118) The historical approach correlates past sales to past advertising expenditures using
advanced statistical techniques.
119) Loyal brand buyers tend to change their buying patterns as a result of competitive
promotions.
120) Dominant brands offer sales promotion deals less frequently because most deals subsidize
only current users.
121) Examples of manufacturer promotions include price cuts and feature advertising.
122) Sales promotion tools that typically are not brand building include price-off packs, contests
and sweepstakes, consumer refund offers, and trade allowances.
123) Manufacturers handle forward buying and diverting by producing and delivering less than
the full order in an effort to smooth production.
124) Additional costs beyond the cost of specific promotions include the risk that promotions
might decrease long-run brand loyalty.
125) A price-off pack is an example of a consumer franchise building sales promotions.
126) Compare and contrast advertising and sales promotion as marketing communication tools.
127) What challenges do marketers face in managing trade promotions?
128) What are some of the reasons sales promotion expenditures might increase as a percentage
of budget expenditure?
129) Becoming part of a personally relevant moment in consumers’ lives through ________ can
broaden and deepen a company or brand’s relationship with the target market.
A) advertisements
B) events and experiences
C) sales promotions
D) public relations
E) direct marketing efforts
130) Mountain Dew is a brand known for sponsorships of adventure events such as
snowboarding and skateboarding competitions. What is the most likely objective of Mountain
Dew’s sponsorship of these events?
A) to enhance corporate image
B) to express commitment to the community or on social issues
C) to entertain key clients or reward key employees
D) to create perceptions of key brand image associations
E) to become part of a personally relevant moment in consumers’ lives
131) Audi models featured prominently in the 2010 blockbuster Iron Man 2, including main
character Tony Stark’s personal R8 Spyder. Which of the following is the most rational
explanation for Audi’s decision to associate itself with the movie?
A) to express commitment to the community or on social issues
B) to identify with a particular target market or lifestyle
C) to create experiences and evoke feelings
D) to become part of a personally relevant moment in consumers’ lives
E) to entertain key clients or reward key employees
132) JBJ Sports is a leading sporting goods manufacturer from Atlanta. It has recently initiated a
program in association with the Food4Kids Foundation, which raises funds to promote
nutritional awareness of young children. The company plans to donate $1 for every item it sells
in the North American market. Also, JBJ has roped in professional sports teams associated with
it to wear the Food4Kids logo on their team gear. Which of the following best describes the
motivation for JBJ’s involvement in the program?
A) entertaining key clients or rewarding key employees
B) expressing commitment to the community or on social issues
C) permitting merchandising or promotional opportunities
D) stimulating quicker or greater purchase of particular brands
E) identifying with a particular target market or lifestyle
133) Which of the following factors forms the basis of assessing sponsorship activities through
supply-side methods?
A) consumers’ brand knowledge
B) impact on sponsor’s bottom line
C) extent of media coverage
D) brand exposure reported by consumers
E) sales pattern of sponsored products
134) Which of the following parameters forms the basis for measuring sponsorship effectiveness
using demand-side methods?
A) impact on market share of sponsor
B) amount of time a brand is clearly visible on a television screen
C) amount of relevant newsprint mentioning the sponsor
D) influence on consumers’ brand knowledge of the sponsor
E) net impact on the sponsor’s bottom line
135) An ideal event is unique but not encumbered with many sponsors, lends itself to ancillary
marketing activities, and reflects or enhances the sponsor’s brand or corporate image.
136) The supply-side method identifies the effect sponsorship has on consumers’ brand
knowledge.
137) Although supply-side exposure methods provide quantifiable measures, equating media
coverage with advertising exposure ignores the content of the respective communications.
138) Media coverage and telecasts only expose the brand and do not necessarily embellish its
meaning in any direct way.
139) The supply-side measurement method focuses on potential exposure to a brand by assessing
the extent of media coverage, and the demand-side method focuses on exposure reported by
consumers.
140) List the major objectives of events and experiences as promotion tools.
141) ________ is a marketing communications tool that includes a variety of programs to
promote or protect a company’s image or individual products.
A) Public relations
B) Advertising
C) Sales promotion
D) Personal selling
E) Direct marketing
142) Which of the following functions of public relations departments involves presenting news
and information about the organization in the most positive light?
A) corporate communications
B) product publicity
C) lobbying
D) counseling
E) press relations
143) Which of the following describes the public relations function of lobbying?
A) sponsoring efforts to publicize specific products
B) advising management about public issues, and company positions and image during good
times and bad
C) presenting news and information about the organization in the most positive light
D) dealing with legislators and government officials to promote or defeat legislation and
regulation
E) promoting understanding of the organization through internal and external communications
144) What function does a company’s public relations department perform when it promotes
understanding of the organization through internal and external communications?
A) lobbying
B) corporate communications
C) press relations
D) product publicity
E) counseling
145) When a public relations department of a company advises management about public issues,
and company positions and image during good times and bad, it is performing the function of
________.
A) counseling
B) corporate communications
C) product publicity
D) lobbying
E) press relations
146) ________ refers to the task of securing editorial space — as opposed to paid space — in
print and broadcast media to promote or “hype” a product, service, idea, place, person, or
organization.
A) Advertising
B) Media planning
C) Communication design
D) Publicity
E) Copy testing
147) Which of the following is a medium of visual identity for a company?
A) annual reports
B) dress codes
C) press releases
D) seminars
E) trade shows
148) The easiest measure of marketing public relations effectiveness is the ________.
A) resultant effect on the company’s sales figures
B) effect it has on its market capitalization
C) number of exposures carried by the media
D) changes observed in consumers’ brand knowledge
E) impact it has on the company’s market share
149) A public is any group that has an actual or potential interest in or impact on a company’s
ability to achieve its objectives.
150) The public relations function of lobbying involves advising management about public
issues as well as company positions and image during good times and bad.
151) The main objective of marketing public relations is to secure editorial space in print and
broadcast media to promote or “hype” a product, service, idea, place, person, or organization.
152) Creative public relations can affect public awareness at a fraction of the cost of advertising.
153) MPR can hold down promotion cost because it costs less than direct-mail and media
advertising.
154) MPR can build credibility by placing stories in the media to bring attention to a product,
service, person, organization, or idea.
155) MPR is effective in blanketing local communities and reaching specific groups and hence
has to be planned separately from the less cost-effective advertising.
156) MPR’s contribution to a company’s bottom line is the easiest to measure among all the
available promotion tools.
157) What are the major functions performed by marketing public relations? Illustrate with
examples.