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Chapter 16 - Using Effective Promotions
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1. As a component of the promotion mix, advertising includes each of the activities
marketers use to inform people about products and persuade them to participate in an
exchange.
2. A firm's promotion mix refers to the combination of different promotional tools used to
persuade consumers to participate in an exchange.
3. Integrated marketing communication simplifies the marketing process by replacing
personal selling with extensive use of advertising to create a positive brand image.
4.
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Integrated marketing communication combines all the promotional tools into one
comprehensive, unified promotional strategy.
5. Integrated marketing communication combines each element of the promotional effort to
create a unique message for a product sold in different markets.
6. Creating a unified positive image of a company in the public's mind is the end result of
effective integrated marketing communication.
7. Combining a firm's promotional tools and resources to create a positive brand image is the
goal of integrated marketing communication.
8.
Chapter 16 - Using Effective Promotions
The promotional budget will clarify how much can be spent on advertising and personal
selling.
9. The first step in creating a promotional campaign is to define the objectives for each
element of the marketing mix.
10. The last step in creating a promotional campaign is to evaluate the effectiveness of each
element of the promotional mix.
11. The development of a unified promotional strategy that uses each element of the
promotion mix to create a favorable brand image is the goal of a primary promotional
process.
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15. When developing the promotional campaign for a new product, the first step for a firm is
to identify their target market.
Feedback: Figure 16.2 identifies the 6 steps in a promotional campaign. The first step
involves the identification of the target market.
16. Marla has developed a new advertising message for one of her firm's new products. She
has sent copies of the ad to all of the salespeople in the firm and asked them to stress the
benefits mentioned in the ad when they call on their customers. Finally, the ad includes a
free sample coupon to encourage people to try this new product. She is attempting to
create one positive, unified brand image for the new product. Marla is practicing brand
communication.
Feedback: Marla is practicing integrated marketing communication because she is combining
the promotional tools of advertising, personal selling, and sales promotion to achieve a
positive, unified brand image for the new product.
17. Depending upon the promotional campaign, advertising may include paid and non-paid
forms of non-personal communication.
18.
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Trade advertising is advertising to consumers by manufacturers to encourage them to try
their products.
19. Institutional advertising creates an attractive image for an organization rather than for a
product.
20. Advocacy advertising is advertising that supports a particular view of an issue such as
gun control.
21. When a manufacturer advertises to wholesalers and retailers in an attempt to encourage
them to carry its products, it is engaging in institutional advertising.
22.
Chapter 16 - Using Effective Promotions
The purpose of institutional advertising is to create an attractive image for an
organization.
23. Advertising provides the public with free TV and radio programs.
24. Newspapers, radio, and the Yellow Pages are especially attractive to local advertisers.
25. Advertising helps to cover the production costs of newspapers and magazines.
26. The major complaint with advertising is that it provides no real benefits to the public.
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27. Free TV and radio broadcasting is made possible by advertising.
28. Advertising on the Internet has become the number one medium and ranks ahead of
newspapers and network television, based on total advertising expenditures.
29. Television (broadcast and cable) and direct mail are the top two advertising media when
ranked by total expenditures.
30. Internet advertising is rapidly growing and now ranks third in terms of total advertising
expenditures.
31.
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Direct mail, broadcast and cable television, and newspapers are the top three advertising
media when ranked by total expenditures.
32. The number one advertising medium in terms of total dollar expenditures is newspapers.
33. Because TV advertising is so expensive, it is less popular than in the past, it now ranks
sixth in total advertising expenditures.
34. Direct mail is usually the best advertising medium to reach specific target markets and
ranks number one in overall advertising expenditures.
35.
Chapter 16 - Using Effective Promotions
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A 30-second Super Bowl commercial costs about $3 million, but given the audience for
its telecast is considered an effective advertising purchase.
36. Magazine advertising main strengths are high visibility, repeat exposures, and basically
very low cost.
37. One problem with newspaper advertisements is that they have a short life span.
38. Radio advertising has certain shortcomings but offers businesses an opportunity to reach
a specific target market.
39.
Chapter 16 - Using Effective Promotions
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A TV program made to look like a television show but devoted exclusively to promoting
goods and services is called an infomercial.
40. The popularity of infomercials has declined in recent years.
41. When marketers advertise on a big online search engine like Bing or Google, they can
reach the people they most want to reach.
42. One of the benefits of advertising on the Internet is that it provides a way to link firms
and customers so that they can learn more about each other.
43.
Chapter 16 - Using Effective Promotions
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Interactive promotion allows customers and companies to work together to create
mutually beneficial exchange relationships in an ongoing dialogue.
44. Online advertising allows advertisers to see how many people have clicked on an
advertisement and how much of it the potential customer has read or watched.
45. The Internet has changed the emphasis of promotion from "promoting to" customers to
"working with" customers.
46. The Internet allows firms to listen to customers' wants, track their purchases, provide
them with better service, and more access to information.
47.
Chapter 16 - Using Effective Promotions
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The purpose of interactive promotion is to create a monologue that convinces customers
to act quickly.
48. When it comes to reaching global markets, evidence supports the conclusion that the "one
size fits all" approach to promotional mix design is best.
49. Global advertising can save companies money in research and ad design.
50. The primary emphasis of advertising today is to move from regional approach in global
markets to a total globalist approach.
51.
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When advertising in global markets it is important to remember that brand names and
promotional campaigns can often be translated differently from what the marketer
attempts to say.
52. Green Space is an organization concerned about preserving forests and wilderness areas.
They hope to raise the public's awareness regarding this issue. Green Space can
communicate their concern by utilizing advocacy advertising.
Feedback: Advocacy advertising, also known as cause advertising, supports a particular view
of an issue. Gun control and anti-smoking ads represent examples of advocacy advertising.
53. Advertising reaches a national audience more effectively than it communicates with a
local market.
Feedback: Newspapers, radio, and the Yellow Pages are all advertising media that do an
excellent job of covering a local market.
54.
Chapter 16 - Using Effective Promotions
Pat's Pie Pantry generates significant word-of-mouth advertising by delighting their
customers with delicious pies. Word of mouth represents the use of advertising.
Feedback: Word of mouth does not meet several of the criteria that characterize advertising.
Advertising is paid non-personal communication through various media. Word of mouth is
unpaid personal communication that does not go through a medium.
55. Mailing ads to nearby residents helps grocery stores reach their target market with
information of special sales. This represents direct mail advertising.
Feedback: Advertising refers to paid, non-personal communication through various media.
Since direct mail is a paid, non-personal communication through the mail, it should be
considered advertising.
56. Magazines such as People, Sports Illustrated, and Business Week pay for much of the
cost of producing their publications by selling advertising space in the magazines.
Feedback: Advertising covers the major costs of producing newspapers and magazines.
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64. Effective selling involves helping others to satisfy their wants and needs.
65. Since personal selling involves face-to-face contact with customers, salespeople make
little if any use of technology in performing their jobs.
66. Personal selling in the B2B market represents a relatively inexpensive method of
promoting a firm's products.
67. The average cost of a single sales call to a potential B2B buyer is expensive costing as
much as $400.
68.
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Personal selling involves more than presenting the product and closing the deal. Other
activities include the search for new prospects and follow-up services after the sale.
69. Closing the sale represents success for the salesperson and the final step in the selling
process.
70. Validation refers to the process of determining whether a potential customer has the need
for a product, the authority to buy, and the willingness to listen to a sales message.
71. The first step in the selling process involves prospecting for potential customers and
choosing those most likely to buy.
72.
Chapter 16 - Using Effective Promotions
The purpose of a trial close in the selling process is to learn as much as possible about
customers and their wants and needs.
73. The B2B selling process may take a long time before a deal is finalized therefore
gathering information about the customer before you approach them is critical.
74. B2C salespeople spend more time prospecting their customers than do B2B salespeople.
75. After-sale follow-up is an important but often neglected step in B2C sales.
76. The B2C selling process has fewer steps than the B2B selling process.
