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Indicate whether the statement is true or false.
1. Earned media is a category of promotional tactic based on a public relations or publicity model that gets customers
talking about products or services.
a. True
b. False
2. Publicity refers to the public information about a company, product, service, or issue appearing in the mass media as a
news item.
a. True
b. False
3. Social media rely on the idea of repetition of the brand message.
a. True
b. False
4. Owned media is often used as another term for content marketing.
a. True
b. False
5. Print advertising does not involve using the Internet.
a. True
b. False
6. Print advertising can be used to sell goods and services to potential customers who are hard to locate.
a. True
b. False
7. Sales promotion’s greatest strength is in creating strong desire and purchase intent.
a. True
b. False
8. Personal selling is not required when buyers are well informed and geographically dispersed.
a. True
b. False
9. Advertising increases as a product enters the decline stage of its life cycle.
a. True
b. False
10. Personal selling, unlike other promotional mix elements, is independent of the Internet.
a. True
b. False
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11. Persuasive promotion is used to keep the product and brand name in the public’s mind.
a. True
b. False
12. Social media are a more immediate form of two-way communication than personal selling.
a. True
b. False
13. Noise refers to anything that interferes with, distorts, or slows down the transmission of information.
a. True
b. False
14. Consumers making routine buying decisions are more extensively involved in the decision-making process than
consumers making complex buying decisions.
a. True
b. False
15. A company that offers the same services as its competition has a competitive advantage.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
16. A proper promotional mix is one that:
a. does not use advertising.
b. entails indirect, one-way communication.
c. works for all products of a company.
d. meets the needs of a target market.
17. The managers at Pork Farm Inc., a meat packing company, want to create more consumer demand for the company’s
products that are being overshadowed by its competitors. They have a meeting to decide the effective communication
strategies that can be used to increase the popularity of Pork Farm Inc.’s products among customers by highlighting their
company’s products. In this scenario, the managers at Pork Farm Inc. are developing a _____.
a. promotional strategy
b. distribution strategy
c. service strategy
d. price strategy
18. A difference between paid media and earned media is that unlike paid media, earned media:
a. is based on the traditional advertising model.
b. requires a brand to purchase media space.
c. uses display advertising on Web sites for promotion.
d. is created when people talk and share content on social media.
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19. Nathan is a dance teacher. He has a tendency to raise one eyebrow when a student makes an error in his or her routine.
His students are aware of this quirk and know when it is their cue to correct their movements. In the context of the
communication process, Nathan’s facial expressions are an example of _____.
a. persuasion
b. decoding
c. a channel
d. a recency effect
20. The objective of public relations is:
a. to create the promotional mix for an organization.
b. to educate the public about a company’s goals and objectives.
c. to receive direct feedback from customers.
d. to facilitate consumer empowerment.
21. Threads Inc., an apparel manufacturing company, employs personal selling to market goods. Its employees handcraft
products that are then marketed by a professional team. In this case, which of the following strategies can be adopted by
Threads Inc.?
a. Generating large amounts of publicity quickly
b. Refraining from educating the public about the company’s goals and objectives
c. Making planned presentations to prospective buyers
d. Refraining from advertising and public relations
22. As a product reaches the growth stage of its life cycle, _____.
a. sales promotion can be reduced
b. advertising and public relations play no role in the promotional mix
c. early trial of the product is encouraged
d. mass advertising is used rather than target marketing
23. An objective of a seller engaging in personal selling is:
a. to increase the cost of the product that is being sold.
b. to persuade a buyer to accept a point of view.
c. to use social media sites to talk with large audiences.
d. to make a one-time sale rather than a long-term relationship.
24. Sheila is composing an official memo regarding a new office policy. She is careful while using the right words and
phrasing to clearly convey the objectives of the policy to the staff. In the context of the communication process, Sheila’s
actions exemplify _____.
a. agenda setting
b. encoding
c. decoding
d. persuasion
25. Max is a loan officer at a bank. When he talks to prospective clients, he pays attention to their facial expressions to
gauge whether they are interested or not. He then modifies his pitch as required. In the context of the communication
process, the facial expressions of the client are an example of _____.
a. persuasion
b. decoding
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c. feedback
d. noise
26. Velocity Automobiles Inc. has recently launched a sedan with a biometric vehicle access lock. This feature provides
better anti-theft protection than the current locks being offered by other sedans in its class. As a result, the demand for this
model is higher than the others. In the context of a promotional strategy, the unique feature of the sedan exemplifies
_____.
a. brand harmonization
b. a touch point
c. a competitive advantage
d. product parity
27. Advent Automobiles Inc. launches a new sport utility vehicle (SUV). It develops a marketing message and places
advertisements in leading newspapers and on social media sites to inform consumers about the new SUV and its various
features. In the context of the communication process, Advent Automobiles Inc. is the _____.
a. sender
b. decoder
c. consumer
d. receiver
28. A benefit of advertising is that:
a. it has a very low cost per contact.
b. it facilitates consumer empowerment.
c. it provides opportunity for immediate feedback from consumers.
d. it creates a long-term, committed relationship between a salesperson and a customer.
29. Wild Plus, a television channel dedicated to wildlife, wanted to promote its new wildlife adventure series. The series
received wide coverage in newspapers and on television, which created awareness about Wild Plus and led to a large
viewership. Wild Plus engaged in:
a. divesting.
b. personal selling.
c. public relations.
d. sales promotion.
30. Which of the following is a difference between social media and personal selling?
a. Social media can disperse a message quickly to a wide audience, while personal selling is very slow in dispersing a
message to a large audience.
b. Social media entails two-way communication, while personal selling entails one-way communication.
c. Social media is a means of interpersonal communication, while personal selling is a means of mass
communication.
d. Social media provides opportunity for immediate feedback, while personal selling does not provide opportunity
for direct feedback.
31. To increase its revenue, Sky Airlines, an airline company, decides to promote well-known companies in its in-flight
magazine. These companies would pay a fixed price to Sky Airlines to print their promotional messages in the in-flight
magazine. In the context of the promotional mix, the in-flight magazine is being used for _____.
a. direct selling
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b. public relations
c. personal selling
d. advertising
32. Which of the following strategies can be used by a firm that uses a pull strategy?
a. Offering aggressive discounts for retailers to buy its products
b. Using trade advertising
c. Offering heavy sampling and introductory consumer advertising
d. Selling products to wholesalers
33. Roar Bros., a beverage manufacturing firm, has recently launched a new energy drink. To make consumers aware of
the new drink and to stimulate their interest in it, the managers at Roar Bros. want to use owned media to promote their
new product. In this case, the managers at Roar Bros. will most likely:
a. make short commercials for the energy drink and upload it on YouTube.
b. encourage customers to share reviews about the energy drink on the firm’s Web site.
c. pay for advertising in television, magazine, radio, or newspaper.
d. use display advertising on Web sites and pay-per-click advertising on search engines.
34. SuperPure, a multimillion-dollar bottled water company, donates regularly to various environmental organizations. It
periodically issues press releases outlining the latest environment-friendly methods used in its plants. The customers of
SuperPure feel good to be associated with the brand name. Which of the following elements of the promotion mix does
SuperPure’s effort exemplify?
a. Advertising
b. Personal selling
c. Sales promotion
d. Public relations
35. _____ consists of all marketing activities that stimulate consumer purchasing and dealer effectiveness.
a. Sales promotion
b. Divesting
c. Personal selling
d. Advertising
36. Beberse, a soda company, launched iced teas in exotic flavors. The drinks did not do very well in the first couple of
months after the launch. The management decided to give out free samples of the iced teas in strategically chosen spots in
large shopping malls. This gave the shoppers a chance to sample the drinks before buying them. In the given scenario, the
management’s decision to give free samples is an example of _____.
a. advertising
b. personal selling
c. content marketing
d. sales promotion
37. _____ is the process by which meanings are exchanged or shared through a common set of symbols.
a. Evaluation
b. Research
c. Analysis
d. Communication
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38. _____ seeks to convert an existing need into a want or to stimulate interest in a new product.
a. Reminder promotion
b. Persuasive promotion
c. Informative promotion
d. Connective promotion
39. Dorothy is a salesperson at a retail store. She is knowledgeable about the most popular products and her friendly
manner puts customers at ease. She patiently answers all queries and assists customers in making a decision. Dorothy’s
interaction with the customers is an example of _____.
a. interpersonal communication
b. mass communication
c. intergroup communication
d. intrapersonal communication
40. PowertoU has developed an organic and natural energy drink. Before launching the drink in the market, the
management of PowertoU decides to release a teaser video about the product and its contents and benefits. In the context
of the goals of promotion, this an example of _____.
a. informative promotion
b. persuasive promotion
c. reminder promotion
d. relationship promotion
41. Doodle Inc., a renowned interior design services company, tries to increase its customer base through Web presence. It
regularly posts its interior decorations on its Web site, and its followers can review the designs, suggest changes, and
recommend the company to their friends. This results in electronic word of mouth advertising. Doodle uses social media
as a(n) _____.
a. paid media
b. earned media
c. owned media
d. free media
42. Bag TV, a commercial television broadcast network, uses billboards, television, magazines, and newspaper
advertising to create awareness about upcoming shows and to inform viewers about the new episodes of its existing
shows. Bag TV uses _____ to promote its television programs.
a. intrapersonal communication
b. mass communication
c. intergroup communication
d. interpersonal communication
43. Sabrina owns a cosmetics company. Her company has recently developed a range of beachwear make-up products.
When the marketing department creates an ad depicting models on pristine Caribbean beaches, she rejects the ad because
she feels that it draws more attention to the beaches rather than the make-up. In the context of the communication process,
the beaches in the given ad are an example of _____.
a. reception
b. a channel
c. noise
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d. a primacy effect
44. Which of the following is a difference between a push and a pull strategy?
a. Social media is used in a push strategy, while personal selling is used in a pull strategy.
b. Wholesalers are targeted in a push strategy, while end consumers are targeted in a pull strategy.
c. A push strategy focuses on content marketing, while a pull strategy focuses on offering aggressive discounts.
d. No intermediaries are involved in a push strategy, while wholesalers and retailers are involved in a pull strategy.
45. Which of the following statements is true of buying decisions?
a. The type of buying decision does not affect the promotional mix of an organization.
b. Consumers are not involved in complex buying decisions.
c. Print advertising may be used for high-involvement purchase decisions.
d. Personal selling is most effective in helping consumers in routine decisions.
46. Lisa opened a bistro near a popular hiking trail and advertised heavily on popular travel Web sites. She also
distributed flyers in the local tourist information center and posted information about the bistro on social media. The
communication channels that Lisa used to generate awareness about her bistro are referred to as _____.
a. competitive advantage
b. interpersonal marketing
c. the marketing mix
d. the promotional mix
47. King’s Crown, a beverage company, launches a new energy drink. It sponsors a marathon in the city as part of its
promotional strategy. Moreover, it issues a press release about the sponsorship and persuades media reporters of different
newspapers to print it. King’s Crown is generating _____.
a. marketing mix
b. loyalty
c. sales response
d. publicity
48. A _____ requires a manufacturer to focus its promotional efforts on end consumers.
a. push strategy
b. print marketing strategy
c. pull strategy
d. service strategy
49. Which of the following is a characteristic of the elements of a promotional mix?
a. All elements of the promotional mix entail direct, one-way communication.
b. Managerial emphasis is the minimum for the most important element in the promotional mix.
c. The most important promotional element receives the least funding in the promotional mix.
d. Data influences how marketers distribute funding among the various elements of the promotional mix.
50. Fournotts Bros. is a firm that designs and manufactures women’s apparel. It sells its merchandise to retailers to handle
them. Given this information, which of the following statements is true of Fournotts Bros.?
a. Its retailers convince consumers to buy Fournotts Bros.’s products.
b. It uses a pull strategy to sell its merchandise.
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c. It uses introductory consumer advertising as a part of its strategy.
d. It focuses its promotional efforts on end consumers or opinion leaders.
51. The _____ is the combination of advertising, personal selling, sales promotion, social media, and public relations that
is used to reach a target market and fulfill an organization’s overall goals.
a. product mix
b. retailing mix
c. distribution mix
d. promotional mix
52. Which of the following statements is true of sales promotions?
a. It is a long-run tool used by marketers.
b. It complements advertising by yielding faster sales responses.
c. It is allotted less marketing money than advertising.
d. It uses personal selling, advertising, and public relations.
53. The basic goal of promotion during the introduction stage of the product life cycle is:
a. to limit personal selling at the retail level.
b. to target advertising to specific potential buyers.
c. to reduce the costs incurred in mass advertising.
d. to inform the target audience that the product is available.
54. Natasha, a food enthusiast and an amateur chef, bought a newly launched food processor. It exceeded her
expectations. She posted a short review of the food processor on a popular social networking website. Her post was later
picked up by a popular food blogger, and it went viral. Which of the following promotional tactics does the given scenario
exemplify?
a. Paid media
b. Earned media
c. Owned media
d. Controlled media
55. As receivers in the communication process, marketers:
a. inform and remind the target market of new and existing products.
b. listen to the target market in order to develop appropriate messages.
c. persuade the target market to buy a company’s products.
d. promote the purchase of goods and services.
56. Which of the following is a reason for the increasing popularity of the integrated marketing communications (IMC)
concept?
a. More selectively segmented markets have replaced the traditional broad market groups.
b. Marketers have discontinued the use of online advertising due to its lack of measurability.
c. Proliferation of thousands of media choices beyond traditional television has made promotion easier.
d. Marketers have increased their advertisement spending for promotional techniques that generate gradual sales
responses.
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57. The researchers at Beans Inc., a coffee manufacturing company, developed a new variety of high-quality ground
coffee. The new variety was priced at a comparatively lower price than those available in the market. Therefore, the
advertisements for the product stated, “The highest quality coffee does not have to be expensive.” This is an example of
communicating a product’s _____.
a. marketing mix
b. product parity
c. competitive advantage
d. competitive parity
58. Robin and his friends developed a low-cost antivirus software with superior ability to protect computers from the
latest viruses and malware. They printed flyers and distributed it in their neighborhood. The flyers, though very
informative, were full of computer jargons, and a majority of the target audience was not able to understand it. In the
context of the communication process, the given scenario exemplifies a failure in _____.
a. intrapersonal communication
b. upselling
c. interpersonal communication
d. decoding
59. _____ refers to communication by marketers that informs, persuades, and reminds potential buyers of a product in
order to influence an opinion or elicit a response.
a. Upselling
b. Production
c. Promotion
d. Encoding
60. Megan owns a popular café. Although the café has many loyal customers who love the coffee and sandwiches, Megan
frequently advertises in the local newspapers and on the radio. This is an example of _____.
a. informative promotion
b. relationship promotion
c. reminder promotion
d. persuasive promotion
61. Dernz Inc., a food manufacturing company, markets tomato ketchup globally. As its consumers are well aware of the
uses of ketchup, the company does not have to generate product awareness. The company, however, wishes to focus on
convincing consumers to buy Dernz’s ketchup instead of other brands’ ketchup. In this scenario, Dernz Inc. must employ
_____.
a. reminder promotion
b. persuasive promotion
c. informative promotion
d. connective promotion
62. A difference between interpersonal communication and mass communication is that:
a. noise level is high in interpersonal communication, whereas it is low in mass communication.
b. reception level is high in interpersonal communication, whereas it is low in mass communication.
c. senders receive indirect feedback in interpersonal communication, whereas they receive direct feedback in mass
communication.
d. in interpersonal communication, a company does not know the people with whom it is trying to communicate,
whereas in mass communication, a company knows the people personally.
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63. _____ is based on the traditional advertising model, whereby a brand offers money for media space.
a. Paid media
b. Owned media
c. Earned media
d. Free media
64. The _____ is a model that outlines the process for achieving promotional goals in terms of stages of consumer
involvement with a promotional message.
a. BCG matrix
b. IMC model
c. AIDA model
d. SWOT matrix
65. Unlike traditional methods of personal selling, relationship selling:
a. focuses on accomplishing the objectives of a salesperson.
b. focuses on making quick sales that stimulate immediate increases in demand.
c. focuses on maintaining a loyal relationship between a salesperson and a customer.
d. focuses on creating a win–lose situation as the objectives of the seller are at the expense of the buyer.
66. Robert is a salesperson at Sepia Furnishings, a mattress store. He is knowledgeable about the products and helps
customers understand technical differences between the various models of the mattresses. If the customers look
convinced, he encourages them to lie down on the mattresses and try them. In the given scenario, Robert is engaged in
_____.
a. personal selling
b. advertising
c. public relations
d. sales promotion
67. _____ is designed to stimulate a purchase or an action.
a. Connective promotion
b. Reminder promotion
c. Informative promotion
d. Persuasive promotion
68. _____ is a promotional element with a very low cost per contact.
a. Social media
b. Personal selling
c. Public relations
d. Sales promotion
69. Ribena Automobiles launched an electric car called Guépard a few months ago. The initial launch created quite a buzz
in the market because of the new technology used in the car. Later, to boost sales and make people choose Guépard over
other cars, the company aired an ad promoting it as “the car for people who care.” In the given scenario, the promotion
strategy used by Ribena Automobiles is an example of _____.
a. persuasive promotion
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b. relationship promotion
c. informative promotion
d. reminder promotion
70. Explain the different stages of the product life cycle.
71. Briefly explain the AIDA model.
72. Briefly explain how the elements of the promotional mix affect the target audience.
73. Write a note on interpersonal and mass communication.
74. Briefly explain the integrated marketing communications (IMC) concept. What are the reasons for its growing
popularity?
75. Describe informative promotion with examples.
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Answer Key
1. True
2. True
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