Marketing test bank ch.16,17,18

Chapter 16—Integrated Marketing Communications 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. ANS: T PTS: 1 REF: 245 OBJ: 16-1 TYPE: Def TOP: AACSB Communication| TB&E Model Promotion 2. 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. ANS: T A competitive advantage is an aspect of the product that the target market perceives as different from and superior to the competition. PTS: 1 REF: 245 OBJ: 16-1 TYPE: App TOP: AACSB Reflective Thinking| TB&E Model Product 3. The promotional mix is the combination of promotional tools used to reach the target market and fulfill the organization's overall goals. ANS: T PTS: 1 REF: 246 OBJ: 16-2 TYPE: Def TOP: AACSB Communication| TB&E Model Customer 4. Advertising is any form of impersonal, one-way mass communication in which the sponsor is identified. ANS: T PTS: 1 REF: 246 OBJ: 16-2 TYPE: Def TOP: AACSB Communication| TB&E Model Promotion 5. Benedick and Taapo are arguing about newspaper publicity. Benedick says favorable publicity is free--hence the phrase "free publicity." Taapo says that publicity is not free because costs were incurred in developing the public relations materials used by the newspapers. Benedick has a more accurate grasp of the definition of publicity. ANS: F Publicity is not free. Preparing news releases, staging special events, and persuading media to broadcast them cost money. PTS: 1 REF: 247 OBJ: 16-2 TYPE: Comp TOP: AACSB Communication| TB&E Model Promotion 6. Publicity is free. ANS: F Preparing news releases, staging special events, and persuading media to broadcast them cost money. contact: PTS: 1 REF: 247 OBJ: 16-2 TYPE: Def TOP: AACSB Communication| TB&E Model Promotion 7. Sales promotion is a promotional tool generally used to stimulate consumer buying and dealer effectiveness. ANS: T Sales promotion is a short-run tool used to stimulate increased demand. PTS: 1 REF: 247 OBJ: 16-2 TYPE: Def TOP: AACSB Communication| TB&E Model Promotion 8. Communication via telephone is not considered personal selling because it is not face-to-face. ANS: F Telemarketing is a form of personal selling. It does allow for immediate interaction. PTS: 1 REF: 248 OBJ: 16-2 TYPE: Comp TOP: AACSB Communication| TB&E Model Promotion 9. The U.S. manager is working with some Indonesians who do not speak English. In attempting to exchange information, they are using symbols to assign meanings to the facts the manager hopes to convey. This is an example of communication. ANS: T PTS: 1 REF: 248 OBJ: 16-3 TYPE: App TOP: AACSB Communication| TB&E Model Customer 10. Nature Valley uses popular magazines, radio, and cable television to promote its brand of trail mix. Nature Valley uses mass communication. ANS: T PTS: 1 REF: 248 OBJ: 16-3 TYPE: App TOP: AACSB Communication| TB&E Model Promotion 11. When a marketer sends a message to the target market, the marketer must first decode the symbols used. ANS: F The receiver decodes the message; the marketer as a sender would encode it. PTS: 1 REF: 249 OBJ: 16-3 TYPE: Comp TOP: AACSB Communication| TB&E Model Customer 12. 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. ANS: T PTS: 1 REF: 249 OBJ: 16-3 TYPE: App TOP: AACSB Communication| TB&E Model Customer| TB&E Model Promotion 13. Even though a message is received, it will not necessarily be properly decoded; receivers interpret messages based on their own frames of reference. ANS: T PTS: 1 REF: 250 OBJ: 16-3 TYPE: App TOP: AACSB Communication| TB&E Model Promotion| TB&E Model Customer 14. If Charles Schwab Mutual Funds Investment Broker were to study its promotional strategies by looking at sales trends and market research, it would be using direct feedback to evaluate its promotional strategies. ANS: F Charles Schwab relies on indirect feedback. Direct feedback would imply immediate interaction. PTS: 1 REF: 250 OBJ: 16-3 TYPE: App TOP: AACSB Communication| TB&E Model Marketing Plan 15. All promotions are designed to either inform, persuade, or remind the target audience. ANS: T PTS: 1 REF: 252 OBJ: 16-4 TYPE: Def TOP: AACSB Communication| TB&E Model Promotion 16. Maddie’s Beverage Company has recently introduced Wateroos, eight-ounce servings of water in juice-style containers with straws, to encourage children to drink more water. Since this product is in the introductory stage of the product life cycle and as yet has no direct competition, Maddie’s promotional objective should be persuasion. ANS: F Early in the life cycle, the primary focus of promotions should be to inform consumers of the product. PTS: 1 REF: 252 OBJ: 16-4 TYPE: App TOP: AACSB Communication| TB&E Model Marketing Plan 17. It's been a few years since odor-free paint hit the market, and a paint manufacturer estimates the paint to be in the growth stage of its product life cycle. With all the competition in the industry today, the manufacturer should use promotions that persuade buyers of odor-free paint to purchase its brand over all others. ANS: T PTS: 1 REF: 253 OBJ: 16-4 TYPE: App TOP: AACSB Reflective Thinking| TB&E Model Product| TB&E Model Promotion 18. AIDA is an acronym for Attention-Interest-Desire-Action. ANS: T PTS: 1 REF: 253 OBJ: 16-5 TYPE: Def TOP: AACSB Reflective Thinking| TB&E Model Promotion 19. A person buying a Valentine's Day gift for his significant other is more likely to go through all of the steps in the AIDA process than a person buying a gift certificate for her mail carrier. ANS: T The present for Valentine's Day is more likely to be a high-involvement purchase, and people engaged in high-involvement purchases typically go through all four stages of the AIDA process. PTS: 1 REF: 254 OBJ: 16-5 TYPE: App TOP: AACSB Reflective Thinking| TB&E Model Customer 20. The AIDA concept can be used to explain how all promotions influence purchase decisions. ANS: F The order of stages in the model, as well as whether consumers go through all its steps, has been much debated. PTS: 1 REF: 254 OBJ: 16-5 TYPE: Comp TOP: AACSB Reflective Thinking| TB&E Model Promotion 21. In terms of the AIDA process, public relations has its greatest impact in gaining attention for a company, good, or service. ANS: T See Exhibit 16.4. PTS: 1 REF: 255 OBJ: 16-5 TYPE: Comp TOP: AACSB Reflective Thinking| TB&E Model Promotion 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. ANS: T PTS: 1 REF: 255 OBJ: 16-6 TYPE: App TOP: AACSB Reflective Thinking| TB&E Model Product| TB&E Model Promotion 23. A blend of more advertising and sales promotion and less personal selling is useful when the target market is informed, loyal to the product in question, and geographically widely scattered. ANS: T PTS: 1 REF: 256 OBJ: 16-6 TYPE: Comp TOP: AACSB Communication| TB&E Model Customer 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 push strategy. ANS: T PTS: 1 REF: 257 OBJ: 16-6 TYPE: App TOP: AACSB Communication| TB&E Model Marketing Plan 25. Marketers typically use either a push or a pull strategy exclusively. ANS: F Companies rarely use one or the other exclusively. The strategy that best supports their promotional objectives (usually in combination) is what is selected. PTS: 1 REF: 258 OBJ: 16-6 TYPE: Comp TOP: AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Promotion 26. From the consumer's point of view, a company's communications are already integrated, no matter how the company itself defines them. ANS: T PTS: 1 REF: 258 OBJ: 16-7 TYPE: Comp TOP: AACSB Communication| TB&E Model Promotion 27. One of the reasons for the growing popularity of integrated marketing communications is the proliferation of thousands of new media choices. ANS: T PTS: 1 REF: 259 OBJ: 16-7 TYPE: Comp TOP: AACSB Reflective Thinking| TB&E Model Promotion 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 ANS: D PTS: 1 REF: 245 OBJ: 16-1 TYPE: Def TOP: AACSB Communication| TB&E Model Promotion 2. Rosarita is responsible for developing a plan for the optimal use of advertising, personal selling, sales promotion, and public relations. Rosarita is developing a: a. promotional strategy b. set of promotion goals c. marketing mix d. communication mix e. selling plan ANS: A PTS: 1 REF: 245 OBJ: 16-1 TYPE: Def TOP: AACSB Reflective Thinking| TB&E Model Promotion 3. In 2008, the NBC television network used advertising, personal selling, public relations, and sales promotion to communicate with its target audience about its new show My Own Worst Enemy. The television network’s _____ described its plan on how to use these tools most effectively. a. mass communication mix b. promotional strategy c. selling plan d. marketing mix e. strategic goals ANS: B Promotional strategy is a plan for the optimal use of the elements of the promotion mix. PTS: 1 REF: 245 OBJ: 16-1 TYPE: App TOP: AACSB Communication| TB&E Model Promotion| TB&E Model Customer 4. 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 ANS: A The function of a promotional strategy is to convince the target customers that the goods and services offered provide a competitive advantage over the competition. PTS: 1 REF: 245 OBJ: 16-1 TYPE: Comp TOP: AACSB Communication| TB&E Model Customer| TB&E Model Promotion 5. A _____ is defined as a set of unique features of a company and its products 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 ANS: B PTS: 1 REF: 245 OBJ: 16-1 TYPE: Def TOP: AACSB Reflective Thinking| TB&E Model Product 6. 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 ANS: C A competitive advantage is a set of unique features of a company and its products perceived by the target market as significant and superior to the competition. It is not the result of publicity; it is design and production based. Since this is advertising, the sales promotion theme may or may not agree; there is no indication of integrated marketing communications. PTS: 1 REF: 245-246 OBJ: 16-1 TYPE: App TOP: AACSB Communication| TB&E Model Promotion| TB&E Model Customer 7. 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 ANS: C A competitive advantage is a set of unique features of a company and its product perceived by the target market as significant and superior to the competition. It may be based on a scientific discovery, but the company didn't create it by saying it. PTS: 1 REF: 245-246 OBJ: 16-1 TYPE: App TOP: AACSB Reflective Thinking| TB&E Model Product 8. Vegetarians sometimes have trouble making sure they get enough protein in their diets. Protons are a new, poppable snack made with super-crunchy tofu. They are bite-sized nuggets that come in both sweet and savory flavors: Original Crunchy, Backyard Bar-B-Q, Tomato Herb Garden, Cinnamon Toast, and Lemon Meringue Pie. Protons’ features, including that they are organic, vegan, and cholesterol-free, give the new product its: a. differential parity b. synergistic goal c. competitive advantage d. comparative benefit e. tactical objective for implementing strategy ANS: C A competitive advantage is one or more unique aspects of an organization that cause target customers to patronize that brand rather than others. PTS: 1 REF: 245-246 OBJ: 16-1 TYPE: App TOP: AACSB Reflective Thinking| TB&E Model Product 9. The American Plastics Council wants to create more consumer demand for products that are packaged in plastic. 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 ANS: A Promotional strategy is a plan for the optimal use of the elements of the promotional mix. PTS: 1 REF: 245 OBJ: 16-1 TYPE: App TOP: AACSB Communication| TB&E Model Marketing Plan 10. 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 ANS: E PTS: 1 REF: 246 OBJ: 16-2 TYPE: Comp TOP: AACSB Communication| TB&E Model Promotion 11. 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 ANS: D PTS: 1 REF: 246 OBJ: 16-2 TYPE: Def TOP: AACSB Communication| TB&E Model Promotion 12. The four major promotional tools (advertising, personal selling, sales promotion, and public relations) are known collectively as the: a. communication model b. advertising campaign c. marketing mix d. publicity four e. promotional mix ANS: E PTS: 1 REF: 246 OBJ: 16-2 TYPE: Def TOP: AACSB Reflective Thinking| TB&E Model Promotion 13. _____ is any form of sponsor-identified, impersonal paid mass communication. a. Advertising b. Publicity c. Promotion d. Public relations e. Nonpaid communication ANS: A PTS: 1 REF: 246 OBJ: 16-2 TYPE: Def TOP: AACSB Reflective Thinking| TB&E Model Promotion 14. To increase its revenues, US Airways has decided to sell space on air-sickness bags to companies that would like to use this unique channel for their promotional messages. In terms of the promotional strategy, the air-sickness bags will be used for: a. implicit communications b. publicity c. sales promotion d. public relations e. advertising ANS: E Advertising is a form of sponsor-paid, impersonal one-way mass communication. PTS: 1 REF: 246 OBJ: 16-2 TYPE: App TOP: AACSB Communication| TB&E Model Promotion 15. Which of the following statements about advertising is true? a. The total costs of advertising are typically low. b. The signs on the outsides of buses and taxis are not a form of advertising. c. The cost per contact in advertising is low. d. Innovative media are not used in advertising. e. Advertising is any form of communication in which the sponsor is identified. ANS: C The total costs of advertising are typically high even though the cost of contact is low. To be advertising, the communication must be paid for. Innovative media are used in advertising. The signs are a form of advertising because they are paid for and they identify their sponsors. PTS: 1 REF: 246 OBJ: 16-2 TYPE: Comp TOP: AACSB Communication| TB&E Model Promotion 16. Every year, the Discovery Channel has what it calls Shark Week, a weeklong marathon of programs on sharks. In New York, Discovery Channel street teams disguised as Surfers, Bight University faculty, and Bight University "chewleaders" will attack city streets in July visiting morning TV shows, landmarks, and high-traffic areas to promote the series. An article in the New York Times on Shark Week and the Discovery Channel's street teams would be an example of: a. a sales promotion b. publicity c. advertising d. implicit communications e. a personal sales presentations ANS: B Publicity is public information about a company, product, or issue appearing in the mass media as a news item. PTS: 1 REF: 247 OBJ: 16-2 TYPE: App TOP: AACSB Communication| TB&E Model Promotion 17. 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 ANS: A PTS: 1 REF: 246 OBJ: 16-2 TYPE: Def TOP: AACSB Reflective Thinking| TB&E Model Promotion 18. In 2006, Atlanta once again hosted the Peachtree Road Race, a running event that attracts many world-caliber racers. This year race officials also sanctioned a race conducted in Iraq so that soldiers from the state would not have to miss the annual event. The winners of the Mideast race as well as scenes of the actual race were televised. In terms of a promotional mix, this Iraqi Peachtree Race was as example of: a. advertising and personal selling efforts b. strategic product promotions and resulting sales c. a target marketing strategy d. sales promotion efforts e. a public relations strategy and resulting publicity ANS: E The public relations activities involved in the race in Iraq led to publicity in the form of news media reporting. PTS: 1 REF: 246-247 OBJ: 16-2 TYPE: App TOP: AACSB Communication| TB&E Model Promotion 19. Public information about a company, good, or service appearing in the mass media as a news item is: a. personal selling b. advertising c. mass communications d. publicity e. sales promotion ANS: D PTS: 1 REF: 247 OBJ: 16-2 TYPE: Def TOP: AACSB Reflective Thinking| TB&E Model Product 20. Publicity: a. will never damage a company because it performs the information task of promotion b. is free communication c. is not persuasive with customers d. has to be purchased from the mass media e. has many internal costs to the company associated with it ANS: E A firm may have to hire a public relations firm to prepare new releases and persuade media