c16
1. (p. 432) 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. (p. 432) A firm’s promotion mix refers to the combination of different promotional tools used to persuade
consumers to participate in an exchange.
3. (p. 432) Integrated marketing communication simplifies the marketing process by replacing personal selling
with extensive use of advertising to create a positive brand image.
4. (p. 432) Integrated marketing communication combines all the promotional tools into one comprehensive,
unified promotional strategy.
5. (p. 432) Integrated marketing communication combines each element of the promotional effort to create a
unique message for a product sold in different markets.
6. (p. 432) Creating a unified positive image of a company in the public’s mind is the end result of effective
integrated marketing communication.
7. (p. 432) Combining a firm’s promotional tools and resources to create a positive brand image is the goal of
integrated marketing communication.
8. (p. 432, figure 16.2) The promotional budget will clarify how much can be spent on advertising and personal
selling.
9. (p. 432, figure 16.2) The first step in creating a promotional campaign is to define the objectives for each element of
the marketing mix.
10. (p. 432, figure 16.2) The last step in creating a promotional campaign is to evaluate the effectiveness of each
element of the promotional mix.
11. (p. 432) 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.
12. (p. 432) Phil’s activities as a salesperson for Marquette Publishing are part of Marquette’s promotion mix.
13. (p. 432) A firm’s promotion mix consists of its pricing and distribution strategies.
14. (p. 432) After adopting integrated marketing communication, Madison Furniture puts less emphasis on public
relations, sales promotion, and personal selling, and concentrates on advertising designed to provide a uniform
message to all markets.
15. (p. 432, figure 16.2) When developing the promotional campaign for a new product, the first step for a firm is to
identify their target market.
16. (p. 432) 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.
17. (p. 433) Depending upon the promotional campaign, advertising may include paid and non-paid forms of
nonpersonal communication.
18. (p. 433, figure 16.3) Trade advertising is advertising to consumers by manufacturers to encourage them to try their
products.
19. (p. 433, figure 16.3) Institutional advertising creates an attractive image for an organization rather than for a
product.
20. (p. 433, figure 16.3) Advocacy advertising is advertising that supports a particular view of an issue such as gun
control.
21. (p. 433, figure 16.3) 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. (p. 433, figure 16.3) The purpose of institutional advertising is to create an attractive image for an organization.
23. (p. 433) Total ad volume exceeds $245 billion yearly.
24. (p. 433) Advertising provides the public with free TV and radio programs.
25. (p. 433) Newspapers, radio, and the Yellow Pages are especially attractive to local advertisers.
26. (p. 433) Advertising helps to cover the production costs of newspapers and magazines.
27. (p. 433) The major complaint with advertising is that it provides no real benefits to the public.
28. (p. 433) Free TV and radio broadcasting is made possible by advertising.
29. (p. 434, figure 16.4) Advertising on the Internet now ranks ahead of newspapers, based on total advertising
expenditures.
30. (p. 433-434, figure 16.4) Television (broadcast and cable) and direct mail are the top two advertising media when
ranked by total expenditures.
31. (p. 433-434, figure 16.4) Internet advertising ranks third in terms of total advertising expenditures.
32. (p. 433-434, figure 16.4) Broadcast and cable television along with newspaper advertising are the top two
advertising media when ranked by total expenditures.
33. (p. 433-434, figure 16.4) The number one advertising medium in terms of total dollar expenditures is newspapers.
34. (p. 433-434, figure 16.4) Because TV advertising is so expensive, it is less popular than in the past and now ranks
sixth in total advertising expenditures.
35. (p. 434, figure 16.5) Direct mail is usually the best advertising medium to reach specific target markets.
36. (p. 434) A recent 30 second Super Bowl commercial costs about $2.5 million.
37. (p. 434, figure 16.5) Magazine ads have high visibility, repeat exposures, and are low cost.
38. (p. 434, figure 16.5) One problem with newspaper advertisements is that they have a short life span.
39. (p. 434, figure 16.5) Radio advertising offers businesses an opportunity to reach a specific target market.
40. (p. 435) A TV program devoted exclusively to promoting goods and services is called an infomercial.
41. (p. 435) The popularity of infomercials has declined in recent years.
42. (p. 436, Dealing with Change box) According to the “Dealing with Change” box in Chapter 16, some marketers have
found traditional forms of advertising too expensive for the responses they were getting.
43. (p. 436) When marketers advertise on a big online property, such as Yahoo, they can reach the people they
most want to reach.
44. (p. 436) 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.
45. (p. 437) Interactive promotion allows customers and companies to work together to create mutually beneficial
exchange relationships in an ongoing dialogue.
46. (p. 437) Online advertising allows advertisers to see how many people have clicked on a advertisement and
how much of it the potential customer has read or watched.
47. (p. 437) The Internet has changed the emphasis of promotion from “promoting to” customers to “working
with” customers.
48. (p. 437) The Internet allows firms to listen to customers’ wants, track their purchases, provide them with better
service, and more access to information.
49. (p. 437) The purpose of interactive promotion is to create a monologue that convinces customers to act
quickly.
50. (p. 438) When it comes to reaching global markets, evidence supports the conclusion that the “one size fits all”
approach to promotional mix design is best.
51. (p. 437) Global advertising saves companies money in research and ad design.
52. (p. 438) Advertising today is moving from regionalism to globalism.
53. (p. 438, Reaching Beyond Our Borders box) According to the “Reaching Beyond Our Borders” box in Chapter 16, it is
important to learn the rules and regulations of each country you advertise in, because all countries regulate what
you can say and where and how you say it.
54. (p. 433, figure 16.3) 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.
55. (p. 434) Advertising reaches a national audience more effectively than it communicates with a local market.
56. (p. 433) 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.
57. (p. 433) Mailing ads to nearby residents helps grocery stores reach their target market with information of
special sales. This represents direct mail advertising.
58. (p. 433) 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.
59. (p. 433) Informing consumers about goods and services represents advertising’s only benefit to society.
60. (p. 435) The use of infomercials represents an effective use of advertising dollars.
61. (p. 435) Businesses pay to have their products prominently displayed in a TV episode of Friends or a feature
movie.
62. (p. 437) Garden.com uses interactive promotion by allowing customers to chat with each other online about
gardening.
63. (p. 437) It is important to design promotional efforts specifically for individual countries since sometimes the
brand is not appealing in the targeted country. For example, a Japanese company tried to use English words to
name a popular drink and called it Pocari Sweat.
64. (p. 438) Personal selling involves the face-to-face presentation and promotion of goods and services.
65. (p. 438–439) Persuading others to buy your product represents the only goal of effective selling.
66. (p. 439) Effective selling involves helping others to satisfy their wants and needs.
67. (p. 439) According to the most recent U.S. census, over 40% of the total labor force is employed in personal
selling.
68. (p. 439) Personal selling represents a relatively inexpensive method of promoting a firm’s products.
69. (p. 439) The average cost of a single sales call to a potential B2B buyer is approximately $400.
70. (p. 438) 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.
71. (p. 441) Closing the sale represents the final step in the selling process.
72. (p. 439) 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.
73. (p. 439) A good salesperson requires product knowledge about their product and the product offered by
competitors.
74. (p. 439) The first step in the selling process involves prospecting for potential customers and choosing those
most likely to buy.
75. (p. 440) The purpose of a trial close in the selling process is to learn as much as possible about customers and
their wants and needs.
76. (p. 440) The B2B selling process may take a long time and gathering information before you approach the
customer is critical.
77. (p. 441) B2C salespeople spend more time prospecting than do B2B salespeople.
78. (p. 442) After-sale follow-up is an important, but often neglected step in B2C sales.
79. (p. 422, figure 16.6) The B2C selling process has fewer steps than the B2B selling process.
80. (p. 442) Selling is an art.
81. (p. 438) Personal selling represents a form of individualized advertising.
82. (p. 440) The hallmark of an effective salesperson is the ability to complete a sale as soon as the sales
presentation is completed.
83. (p. 440) Questions and objections from customers following a sales presentation indicate a salesperson that
was poorly prepared.
84. (p. 440–441) Anita enjoys her job as a salesperson for a store that sells high quality entertainment systems. As an
effective salesperson, Anita is expected to help her customers resolve any doubts they might have before the
sale, and follow up to ensure that the customer is satisfied after the sale.
85. (p. 441) To be successful, salespeople find that their job responsibilities extend far beyond the close of the
sale.
86. (p. 440) Effective salespeople push hard to finalize a sale as soon as they finish their presentation. Otherwise,
the customer has time to come up with objections that will make the sale more difficult to close.
87. (p. 441) Bob is a salesperson for a firm that markets products in a B2B market. His wife, Sally, is a salesperson
for a retail store selling top quality electronics goods. While Bob is likely to be successful using follow up after
the sale, Sally should avoid this approach.
88. (p. 440) After her sales presentation. Whitney asks her customers which color they prefer and if they would
like to pay by credit card. She hopes that these questions will help the sales process move beyond the customer’s
questions and objections. With limited time, Whitney is utilizing a trial close to help finalize the sale more
quickly.
89. (p. 440) Jose is a salesperson for a firm that sells and leases heavy construction equipment. This equipment is
very expensive, and is highly specialized. Jose spends a great deal of time learning about potential customers’
needs, then uses his knowledge of the Internet to locate exact specifications of equipment offered by all the
major producers in the industry. Armed with this information, Jose is able to identify the best equipment for
each job. Jose has completed the preapproach stage of the selling process.
90. (p. 441) As customers walk into Phat Pat’s clothing store, they are greeted by a salesperson who asks, “May I
help you?” Studies indicate that this is an effective opening in the B2C sales process.
91. (p. 442) As one of the tools included in a firm’s promotion mix, public relations is intended to earn public
understanding and acceptance.
92. (p. 442) Public relations involves the evaluation of public attitudes and execution of a program to earn public
acceptance.
93. (p. 442) An effective public relations department regularly listens to and communicates with the public.
94. (p. 442) An effective public relations program informs the public that the firm is responsive to their needs.