopolistic competition
c. Oligopoly
d. Monopoly
a. cost-plus
The most popular method of pricing is _____ pricing.
a. cost-plus
b. breakeven
c. incremental-cost
d. full-cost
b. skimming
In order to recover research and development costs rapidly and earn high initial profits, SenseTV is setting a high price for its plasma TVs. The pricing strategy SenseTV is using is called _____ pricing.
a. market share
b. skimming
c. penetration
d. competitive
b. penetration
When General Motors introduced the Saturn, it priced the SL sports sedan at $2,000 less than the Toyota Corolla DLX and $1,500 less than comparable Nissan and Honda automobiles. This is an example of the _____ pricing strategy.
a. skimming
b. penetration
c. competitive
d. loss leader
c. relying on short-term price-cutting tactics such as cents-off coupons, rebates, and special sales.
Everyday low pricing is a strategy devoted to continuous low prices as opposed to:
a. seasonal changes in prices based on current demand.
b. purely cost-based prices that vary as the manufacturer’s costs vary.
c. relying on short-term price-cutting tactics such as cents-off coupons, rebates, and special sales.
d. prices that are set daily, weekly, or monthly in reaction to competitors’ actions.
c. competitive
Retailers such as Home Depot and Lowe’s, who offer to meet or beat the best price offered by their competitors, use the strategy of _____ pricing.
a. skimming
b. penetration
c. competitive
d. cost-plus
b. list
The price normally quoted to potential buyers before any discounts or allowances are allowed is called the _____ price.
a. unit
b. list
c. cash
d. trade
b. rebates.
Refunds of a portion of the purchase price usually given by manufacturers to purchasers of new products are known as:
a. loss leaders.
b. rebates.
c. shipping charges.
d. trade-ins.