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1. Consumers making routine buying decisions are more extensively involved in the decision-making process than
consumers making complex buying decisions.
a.
True
b.
False
ANSWER:
False
2. Social media rely on the repetition of the brand message.
a.
True
b.
False
ANSWER:
False
3. Owned media is also called content marketing.
a.
True
b.
False
ANSWER:
True
4. Personal selling is not required when buyers are well informed and geographically dispersed.
a.
True
b.
False
ANSWER:
False
5. Sales promotion’s greatest strength is in creating strong desire and purchase intent.
a.
True
b.
False
ANSWER:
True
6. Personal selling, unlike other promotional mix elements, is independent of the Internet.
a.
True
b.
False
ANSWER:
False
7. Advertising is increased as a product enters the decline stage of its life cycle.
a.
True
b.
False
ANSWER:
False
8. A company that offers the same services as its competition has a competitive advantage.
a.
True
b.
False
ANSWER:
False
9. Print advertising does not involve using the Internet.
a.
True
b.
False
ANSWER:
False
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10. Persuasive promotion is used to keep the product and brand name in the public’s mind.
a.
True
b.
False
ANSWER:
False
11. Print advertising can be used to sell goods and services to potential customers who are hard to locate.
a.
True
b.
False
ANSWER:
True
12. Social media are a more immediate form of two-way communication than personal selling.
a.
True
b.
False
ANSWER:
False
13. Noise refers to anything that interferes with, distorts, or slows down the transmission of information.
a.
True
b.
False
ANSWER:
True
14. As organizations do not directly pay for publicity, it can be viewed as free.
a.
True
b.
False
ANSWER:
False
15. Earned media is controlled by the brand but continuously keeps the customer and his or her needs in mind as it creates
videos, blog posts, contests, photos, and other pieces of content.
a.
True
b.
False
ANSWER:
False
16. 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 the other varieties of coffee 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
ANSWER:
c
17. To increase its revenue, Sky Airlines, an airline company, decides to promote well-known brands in its in–flight
magazine. These brands would pay a fixed price to Sky Airlines to print their promotional messages in the 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
ANSWER:
d
18. Wild Plus, a television channel dedicated to wildlife, wanted to promote its new wildlife adventure series. The series
was given wide coverage in newspapers and on television after the channel promoted it, which created awareness about
Wild Plus and led to a large viewership. In this case, Wild Plus engaged in:
a.
advertising.
b.
personal selling.
c.
public relations.
d.
sales promotion.
ANSWER:
c
19. Which of the following statements is true of marketers as senders in the communication process?
a.
They adapt existing messages.
b.
They listen to the demands of target markets.
c.
They spot new communication opportunities.
d.
They remind the target markets to take action.
ANSWER:
d
20. _____ plays a very important role in how marketers distribute funding among their promotional mix tactics.
a.
Data
b.
Strategy
c.
Noise
d.
Publicity
ANSWER:
a
21. _____ includes media such as television, magazine, outdoor, radio, or newspaper advertising.
a.
Paid media
b.
Owned media
c.
Earned media
d.
Free media
ANSWER:
a
22. Threads Inc., an apparel manufacturer, 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 should be adopted by
Threads Inc.?
a.
It should generate large amounts of publicity quickly.
b.
It should refrain from educating the public about the company’s objectives.
c.
It should make planned presentations to prospective buyers.
d.
It should refrain from advertising and public relations.
ANSWER:
c
23. Which of the following statements is true of a proper promotional mix?
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a.
It does not use advertising.
b.
It entails indirect, one-way communication.
c.
It works for all products of a company.
d.
It meets the needs of a target market.
ANSWER:
d
24. Which of the following statements is true of sales promotion?
a.
It includes experiential marketing whereby marketers create events that enable customers to connect with
brands.
b.
It includes a planned presentation to one or more prospective buyers for the purpose of making a sale.
c.
It consists of impersonal, one-way mass communication about a product or organization that is paid for by a
marketer.
d.
It includes public information about a company, product, service, or issue appearing in the mass media as a
news item.
ANSWER:
a
25. Advent Automobiles Inc. has launched a new sport utility vehicle (SUV). It develops a marketing message and places
advertisements in the 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 is the _____.
a.
sender
b.
decoder
c.
consumer
d.
receiver
ANSWER:
a
26. The managers of Pork Farm Inc., a meat-packing company, want to create more consumer demand for the company’s
products that are not as popular as its competitors. They have a meeting to decide on the effective communication
strategies that can be used to increase the popularity of Pork Farm Inc.’s products among customers. They want to do this
by advertising their company’s products. In this scenario, the managers of Pork Farm Inc. are developing the _____.
a.
promotional strategy
b.
distribution strategy
c.
service strategy
d.
price strategy
ANSWER:
a
27. Which of the following statements is a characteristic of sales promotion?
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.
ANSWER:
b
28. Dernz Inc., a food manufacturing company, markets its 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
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employ _____.
a.
reminder promotion
b.
persuasive promotion
c.
informative promotion
d.
connective promotion
ANSWER:
b
29. 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
ANSWER:
b
30. In the context of the promotional mix, _____ attempts to persuade the buyer to accept a point of view.
a.
relationship selling
b.
personal selling
c.
sales promotion
d.
media promotion
ANSWER:
b
31. During the _____ of the product life cycle, the basic goal of promotion is to inform the target audience that the
product is available.
a.
growth stage
b.
decline stage
c.
maturity stage
d.
introduction stage
ANSWER:
d
32. Which of the following is a difference between a push strategy and a pull strategy?
a.
Social media are used in a push strategy, whereas personal selling is used in a pull strategy.
b.
Wholesalers are targeted in a push strategy, whereas end consumers are targeted in a pull strategy.
c.
A push strategy focuses on content marketing, whereas a pull strategy focuses on offering aggressive
discounts.
d.
No intermediaries are involved in a push strategy, whereas wholesalers and retailers are involved in a pull
strategy.
ANSWER:
b
33. _____ 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
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d.
Encoding
ANSWER:
c
34. Doodle Inc., a renowned interior design services company, tries to increase its customer base through increased web
presence. It regularly posts its interior decorations on its website, 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.
paid media
b.
earned media
c.
owned media
d.
free media
ANSWER:
b
35. Which of the following statements is a difference between interpersonal communication and mass communication?
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.
In interpersonal communication, senders receive indirect feedback, whereas in mass communication, senders
receive direct feedback.
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.
ANSWER:
b
36. 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.
ANSWER:
c
37. 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 concept
d.
SWOT matrix
ANSWER:
c
38. Which of the following statements is a benefit of advertising?
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.
ANSWER:
a
39. A _____ requires a manufacturer to focus its promotional efforts on end consumers or opinion leaders.
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a.
push strategy
b.
print marketing strategy
c.
pull strategy
d.
service strategy
ANSWER:
c
40. King’s Crown, a beverage company, has launched a new energy drink. It sponsors a marathon in the city as part of its
promotional strategy. It also issues a press release about the sponsorship and persuades media reporters of different
newspapers to print it. King’s Crown is generating _____.
a.
a marketing mix
b.
loyalty
c.
a sales response
d.
publicity
ANSWER:
d
41. Which of the following statements is the objective of public relations?
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
ANSWER:
b
42. The _____ is the combination of advertising, personal selling, sales promotion, social media, and public relations and
is used to reach the target market and fulfill an organization’s overall goals.
a.
product mix
b.
retailing mix
c.
distribution mix
d.
promotional mix
ANSWER:
d
43. 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, whereas personal selling is very slow in
dispersing a message to a large audience.
b.
Social media entail two-way communication, whereas personal selling entails one-way communication.
c.
Social media are a means of interpersonal communication, whereas personal selling is a means of mass
communication.
d.
Social media provide opportunity for immediate feedback, whereas personal selling does not provide
opportunity for direct feedback.
ANSWER:
a
44. Which of the following statements is true of communication?
a.
It is a plan for the optimal use of the elements of promotion.
b.
It is a strategic study of materials in order to form conclusions.
c.
It is a systematic measurement of a subject’s merits or shortcomings.
d.
It is a process of sharing meaning through a common set of symbols.
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ANSWER:
d
45. Which of the following statements is true of informative promotion?
a.
It is designed to stimulate a purchase or an action to purchase.
b.
It is used to keep the product and brand name in the public’s mind.
c.
It seeks to convert an existing need into a want or to stimulate interest in a new product.
d.
It seeks to form relationships with customers and potential customers through technological ties.
ANSWER:
c
46. Which of the following is a reason for the increasing popularity of the integrated marketing communications concept?
a.
More selectively segmented markets have replaced the traditional broad market groups that marketers
promoted to in years past.
b.
Marketers have discontinued the use of online advertising because of its lack of measurability.
c.
The 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.
ANSWER:
a
47. Which of the following statements is true of persuasive promotion?
a.
It is designed to stimulate a purchase or an action.
b.
It is used to keep the product and brand name in the public’s mind.
c.
It seeks to convert an existing need into a want or to stimulate interest in a new product.
d.
It seeks to form relationships with customers and potential customers through technological ties.
ANSWER:
a
48. Roar Bros., a beverage manufacturing firm, recently launched a new energy drink. To make consumers aware of the
new drink and to stimulate their interest in it, the managers want to use owned media to promote the new product. In this
case, the managers 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 website.
c.
pay for advertising in television, magazine, radio, or newspaper.
d.
use display advertising on websites and pay-per-click advertising on search engines.
ANSWER:
a
49. In the _____ of the product life cycle, the promotional strategy is to emphasize the product’s differential advantage
over the competition.
a.
growth stage
b.
decline stage
c.
maturity stage
d.
introduction stage
ANSWER:
a
50. Which of the following statements is a characteristic of social media?
a.
They have a very low cost per contact.
b.
They can find customers that are hard to locate.
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promotion are generally impersonal, one-way means of mass communication. Because they provide no
opportunity for direct feedback, it is more difficult to adapt these promotional elements to changing
c.
They rely on repetition of the message during promotions.
d.
They position information as strictly entertaining and less valuable.
ANSWER:
a
51. Fournott is a firm that designs and manufactures women’s apparel. It sells its merchandise to retailers for them to
handle. Given this information, which of the following statements is true of Fournott?
a.
Its retailers convince consumers to buy Fournott’s products.
b.
It uses a pull strategy to sell its merchandise.
c.
It uses introductory consumer advertising as part of its strategy.
d.
It focuses its promotional efforts on end consumers or opinion leaders.
ANSWER:
a
52. Which of the following is part of a pull strategy?
a.
Offering aggressive discounts to retailers
b.
Using trade advertising
c.
Offering heavy sampling and introductory consumer advertising
d.
Selling products to wholesalers
ANSWER:
c
53. Which of the following statements is true of personal selling?
a.
It is increasingly dependent on the Internet.
b.
It is increasingly focused on customer loyalty.
c.
It attempts to create a long-term relationship with the buyer.
d.
It focuses on creating a win-lose outcome with the buyer.
ANSWER:
a
54. Which of the following statements is a difference between paid media and earned media?
a.
Paid media is based on the traditional advertising model, whereas earned media is based on a publicity or
public relations model.
b.
Paid media gets people to talk about the brand, whereas earned media requires a brand to purchase media
space.
c.
Paid media uses media coverage through word of mouth, whereas earned media uses display advertising on
websites for promotion.
d.
Paid media is created when people talk and share content on social media, whereas earned media includes
radio or newspaper advertising.
ANSWER:
a
55. Briefly explain how the elements of the promotional mix affect the target audience.
ANSWER:
Answers will vary. The elements of the promotional mix differ in their ability to affect the target audience.
For instance, promotional mix elements may communicate with the consumer directly or indirectly. The
message may flow one way or two ways. Feedback may be fast or slow, a little or a lot. Likewise, the
communicator may have varying degrees of control over message delivery, content, and flexibility.Most
elements of the promotional mix are indirect and impersonal when used to communicate with a target
market, providing only one direction of message flow. For example, advertising, public relations, and sales
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favor of promotional techniques that generate immediate sales responses and those that are more easily
measured, such as direct marketing. Online advertising has earned a bigger share of the budget as well due to
consumer preferences, individual differences, and personal goals.
56. Describe informative promotion with examples.
ANSWER:
Answers will vary. Informative promotion seeks to convert an existing need into a want or to stimulate
interest in a new product. It is generally more prevalent during the early stages of the product life cycle.
People typically will not buy a product or service or support a nonprofit organization until they know its
purpose and its benefits to them. Informative messages are important for promoting complex and technical
products such as automobiles, computers, and investment services. For example, shortly after Google
unveiled the Google Glass wearable computer and display, it released a series of commercials showing
various practical uses for the device. A commercial titled “How It Feels” demonstrated point-of-view video
and photo capture, messaging, video chatting, search, weather, mapping, and more. Even though it did not
overtly explain the device‘s functions, the ad informed viewers how the device could record once–in-a–
lifetime moments and provide the perfect solutions for life’s little problems. Informative promotion is also
important for a “new” brand being introduced into an “old” product class. When modern-day cooler
manufacturer COOLEST began its Kickstarter campaign, it used video to inform backers about its product’s
benefits. Unlike a traditional cooler, the COOLEST cooler features a rechargeable blender, a portable
speaker, storage for plates and cutlery, and a USB outlet. When the product launched, COOLEST again used
informative promotion to distinguish itself from seasoned competitors. New products cannot establish
themselves against more mature products unless potential buyers are aware of them, value their benefits, and
understand their positioning in the marketplace.
57. Briefly explain the AIDA model.
ANSWER:
Answers will vary. The AIDA model proposes that consumers respond to marketing messages in a cognitive
(thinking), affective (feeling), and conative (doing) sequence. First, a promotion manager may focus on
attracting a consumer’s attention by training a salesperson to use a friendly greeting and approach or by using
loud volume, bold headlines, movement, bright colors, and the like in an advertisement. Next, a good sales
presentation, demonstration, or advertisement creates interest in the product and then, by illustrating how the
product’s features will satisfy the consumer‘s needs, arouses desire. Finally, a special offer or a strong closing
sales pitch may be used to obtain purchase action.Most buyers involved in high-involvement purchase
situations pass through the four stages of the AIDA model on the way to making a purchase. The promoter’s
task is to determine where on the purchase ladder most of the target consumers are located and design a
promotion plan to meet their needs.
58. Briefly explain the integrated marketing communications (IMC) concept. What are the reasons for its growing
popularity?
ANSWER:
Answers will vary. Integrated marketing communications (IMC) is the careful coordination of all
promotional messages—traditional advertising, direct marketing, social media, interactive, public relations,
sales promotion, personal selling, event marketing, and other communications—for a product or service to
assure the consistency of messages at every contact point where a company meets the consumer. Following
the concept of IMC, marketing managers carefully work out the roles that various promotional elements will
play in the marketing mix. Timing of promotional activities is coordinated, and the results of each campaign
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