Chapter 16 3 The packaging of products serves one key purpose

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

27. The idea of cloning dinosaurs from fossil DNA cannot be copyrighted, but Michael Crichton, the

author of Jurassic Park, had a copyright for his novel. This illustrates the fact that copyrights apply to the

tangible expressions of an idea, not to the idea itself.

a. True

b. False

Difficulty: 3 Page-Reference: 509

Question ID: 16-2-151 Skill: Comprehension

Objective: 16.3

28. The packaging of products serves one key purpose: to protect the product during shipping.

a. True

b. False

Difficulty: 3 Page-Reference: 509

Question ID: 16-2-152 Skill: Knowledge

Objective: 16.3

29. Packaging costs can be as high as 15 percent of the total cost to make a product.

a. True

b. False

Difficulty: 2 Page-Reference: 509

Question ID: 16-2-153 Skill: Knowledge

Objective: 16.3

30. The ultimate objective of any promotion is to sell more products.

a. True

b. False

Difficulty: 1 Page-Reference: 510

Question ID: 16-2-154 Skill: Knowledge

Objective: 16.4

31. The average Canadian sees about 3000 marketing messages every day.

a. True

b. False

Difficulty: 1 Page-Reference: 510

Question ID: 16-2-155 Skill: Knowledge

Objective: 16.4

32. The objective of product positioning promotions is to establish an easily identifiable image of the

product in the minds of consumers.

a. True

b. False

Difficulty: 2 Page-Reference: 511

Question ID: 16-2-156 Skill: Knowledge

Objective: 16.4

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

33. A push strategy appeals directly to consumers who push retailers to stock the product in their

stores.

a. True

b. False

Difficulty: 1 Page-Reference: 512

Question ID: 16-2-157 Skill: Knowledge

Objective: 16.4

34. The pull strategy involves retailers who attempt to “pull” customers into their stores through

aggressive advertising of sales they are having.

a. True

b. False

Difficulty: 2 Page-Reference: 512

Question ID: 16-2-158 Skill: Knowledge

Objective: 16.4

35. Makers of industrial products most often use a pull strategy, and makers of consumer products

often use a push strategy.

a. True

b. False

Difficulty: 2 Page-Reference: 512

Question ID: 16-2-159 Skill: Knowledge

Objective: 16.4

36. The term “promotional mix” refers to the combination of advertising, personal selling, sales

promotions, and publicity/public relations in a company‘s promotion efforts.

a. True

b. False

Difficulty: 2 Page-Reference: 512–513

Question ID: 16-2-160 Skill: Knowledge

Objective: 16.4

37. The primary goal of informative advertising is to convince consumers to buy the company’s

products rather than those of its rivals.

a. True

b. False

Difficulty: 2 Page-Reference: 513

Question ID: 16-2-161 Skill: Knowledge

Objective: 16.5

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

38. A comparative advertising strategy is appropriate to the growth stage of the life cycle and

attempts to convince consumers to switch to the firm’s products based upon the results of a comparison

of two products.

a. True

b. False

Difficulty: 2 Page-Reference: 513

Question ID: 16-2-162 Skill: Comprehension

Objective: 16.5

39. The combination of television, radio, magazines, etc. that a company uses to promote its products

and services is called the promotional mix.

a. True

b. False

Difficulty: 2 Page-Reference: 514

Question ID: 16-2-163 Skill: Knowledge

Objective: 16.5

40. When selecting media, an advertiser must first ask: Which medium will reach the people I want to

reach?

a. True

b. False

Difficulty: 2 Page-Reference: 513

Question ID: 16-2-164 Skill: Application

Objective: 16.5

41. Television is a good medium for educating consumers about complex products.

a. True

b. False

Difficulty: 2 Page-Reference: 515

Question ID: 16-2-165 Skill: Knowledge

Objective: 16.5

42. Spending on television advertising in Canada in 2010 totaled about $7 billion.

a. True

b. False

Difficulty: 3 Page-Reference: 515

Question ID: 16-2-166 Skill: Knowledge

Objective: 16.5

43. Television is a popular form of advertising because it is a combination of sight, sound, and motion

appeals to almost all a viewer’s senses.

a. True

b. False

Difficulty: 1 Page-Reference: 515

Question ID: 16-2-167 Skill: Knowledge

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

Objective: 16.5

44. The prominence of the Coca-Cola brand on a show like American Idol is an illustration of the

product placement strategy.

a. True

b. False

Difficulty: 2 Page-Reference: 515

Question ID: 16-2-168 Skill: Comprehension

Objective: 16.5

45. In terms of advertising dollars expended, television is the most important promotional medium.

a. True

b. False

Difficulty: 2 Page-Reference: 515

Question ID: 16-2-169 Skill: Knowledge

Objective: 16.5

46. Newspapers offer excellent market coverage, but usually do not allow advertisers to target their

audience well.

a. True

b. False

Difficulty: 1 Page-Reference: 514

Question ID: 16-2-170 Skill: Knowledge

Objective: 16.5

47. A silverware company would be smart to advertise in bridal magazines.

a. True

b. False

Difficulty: 1 Page-Reference: 516

Question ID: 16-2-171 Skill: Comprehension

Objective: 16.5

48. Direct mail involves the largest advance costs of any advertising technique, but it does appear to

have the highest cost-effectiveness.

a. True

b. False

Difficulty: 3 Page-Reference: 516

Question ID: 16-2-172 Skill: Comprehension

Objective: 16.5

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

49. One disadvantage of radio advertisements is that many people use the radio as “background” and

pay little attention to advertisements.

a. True

b. False

Difficulty: 1 Page-Reference: 516

Question ID: 16-2-173 Skill: Knowledge

Objective: 16.5

50. One advantage of using magazine advertisements is that magazines represent a market that has

already been segmented.

a. True

b. False

Difficulty: 1 Page-Reference: 516

Question ID: 16-2-174 Skill: Knowledge

Objective: 16.5

51. One disadvantage of outdoor advertising is that sellers have little control over who sees their

advertisements.

a. True

b. False

Difficulty: 1 Page-Reference: 516

Question ID: 16-2-175 Skill: Knowledge

Objective: 16.5

52. Buzz marketing, viral marketing, product seeding, and cause marketing are all variations of word–

of-mouth advertising.

a. True

b. False

Difficulty: 1 Page-Reference: 517

Question ID: 16-2-176 Skill: Comprehension

Objective: 16.5

53. LaRonge Corp. gives free samples of products to influential consumers. This is an example of

product seeding, which is one variety of word-of-mouth advertising.

a. True

b. False

Difficulty: 1 Page-Reference: 517

Question ID: 16-2-177 Skill: Comprehension

Objective: 16.5

54. Internet advertising is more advantageous for buyers than for sellers.

a. True

b. False

Difficulty: 1 Page-Reference: 517

Question ID: 16-2-178 Skill: Knowledge

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

Objective: 16.5

55. Ads for political candidates at election time and anti-drug commercials are examples of

cooperative advertising.

a. True

b. False

Difficulty: 2 Page-Reference: 519

Question ID: 16-2-179 Skill: Comprehension

Objective: 16.5

56. Advertisements for Crest toothpaste are brand advertising because they promote a specific

company brand, but advertisements like the “Got Milk?” advertisements are classified as institutional

advertising because they promote a generic type of product without reference to a brand name.

a. True

b. False

Difficulty: 2 Page-Reference: 519

Question ID: 16-2-180 Skill: Comprehension

Objective: 16.5

57. The first step in developing an advertising campaign is to define the objective of the advertising

message.

a. True

b. False

Difficulty: 2 Page-Reference: 520

Question ID: 16-2-181 Skill: Knowledge

Objective: 16.5

58. Clarion Inc., an advertising agency, is involved in developing an advertising campaign for a new

product that is being marketed by one of its clients. Clarion has just established the advertising budget.

Their next step is to select the appropriate media.

a. True

b. False

Difficulty: 3 Page-Reference: 520

Question ID: 16-2-182 Skill: Application

Objective: 16.5

59. Personal selling is the most expensive form of promotion per contact.

a. True

b. False

Difficulty: 2 Page-Reference: 520

Question ID: 16-2-183 Skill: Knowledge

Objective: 16.5

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

60. In retail selling, the buyer usually comes to the seller, but in industrial selling, the salesperson

comes to the buyer.

a. True

b. False

Difficulty: 2 Page-Reference: 521

Question ID: 16-2-184 Skill: Knowledge

Objective: 16.5

61. The goal of missionary selling is to generate an immediate sale rather than promoting the

company and its products over the long term.

a. True

b. False

Difficulty: 2 Page-Reference: 522

Question ID: 16-2-185 Skill: Knowledge

Objective: 16.5

62. Most industrial products involve missionary selling because the buyer has not used the product

before or may not be familiar with the features and uses of a specific brand.

a. True

b. False

Difficulty: 2 Page-Reference: 522

Question ID: 16-2-186 Skill: Comprehension

Objective: 16.6

63. Route salespeople generally perform the order processing task in personal selling.

a. True

b. False

Difficulty: 1 Page-Reference: 521

Question ID: 16-2-187 Skill: Knowledge

Objective: 16.6

64. Personal selling provides the personal link between seller and buyer, which adds to a firm’s

credibility.

a. True

b. False

Difficulty: 1 Page-Reference: 520

Question ID: 16-2-188 Skill: Knowledge

Objective: 16.6

65. The average cost of an industrial sales call has been estimated at nearly $300.00.

a. True

b. False

Difficulty: 2 Page-Reference: 520

Question ID: 16-2-189 Skill: Knowledge

Objective: 16.6

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

66. Coupons may be used to encourage customers to try new products, to attract customers away

from competitors, or to induce current customers to buy more of a product.

a. True

b. False

Difficulty: 2 Page-Reference: 523

Question ID: 16-2-190 Skill: Knowledge

Objective: 16.7

67. When Molson Canadian included a free T-shirt with certain packages of its beer, this was an

example of the use of a premium.

a. True

b. False

Difficulty: 2 Page-Reference: 523

Question ID: 16-2-191 Skill: Comprehension

Objective: 16.7

68. Generally speaking, the most effective sales promotion tool is free samples.

a. True

b. False

Difficulty: 2 Page-Reference: 523

Question ID: 16-2-192 Skill: Comprehension

Objective: 16.7

69. Contests and sweepstakes are types of sales promotions.

a. True

b. False

Difficulty: 2 Page-Reference: 523

Question ID: 16-2-193 Skill: Comprehension

Objective: 16.7

70. Publicity and public relations are important tools in making the buyer aware that the firm’s product

exists, especially when the buyer is in the information-seeking stage of the buying process.

a. True

b. False

Difficulty: 1 Page-Reference: 523-524

Question ID: 16-2-194 Skill: Knowledge

Objective: 16.7

71. Public relations is company-influenced publicity that seeks to build good relations with the public

and to deal with the effects of unfavourable events.

a. True

b. False

Difficulty: 2 Page-Reference: 524

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

Question ID: 16-2-195 Skill: Knowledge

Objective: 16.7

72. The most obvious barrier to the global ad is language. When Coca-Cola first went to China, the

translation of its name read “Bite the wax tadpole.”

a. True

b. False

Difficulty: 2 Page-Reference: 525

Question ID: 16-2-196 Skill: Comprehension

Objective: 16.8

73. Compared with most other languages, ads in English take up more print space and air time

because English takes more words to explain concepts.

a. True

b. False

Difficulty: 2 Page-Reference: 525

Question ID: 16-2-197 Skill: Knowledge

Objective: 16.8

74. A company’s image remains fairly constant from nation to nation.

a. True

b. False

Difficulty: 2 Page-Reference: 525

Question ID: 16-2-198 Skill: Knowledge

Objective: 16.8

75. Many small firms are successfully using telemarketing, together with a catalogue, to sell their

products.

a. True

b. False

Difficulty: 1 Page-Reference: 526

Question ID: 16-2-199 Skill: Knowledge

Objective: 16.8

1. What is a feature?

Difficulty: 2 Page-Reference: 497

Question ID: 16-3-200 Skill: Knowledge

Objective: 16.1

2. What is a benefit?

Difficulty: 2 Page-Reference: 498

Question ID: 16-3-201 Skill: Knowledge

Objective: 16.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

3. What are the three major classes of consumer goods?

Difficulty: 2 Page-Reference: 499

Question ID: 16-3-202 Skill: Knowledge

Objective: 16.1

4. What are the two major classes of industrial products?

Difficulty: 2 Page-Reference: 499

Question ID: 16-3-203 Skill: Knowledge

Objective: 16.1

5. What is the product mix?

Difficulty: 2 Page-Reference: 500

Question ID: 16-3-204 Skill: Knowledge

Objective: 16.1

6. What is a product line?

Difficulty: 2 Page-Reference: 500

Question ID: 16-3-205 Skill: Knowledge

Objective: 16.1

7. What are the seven steps in the product development process?

Difficulty: 2 Page-Reference: 502-503

Question ID: 16-3-206 Skill: Knowledge

Objective: 16.2

8. What are the four stages in the product life cycle?

Difficulty: 2 Page-Reference: 503-504

Question ID: 16-3-207 Skill: Knowledge

Objective: 16.2

9. What is brand equity?

Difficulty: 2 Page-Reference: 506

Question ID: 16-3-208 Skill: Knowledge

Objective: 16.3

10. What are the three categories of brand names?

Difficulty: 2 Page-Reference: 506

Question ID: 16-3-209 Skill: Knowledge

Objective: 16.3

11. What are the two general values to be gained from any promotional campaign?

Difficulty: 2 Page-Reference: 510

Question ID: 16-3-210 Skill: Knowledge

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

Objective: 16.4

12. List four promotional objectives (other than increasing sales).

Difficulty: 2 Page-Reference: 510

Question ID: 16-3-211 Skill: Knowledge

Objective: 16.4

13. What is positioning?

Difficulty: 2 Page-Reference: 511

Question ID: 16-3-212 Skill: Knowledge

Objective: 16.4

14. What is the promotional mix?

Difficulty: 2 Page-Reference: 512

Question ID: 16-3-213 Skill: Knowledge

Objective: 16.4

15. List the four approaches to advertising during the life cycle of a product.

Difficulty: 2 Page-Reference: 513

Question ID: 16-3-214 Skill: Knowledge

Objective: 16.5

16. List the six primary advertising media.

Difficulty: 2 Page-Reference: 514-516

Question ID: 16-3-215 Skill: Knowledge

Objective: 16.5

17. What is virtual advertising?

Difficulty: 2 Page-Reference: 518

Question ID: 16-3-216 Skill: Knowledge

Objective: 16.5

18. What is personal selling?

Difficulty: 2 Page-Reference: 520

Question ID: 16-3-217 Skill: Knowledge

Objective: 16.6

19. What are the three basic tasks of personal selling?

Difficulty: 2 Page-Reference: 521

Question ID: 16-3-218 Skill: Knowledge

Objective: 16.6

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

20. What is prospecting?

Difficulty: 2 Page-Reference: 522

Question ID: 16-3-219 Skill: Knowledge

Objective: 16.6

21. What is qualifying in terms of the personal selling process?

Difficulty: 2 Page-Reference: 522

Question ID: 16-3-220 Skill: Knowledge

Objective: 16.6

22. What is the first step in the personal selling process?

Difficulty: 2 Page-Reference: 522

Question ID: 16-3-221 Skill: Knowledge

Objective: 16.6

23. In the personal selling process, what are objections?

Difficulty: 2 Page-Reference: 522

Question ID: 16-3-222 Skill: Knowledge

Objective: 16.6

24. What is closing?

Difficulty: 2 Page-Reference: 522

Question ID: 16-3-223 Skill: Knowledge

Objective: 16.6

25. What is the last step in the personal selling process?

Difficulty: 2 Page-Reference: 522

Question ID: 16-3-224 Skill: Knowledge

Objective: 16.6

26. List five sales promotion tools.

Difficulty: 2 Page-Reference: 523

Question ID: 16-3-225 Skill: Knowledge

Objective: 16.7

27. What is publicity?

Difficulty: 2 Page-Reference: 523

Question ID: 16-3-226 Skill: Knowledge

Objective: 16.7

28. What is public relations?

Difficulty: 2 Page-Reference: 524

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

Question ID: 16-3-227 Skill: Knowledge

Objective: 16.7

1. What actions must be taken to successfully develop a new product? Explain what must occur in

each stage of the development process.

Difficulty: 3 Page-Reference: 502-503

Question ID: 16-4-228 Skill: Comprehension

Objective: 16.2

2. What is the importance of a brand name to a marketing manager? Identify the different types of

brand names and ways that the firm protects its brand names.

Difficulty: 2 Page-Reference: 505-509

Question ID: 16-4-229 Skill: Comprehension

Objective: 16.3

3. Brand loyalty is measured in three stages. Describe each of these stages.

Difficulty: 2 Page-Reference: 507

Question ID: 16-4-230 Skill: Knowledge

Objective: 16.3

4. In addition to increasing sales, what are four additional possible objectives of any promotion?

Difficulty: 2 Page-Reference: 510

Question ID: 16-4-231 Skill: Knowledge

Objective: 16.4

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

5. Define and contrast the difference between pull and push strategies in marketing.

Difficulty: 2 Page-Reference: 512

Question ID: 16-4-232 Skill: Comprehension

Objective: 16.4

6. What is the “promotional mix”? Include a discussion of the four basic types of promotional tools in

your response.

Difficulty: 3 Page-Reference: 512-513

Question ID: 16-4-233 Skill: Knowledge

Objective: 16.4

7. What is internet marketing? What are some of the advantages and challenges for buyers and

sellers of this advertising medium?

Difficulty: 2 Page-Reference: 517-518

Question ID: 16-4-234 Skill: Comprehension

Objective: 16.5

8. Identify and briefly discuss the various advertising strategies and their timing in the product life

cycle.

Difficulty: 2 Page-Reference: 513

Question ID: 16-4-235 Skill: Knowledge

Objective: 16.5

9. Identify and briefly discuss five of the various advertising media.

Difficulty: 2 Page-Reference: 518-519

Question ID: 16-4-236 Skill: Knowledge

Objective: 16.5

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services

10. What steps are included in the personal selling process for a creative selling task? Explain what

occurs during each step.

Difficulty: 2 Page-Reference: 522

Question ID: 16-4-237 Skill: Comprehension

Objective: 16.6

11. How does the use of coupons, free samples, trading stamps, and premiums differ as types of

sales promotions?

Difficulty: 2 Page-Reference: 523

Question ID: 16-4-238 Skill: Comprehension

Objective: 16.7

12. What is a trade show? How does a firm’s participation in a trade show serve to promote the firm’s

products?

Difficulty: 2 Page-Reference: 523

Question ID: 16-4-239 Skill: Comprehension

Objective: 16.7

13. Identify and discuss the four factors that make global advertising a difficult proposition.

Difficulty: 2 Page-Reference: 525

Question ID: 16-4-240 Skill: Knowledge

Objective: 16.8

14. What personal selling strategies are likely to be used by a small business firm in a local market

and in an international market?

Difficulty: 2 Page-Reference: 525-526

Question ID: 16-4-241 Skill: Comprehension

Objective: 16.8

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 16—Developing and Promoting Goods and Services