Chapter 15—Public Relations, Sales Promotion, and Personal Selling
TRUE/FALSE
1. Publicity consists of programs developed by a company to capitalize on the factors that will enhance
the firm’s image and minimize those that generate negative images.
2. An example of product placement is when James Bond drives a Jaguar in a James Bond movie.
3. The sponsorship of NASCAR is an example of a public relations activity.
4. Cause-related marketing is when two competing companies come together to support a cause, such
Breast Cancer Research.
5. Companies increasingly are using the Internet in their public relations strategies.
6. Crisis management should begin before a crisis occurs.
7. Sales promotion offers an incentive to buy.
8. Marketers find it much easier to evaluate the effectiveness of advertising than the effectiveness of sales
promotions.
9. Immediate purchase is usually the goal of sales promotion.
10. Loyalty marketing programs are targeted to people who consistently buy the least expensive brand.
11. Coupon distribution by packaged-goods manufacturers has been increasing in recent years.
12. A rebate is a cash refund.
13. When Apple offers to give any consumer who purchases a Macintosh computer a free iPod, this is an
example of a premium offer.
14. Contests generally draw more entries than sweepstakes do.
15. Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase
decisions are made before consumers ever enter a store.
16. Point-of-purchase (P-O-P) promotions are another name for the Web pop-ups that try to lure potential
customers to other sites.
17. A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous
shopping goods.
18. Hewlett-Packard offered $25 to individual Office Depot salespeople for each HP Laser Jet printer they
sold. The $25 is push money.
19. Trade shows are an excellent place to introduce new products to the marketplace.
20. Manufacturers use trade promotions because they generate excitement among consumers.
21. Dave is in charge of finding sponsors for the 2011 Riverbend Festival. He is meeting with marketing
representatives from Wrangler jeans and First Tennessee National Bank, attempting to convince them
to sponsor the event. Dave is engaged in personal selling.
22. Personal selling becomes a more important promotional tool as product complexity and buyer risk
increase.
23. Relationship selling is also called interactive selling.
24. Relationship selling is really just a new name for transactional selling.
25. With relationship selling the salesperson would spend most of his or her contact time with the prospect
talking about the product because the salesperson does not want to waste the customer’s time.
26. The first step in the selling processing is approaching the customer and probing needs.
27. In relationship selling, salespeople focus more time on generating leads than on qualifying leads.
28. Tara is a salesperson with several satisfied customers. She asks her customers to recommend her to
their business associates. Tara is using cold calling to generate leads.
29. To qualify a sales lead, a salesperson must identify the person in an organization who has the authority
to buy the product and must close the sale with that individual.
30. Before approaching the customer, a salesperson should learn as much as possible about the prospect’s
organization and its buyer.
31. A good salesperson considers objections a legitimate part of the purchase decision.
32. Jayson typically negotiates the price with prospective customers because he knows price is the most
effective negotiating tool when closing a sale.
33. The final selling duty for most successful salespeople is closing the sale.
MULTIPLE CHOICE
1. _____ is the promotional mix element that evaluates public attitudes, identifies issues that may elicit
public concern, and executes programs to gain public understanding and acceptance.
a.
Personal selling
b.
Advertising
c.
Mass communications
d.
Public relations
e.
Sales promotion
2. Each year, Atlanta hosts the Peachtree Road Race, a running event that attracts many world-caliber
racers. This year race officials also sanctioned a race conducted in Iraq so that soldiers from the state
would not have to miss the annual event. The winners of the Mid-east race as well as scenes of the
actual race were televised. In terms of a promotional mix, this Iraqi Peachtree Race was as example of:
a.
advertising and personal selling efforts
b.
strategic product promotions and resulting sales
c.
a target marketing strategy
d.
sales promotion efforts
e.
a public relations strategy
3. A news story on the bonuses received by executives of a bank that received bailout money from the
Federal government is an example of:
a.
a sales promotion
b.
free advertising
c.
demarketing
d.
newspaper advertising
e.
publicity
4. Public information about a company, good, or service appearing in the mass media as a news item is:
a.
personal selling
b.
advertising
c.
mass communications
d.
publicity
e.
sales promotion
5. Tools for the public relations manager include all of the following EXCEPT:
a.
press relations
b.
product publicity
c.
lobbying
d.
sales promotions
e.
corporate communications
6. An article in Business Week about the reengineered Honda CRV is an example of:
a.
a sales promotion
b.
free advertising
c.
direct marketing communications
d.
newspaper advertising
e.
publicity
7. A Wall Street Journal headline is “Best Buy Wins iPhone Lineup. This article represents _____ for
Best Buy and Apple Inc.
a.
marketing research
b.
sales promotion
c.
personal selling
d.
advertising
e.
publicity
8. An article in the Wall Street Journal about GM’s turn around strategy and new upcoming product, the
Volt, would be an example of _____.
a.
direct selling
b.
news marketing
c.
publicity
d.
event marketing
e.
direct marketing
9. Publicity:
a.
will never damage a company because it performs the information task of promotion
b.
is free communication
c.
is not persuasive with customers
d.
has to be purchased from the mass media
e.
has many internal costs to the company associated with it
10. Which of the following is a public relations strategy that involves getting a product, service, or
company name to appear in a movie or television show?
a.
press release
b.
product placement
c.
product publicity
d.
consumer education
e.
integrated marketing communications
11. Stormbreaker, a new spymovie, details the story of Alex Rider who, after the death of his uncle, is
recruited as an M16 spy. Armed with a special set of gadgets, Rider’s mission is to save millions of
lives. In James Bond fashion, the Cross pen serves as one of the key gadgets in the film. The maker of
Cross pen paid to have its pen featured in this movie. This is an example of:
a.
advertising
b.
a sales promotion
c.
paid-for public relations
d.
product placement
e.
lobbying
12. General Mills put together a brochure titled, “A Guide to Good Food, Good Health,” which it made
available to elementary teachers at the beginning of a school year so that the teachers could use the
brochures to explain to children why it is important to eat right. This is an example of which public
relations tool?
a.
product placement
b.
event sponsorship
c.
consumer education
d.
crisis management
e.
lobbying
13. Many people have trouble defining the term “casual dress” when it comes to what is appropriate to
wear to work. Levi Strauss & Co. put together a newsletter and a video detailing what was suitable for
casual work attire. Levi sent the video to human resources managers all over the United States. This is
an example of:
a.
event advocacy
b.
lobbying
c.
product placement
d.
consumer education
e.
issue sponsorship
14. Which public relations tool involves a company spending money to support an issue, cause, or event
that is consistent with corporate objectives?
a.
advocacy
b.
lobbying
c.
product placement
d.
sponsorship
e.
underwriting
15. Companies that show support for recycling efforts and other examples of green marketing through
advertising are engaged in:
a.
event publicity
b.
public relations profiling
c.
consumer intimidation
d.
sponsorship
e.
advocacy publicity
16. Which of the following involves the association of a for-profit company with a nonprofit organization?
a.
advocacy publicity
b.
lobbying
c.
product placement
d.
advertising
e.
cause-related marketing
17. General Mills has the “Box Top for Education” program in which several of the company’s products
have a little Box Top coupon on the package. Families buy the products and schools collect the
coupons to redeem for money for the school. This is an example of:
a.
cause-related marketing
b.
publicity
c.
lobbying
d.
consumer education
e.
advocacy marketing
18. How do public relations professionals use Internet Web sites?
a.
to introduce new products
b.
to promote existing products
c.
to obtain consumer feedback
d.
to showcase upcoming events
e.
to do all of these things
19. _____ is used by public relations specialists to handle the effects of unfavorable publicity.
a.
Media planning
b.
Crisis management
c.
Message power
d.
Damage control
e.
Communication narrowcasting
20. A newspaper article revealed that hazardous waste buried in an on-site landfill at a paper manufacturer
were leaking into the local water supply. Even though the company quickly stopped the leak and paid
for an additional water purification system for the town, it still received some very negative publicity.
The company should have:
a.
begun a pulsing advertising campaign
b.
implemented its crisis management plan
c.
used an ad campaign based on a fear appeal
d.
done nothing until the actual damage levels were determined
e.
ignored the publicity and assumed it would go away
21. _____ is marketing communication activities in which a short-term incentive is offered to induce the
purchase of a particular good or service.
a.
Publicity
b.
Sales promotion
c.
Promotion
d.
Advertising
e.
Motivation selling
22. Dell’s fall back–to–school program allows students who buy a new laptop computer for college to get a
free printer. The printer giveaway is a:
a.
push strategy
b.
advocacy advertising
c.
comparative advertising
d.
cause marketing
e.
sales promotion
23. AT&T offered customers who purchased a Blackberry a $100 rebate if they signed up for a 2-year
service contract. This is an example of:
a.
motivational selling
b.
a trade promotion
c.
a push strategy
d.
personal selling
e.
a sales promotion
24. Sales promotion:
a.
is a publicity tool
b.
is only directed to the ultimate consumer market
c.
is more difficult to measure than advertising
d.
offers a short-term incentive to buy
e.
expenditures have been decreasing in recent years
25. What are the two types of sales promotion?
a.
consumer and trade
b.
informative and reminder
c.
start-up and continual
d.
adoptive and diffusive
e.
personal and impersonal
26. _____ sales promotions are targeted toward the ultimate end-user market.
a.
Facilitating
b.
Intermediary
c.
Pull
d.
Consumer
e.
Trade
27. All of the following would be a target for a trade sales promotion offered by Rubbermaid, a
manufacturer of storage and organization products, EXCEPT:
a.
a store that is called The Container Store
b.
a kitchen department in a large discount store
c.
a wholesaler of plastic storage bins
d.
a Rubbermaid distributor
e.
a consumer who needs to organize her college dorm room
28. The goal of sales promotion (regardless of what form it takes) is usually:
a.
immediate purchase
b.
return on investment
c.
cost control
d.
market share leadership
e.
economies of scale
29. Packaged-goods marketers such as Kellogg’s and Betty Crocker have increased their use of coupons
recently due to:
a.
intense competition and the introduction of new products
b.
the growth of frequency programs
c.
push money from retailers
d.
POP activities
e.
user incentives from retailers
30. Coupons, premiums, contests, free samples, and frequent buyer programs are examples of:
a.
personal selling
b.
trade sales promotion
c.
publicity
d.
advertising
e.
consumer sales promotion
31. All of the following are types of consumer sales promotions EXCEPT:
a.
coupons
b.
rebates
c.
premiums
d.
contests and sweepstakes
e.
push money
32. A certificate that entitles consumers to an immediate price reduction when they buy the product is
called a(n):
a.
coupon
b.
premium
c.
push money
d.
entitlement
e.
allowance
33. To overcome low redemption rates for coupons, marketers are doing all of the following EXCEPT:
a.
issuing fewer coupons and using more everyday low pricing
b.
shortening the time the coupon can be redeemed to create a feeling of urgency
c.
requiring multiple purchases to redeem the coupon
d.
distributing single all-purpose coupons that can be redeemed for several brands
e.
using instant coupons on product packages
34. Why are many marketers shortening the time in which a coupon can be redeemed?
a.
to track response rates
b.
to increase introductory sales
c.
to create a greater sense of urgency to redeem the coupon
d.
to respond to claims that coupons adversely affect consumer behavior
e.
to limit the use of on-pack coupons
35. Kaye noticed Bounce fabric softener dryer sheets had a peel-off sticker worth $1.00 off that purchase.
The peel-off stickers are:
a.
premiums
b.
trade discounts
c.
purchase allowances
d.
in-store coupons
e.
functional allowances
36. A _____ is a cash refund given to consumers for the purchase of a product during a specific time
period.
a.
premium
b.
trade discount
c.
purchase allowance
d.
rebate
e.
functional allowance
37. When Rick purchased a Xerox color printer for his law office, he was able to mail in a proof-of-
purchase and his cash register receipt to receive a check from Xerox for $200. Rick received a:
a.
premium
b.
trade allowance
c.
purchase allowance
d.
rebate
e.
functional discount
38. Why do some marketers offer rebates instead of price reductions to induce short-term sales?
a.
Rebates are especially good at enticing purchases, but most consumers never bother to
redeem them.
b.
A price reduction of this type would likely be an example of price discrimination.
c.
Rebates offer a more immediate reward than price reductions.
d.
Rebates have a much higher redemption rate than coupons.
e.
Rebates result in brand-loyal consumers.
39. A(n) _____ is an extra item offered to the consumer, usually in exchange for some proof that the
promoted product has been purchased.
a.
coupon
b.
trade sample
c.
supplement
d.
premium
e.
add-on
40. When Darrell purchased a five-pound bag of 9 Lives cat food, he received a free can of the
manufacturer’s new gourmet cat food. The can of cat food is an example of a:
a.
product placement
b.
trade sample
c.
contest
d.
premium
e.
loyalty incentive
41. New subscribers to Men’s Health magazine receive a free copy of Men’s Health Total Fitness Guide.
The Fitness Guide is an example of a(n):
a.
contest
b.
premium
c.
trade sample
d.
product placement
e.
loyalty incentive
42. Consumers who send it 10 UPC symbols as proof of purchase of Chip Ahoy cookies will receive a
children’s classic DVD. The DVD is an example of a:
a.
loyalty incentive
b.
trade sample
c.
premium
d.
trade product
e.
product placement
43. Which type of consumer sales promotion rewards loyal consumers for making multiple purchases of a
particular good or service?
a.
frequent buyer program
b.
80/20 program
c.
net worth program
d.
premium program
e.
continuity program
44. One of the best methods for creating and rewarding brand loyalty among consumers who might
otherwise switch to competing brands is a:
a.
directed coupon mailing
b.
sweepstakes
c.
loyalty marketing program
d.
trade sales promotions
e.
sampling program
45. The Starbucks Reward program rewards frequent Starbucks customers with free refills on brewed
coffee, free beverages with whole bean purchases, beverage customization, and free Wi-Fi computer
access. The program is an example of a:
a.
directed coupon mailing
b.
sweepstakes
c.
loyalty marketing program
d.
trade sales promotion
e.
sampling program
46. Whenever Jeff buys a box lunch at Heavenly Ham, he gets a stamp on his “Lunch Bunch” card. When
he has 10 stamps, he can exchange the card for a free box lunch. This is an example of a(n):
a.
self-liquidating premium
b.
frequent buyer program
c.
loyalty incentive
d.
in-store rebate
e.
consumer allowance
47. Unlike other sales promotion activities, the objective of a loyalty marketing program is to:
a.
encourage brand switching
b.
appeal to bargain hunters who consistently buy the lowest priced brand
c.
take away customers from the competition
d.
build long-term, mutually beneficial relationships between a company and its key
customers
e.
modify customers’ attitudes toward a product
48. Cobranded credit cards are used in conjunction with:
a.
self-perpetuating premiums
b.
loyalty marketing programs
c.
trade consumer promotions
d.
consumer discount programs
e.
functional consumer discounts
49. By visiting the priceless.com site, Mastercard users can register for a chance to win an all-expense-
paid trip for two to New York to see two Broadway plays. This prize package will be awarded through
a(n) _____ since there is no skill involved.
a.
contest
b.
P-O-P promotion
c.
sweepstakes
d.
loyalty incentive plan
e.
event sponsorship
50. The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products. Finalists
are brought to Pillsbury kitchens to bake their recipes so the winner of a cash prize can be chosen. This
is an example of a:
a.
contest
b.
sales promotion game
c.
sweepstakes
d.
push money deal
e.
POP (participant of Pillsbury)
51. Seagram’s Coolers has asked bartenders in New York City to submit cocktail recipes to its Web site.
From these entries, the winning recipe will be selected. The winner of this _____ gets to take a friend
on a five-night trip to Tahiti.
a.
contest
b.
push money deal
c.
sampling
d.
relationship game
e.
sweepstakes
52. Which of the following statements about contests and sweepstakes is true?
a.
Contests depend on luck, and participation is free.
b.
Contests are generally effective tools for creating long-term relationships with customers.
c.
Sweepstakes are promotions that require participants to exhibit some skill.
d.
Sweepstakes usually draw about ten times more participants than contests.
e.
Contests and sweepstakes are not useful for creating interest and publicity.
53. Which sales promotion tool allows the consumer the opportunity to try a product or service for free?
a.
coupon
b.
rebate
c.
sampling
d.
sweepstake
e.
allowance
54. Pirates of the Caribbean Online is Disney’s multiplayer game based on the Pirates of the Caribbean
movie franchise. For $9.99 per month, the online game lets players sink ships, hunt for buried treasure
and go on various Pirate-oriented quests. Disney also offers a limited version of the game for free in
the hope that those who like the game will decide to pay for the complete version. Disney is utilizing
which sales promotion tool?
a.
sponsorship
b.
sampling
c.
trade promotions
d.
in-pack couponing
e.
premiums
55. The Men’s Health Center offers free blood pressure tests, cholesterol screening tests, and prostate
exams one day each year. These free health tests are an example of a:
a.
premium
b.
free sample
c.
service commission
d.
sponsorship
e.
point-of-purchase promotion
56. _____ are promotional exhibits set up at the retailer’s location to build traffic, advertise the product, or
induce impulse buying. They are targeted to consumers.
a.
Point-of-purchase displays
b.
Trade shows
c.
Indirect demonstrations
d.
Direct demonstrations
e.
Freestanding kiosks
57. All of the following are examples of point-of-purchase promotions EXCEPT:
a.
television monitors at supermarket checkouts
b.
shelf talkers
c.
newspaper inserts
d.
shelf extenders
e.
end-aisle and floor-stand displays
58. Point-of-purchase promotions work best for:
a.
high-involvement products
b.
purchases that require extensive decision making
c.
complex products that require technical knowledge to operate
d.
impulse buys
e.
expensive products like perfume and jewelry