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chapter 15
Indicate whether the statement is true or false.
1. Advertising, and sales promotion are the most productive promotion tools to use for routine decisions.
a.
True
b.
False
2. Print advertising does not involve using the Internet.
a.
True
b.
False
3. Because of the impact of Internet and social media, consumers are now able to become senders as opposed to only
brands being senders.
a.
True
b.
False
4. Noise refers to anything that interferes with, distorts, or slows down the transmission of information.
a.
True
b.
False
5. As per the modern methods of personal selling, it emphasizes a win-win outcome and building long term relationships
rather than on making a one-time sale.
a.
True
b.
False
6. Push strategy stimulates consumer demand to obtain product distribution.
a.
True
b.
False
7. Advertising is increased as a product enters the decline stage of its life cycle.
a.
True
b.
False
8. Print advertising can be used to sell goods and services to potential customers who are hard to locate.
a.
True
b.
False
9. Sales promotion consists of all marketing activities—including personal selling, advertising, and public relations—that
stimulate consumer purchasing and dealer effectiveness.
a.
True
b.
False
10. Any clutter from competitors’ messages or other distractions in the environment does not influence the effectiveness
of the mass-communication effort.
a.
True
b.
False
11. Informative promotion typically becomes the main promotion goal when the product enters the growth stage of its life
cycle.
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a.
True
b.
False
12. A company that offers the same services as its competition has a competitive advantage.
a.
True
b.
False
13. Sales promotion’s greatest strength is in creating strong desire and purchase intent.
a.
True
b.
False
14. Marketers are senders of messages and do not act as receivers.
a.
True
b.
False
15. Promotional strategies have changed a great deal over the years as many targeted customer segments have become
more difficult to reach.
a.
True
b.
False
16. As organizations do not directly pay for publicity, it can be viewed as free.
a.
True
b.
False
17. Persuasive promotion is used to keep the product and brand name in the public’s mind.
a.
True
b.
False
18. Earned media is controlled by the brand but continuously keeps the customer and his or her needs in mind as it creates
videos, blog posts, contests, photos, and other pieces of content.
a.
True
b.
False
19. Public relations is an impersonal form of one-way mass communication about a product or organization that is paid
for by the marketer.
a.
True
b.
False
20. Earned media is a new form of promotional tactic where brands are becoming publishers of their own content in order
to maximize the brand’s value to customers as well as increase their search rank in Google.
a.
True
b.
False
21. Owned media is also called content marketing.
a.
True
b.
False
22. Social media are a more immediate form of two-way communication than personal selling.
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a.
True
b.
False
23. Personal selling, unlike other promotional mix elements, is independent of the Internet.
a.
True
b.
False
24. Consumers making routine buying decisions are more extensively involved in the decision-making process than
consumers making complex buying decisions.
a.
True
b.
False
25. Advertising, public relations, and sales promotion are generally impersonal, one-way means of mass communication.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
26. Which term refers to direct, face-to-face communication between two or more people?
a.
Mass communication
b.
Interpersonal communication
c.
Message transmission
d.
Encoding
27. Ketchup King, a food manufacturing company, markets its tomato ketchup globally. As its consumers are well aware
of the uses of ketchup, the company does not have to generate product awareness. The company, however, wishes to focus
on convincing consumers to buy Ketchup King’s ketchup instead of other brands’ ketchup. In this scenario, Ketchup King
must employ _____.
a.
reminder promotion
b.
persuasive promotion
c.
informative promotion
d.
connective promotion
28. Which of the following is the originator of the message within the communication process?
a.
Sender
b.
Message channel
c.
Decoder
d.
Receiver
29. Pride Apparel is a firm that designs and manufactures women’s clothing and accessories. It sells its merchandise to
retailers without further involvement. Given this information, which of the following statements is true of Pride?
a.
Its retailers convince consumers to buy Pride’s products.
b.
It uses a pull strategy to sell its merchandise.
c.
It uses introductory consumer advertising as part of its strategy.
d.
It focuses its promotional efforts on end consumers or opinion leaders.
30. Threads Inc., an apparel manufacturer, employs personal selling to market goods. Its employees handcraft products
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that are marketed by a professional team. In this case, which of the following tactics should Threads Inc. adopt?
a.
It should generate large amounts of publicity quickly.
b.
It should refrain from educating the public about the company’s objectives.
c.
It should make planned presentations to prospective buyers.
d.
It should refrain from advertising and public relations.
31. The researchers at Beans Inc., a coffee manufacturing company, developed a new variety of high-quality ground
coffee. The new variety was priced at a comparatively lower price than the other varieties of coffee available in the
market. Therefore, the advertisements for the product stated, “The highest quality coffee does not have to be expensive.”
This is an example of communicating a product’s _____.
a.
marketing mix
b.
product parity
c.
competitive advantage
d.
competitive parity
32. Which of the following is true of social media?
a.
Social media are a strong way to gain attention and interest in a brand.
b.
If content goes viral, it can then reach a massive audience.
c.
Social media are also effective at engaging customers to maintain interest in the brand.
d.
All of the above are correct.
33. ____________ is the process by which meanings are exchanged or shared through a common set of symbols.
a.
Promotion
b.
Promotional strategy
c.
Communication
d.
Encoding
34. To increase its revenue, Frankfin, an airline company, decides to promote well-known brands in its in-flight magazine.
These brands would pay a fixed price to Frankfin to print their promotional messages in the magazine. As part of the
promotional mix, the in-flight magazine is being used for _____.
a.
direct selling
b.
public relations
c.
personal selling
d.
advertising
35. Which of the following statements is characteristic of social media?
a.
They have a very low cost per contact.
b.
They can find customers that are hard to locate.
c.
They rely on repetition of the message during promotions.
d.
They position information as strictly entertaining.
36. _____ refers to communication by marketers that informs, persuades, and reminds potential buyers of a product to
influence an opinion or elicit a response.
a.
Upselling
b.
Direct selling
c.
Promotion
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d.
Encoding
37. With regards to the communication process, which term refers to the conversion of a sender’s ideas and thoughts into
a message, usually in the form of words or signs?
a.
Encoding
b.
Decoding
c.
Media channel
d.
Interpersonal communication
38. The _____ is a model that outlines the process for achieving promotional goals in terms of stages of consumer
involvement with a promotional message.
a.
BCG matrix
b.
IMC model
c.
AIDA concept
d.
SWOT matrix
39. Which term refers to the combination of promotional tools—including advertising, public relations, personal selling,
sales promotion, and social media—that are used to reach the target market and fulfill the organization’s overall goals?
a.
Promotional mix
b.
Communication
c.
Coding and decoding
d.
Informative promotion
40. According to the AIDA model, which of the following is the first step in the purchase-decision process?
a.
Action
b.
Interest
c.
Attention
d.
Desire
41. Which of the following is true about the use of social media in promotion?
a.
It seeks to convert an existing need into a want or to stimulate interest in a new product.
b.
It is designed to stimulate a purchase or an action.
c.
It becomes the main promotion goal when the product enters the growth stage of its life cycle.
d.
It aims to form relationships with customers and potential customers.
42. _____ includes media such as television, magazine, outdoor, radio, or newspaper advertising.
a.
Paid media
b.
Owned media
c.
Earned media
d.
Free media
43. Which of the following is true about the feedback process of communication?
a.
Feedback takes place before the process of decoding.
b.
With the increase in online advertising and social media, marketers are able to get more feedback via the
Internet.
c.
Feedback cannot be nonverbal.
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d.
Indirect feedback does not help mass communicators to decide whether to continue, modify, or drop a
message.
44. _____ plays a very important role in how marketers decide to distribute funding among their promotional mix tactics.
a.
Data
b.
Competitor
c.
Noise
d.
Government policy
45. Which of the following is true about earned media?
a.
The idea behind earned media is to get people talking about the brand—whether through media coverage or
through word of mouth.
b.
Earned media includes magazine, outdoor, radio, newspaper advertising, or display advertising on a website.
c.
Earned media is controlled by the brand but continuously keeps the customer and his or her needs in mind as it
creates videos, blog posts, contests, photos, and other pieces of content.
d.
Earned a new form of promotional tactic where brands are becoming publishers of their own content in order
to maximize the brand’s value to customers as well as increase their search rank in Google.
46. King’s Crown, a beverage company, has launched a new energy drink. It sponsors a marathon in the city as part of its
promotional strategy. It also issues a press release about the sponsorship and persuades media reporters of different
newspapers to print it. King’s Crown is generating _____.
a.
a marketing mix
b.
loyalty
c.
a sales response
d.
publicity
47. Zee TV, a commercial television broadcast network, uses billboards, television, magazines, and newspaper advertising
to create awareness about upcoming shows and to inform viewers about the new episodes of its existing shows. Zee TV
uses _____ to promote its television programs.
a.
intrapersonal communication
b.
mass communication
c.
intergroup communication
d.
interpersonal communication
48. Which of the following is NOT true of promotional strategies?
a.
Promotional strategies have remained stagnant over a period of years.
b.
Targeted customer segments have become more difficult to reach.
c.
In today’s competitive world, marketers should think more creatively to survive.
d.
Most modern campaigns utilize a variety of newer tactics.
49. Which of the following is a difference between social media and personal selling?
a.
Social media can disperse a message quickly to a wide audience, whereas personal selling is very slow in
dispersing a message to a large audience.
b.
Social media entail two-way communication, whereas personal selling entails one-way communication.
c.
Social media are a means of interpersonal communication, whereas personal selling is a means of mass
communication.
d.
Social media provide opportunity for immediate feedback, whereas personal selling does not provide
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opportunity for direct feedback.
50. Which statement describes an element of sales promotion?
a.
It is a long-term tool used by marketers.
b.
It complements advertising by yielding faster sales responses.
c.
It is allotted less marketing money than advertising.
d.
It uses personal selling, advertising, and public relations.
51. Which of the following promotional approaches is most commonly used by toothpaste brands and other consumer
products that are well-established?
a.
Reminder promotion
b.
Persuasive promotion
c.
Informative promotion
d.
Connective promotion
52. Communication by marketers that informs, persuades, and reminds potential buyers of a product to influence an
opinion or elicit a response is called ____________.
a.
direct selling
b.
promotion
c.
the marketing mix
d.
target marketing
53. Which of the following statements is true of informative promotion?
a.
It is designed to stimulate a purchase or an action to purchase.
b.
It is used to keep the product and brand name in the public’s mind.
c.
It seeks to convert an existing need into a want or to stimulate interest in a new product.
d.
It seeks to form relationships with customers and potential customers through technological ties.
54. Roar Bros., a beverage manufacturing firm, recently launched a new energy drink. To make consumers aware of the
new drink and to stimulate their interest in it, the managers want to use owned media to promote the new product. In this
case, the managers will most likely
a.
make short commercials for the energy drink and upload it on YouTube.
b.
encourage customers to share reviews about the energy drink on the firm’s website.
c.
pay for advertising in television, magazine, radio, or newspaper.
d.
use display advertising on websites and pay-per-click advertising on search engines.
55. Which of the following statements is true of marketers as senders in the communication process?
a.
They adapt existing messages.
b.
They listen to the demands of target markets.
c.
They spot new communication opportunities.
d.
They remind the target markets to take action.
56. Which of the following becomes the main goal of promotion when the product enters the growth stage of its life
cycle?
a.
Reminder promotion
b.
Persuasive promotion
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c.
Informative promotion
d.
Connective promotion
57. During the _____ of the product life cycle, the basic goal of promotion is to inform the target audience that a product
is available.
a.
growth stage
b.
decline stage
c.
maturity stage
d.
introduction stage
58. Which of the following is included in the promotional mix?
a.
Personal selling
b.
Price
c.
Product
d.
Place
59. Which statement describes a benefit of advertising?
a.
It has a very low cost per contact.
b.
It facilitates consumer empowerment.
c.
It provides opportunity for immediate feedback from consumers.
d.
It creates a long-term, committed relationship between a salesperson and a customer.
60. Which of the following is a reason for the increasing popularity of the integrated marketing communications concept?
a.
More selectively segmented markets have replaced the traditional broad market groups to which marketers
promoted in the past.
b.
Marketers are discontinuing the use of online advertising because it lacks measurability.
c.
The proliferation of thousands of media choices beyond traditional television has made promotion easier.
d.
Marketers have increased their advertisement spending for promotional techniques that generate gradual sales
responses.
61. Encoding the message encompasses all of the following except
a.
advertisement.
b.
press release.
c.
sales presentation.
d.
retail store.
62. In the context of the promotional mix, _____ attempts to persuade the buyer to accept a point of view.
a.
relationship selling
b.
personal selling
c.
sales promotion
d.
media promotion
63. Which of the following statements is true of buying decisions?
a.
The type of buying decision does not affect the promotional mix of an organization.
b.
Consumers are not involved in complex buying decisions.
c.
Print advertising can be useful for high-involvement purchase decisions.
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d.
Personal selling is most effective in helping consumers in routine decisions.
64. Which form of promotion is most suitable to promote complex and technical products such as automobiles,
computers, and investment services?
a.
Reminder promotion
b.
Persuasive promotion
c.
Informative promotion
d.
Connective promotion
65. In the context of communication process, which of the following serves to transmit the message?
a.
Facial gestures
b.
Radio
c.
Newspaper
d.
All of the above
66. Which of the following illustrate a difference between a push strategy and a pull strategy?
a.
Social media are used in a push strategy, whereas personal selling is used in a pull strategy.
b.
Wholesalers are targeted in a push strategy, whereas end consumers are targeted in a pull strategy.
c.
A push strategy focuses on content marketing, whereas a pull strategy focuses on offering aggressive
discounts.
d.
No intermediaries are involved in a push strategy, whereas wholesalers and retailers are involved in a pull
strategy.
67. Which of the following statements describes personal selling?
a.
It has an increased dependence on the Internet.
b.
It does not focus on customer loyalty.
c.
It does not focus on creating a long-term relationship with the buyer.
d.
It focuses on creating a win-lose outcome with the buyer.
68. Which of the following statements is true of persuasive promotion?
a.
It is designed to stimulate a purchase or an action.
b.
It is used to keep the product and brand name in the public’s mind.
c.
It seeks to convert an existing need into a want or to stimulate interest in a new product.
d.
It seeks to form relationships with customers and potential customers through technological ties.
69. A new category of promotional tactic based on brands becoming publishers of their own content to maximize the
brands’ value to customers is called ____________.
a.
owned media
b.
earned media
c.
paid media
d.
unpaid media
70. Which of the following is a characteristic of interpersonal communication?
a.
It involves communicating a concept or message to large audiences.
b.
It is directed to consumers as a whole.
c.
The marketers cannot notice the immediate reactions of the consumers.
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d.
When talking, people see the other person’s reaction and can respond almost immediately.
71. Which of the following is NOT a goal of promotion?
a.
Inform the target audience.
b.
Connect with the audience.
c.
Persuade the target audience.
d.
Discourage the audience from buying competitors’ products.
72. Which of the following forms of promotion is generally more prevalent during the early stages of the product life
cycle?
a.
Informative promotion
b.
Persuasive promotion
c.
Relationship-based promotion
d.
All of the above are correct.
73. Advent Automobiles Inc. has launched a new sport utility vehicle (SUV). It's advertising firm develops a marketing
message and places advertisements in leading newspapers and on social media sites to inform consumers about the new
SUV and its various features. In the context of the communication process, Advent Automobiles is the _____.
a.
sender
b.
decoder
c.
encoder
d.
receiver
74. Which of the following is true of public relations?
a.
It has the advantage of being able to reach the masses.
b.
It helps an organization communicate with its customers, suppliers, stockholders, government officials,
employees, and the community in which it operates.
c.
It is generally a short-run tool used to stimulate immediate increases in demand.
d.
It is a purchase situation involving a personal, paid-for communication between two people in an attempt to
influence each other.
75. Which of the following cannot be considered a competitive advantage of a firm?
a.
High product quality
b.
Same level of service as offered by a competitor
c.
Rapid delivery
d.
Low prices
76. Which of the following is part of a pull strategy?
a.
Offering aggressive discounts to retailers
b.
Using trade advertising
c.
Offering heavy sampling and introductory consumer advertising
d.
Selling products to wholesalers
77. Which is true about the process of communication?
a.
Most marketing communications are a two-way process.
b.
Encoding the message refers to receiver’s interpretation of message.
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c.
Advertisement and sales presentations are examples of decoding the message.
d.
Customer plays the role of sender in the communication process.
78. Which of the following consists of all marketing activities—other than personal selling, advertising, and public
relations—that stimulate consumer purchasing and dealer effectiveness?
a.
Public relations
b.
Publicity
c.
Advertising
d.
Sales promotion
79. Which of the following statements is the objective of public relations?
a.
To create the promotional mix for an organization
b.
To educate the public about a company’s goals and objectives
c.
To receive direct feedback from customers
d.
To facilitate consumer empowerment
80. A set of unique aspects of an organization that causes target consumers to patronize its rather than its competitors is
called a ____________.
a.
promotional strategy
b.
competitive advantage
c.
marketing mix
d.
promotional mix
81. The interpretation of the language and symbols sent by the source through a channel is called _______.
a.
channel
b.
encoding
c.
decoding
d.
sender
82. The _____ is the combination of advertising, personal selling, sales promotion, social media, and public relations and
is used to reach the target market and fulfill an organization's overall goals.
a.
product mix
b.
retailing mix
c.
distribution mix
d.
promotional mix
83. The marketing function that evaluates public attitudes, identifies areas within the organization the public may be
interested in, and executes a program of action to earn public understanding and acceptance is called ___________.
a.
public relations
b.
publicity
c.
advertising
d.
sales promotion
84. Wild Plus, a television channel dedicated to wildlife, wanted to promote its new wildlife adventure series. The series
was given wide coverage in newspapers and on television after the channel promoted it, which created awareness about
Wild Plus and led to a large viewership. In this case, Wild Plus engaged in
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a.
advertising.
b.
personal selling.
c.
public relations.
d.
sales promotion.
85. Which of the following statements is true of a proper promotional mix?
a.
It does not use advertising.
b.
It entails indirect, one-way communication.
c.
It works for all products of a company.
d.
It meets the needs of a target market.
86. A medium of communication—such as a voice, radio, or newspaper—for transmitting a message is called
_____________.
a.
a channel
b.
encoding
c.
decoding
d.
a sender
87. Which of the following is NOT a component of AIDA model?
a.
Attention
b.
Demand
c.
Interest
d.
Action
88. Decor, a renowned interior design services company, tries to increase its customer base through increased web
presence on its site. It regularly posts photos of the spaces it has designed and encourages its followers to review its
designs, and recommend the company to their friends. When these promotional efforts result in electronic word-of-mouth
advertising, this is known as ___________________.
a.
paid media
b.
earned media
c.
owned media
d.
free media
89. Which of the following refers to a careful coordination of all promotional messages for a product or a service to
ensure the consistency of messages at every contact point at which a company meets the consumer?
a.
Promotional mix
b.
Integrated marketing communications
c.
AIDA model
d.
Content marketing
90. The managers of Pork Farm Inc., a meat-packing company, want to create more consumer demand for the company’s
products that are not as popular as its competitors. They have a meeting to decide on the effective communication
strategies that can be used to increase the popularity of Pork Farm Inc.’s products among customers. They want to do this
by advertising their company’s products. In this scenario, the managers of Pork Farm Inc. are developing the _____.
a.
promotional strategy
b.
differentiation strategy
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c.
service strategy
d.
price strategy
91. Which of the following generally tends to increase consumers’ comprehension of marketing communication?
a.
Selective exposure, distortion, and retention of communication
b.
Consumers’ biases, needs, experiences, and knowledge
c.
Differences in age, social class, education, culture, and ethnicity of the target audience
d.
Bright colors and bold graphics of the advertisement
92. With reference to message transmission, in which case is the reception of the message normally high?
a.
When a sales pitch is given by a sales representative to a potential client
b.
When the message is communicated through mass media
c.
When the message is cluttered by noise
d.
When the message is communicated through newspapers or television
93. In the _____ of the product life cycle, the promotional strategy is to emphasize the product’s differential advantage
over the competition.
a.
growth stage
b.
decline stage
c.
maturity stage
d.
introduction stage
94. A plan for the optimal use of promotional elements—such as advertising, public relations, personal selling, sales
promotion, and social media—is known as a ___________.
a.
promotional strategy
b.
competitive advantage
c.
marketing mix
d.
promotional mix
95. A _____ requires a manufacturer to focus its promotional efforts on end consumers or opinion leaders.
a.
push strategy
b.
print marketing strategy
c.
pull strategy
d.
service strategy
96. Which type of media is based on is the traditional advertising model in which a brand funds the media space?
a.
Owned media
b.
Earned media
c.
Paid media
d.
Unpaid media
97. Discuss the integrated marketing communications (IMC) concept and why is it needed. What are the reasons for its
growing popularity?
98. Discuss informative promotion and provide examples that illustrate successful promotion of goods, services, and the
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support of nonprofit organizations.
99. Discuss the elements of the promotional mix and how they influence the target audience.
100. Discuss the concept of AIDA and its relevance for marketers.
101. Discuss interpersonal communication and mass communication and how they are different from each other.
102. Explain the different stages of the product life cycle and how marketers adjust their promotion mix for the most
successful impact at each stage.
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Answer Key
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