c.
handshaking.
d.
eye contact.
e.
head nodding.
95. ____ is a broad set of communication efforts used to create and maintain favorable relationships
between a company and its stakeholders.
a.
Stakeholder management
b.
Personal selling
c.
Integrated marketing communications
d.
Sales promotion
e.
Public relations
96. Communication through the use of brochures, annual reports, event sponsorships, and news stores is
referred to as
a.
advertising.
b.
personal selling.
c.
sales promotion.
d.
publicity.
e.
public relations.
97. The Sharper Image likes to use nonpersonal communication in news story form such as press releases
for its new and improved products. This is an example of
a.
sales promotion.
b.
direct marketing.
c.
personal selling.
d.
publicity.
e.
social media.
98. All of the following are examples of publicity-based public relations tools except
a.
press conferences.
b.
feature articles.
c.
news releases.
d.
annual reports.
e.
news stories.
99. Public relations
a.
should be used mostly to counteract any competitive promotions or negative publicity.
b.
is an element of promotion that should be handled on a continuous basis.
c.
should be used solely to respond to emergencies that could significantly damage the
company’s reputation.
d.
is paid communication that helps enhance a company‘s image by highlighting its
philanthropic efforts.
e.
is generally not given much weight because the information is generated by the company
itself.
100. An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers
is
a.
advertising.
b.
personal selling.
c.
public relations.
d.
sales promotion.
e.
packaging.
101. Albott Laboratories offers ceramic coffee mugs to its physician customers when it promotes a new
drug. This example illustrates Albott’s use of which one of the following elements of the promotion
mix?
a.
Packaging
b.
Personal selling
c.
Sales promotion
d.
Public relations
e.
Telemarketing
102. When McDonald’s uses the Monopoly game in which customers receive game pieces with each visit
and try to assemble a set of properties to win prizes, McDonald’s is utilizing
a.
sales promotion.
b.
advertising.
c.
guerilla marketing.
d.
personal selling.
e.
public relations.
103. Marketers of highly seasonal products tend to have more irregular use of
a.
advertising.
b.
sales promotion.
c.
public relations.
d.
personal selling.
e.
marketing.
104. Hunt’s decided to put a much larger share of its promotion budget into ____ because of the heavy
reliance it will be placing on coupons in the second quarter.
a.
advertising
b.
sales promotion
c.
public relations
d.
telemarketing
e.
personal selling
105. Subway is conducting a contest in which customers are asked to name a new sandwich. The winner
gets a free sandwich each day for one year and an appearance in one of the company’s TV
commercials. This contest illustrates Subway’s use of the ____ elements of the promotion mix.
a.
Advertising
b.
Personal selling
c.
Sales promotion
d.
Public relations
e.
Telemarketing
106. A consumer contest is an example of
a.
personal selling.
b.
sales promotion.
c.
social media.
d.
indirect selling.
e.
public relations.
107. Latisha works for a promotional consultant who develops sweepstakes, games, coupons, and rebate
plans for various marketers. Latisha is developing which of the following?
a.
advertising techniques.
b.
sales promotion techniques.
c.
publicity examples.
d.
personal selling techniques.
e.
direct marketing techniques.
108. Generally, promotion mixes for companies with extremely limited promotional budgets tend to
concentrate on
a.
advertising.
b.
publicity.
c.
sales promotions.
d.
personal selling.
e.
distributor incentives.
109. Which of the following target market characteristics are most important to consider before determining
the promotion mix ingredients?
a.
The size, geographic distribution, and demographic characteristics
b.
The cultural diversity and population size
c.
The age, sex, religion, and race characteristics
d.
Existing product adoption categories
e.
Existing levels of price consciousness
110. If a firm’s promotional budget were extremely limited, for which of the following reasons would it be
more likely to rely on personal selling as its main promotional tool?
a.
People are more likely to believe a human being than a print ad.
b.
TV and radio ads are not feasible for smaller companies.
c.
It can achieve more sales through business customers than through individual consumers.
d.
It is easier to measure a salesperson’s effects on sales than advertising’s effects on sales.
e.
The firm is charging a higher price to cover the expensive salaries of its salespeople.
111. Organizations that sell products to industrial markets or a few wholesalers tend to focus their
promotion efforts on
a.
advertising.
b.
word-of-mouth communication.
c.
public relations.
d.
sales promotion.
e.
personal selling.
112. The Dyson Company, manufacturer of high-priced vacuum cleaners, has developed a promotional
program with both push and pull policies. Dyson only sells its products through retailers who carry
high-end household electronics items. For the push policy, Dyson will most likely use ____________;
for the pull policy, Dyson will use ___________.
a.
Personal selling done by the retailer; rebates to the customer.
b.
A bonus to the retailer for every Dyson vacuum sold; personal selling done by the
retailer’s employees.
c.
Advertising and personal selling; rebates to the customer.
d.
Sales promotion; personal selling done by the retailer’s employees.
e.
Direct marketing; discounts to the retailer.
113. The use of heavy advertising in the promotion mix is least likely to occur in which product life cycle
stage?
a.
Introduction
b.
Decline
c.
Maturity
d.
Growth
e.
Plateau
114. If the push policy is used in promoting a product, the firm
a.
promotes directly to consumers.
b.
promotes only to the next marketing institution down the marketing channel.
c.
promotes the product to wholesalers only.
d.
promotes the product to retailers only.
e.
will be assured of having an effective promotional mix.
115. If a manufacturer decides to use a push policy to promote its products, it is most likely to focus its
efforts on
a.
retailers.
b.
wholesalers.
c.
ultimate consumers.
d.
other producers.
e.
institutional users.
116. When Hershey Dark Chocolate Kisses were introduced, Hershey promoted directly to consumers and
told them to ask for the product at their favorite stores. This is an example of a ____ policy.
a.
reseller promotional
b.
push
c.
customer promotional
d.
pull
e.
channel promotional
117. Ralph Lauren is planning a promotion where it will showcase all of its clothing lines to buyers at retail
stores. It also plans to develop a direct marketing campaign that will use social media to introduce its
new seasonal styles. Ralph Lauren is using ___ with the retail showcase and ___ with the social
media campaign.
a.
a pull policy; a push policy.
b.
personal selling; a pull policy.
c.
a push policy; a pull policy.
d.
guerilla marketing; a push policy.
e.
publicity; a push policy.
118. The use of a pull policy may require heavy expenditures for
a.
advertising and sales promotion.
b.
public relations and distribution.
c.
personal selling and public relations.
d.
distribution and advertising.
e.
sales promotion and personal selling.
119. Which of the following are personal informal exchanges of communication that customers share with
one another about products, brands, and companies?
a.
Guerilla communication
b.
Word-of-mouth communication
c.
Buzz marketing
d.
Viral marketing
e.
Conversational promotion
120. An attempt to create a trend or acceptance of a product through word–of-mouth communication is
called
a.
guerilla marketing.
b.
viral marketing.
c.
buzz marketing.
d.
personal publicity.
e.
conversational promotion.
121. Andrea receives an e-mail from her sister-in-law that is actually a recommendation for a website with a
demonstration of a new home hair-coloring system. She later discovers that her sister–in-law received a
free trial kit for passing Andrea’s and four other friends’ e-mail addresses along to the marketer. This is
known as
a.
viral marketing.
b.
buzz marketing.
c.
guerilla marketing.
d.
a word-of-mouth pyramid.
e.
personal advertising.
122. If promotion does not do its job of stimulating demand, then the
a.
price of the promoted product is likely to increase.
b.
price of the promoted product will remain reasonably stable.
c.
price of the promoted product will decrease.
d.
cost of promotion will decline.
e.
cost will remain about the same.
123. The two main reasons for criticism of promotional activities are that promotion
a.
has some flaws, and it is deceptive.
b.
is deceptive, and it causes prices to rise.
c.
pervades our daily lives, and it creates needs in us.
d.
creates needs in us, and it encourages materialism.
e.
has some flaws, and it pervades our daily lives.
124. Promotion can help keep prices lower because
a.
demand for the product does not increase.
b.
promotion of prices intensifies price competition.
c.
promotion of prices leads to nonprice competition.
d.
promotion tends to reduce consumers’ price sensitivity.
e.
promotion tends to stabilize a product’s price elasticity of demand.
125. A commercial for a weight-loss program that explains that the customer pays only one dollar for every
pound he or she wants to lose but specifies in fine print that the cost of meals is extra exemplifies ____
advertising.
a.
unfair
b.
illegal
c.
deceptive
d.
push
e.
pull
126. If a marketer of a perfume ad develops a commercial involving a man being attracted to a woman who
wears a particular perfume, it is attempting to influence one’s need for
a.
love and affection.
b.
safety.
c.
self-esteem.
d.
self-actualization.
e.
respect from others.
127. If children and teenagers are insisting on wearing expensive name-brand apparel, a criticism of
promotion can be made that promotion
a.
forces people to spend too much.
b.
forces prices to go up.
c.
encourages materialism.
d.
creates needs.
e.
can be harmful.
128. Promotion tends to
a.
create needs.
b.
capitalize on existing needs.
c.
be overly focused on the self-actualization needs.
d.
overemphasize physiological and safety needs.
e.
avoid focusing on people’s needs.
129. Promotion helps consumers because it
a.
costs billions of dollars each year, which stimulates the U.S. economy.
b.
always stresses wholesome values, which benefits society.
c.
persuades consumers to make the right choices.
d.
informs consumers and places them in a position to specify the products that they seek.
e.
tends to be informative and not persuasive.
130. Some critics, including consumer groups and government officials, suggest that certain products
should not be promoted because they
a.
cost too much.
b.
are illegal.
c.
are potentially harmful.
d.
do not last.
e.
are not competitive.
Scenario 17.1
Use the following to answer the questions.
When introducing a new vehicle targeted to the under-30 population, Toyota used several different
methods of communication. First, it did research in several large cities to find out who the opinion
leaders were in that age group. By visiting the local nightlife, one or two people in each city were
selected and given a new vehicle to drive for two weeks. They were told to share information about
this new vehicle with their friends. After a few weeks, then a television campaign was launched with
commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to
the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas.
131. Refer to Scenario 17.1. Toyota’s act of giving the opinion leaders a new vehicle for two weeks is best
described as an example of
a.
advertising.
b.
personal selling.
c.
sales promotion.
d.
buzz marketing.
e.
push marketing.
132. Refer to Scenario 17.1. Suppose Toyota also offered the dealership salespeople a trip to Hawaii for
anyone who could sell ten of the new vehicles within the first month they were available? This tactic
would be an example of ____ marketing, while the TV commercials described above would be an
example of ____ marketing.
a.
pull; push
b.
personal selling; push
c.
pull; sales promotion
d.
push; pull
e.
personal selling; sales promotion
133. Refer to Scenario 17.1. Suppose that Toyota has decided to contract with the producer of the next
James Bond 007 movie to use one of its new vehicles in a chase scene. This would best be an example
of
a.
sales promotion.
b.
word-of-mouth promotion.
c.
product placement.
d.
viral marketing.
e.
publicity.
134. Refer to Scenario 17.1. Which of the following is not an integrated communications tactic used by
Toyota?
a.
word-of-mouth communication
b.
advertising
c.
publicity
d.
personal selling
e.
sales promotion
Scenario 17.2
Use the following to answer the questions.
The manufacturers of Whizz, a new laundry detergent, are developing their promotional plan for the
first year. They know they want to use an integrated communications strategy and are considering the
use of advertising through TV and magazines, coupons, public relations, sales promotion, and viral
marketing. They are not sure when to use each of these methods however, and have asked for your
advice.
135. Refer to Scenario 17.2. Since Whizz is a new product, which of the following promotional methods
would you least recommend?
a.
magazine ads.
b.
viral marketing.
c.
television commercials.
d.
a price-reduction sales promotion.
e.
public relations.
136. Refer to Scenario 17.2. If the manufacturers of Whizz were to partner with Whirlpool to place a bottle
of Whizz in each new washer that is purchased during the first year, this would be an example of
a.
advertising.
b.
sales promotion.
c.
viral marketing.
d.
packaging.
e.
publicity-based public relations.
137. Refer to Scenario 17.2. The makers of Whizz considered a new promotional method for their product.
A small box of Whizz was placed in the mailbox of college students as they came on campus in the
fall. Along with the Whizz, the students received a coupon for $1.00 off their next purchase. They
could receive another coupon for $3.00 off if they went online and emailed five friends at another
college, telling them about Whizz. The friends could then go to a website and print a coupon for $2.00
off their next purchase. The sample boxes given to the college students are an example of ____, while
the emails to the five friends are an example of ____.
a.
sales promotion; advertising
b.
sales promotion; personal selling
c.
publicity; sales promotion
d.
viral marketing; sales promotion
e.
sales promotion; viral marketing
138. Refer to Scenario 17.2. The makers of Whizz have decided to go to several different colleges and have
a contest for the dirtiest shirt. While at the colleges, they will set up several washing machines near the
campus bookstore, demonstrating the power of Whizz to get these dirty shirts clean. Each contestant in
the dirtiest shirt contest will receive a coupon for a free bottle of Whizz. The winner of the contest will
receive a $50 gift card for the college bookstore. This method of promotion is an example of ____, and
is used to stimulate ____ demand.
a.
viral advertising; primary
b.
sales promotion; selective
c.
sales promotion; primary
d.
product placement; selective
e.
product placement; primary
TRUE/FALSE
139. Today, technology is allowing marketers to be more precise in targeting individual customers.
140. If integrated marketing communications works as intended, customers should receive clear and
consistent messages.
141. While the specific communication vehicles employed in promotion have not changed, the fundamental
role of promotion is changing.
142. Communication is a sharing of meaning.
143. When encoding a message, the source should use signs or symbols that are new to the audience.
144. Encoding is the process by which a receiver takes the coded message received from the source and
converts it into ideas and concepts.
145. Signs and symbols that can have more than one meaning should be avoided.
146. The receiver’s response to the decoded message is called noise.
147. Interference on one’s television set during a commercial is an example of noise.
148. When feedback occurs, the source becomes the receiver.
149. Rapid feedback enables communicators to quickly improve the effectiveness of their communication.
150. When an individual goes out and buys a product after having seen or read an advertisement for it,
feedback is occurring.
151. A communications channel is the vehicle used to transmit the coded message from the source to the
receiver.
152. When a firm uses mass communication, feedback is rapid.
153. Feedback does not exist for mass communication.
154. The capacity of a communication channel is determined by the least efficient component of the
communication process.
155. Channel capacity is determined by the most efficient component of the communication process.
156. A television advertisement that transmits several types of audio messages and visual materials may be
ineffective.
157. The role of promotion is to communicate.
158. Firms that link the purchase of their product to philanthropic efforts practice cause-related marketing.
159. Effective promotional programs require management efforts such as planning, organization,
implementation, and control.
160. Promotion that focuses on creating awareness is only important when introducing a new product to the
market.
161. A marketer uses pioneer promotion in the introductory stage of the product life cycle, when there are
many competitive brands.
162. Demand for a product category rather than for a specific brand is called primary demand.
163. Pioneer promotion neither emphasizes brand names nor compares brands.
164. Selective demand is demand for a certain brand.
165. Promotion to encourage trial use attempts to retain loyal customers.
166. Promotion can assist salespeople in finding likely sales prospects.
167. A business usually cannot operate at peak efficiency when sales fluctuate significantly.
168. A reseller advertising a manufacturer’s products is viewed as strong manufacturer support.
169. A promotion mix is a blend of four possible ingredients, which are advertising, personal selling, public
relations, and sales promotion.
170. Advertising is a paid form of nonpersonal communication.
171. Advertising is an inflexible promotional method.
172. Several forms of promotion can be used to complement personal selling efforts.
173. The absolute dollar outlay for advertising is usually low.
174. Measuring the effect of advertising on sales is difficult.
175. Personal selling makes possible immediate feedback from consumers.
176. Proxemic communication is communication through touching.
177. Tactile communication is communication through the movement of head, eyes, arms, hands, legs, or
torso.
178. The phrase, purchase products, includes the acceptance of ideas and issues.
179. Public relations is a broad set of communication efforts used to create and maintain favorable
relationships between the organizations and its stakeholders.
180. Public relations is nonpersonal communication in news story form about an organization, or its
products, or both, transmitted through a mass medium at no charge.
181. Public relations is a set of tools to be used primarily during crises.
182. A news story about a product is an example of sales promotion.
183. Coupons are a form of sales promotion.
184. Sales promotion activity occurs more during peak selling periods than in off-peak selling periods.
185. An organization’s promotion mix is viewed as an unchanging part of the marketing mix.
186. If an organization is large and has a large promotional budget, it should utilize all four promotional
methods.
187. If a company has very limited promotional resources, it is most likely to use mainly personal selling.
188. The geographic distribution of a firm’s customers can affect the combination of promotional methods
used.
189. The price of a product influences the promotion mix to be used by the producer.
190. The promotional method most commonly used for highly personal items is personal selling.
191. A breakfast cereal maker most likely will not use personal selling to promote its product.
192. Marketers usually decrease expenditures in advertising for products in the decline stage.
193. Advertising is one element of the promotion mix that is too expensive for small business firms.
194. When a push policy is used in promotion of a particular product, the producer promotes the product
only to the next channel member.
195. If a pull policy is used in promoting a product, the producer promotes the product only to the next
marketing institution down the channel.
196. When a push policy is used in promoting a particular product, the producer promotes the product
directly to consumers.
197. Word-of-mouth communication is not especially important when people are choosing restaurants and
automotive, medical, and personal services such as hair care.
198. Successful marketers that understand the significance of word–of-mouth communication seek out
opinion leaders and try to encourage them to try their products in the hope they will spread favorable
word about them.
199. Viral marketing is an attempt to create a trend or acceptance of a product through word–of-mouth
communications.
200. Product placement is a form of advertising that strategically locates products or product promotions
within entertainment media to reach the product’s target market(s).
201. One reason that promotion suffers from widespread criticism is that promotional efforts are highly
visible and affect our everyday lives.
202. During the nineteenth and early twentieth centuries, promotion was about as accurate as it is today.
203. A small percentage of promotion efforts are fraudulent.
204. Deceptive promotional practices today are common because of a lack of regulation.
205. If promotion is successful at stimulating demand, it will tend to increase prices.
206. One truth about promotion is that it raises prices.
207. Certain types of promotion facilitate price competition.
208. Promotion of products tends to keep their prices high.
209. While promotion does not create needs, it does capitalize on them.
210. One positive aspect of promotion is that it informs consumers about product uses, features, benefits,
prices, and locations where the products can be bought.
211. Because we are exposed to so much promotion in our daily lives, and the purpose of promoting goods
is to persuade people to buy them, a common criticism is that promotion encourages materialism.
