Chapter 16—Promotional Planning for Competitive Advantage
TRUE/FALSE
1. Promotion is communication by marketers that informs, persuades, and reminds potential buyers of a
product in order to influence their opinion or elicit a response.
2. The elements of the promotional mix include advertising, sales promotion, personal selling, and
competitive advantage.
3. Black & Mild FT are the only cigars on the market made with “a skillful blend of premium pipe
tobaccos and a filter tip for extra smoothness.” This feature creates a competitive advantage for the
product.
4. Communication is the process by which we exchange or share meanings through a common set of
symbols.
5. Coca-Cola uses popular magazines, radio, and cable television to promote its products. Coca-Cola uses
mass communication.
6. One way of conveying a message that the receiver will hear properly is to use abstract words and
pictures.
7. NutriFoods is concerned that its advertising messages are not getting through to the target market as
intended. Its radio ads contain music that its target market does not like, and its spokesperson has a
very nasal voice that sounds as though he has a perpetual cold. These are examples of noise in the
communications process.
8. Marketers targeting consumers in foreign countries must worry about the translation and possible
miscommunication of their promotional messages by other cultures.
9. If a business studied its promotional strategies by looking at sales trends and market research, it would
be using direct feedback to evaluate its promotional strategies.
10. Feedback received via social media has not proven especially helpful to marketers.
11. Effective promotions are designed to either amuse or assist the target audience.
12. Informative promotion isused to keep the product and brand name in the public’s mind.
13. The promotional mix is the combination of promotional tools used to reach the target market and
fulfill the organization’s overall goals.
14. Advertising is any form of impersonal, one-way mass communication in which the sponsor is
identified.
15. Sales promotion is a promotional tool generally used to stimulate consumer buying and dealer
effectiveness.
16. Compared to the other promotional mix tools, social media offers the fastest feedback.
17. AIDA is an acronym for attention, interest, desire, and action.
18. The AIDA concept can be used to explain how all promotions influence purchase decisions.
19. From the consumer’s point of view, a company’s communications are already integrated, no matter
how the company itself defines them.
20. IMC stands for interactive marketing communications.
21. One of the reasons for the growing popularity of integrated marketing communications is the reduction
of media choices.
22. Allyson Brown is trying to develop a promotional mix for her firm’s new product, a sophisticated
modular sunporch designed for use all year. She reasons that because her product is complex and
carries high financial risks for consumers, the mix should concentrate on personal selling.
23. All promotion, especially advertising, is reduced as a product enters the decline stage. However,
personal selling and sales promotion efforts might be maintained, especially at the retail level.
24. Lansky sells 60 different knife and garden tool sharpeners. It uses aggressive personal selling and sales
promotions to encourage intermediaries to carry and sell its sharpener. Lansky is using a pull strategy.
25. Marketers typically use either a push or a pull strategy exclusively.
MULTIPLE CHOICE
1. _____ is communications by marketers that inform, persuade, and remind potential buyers of a product
in order to influence an opinion or elicit a response.
a.
Distributive communication
b.
Perceptual communication
c.
Statistically provable advertising
d.
Promotion
e.
Publicity
2. A plan for the optimal use of advertising, personal selling, sales promotion, and public relations is
called a:
a.
promotional strategy
b.
set of promotion goals
c.
marketing mix
d.
communication mix
e.
selling plan
3. The National Pork Board wants to create more consumer demand for pork products. The board has
developed a(n) _____ that sets out how it will use all of the elements of the promotional mix to create
a coordinated plan that will become an integral part of the organization’s marketing strategy.
a.
promotional strategy
b.
tactic for communication
c.
mass aggregation strategy
d.
communication objective
e.
informative strategy
4. The Americans for Balanced Energy Choices has spent $1.3 million on billboard, newspaper,
television and radio ads to rally public support for coal-fired electricity. The council has developed
a(n) _____ that sets out how it will use all of the elements of the promotional mix to create a
coordinated plan that will become an integral part of the organization’s marketing strategy.
a.
promotional strategy
b.
tactic for communication
c.
mass aggregation strategy
d.
communication objective
e.
informative strategy
5. A _____ is defined as the unique set of features of a company and its products that are perceived by
the target market as significant and superior to the competition.
a.
comparative differentiation
b.
competitive advantage
c.
marketing mix
d.
special benefit
e.
promotional plan
6. Consumers are looking more toward organic products to avoid exposure to pesticides, fungicides,
herbicides, and antibiotics. Whole Foods Markets provide a variety of products ranging from cereal to
frozen dinners that are USDA organic. Being organic and having such a great variety gives Whole
Foods a _____.
a.
differential parity
b.
synergistic goal
c.
competitive advantage
d.
comparative benefit
e.
tactical objective for implementing strategy
7. The main function of a promotional strategy is to:
a.
convince the target customers that a firm’s products offer competitive advantages over
those of its competition
b.
find a niche in the marketplace for the firm and its products
c.
provide the firm with research information about the success of its marketing effort
d.
create efficient distribution channels
e.
guarantee control over the length of the stages of the product life cycle
8. People who love to fish prefer American Magic Lures that are cut from ash or cedar and then
hand-painted and hand-tied with a feather skirt. Advertising for American Magic Lures emphasizes
how its lures, unlike others, are all handcrafted. This is its:
a.
publicity objective
b.
marketing differentiator
c.
competitive advantage
d.
one-to-one marketing advantage
e.
sales promotional theme
9. The ads for Don Francisco’s ground coffee simply state, “The highest quality coffee doesn’t have to be
expensive.” This is an example of how a product communicates its _____ with promotion.
a.
marketing mix
b.
comparative differentiation
c.
competitive advantage
d.
researchable objective
e.
promotional theme
10. _____ is the process by which we exchange or share meanings through a common set of symbols.
People also assign meanings to feelings, ideas, facts, and attitudes.
a.
Feedback
b.
Promotion
c.
Advertising
d.
Publicity
e.
Communication
11. The two major categories of communications are:
a.
primary and secondary
b.
direct and indirect
c.
long term and short term
d.
mass and interpersonal
e.
informative and persuasive
12. Interpersonal communication is:
a.
nonpaid information such as publicity
b.
paid communication placed in personal media
c.
long-distance communication between a business and its target market
d.
direct face-to–face communication between two or more people
e.
noise-free communication
13. Usborne Books consultants sell books directly to customers via presentations in customers’ homes, at
book fairs and community events, and at craft shows Usborne consultants are engaged in:
a.
telemarketing
b.
interpersonal communication
c.
publicity
d.
mass communication
e.
crowd selling
14. Communication to large audiences, usually through a medium such as television or a newspaper, is
called _____ communication.
a.
mass
b.
feedback-proof
c.
referential
d.
interpersonal
e.
public
15. Progressive Bank uses billboard, television, newspaper, and magazine advertising to inform consumers
about their products. This is an example of _____ communication.
a.
referential
b.
mass
c.
factual
d.
interpersonal
e.
public
16. The _____ is the originator of the message in the communication process.
a.
communicator
b.
encoder
c.
channeler
d.
sender
e.
receiver
17. For many years during the Christmas season, Norelco has run TV commercials featuring an animated
Santa Clause riding over snow drifts on his trusty Norelco triple-headed electric razor. Because
Norelco is the originator of the communication process, it is the _____.
a.
channel
b.
noise filter
c.
receiver
d.
decoder
e.
sender
18. Chick-fil-A uses cows as their mascot. The cows are sometimes dressed in funny costumes or involved
in some kind of behavior that defies cow-like conduct. Always they message is to encourage people to
eat chicken, not beef. Chick-fil-A is the _____ of the message in this communication process.
a.
sender
b.
decoder
c.
channeler
d.
receiver
e.
communicator
19. All of the following are elements of the communication process EXCEPT:
a.
encoding
b.
sender
c.
channel
d.
comprehension
e.
receiver
20. _____ is the conversion of the sender’s ideas and thoughts into a message.
a.
Development
b.
Envelopment
c.
Processing
d.
Decoding
e.
Encoding
21. Encoding is the:
a.
creation of the original ideas and thoughts of a message
b.
conversion of the sender’s ideas and thoughts into a message
c.
transmission of a message
d.
receipt and comprehension of a message
e.
deciphering and understanding of a message
22. The Richards Group, a Dallas ad agency, created the Chick-fil-A cows. Since the time they created the
cows the message has always been “Eat more chikin.” The ad agency acted as the _____ of the
message.
a.
decoder
b.
sender
c.
encoder
d.
receiver
e.
channeler
23. Media, salespeople, or a retail store best represent which element of the communication process?
a.
Sender
b.
Encoding
c.
Message channel
d.
Decoding
e.
Noise
24. A channel in communication is:
a.
the only source of noise
b.
the same as in distribution
c.
usually an ad agency or public relations firm
d.
someone who places advertising into media
e.
any communication medium
25. The marketing campaign for Purina One dog food uses posters in veterinarians’ offices, radio and
television ads, and a Web site to promote benefits of the dog food. In terms of the communication
process, Purina One used several different:
a.
source of feedback
b.
channels
c.
encoders
d.
decoders
e.
noise interrupters
26. Lipton Tea is promoted with television commercials, radio spots, newspaper coupons, and magazine
advertisements. In the communication process, these media served as _____ for transmitting the
message.
a.
senders
b.
decoders
c.
encoders
d.
channels
e.
receivers
27. When Castrol Syntec, a premium motor oil, sought a new way to reach its young, car-passionate
audience, the brand found its mark with video games. In its first-ever attempt at in-game advertising,
Castrol Syntec found a way to show consumers (in a virtual world) the brand’s power and
performance. In the communication process, the game served as a(n) _____ for transmitting the
message.
a.
sender
b.
decoder
c.
encoder
d.
channel
e.
receiver
28. Anything that interferes with, distorts, or slows the transmission of information in the communication
process is referred to as:
a.
media communication
b.
feedback
c.
static
d.
nonpaid communication
e.
noise
29. Just as Terri was driving in sight of a billboard for Chipotle Mexican Grill, a small child darted out
into the street in front of her. Terri was so concerned with avoiding the child that she totally missed the
restaurant’s billboard. In terms of the communication process, the small child acted as:
a.
the decoder
b.
negative feedback
c.
static
d.
the receiver
e.
noise
30. Within the communication process for a car dealer’s ad, which of the following would be an example
of noise?
a.
competing ads
b.
news stories in the newspaper
c.
the physical surroundings in which the individual reading the ad is located
d.
the presence of other people while the ad is being read
e.
all of these
31. The person who decodes a message in the communication process is called the:
a.
target
b.
audience
c.
channel
d.
receiver
e.
recipient
32. _____ is the interpretation of the language and symbols sent by the source through a channel.
a.
Encoding
b.
Perceiving communication
c.
Decoding
d.
Channeling
e.
Semiotics
33. For communication to be effective:
a.
marketing managers should use both interpersonal and mass communications
b.
all steps of the communications process model must take place
c.
marketing managers must ensure a proper match between the message to be conveyed and
the target market’s attitudes and ideas
d.
advertising messages must be general enough to cover all ages, social classes, and
education levels
e.
marketers should use televised instead of print communication
34. The most successful global marketing managers realize that:
a.
senders of messages can communicate effectively with other cultures even if they know
nothing of the other culture
b.
any message can be considered uniform by easily translating the message into all the other
languages
c.
consumers’ cultural environments do not play a large role in the communication process
and affect decoding
d.
it is imperative that every message be completely customized to each subculture
e.
translation and possible miscommunication of their promotional messages can occur
35. Some large retailers are successful in most areas of the country yet fail in certain regions that are
heavily populated with different races and subcultures. This is because it is difficult to communicate
without an understanding of:
a.
culture
b.
locational variants
c.
gender differences
d.
income influences
e.
hypergraphics
36. The receiver’s response to a message is _____ to the source.
a.
decoded
b.
noise
c.
feedback
d.
channeled
e.
static filled
37. When a doctor asks a pharmaceutical sales representative about the side effects of a new drug the rep
was promoting, it was an example of:
a.
feedback
b.
decoding
c.
noise
d.
indirect transmission
e.
nonverbal communication
38. Which of the following statements about the impact of blogger and social media on the communication
model is CORRECT?
a.
Feedback gathered via social media is largely impersonal and numbers-driven.
b.
Social media enables marketers to personalize the feedback channel by opening the door
for direct conversation with consumers.
c.
The impact of social media on marketing has been negligible at best.
d.
The information generated by market research is much more “natural” as that gleaned
from bloggers.
e.
All of the above are correct.
39. Because marketers do not control consumers’ comments on social media sites such as Twitter and
Facebook:
a.
there is a chance that comments and postings will be negative
b.
any comments consumers leave are virtually useless to marketers
c.
a filtered feedback channel has been created
d.
most consumers do not trust the comments they read there
e.
any feedback marketers receive there will be impersonal
40. What are the three basic tasks of promotion?
a.
Informing, persuading, and convincing
b.
Persuading, convincing, and reminding
c.
Informing, convincing, and reminding
d.
Informing, persuading, and reminding
e.
Persuading, comparing, and reminding
41. Which of the following is one of the basic tasks typically performed by promotion?
a.
Managing
b.
Organizing
c.
Rewarding
d.
Persuading
e.
Perceiving
42. Mercury Solar Systems uses a video on their Web site to show how solar power can be converted to
electricity in a home using a photovoltaic system. The video format is used as a(n) _____ format
because the average consumer may perceive the product as highly technical.
a.
influencer
b.
persuasive
c.
reminder
d.
reseller
e.
informative
43. Informative promotion is generally used:
a.
when memory stimulus is needed
b.
when the brand name is well-known to consumers
c.
during the early stages of the product life cycle
d.
during an attempt to gain the immediate action of a consumer
e.
when advertising a simple, nontechnical, mature product
44. When Heinz introduced its ketchup globally, it first had to deal with the fact ketchup is not a
household staple outside the United States. Heinz had to show foreign users how ketchup can be used.
Globally, Heinz has had to rely primarily on _____ advertising to convince consumers to want the
product.
a.
reminder
b.
persuasive
c.
informative
d.
compulsive
e.
influential
45. The American Plastics Council wants to stimulate more consumer demand for products that are
packaged in plastic. The ads will explain how plastics protect families from food spoilage and
contamination. The ads will also describe how tamper-evident plastic seals provide an extra measure
of product safety assurance. By trying to change customers’ perception of plastic packaging, the
council is using _____ promotion.
a.
reminder
b.
persuasive
c.
declarative
d.
diffusive
e.
mass
46. The goal of persuasive promotion is to:
a.
stimulate a purchase or other action
b.
increase brand awareness
c.
describe available services
d.
remind the consumers of where to buy the product
e.
maintain top-of-mind consumer awareness
47. Persuasion normally becomes the primary promotion goal when entering which stage of the product
life cycle?
a.
Introduction
b.
Growth
c.
Maturity
d.
Plateau
e.
Decline
48. Innovyx is an e-mail marketing service provider. It has a new ad campaign aimed at changing negative
perceptions of e-mail. The ads explain how much cheaper e-mail advertising is than traditional
advertising and what a high return on investment it can generate if used properly. Finally, the message
ends by suggesting that companies who want to promote their products give e-mail a chance to show
them what it can do. This promotion has the task of:
a.
persuading
b.
informing
c.
reminding
d.
suppressing
e.
rewarding
49. _____ promotion is used to keep a familiar brand name in the public’s mind and is prevalent during the
maturity stage of the product life cycle.
a.
Influence
b.
Amusement
c.
Informative
d.
Persuasive
e.
Reminder
50. For many years Jell-O gelatin has run advertisements that tell consumers that there is “always room for
Jell-O.” This is an example of _____ promotion.
a.
influence
b.
amusement
c.
informative
d.
prevalent
e.
reminder
51. Which of the following products is MOST likely to use reminder promotion?
a.
Samsung 3-D television
b.
Brother electronic typewriter
c.
iPhone
d.
Crest toothpaste
e.
All of the above.
52. The promotional mix consists of:
a.
advertising, publicity, direct marketing, and personal selling
b.
public relations, direct marketing, personal selling, and publicity
c.
product, promotion, price, and place
d.
advertising, personal selling, sales promotion, and public relations
e.
advertising, telemarketing, public relations, and sales promotions
53. Advertising, personal selling, sales promotion, and public relations make up the:
a.
communication model
b.
advertising campaign
c.
marketing mix
d.
publicity four
e.
promotional mix
54. _____ is any form of impersonal (one way) paid communication in which the sponsor or company is
identified.
a.
Advertising
b.
Publicity
c.
Promotion
d.
Public relations
e.
Nonpaid communication
55. To increase its revenues, US Airways has decided to sell space on the tray tables to companies that
would like to use this unique channel for their promotional messages. In terms of the promotional
strategy, the tray tables will be used for:
a.
implicit communications
b.
publicity
c.
sales promotion
d.
public relations
e.
advertising
56. The marketing function that evaluates public attitudes, identifies areas within the organization that are
of public interest, and executes a program of action to gain public understanding is:
a.
public relations
b.
advertising
c.
implicit communications
d.
personal selling
e.
sales promotion
57. Marketers use public relations to:
a.
earn public understanding and acceptance
b.
communicate with the community in which they operate
c.
educate the public about company goals
d.
introduce new products
e.
do all of these things
58. Which of the following elements of the promotional mix would be most effective for helping highly
involved consumers make complex buying decisions?
a.
Personal selling
b.
Reminder advertising
c.
Sales promotion
d.
Public relations
e.
Informative advertising
59. Sara Blakely, founder of Spanx, had to go to department store managers and convince them that
women would want to buy her footless pantyhose. Sara’s activity to sell her products is best described
as _____.
a.
mass communication
b.
implicit communication
c.
personal selling
d.
public relations
e.
telemarketing