Chapter 12 – Promotion, Advertising, and Sales Promotion Strategies
Chapter 12
Promotion, Advertising, and Sales Promotion Strategies
1. An advantage of personal selling over advertising is its flexibility in responding to the
buyer’s objections and questions at the time the decision to purchase is being made.
2. The percent-of-sales method of budgeting for promotion is arbitrary and does not recognize
that promotion efforts and results are related.
3. Promotion expenditures for the competitive parity method are guided by comparing which
component(s) is/are appropriate for attaining each objective.
4. The final step in developing an advertising strategy involves evaluating its effectiveness.
5. Determining the sales and profit impact of advertising is more difficult to measure than the
exposure and awareness it creates.
6. The fragmentation of many consumer markets is driving significant amounts of advertising
spending from traditional mass media to more focused narrowcast media.
7. Recall tests measure consumers’ awareness of specific ads and campaigns by asking
questions to determine if a sample of people remembers an ad.
8. Longitudinal studies use empirical data to build a mathematical relationship between sales
and advertising effort.
Chapter 12 – Promotion, Advertising, and Sales Promotion Strategies
9. Sales promotions are primarily used to bring awareness of a particular product.
10. Coupons are extensively used as a promotional activity to target value chain members.
11. _____ consists of planning, implementing, and controlling an organization’s
communications to its customers and other target audiences.
A. Promotion strategy
B. Distribution program
C. Benchmarking
D. Planned obsolescence
12. Which of the following is a disadvantage of advertising?
A. It has high cost per exposure.
B. It has fixed messages for the duration of an exposure.
C. It does not allow much creativity in message design.
D. It provides low control of message content.
13. Which of the following is true about advertising?
A. It has high cost per exposure.
B. It provides low control over exposure.
C. It does not allow direct interactions with buyer.
D. It does not allow for creative message designs.
14. _____ consists of verbal communication between a salesperson and one or more
prospective purchasers with the objective of making or influencing a sale.
A. Public relation
B. Sales promotion
C. Advertising
D. Personal selling
Chapter 12 – Promotion, Advertising, and Sales Promotion Strategies
15. _____ consists of activities such as, trade shows, contests, samples, point-of-purchase
displays, product placement in films and other occasions, trade incentives, and coupons.
A. Sales promotion
B. Advertising
C. Personal selling
D. Interactive marketing
16. _____ refers to communications placed in the commercial media at no charge to the
company receiving the publicity.
A. Advertising
B. Public relations
C. Personal selling
D. Interactive marketing
17. Which of the following is a disadvantage of the percent of sales method of setting
promotional budgets?
A. It heavily relies on the experience and judgment of the marketing team.
B. It can result in too much spending on promotion when sales are high and not enough when
sales are low.
C. Its budgeting method is directly guided by how much competitors spend.
D. It does not base its budgeting on past expenditure patterns.
18. Which of the following promotion strategies is most appropriate when buyers’
information needs are high?
A. Advertising-driven
B. Sales promotion-driven
C. Personal selling-driven
D. Generic
19. An advertising-driven promotion strategy is used when:
Chapter 12 – Promotion, Advertising, and Sales Promotion Strategies
A. the numbers of buyers are small.
B. the size and importance of purchase is large.
C. product complexity is high.
D. no post purchase contact is required.
20. Which of the following advertising objectives is used more often because of the ease of
measurement?
A. Exposure objectives
B. Attitude change objectives
C. Sales objectives
D. Profit objectives
21. Distributing promotional video clips across the Internet is referred to as _____.
A. personal selling
B. viral marketing
C. sales promotion
D. direct distribution
22. _____ identifies relationships between advertising expenditures and sales using statistical
techniques such as regression analysis.
A. Test marketing
B. Recall test
C. Longitudinal study
D. Evaluating historical data
23. _____ measure(s) consumers’ awareness of specific ads and campaigns by asking
questions to determine if a sample of people remembers an ad.
A. Recall tests
B. Effort/result models
C. Longitudinal studies
D. Test marketing
Chapter 12 – Promotion, Advertising, and Sales Promotion Strategies
24. _____ track(s) advertising expenditures and sales results before, during, and after an
advertising campaign.
A. Effort/result models
B. Longitudinal studies
C. Recall tests
D. Test marketing
25. _____ use empirical data to build a mathematical relationship between sales and
advertising effort.
A. Controlled tests
B. Recall tests
C. Effort/results models
D. Longitudinal studies
26. Which of the following is a promotional pricing form of sales promotion activity?
A. Selling aids
B. Trade shows
C. Prizes
D. Coupons
27. Which of the following sales promotion activity is targeted at industrial buyers?
A. Coupons
B. Bonuses
C. Rebates
D. Advertising support
28. Which of the following informational activities is targeted at both channel members and
the salesforce?
A. Demonstrations
B. Trade shows
C. Displays
Chapter 12 – Promotion, Advertising, and Sales Promotion Strategies
D. Selling aids
29. Which of the following is a disadvantage of sales promotions?
A. The sales response of the sales promotion activities cannot be measured to determine their
effectiveness.
B. The incentive and price promotion techniques trigger the purchase of other products.
C. It allows value-added resellers to build inventories on products that receive manufacturers’
trade discounts.
D. It has the flexibility to contribute to various marketing objectives.
30. Which of the following is the first step in developing a sales promotion strategy?
A. Setting specific promotion objectives
B. Defining the communications task(s) to be accomplished
C. Evaluating the relative cost-effectiveness of various methods
D. Coordinating the content and the timing with other activities
31. Identify the advantages and disadvantages of advertising.
32. List the activities involved in designing an organization’s promotion strategy.
Chapter 12 – Promotion, Advertising, and Sales Promotion Strategies
33. Define and explain the benefits of the objective and task method of promotion budget.
34. Explain the challenges impacting the creative process in advertising and changing the
design of creative strategies and media.
35. Give an account of the different promotional activities targeted at a firm’s salesforce.