Chapter 13: Advertising, Promotion, and Sales
TRUE/FALSE
1. The path through which the message moves from the sender to the receiver is known as the message
pipeline.
2. The international marketer should ignore cultural noise.
3. The success of the communications effort can be analyzed by observing feedback.
4. Campaign objectives need not be measurable.
5. If multimarket target audience similarities exist, then panregional or global campaigns can be
attempted.
6. Advertising budgets should be set on a market-by-market basis.
7. The major problems affecting global promotional efforts involve conflicting national regulations.
8. A major objective of media strategy is to reach the intended target audience irrespective of the waste
incurred.
9. The reason behind using global advertising for global marketing is that significant cost savings can be
realized through a single worldwide ad campaign.
10. The main concern arising from the use of mega-agencies is conflict.
11. Centralization involves relaxing most of the controls over foreign affiliates and allowing them to
pursue their own promotional approaches.
12. Advertising involves direct relations between the seller and the prospective buyer or customer.
13. The cost per contact for personal selling is extremely low.
14. For sales promotion to be effective, the campaign planned by manufacturers must gain the support of
the local retailer population.
15. An appearance at a trade show produces goodwill and allows for periodic cultivation of contacts.
16. Trade fairs provide an excellent chance for market research and collecting competitive intelligence.
17. The public perceives advertising as more trustworthy than publicity.
18. The reducing costs of sponsorship and the ease of establishing return on investment encourage
marketers to involve themselves in sponsorship marketing.
19. The authorized use of an event with the permission of the event owner is called ambush marketing.
20. Cause-related marketing should be developed mainly as a response to a crisis or to generate publicity.
MULTIPLE CHOICE
1. The process of converting a message into a symbolic form so that it is properly understood by the
receiver is called _____.
a.
forwarding
b.
encoding
c.
decoding
d.
kinesics
2. The message _____ is the path through which the message moves from source to receiver.
a.
pathway
b.
pipeline
c.
tunnel
d.
channel
3. Once a sender has placed a message into a channel or a set of channels and directed it to the intended
destinations, the completion of the process is dependent on the receiver’s _____.
a.
feedback
b.
forwarding
c.
decoding
d.
outcome
4. _____ refers to the interference that is caused when a message moving through a channel gets
subjected to the influence of extraneous and districting stimuli.
a.
Noise
b.
Feedback
c.
Decoding
d.
Disarray
5. Which of the following is a kind of marketing in which the company, or one of its brands, is linked to
issues such as environmental protection or children’s health?
a.
Loyalty marketing
b.
Cause-related marketing
c.
Relationship marketing
d.
Personalized marketing
6. Natural Waters Inc. is a packaged drinking water company based in Ohio. The company contributes a
bottle of water to every 10 sold in the U.S., to a foundation in Africa that supplies it to the poor.
Identify the type of marketing undertaken by Natural Waters.
a.
Loyalty marketing
b.
Cause-related marketing
c.
Relationship marketing
d.
Personalized marketing
7. _____ is an umbrella campaign to boost the image of lesser-known product lines or make the company
itself be understood correctly or perceived more positively.
a.
Personal selling
b.
Market segmentation
c.
Corporate image advertising
d.
Undifferentiated marketing
8. Which of the following statements about local campaign objectives is true?
a.
They are exclusively product-related.
b.
They set measurable targets for individual markets.
c.
They are developed exclusively by headquarters.
d.
They are related solely to the entity itself.
9. The major problems affecting global promotional efforts involve _____.
a.
conforming to the uniform legal standards globally
b.
homogeneous global demands
c.
conflicting national regulations
d.
undifferentiated marketing demands
10. Creating brand awareness by featuring a product in visual media such as movies, TV shows,
videogames, or Internet sites is known as _____.
a.
CGM marketing
b.
cause-related marketing
c.
product differentiation
d.
product placement
11. A media strategist would need data on all of the following EXCEPT _____.
a.
media audiences
b.
product placement
c.
advertising exposure
d.
media distribution
12. Developing the promotional message is referred to as _____.
a.
ambush marketing
b.
creative strategy
c.
sales promotion
d.
cooperative advertising
13. The ideal situation in developing a message strategy is to have a _____, which refers to a product that
is manufactured, packaged, and positioned the same globally.
a.
world brand
b.
product class
c.
brand mark
d.
product family
14. _____ involves relaxing most of the controls over foreign affiliates and allowing them to pursue their
own promotional approaches.
a.
Centralization
b.
Glocalization
c.
Localization
d.
Decentralization
15. _____ involves direct relations between the seller and the prospective buyer or customer.
a.
Advertising
b.
Personal selling
c.
Sales promotion
d.
Publicity
16. Which of the following is true about personal selling?
a.
It allows for immediate feedback on customer reaction as well as information on markets.
b.
Its costs per contact are the least amongst the different types of promotional tools.
c.
It is similar to advertising as it involves no direct relations between the seller and the
buyer.
d.
It is the least effective of the promotional tools available to the marketer.
17. When an exporter uses indirect exports to reach international markets, the export process is said to be
_____.
a.
internalized
b.
externalized
c.
outsourced
d.
localized
18. Which of the following is a disadvantage of direct exports?
a.
Exporters have to engage in cooperative advertising which decreases the overall
promotional budget for the product.
b.
Exporters will have no opportunity to sell the product with intermediaries.
c.
Exporters encounter possible gatekeeping by intermediaries.
d.
Exports have to face minor learning about sales in the markets that buy the product.
19. _____ will give the exporter’s product local flavor and increase the overall promotional budget for the
product.
a.
Ambush marketing
b.
Database marketing
c.
Cooperative advertising
d.
Internal public relations
20. What is the purpose of direct marketing?
a.
To use an event without the permission of the event owner
b.
To establish a relationship with a customer in order to initiate immediate and measurable
responses
c.
To give the exporter’s product local flavor and increase the overall promotional budget for
the product
d.
To be prepared to utilize the tremendous power of the multinational corporation in a
responsible manner and, in the case of pressure, to counter criticisms swiftly
21. Which of the following is an advantage of the Internet?
a.
Every individual around the world is connected via the Internet.
b.
There are hardly any adjustments that need to be made by exporters for each market
served.
c.
Internet diffusion always reaches the targeted customer.
d.
The Internet provides the opportunity to actually close sales.
22. _____ marketing allows the creation of an individual relationship with each customer or prospect.
a.
Ambush
b.
Sponsorship
c.
Database
d.
Undifferentiated
23. Which of the following is a sales promotion activity directed at intermediaries?
a.
Couponing
b.
Cooperative advertising
c.
Premiums
d.
Cents-off packs
24. Which of the following is an argument in favor of the participation of exporters in a trade show?
a.
Due to the availability of resources, there is no difficulty in choosing the appropriate trade
fairs for participation.
b.
The low costs associated with trade shows enable exporters to reach a sizable number of
sales prospects in a brief time period.
c.
There is a constant level of coordination among larger exporters with multiple divisions.
d.
The opportunity to find an intermediary may be one of the best reasons to attend a trade
show.
25. Which of the following is a reason for nonparticipation in trade shows?
a.
It is difficult for the firm to choose the appropriate trade fairs for participation.
b.
Exporters are able to reach a sizable number of sales prospects but over an extensive time
period.
c.
Exporters are able to reach a sizable number of sales prospects but at very high costs per
contact.
d.
They are an expensive way of obtaining evaluative data on the effectiveness of a
promotional campaign.
26. _____ is the marketing communications function charged with executing programs to earn public
understanding and acceptance, which means both internal and external communication.
a.
Cooperative advertising
b.
Sales promotion
c.
Ambush marketing
d.
Public relations
27. External public relations is focused on interactions with _____.
a.
employees
b.
supervisors
c.
customers
d.
managers
28. Which of the following is true about public relations?
a.
The public relations function is handled exclusively by the human resources department of
the firm.
b.
The employee publication is produced and edited typically by the company’s external
public relations.
c.
Companies might require reactive public relations in case of any unanticipated
developments in the marketplace.
d.
The use and extent of public relations activity will remain constant irrespective of the
company and the type of activity needed.
29. _____ is the securing of editorial space to further marketing objectives.
a.
Public relations
b.
Advertising
c.
Publicity
d.
Personal selling
30. _____ is a form of communication where consumers can find or initiate topics of interest on the Web
and engage in online discussions using bulletin boards, blogs, podcasts, and Web sites.
a.
CPM
b.
CRM
c.
CGM
d.
CAD
31. _____ marketing involves the marketer’s investment in events or causes and is specially directed for
the most part at sports events and cultural events.
a.
Ambush
b.
Custom
c.
Sponsorship
d.
Channel
32. SigmaDrinks Inc., a Florida-based soft drinks manufacturing company, has been providing funds to
promote local cultural events in Florida. It has recently started providing funds for literary events at
schools and colleges in other states too. What kind of marketing is SigmaDrinks demonstrating?
a.
Ambush marketing
b.
Channel marketing
c.
Sponsorship marketing
d.
Piggyback marketing
33. _____ marketing is the use of an event without the permission of the event owner.
a.
Event
b.
Cause
c.
Ambush
d.
Personalized
34. SnackTime Inc., a manufacturer of snacks, was the official sponsor of a cultural event conducted in
Tampa, Florida. During the course of the event, it was noticed that other local snack competitors had
placed their stalls outside the venue, selling their snacks and soft drinks. What kind of marketing is
being demonstrated by SnackTime’s competitors?
a.
Cause-related marketing
b.
Piggyback marketing
c.
Ambush marketing
d.
Channel marketing
35. Which of the following is true about cause-related marketing?
a.
It is developed mainly as a response to a crisis.
b.
It is developed to increase the firm’s profits.
c.
It is developed as a social vision and a long-term social policy.
d.
It is developed mostly as a piecemeal effort to generate publicity.
ESSAY
1. Explain the significance of local campaign objectives.
2. What are the reasons for a firm’s nonparticipation in trade fairs?
ANS:
3. Explain crisis management.