CHAPTER 16 MKTG

Which of the following is true of an IMC strategy?
a. It begins with the organization’s goods and services.
b. It sends product-focused messages.
c. It views the parts of a promotional mix as isolated components.
d. It begins with consumer wants or needs.
D
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 a shopping mall
d. A firm advertising a new brand of biscuits on hoardings
B
Delite, a food and beverage company, is launching a new range of frozen food. The marketing department at Delite wants to develop an IMC strategy for the product launch. Which of the following should be the first step taken by the marketing department in order to develop an effective IMC strategy?
a. Design ads for the print and electronic media for maximum reach
b. Identify wants and needs of consumers
c. Establish the product as a superior addition to the existing product range
d. Isolate parts of the promotional mix and allocate them to appropriate departments
B
The _____ is at the heart of integrated marketing communications.
a. product
b. brand
c. organization
d. customer
D
When Sara went to a convenience store to get her weekly grocery shopping done, she got a free sample of a new cereal that had just been introduced in the market. This information indicates that the cereal manufacturer is employing _____ to promote its product.
a. survey sampling
b. direct sampling
c. panel sampling
d. quota sampling
B
Which of the following acts as the source of the message communicated to the receiver in the communication process?
a. Decoder
b. Sender
c. Messenger
d. Sponsor
B
The AIDA concept refers to the steps in:
a. the development of an IMC program.
b. the consumer purchase decision process.
c. the distribution of a product.
d. the production of a product.
B
According to the AIDA concept, which of the following is the first function of a promotional message?
a. Arousing interest in the good or service
b. Gaining the potential consumer’s attention
c. Stimulating desire by convincing the potential buyer of the product’s ability to satisfy his or her needs
d. Producing an action in the form of a purchase or a more favorable attitude that may lead to a future purchase
B
Brad is a pharmaceutical representative for Merck. He attends a medical conference where he gives a presentation about a new drug which is being manufactured by his company. Brad’s presentation is a part of Merck’s IMC effort and it represents:
a. encoding of the product message.
b. decoding of the product message.
c. feedback for the promotional message.
d. noise generated by the promotional message.
A
The communication process begins with:
a. noise.
b. channeling.
c. encoding.
d. decoding.
C
In communicating a promotional message, decoding refers to the:
a. translation of the message into understandable terms and transmitting it through the communication channel.
b. receiver’s interpretation of the message transmitted through the communication channel.
c. receiver’s response to the message transmitted through the communication channel.
d. noise that interferes with the transmission of the message through the communication channel.
B
When potential buyers call up to place their orders after seeing a telemarketing promotional message for a product, it is an example of:
a. encoding.
b. decoding.
c. noise.
d. feedback.
D
When a major pharmaceutical scandal shook people’s belief in the Health Ministry, the public relations department in the ministry devised an IMC strategy to positively influence public perception. An evaluation of the effectiveness of the IMC strategy reported a positive change in the public perception of the ministry. In the context of the communication process, this change in perception represents _____.
a. encoding
b. channeling
c. feedback
d. noise
C
In the context of the communication process, translating a message into understandable terms and transmitting it through a communications channel is known as _____.
a. decoding
b. referencing
c. polarizing
d. encoding
D
The receiver’s response, known as _____, completes the communication process.
a. epistle
b. encoded message
c. feedback
d. channeled data
C
Which of the following is the oldest form of promotion?
a. Product placement
b. Personal selling
c. Guerrilla marketing
d. Ambush marketing
B
Which of the following is an example of personal selling?
a. Banners on websites
b. Videoconferencing
c. Print ads
d. Hoardings
B
Which of the following terms best represents an interpersonal influence process that involves a seller’s promotional presentation conducted on a face-to-face basis with the buyer?
a. Social referencing
b. Personal selling
c. Mass marketing
d. Advertising
B
Paid, nonpersonal communication through various media about a business firm, not-for-profit organization, product, or idea by a sponsor identified in a message intended to inform or persuade members of a particular audience is called _____.
a. sales promotion
b. advertising
c. product placement
d. direct marketing
B
Which of the following constitutes nonpersonal selling?
a. Product placement in a TV show
b. Face-to-face interaction between a buyer and a seller
c. Telephonic conversation between a buyer and a seller
d. A videoconference between a marketer and a customer
A
Which of the following is an example of advertising?
a. A billboard with the image of a celebrity endorsing a product
b. Conspicuous placing of a product in a popular TV show
c. Giving away free sample of a product
d. Holding a contest to promote a product
A
Which of the following methods of promotion is most likely to be used for promoting a consumer product targeted at a geographically dispersed market if the audiences are likely to respond to the same promotional messages?
a. Trade promotion
b. Advertising
c. Trade shows
d. Personal selling
B
Product placement is a form of non-personal selling where:
a. a company pays a fee to have its products displayed prominently at department stores.
b. a company pays a fee to have its products displayed prominently in a film or TV show.
c. a company engages in promotional tie-ins with other firms through co-branding.
d. a company positions its TV commercials during prime hours for its target market.
B
A popular morning chat show on a TV channel shows its host and guests drinking coffee from coffee mugs which have been engraved with the logo of a popular coffee chain. This is an example of:
a. personal selling.
b. trade promotion.
c. product placement.
d. sales promotion.
C
A jewelry house organizes an amateur jewelry designing contest to promote the launch of its new range of bridal jewelry. This is an example of:
a. advertising.
b. sales promotion.
c. direct marketing.
d. personal selling.
B
A manufacturer of a well known brand of cosmetics offering buyback allowances to its retailers for its new line of lip color is an example of:
a. guerrilla marketing.
b. product placement.
c. trade promotion.
d. personal selling.
C
Global Solutions Inc., an IT firm, regularly organizes meetings for its stockholders to update them on the firm’s performance and achievements. This is an example of:
a. guerrilla marketing.
b. sales promotion.
c. a product placement program.
d. a public relations program.
D
Which of the following terms refers to the nonpersonal stimulation of demand for a good, service, person, cause, or organization through unpaid placement of significant news about it in a published medium or through a favorable presentation of it on the radio or television?
a. Publicity
b. Advertising
c. Product placement
d. Sponsoring
A
Which of the following is true of using publicity as a promotional strategy?
a. Companies have to spend more for publicity than advertising or personal selling.
b. Companies have less control over whether the press publishes good or bad news.
c. Consumers tend to believe more in company-disseminated information than in publicity-generated news.
d. Companies tend to view all kinds of publicity—good or bad—as profitable for the company’s reputation and its brand equity.
B
The use of unconventional, innovative, and low-cost marketing techniques designed to get consumers’ attention in unusual ways is called _____.
a. guerrilla marketing
b. cause marketing
c. mass marketing
d. cloud marketing
A
In an attempt to expand viewership of the television show Mystery Science Theater 3000 in its early days, the producers encouraged viewers to make copies of the show on video tapes and give them to friends. The closing credits included the words “Keep circulating the tapes!” This is an example of:
a. guerrilla marketing.
b. cause marketing.
c. ambush marketing.
d. cloud marketing.
A
Which of the following is a disadvantage of personal selling as a promotional strategy?
a. It elicits a delayed response from targeted consumers.
b. It is difficult to measure its promotional effectiveness.
c. It cannot mold the message to fit the customer need.
d. It is expensive and involves high cost per contact.
D
Which of the following is a disadvantage of advertising as a promotional strategy?
a. It is expensive due to high cost per contact.
b. It allows very little control over the final promotional message.
c. It does not permit totally accurate measurements of results.
d. It cannot be adapted to either mass audience or specific audience segments.
C
Which of the following is a disadvantage of sales promotion as a promotional strategy?
a. It elicits a delayed consumer response.
b. It does not provide short-term increase in sales.
c. It is difficult to measure its promotional effectiveness.
d. It is difficult to differentiate from competitors’ efforts.
D
Which of the following is a disadvantage of using direct marketing as a promotional strategy?
a. It generates a delayed consumer response.
b. It is expensive as it involves high cost per reader.
c. It does not allow the use of customized, personal messages.
d. It covers a small audience with targeted advertising.
B
Which of the following is a disadvantage of using public relations as a promotional strategy?
a. It involves much effort directed towards non-marketing oriented goals.
b. It creates a negative attitude toward a product or company.
c. It damages the credibility of a product or company.
d. It is a highly expensive method of promotion.
A
Which of the following is a disadvantage of guerrilla marketing?
a. Customers don’t pay attention to it as it is a very traditional form of marketing.
b. Marketers have to invest a lot of money for the innovation involved in guerrilla marketing.
c. Competitors can easily imitate the techniques used in guerrilla marketing.
d. Marketers run the risk of reaching a limited number of potential consumers.
D
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.
A
Non-personal selling of a particular good or service is called _____ advertising.
a. institutional
b. product
c. corporate
d. retail
B
A newly opened spa uses a print ad to promote the service packages it offers to customers. This is an example of _____ advertising.
a. retail
b. product
c. institutional
d. corporate
B
Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency is called _____ advertising.
a. institutional
b. product
c. retail
d. cooperative
A
Think Green, a not-for-profit organization, promotes its “go vegan” lifestyle by publishing advertisements in the print media as well as electronic media. This is an example of _____ advertising.
a. product
b. institutional
c. retail
d. cooperative
B
The American Heart Association runs ads in major magazines promoting its mission and successes. These ads are examples of _____ advertising.
a. cooperative
b. institutional
c. ambush
d. persuasive
B
Promotion that seeks to develop initial demand for a good, service, organization, person, place, idea, or cause is called _____ advertising.
a. informative
b. persuasive
c. reminder
d. evaluative
A
Nokia is set to launch a new model of smartphones. Which of the following types of promotion should Nokia employ to drive initial sales for its new model?
a. Reminder advertising
b. Informative advertising
c. Persuasive advertising
d. Evaluative advertising
B
Promotion that attempts to increase demand for an existing good, service, organization, person, place, idea, or cause is called _____ advertising.
a. informative
b. persuasive
c. ambush
d. evaluative
B
Advertising that reinforces previous promotional activity by keeping the name of a good, service, organization, person, place, idea, or cause before the public is called _____ advertising.
a. ambush
b. reminder
c. informative
d. guerrilla
B
When Think Green, a not-for-profit organization, realizes that its campaign for a “go vegan” lifestyle has lost its steam; it decides to renew the campaign by holding an international culinary contest for the best vegetarian recipe. This is an example of _____ advertising.
a. informative
b. reminder
c. evaluative
d. retentive
B
Which of the following types of advertising is most likely to be used during the growth stage and the early part of the maturity stage of the product lifecycle?
a. Persuasive advertising
b. Reminder advertising
c. Evaluative advertising
d. Retentive advertising
A
Which of the following types of advertising is most likely to be used in the latter part of the maturity stage and throughout the decline stage of the product lifecycle?
a. Informative advertising
b. Reminder advertising
c. Associative advertising
d. Persuasive advertising
B
When a pharmaceutical company advertises that its product has a greater pain-relieving effect than Tylenol, it is using _____ advertising.
a. cooperative
b. comparative
c. retail
d. institutional
B
Which of the following is true of celebrity testimonials?
a. The most effective celebrity testimonial ads use the most popular celebrity regardless of his/her credibility as a message source.
b. The most effective celebrity testimonial ads link the celebrity and the advertised good or service.
c. The most effective celebrity testimonial ads feature those celebrities who endorse the most number of products.
d. The celebrity testimonial ads tend to be effective only when they are displayed in print media.
B
Which of the following terms do advertisers use to describe a promotional environment that is filled with hundreds of competing 15- and 30-second commercials?
a. Noise
b. Click-through
c. Split run
d. Clutter
D
_____ advertising includes advertising by stores that sell goods or services directly to the consuming public.
a. Evaluative
b. Referenced
c. Associative
d. Retail
D
Star, a supermarket chain, runs print advertisements promoting best deals for different products every week. This is an example of _____ advertising.
a. retail
b. associative
c. referenced
d. corporate
A
Which of the following is a strategy in which a retailer shares advertising costs with a manufacturer or a wholesaler?
a. Cooperative advertising
b. Corporate advertising
c. Institutional advertising
d. Community advertising
A
_____ advertising includes two-way promotional messages transmitted through communication channels that induce message recipients to participate actively in the promotional effort.
a. Comparative
b. Retail
c. Interactive
d. Cooperative
C
An apparel marketer pays a percentage of the cost of a retail store’s newspaper advertisement featuring its product lines. This is an example of:
a. comparative advertising.
b. cost-effective advertising.
c. budget advertising.
d. cooperative advertising.
D
Oriental Insurance promotes identity theft insurance with an advertisement that warns viewers about stealing of credit cards and usage of fake social security numbers. Which appeal is being used in this commercial to motivate the viewers to act?
a. Factual appeal
b. Humor
c. Cooperation appeal
d. Fear appeal
D
Which of the following elements of a print advertisement focuses on informing, persuading, and stimulating buying action?
a. Body copy
b. Headline
c. Illustration
d. Signature
A
Which of the following elements of a print advertisement contains the company name, address, web address, slogan, trademark, logo, or names the sponsoring organization?
a. Slogan
b. Headline
c. Illustration
d. Signature
D
Which of the following is the most common type of advertising on the web?
a. Banner advertisements
b. Pop-ups
c. Interstitials
d. Advergames
A
Banners have evolved into a more target-specific technique for Internet advertising with the advent of:
a. pop-ups.
b. interstitials.
c. missiles.
d. advergames.
C
_____ are an outcropping of banner ads that appear on the results page of a search and are specific to the searched term.
a. Pop-ups
b. Interstitials
c. Advergames
d. Keyword ads
D
Which of the following is a disadvantage of using television as an advertising medium?
a. Ineffective impact of the promotional message on viewers
b. Loss of control of the promotional message to the telecaster
c. Inability to attain mass coverage
d. Inability to repeat messages
B
A disadvantage of using radio as an advertising medium is that:
a. it has a highly segmented audience.
b. the message cannot be tailored easily to adapt to local preferences.
c. it is expensive.
d. it lacks flexibility.
A
Which of the following types of advertising media dominates local markets?
a. Radio
b. Network television
c. Cable television
d. Newspapers
D
Setting the timing and sequence for a series of advertisements is known as:
a. media sourcing.
b. media scheduling.
c. media polarizing.
d. media programming.
B
Compared to other broadcast media, cable advertising is more likely to attract specialized audiences and permit niche marketing. This characteristic of cable advertising is known as _____.
a. narrowcasting
b. personalcasting
c. crowdcasting
d. datacasting
A
_____ refers to a company’s messages about general management issues.
a. Nonmarketing public relations
b. Corporate advertising
c. Institutional advertising
d. Cooperative public relations
A
A local newspaper is planning to come up with a special series on the growth of entrepreneurship within the community. Each week an article featuring a different business owner and his or her success story will be published. For the featured business owners, this type of promotion would constitute _____.
a. sales promotion
b. publicity
c. trade promotion
d. direct selling
B
In which of the following types of MPR, the marketer takes the initiative and seeks out opportunities for promoting the firm’s products?
a. Active MPR
b. Proactive MPR
c. Passive MPR
d. Retroactive MPR
B
Which of the following types of MPR responds to an external situation that has potential negative consequences for an organization?
a. Active MPR
b. Passive MPR
c. Proactive MPR
d. Reactive MPR
D
When marketing partners share the cost of a promotional campaign that meets their mutual needs, they are said to be engaged in:
a. ambush marketing.
b. cross-promotion.
c. guerrilla promotion.
d. personal selling.
B
_____ refers to exaggerated claims of a product’s superiority or the use of subjective or vague statements that may not be literally true.
a. Infiltrating
b. Puffery
c. Boosterism
d. Crowdsourcing
B
People are asked to select unidentified products on the basis of available advertising copy in a(n):
a. blind product test.
b. recognition test.
c. unaided recall test.
d. inquiry test.
A
Which of the following is a method of testing alternate ads by dividing a cable TV audience or a publication’s subscribers in two, using two different ads, and then evaluating the relative effectiveness of each?
a. Zapping
b. Split run
c. Crowdsourcing
d. Unaided recall test
B
Which of the following methods of creating a promotional budget allocates a predetermined amount to each sales or production unit?
a. The fixed-sum-per-unit method
b. The meeting competition method
c. The percentage-of-sales method
d. The task-objective method
A
Which of the following is a posttest that assesses advertising effectiveness after it has appeared in a print or broadcast medium?
a. Miller test
b. Unaided recall test
c. Risk-utility test
d. Oakes test
B
Which of the following methods develops a promotional budget based on a sound evaluation of the firm’s promotional goals?
a. The fixed-sum-per-unit method
b. The meeting competition method
c. The percentage-of-sales method
d. The task-objective method
D