CHAPTER 13

INTEGRATED MARKETING COMMUNICATIONS: ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS MULTIPLE CHOICE QUESTIONS 1. Another name for a companys marketing communications mix is: a. the advertising program. b. the sales force. c. the image mix. d. the promotion mix. Answer: ( ! D"##"$%&'(: (1! P)*e: +,2. Which tool of the promotional mix is defined as any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor a. advertising b. public relations c. direct marketing d. sales promotion Answer: ()! D"##"$%&'(: (.! P)*e: +,!. "he ####################### is the specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing tools that the company uses to pursue its advertising and marketing ob$ectives. a. value mix b. integrated dealer mix c. marketing communications mix d. marketing control mix Answer: ($! D"##"$%&'(: (1! P)*e: +,%. Which tool of the promotional mix consists of short&term incentives to encourage the purchase or sale of a product or service a. advertising b. public relations c. direct marketing d. sales promotion Answer: ( ! D"##"$%&'(: (.! P)*e: +,-

!'

(. )f a company *ants to build a good +corporate image,, it *ill probably use *hich of the follo*ing marketing communications mix tools a. advertising b. public relations c. direct marketing d. sales promotion Answer: (/! D"##"$%&'(: (1! P)*e: +,-. ################# is direct communications *ith carefully targeted individual consumers to obtain an immediate response. a. .ersonal selling b. .ublic relations c. /irect marketing d. 0ales promotion Answer: ($! D"##"$%&'(: (1! P)*e: +,1. "here is an increasing amount of commerce being done via the )nternet. With respect to the promotional mix, *hich of the follo*ing categories *ould be most directly concerned *ith )nternet commerce a. advertising b. public relations c. direct marketing d. sales promotion Answer: ($! D"##"$%&'(: (1! P)*e: +,2. "he personal presentation by the firms sales force for the purpose of making sales and building customer relationships is called: a. personal selling. b. public relations. c. direct marketing. d. sales promotion. Answer: ()! D"##"$%&'(: (1! P)*e: +,'. Which of the follo*ing ma$or promotional tools use press relations, product publicity, corporate communications, lobbying, and public service to communicate information a. advertising b. public relations c. direct marketing d. sales promotion Answer: (/! D"##"$%&'(: (1! P)*e: +,-

%3

13. Which of the follo*ing ma$or promotional tools use the telephone, mail, fax, e&mail, and the )nternet to communicate directly *ith specific consumers a. advertising b. public relations c. direct marketing d. sales promotion Answer: ($! D"##"$%&'(: (1! P)*e: +,11. Although the promotion mix is the companys primary communication activity, the ################## must be coordinated for greatest communication impact. a. organi4ational culture b. entire marketing mix c. demand mix d. profit variables in a company Answer: (/! D"##"$%&'(: (.! P)*e: +,12. "*o ma$or factors are changing the face of todays communications. 5ne of these factors is the fact that: a. costs of promotion are rising. b. mass markets are fragmented and marketers are shifting a*ay from mass marketing. c. global communications are not gro*ing rapidly enough. d. marcom managers have achieved more po*er and control. Answer: (/! D"##"$%&'(: (.! P)*e: +,1 1!. "he shift from ######################## has had a dramatic impact on marketing communications. a. brand management to value management b. media manipulation to media control c. mass marketing to segmented marketing d. mass marketing to global marketing Answer: ($! D"##"$%&'(: (3! P)*e: +,1 1%. ############ fragmentation has resulted in media fragmentation. a. 6arket b. .urchasing c. .roduct d. .ublic relations Answer: ()! D"##"$%&'(: (.! P)*e: +,.

%1

1(. 7or many years mass&media advertising *as king among promotion variables. "oday, this form of advertising appears to be giving *ay to: a. product differentiation. b. other elements of the promotion mix. c. nonmanipulative variables. d. a move a*ay from promotion. Answer: (/! D"##"$%&'(: (3! P)*e: +,. 1-. 8urrent trends in communications and promotions indicate that companies are doing less: a. marketing and more promotion. b. broadcasting and more narro*casting. c. selling and more advertising. d. communication and more manipulation. Answer: (/! D"##"$%&'(: (3! P)*e: +,. 11. )68, as presented in the text and in context *ith promotion, stands for: a. international manufacturing capacity. b. international monetary consistency. c. integrated marketing communications. d. integrated marketing corporations. Answer: ($! D"##"$%&'(: (1! P)*e: +,. 12. ################# is the concept under *hich a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organi4ation and its products. a. "he promotion mix b. )ntegrated international affairs c. )ntegrated marketing communications d. )ntegrated demand characteristics Answer: ($! D"##"$%&'(: (.! P)*e: +,. 1'. All of the follo*ing are cited by the text as limitations or challenges to marketers trying to use the Web to build brands 9:89.": a. the higher expense of Web advertising versus traditional advertising. b. the )nternet doesnt build mass brand a*areness. c. the Webs format and ;uality constraints. d. difficulty in achieving advertising&like solutions on the Web. Answer: ()! D"##"$%&'(: (.! P)*e: +,3, +,+, M)r0e'"n* )' 12r0 1331

%2

23. )ntegrated marketing communications involves identifying the target audience and shaping a *ell&coordinated promotional program to elicit the desired audience response. "oo often, ho*ever: <0elect the 650" 85==98" statement.> a. costs are too high and profits are too lo*. b. personnel cannot cope *ith these responsibilities. c. marketing communications focus on overcoming immediate a*areness, image, or preference problems. d. integrated communications do not *ork in the global environment because of regulations. Answer: ($! D"##"$%&'(: (3! P)*e: +,+, 3,4 21. "he communications process should start *ith: a. a basic belief about the communication piece. b. an audit of all the potential contacts target customers have *ith the company and its brands. c. an evaluation of the history of advertising used by the firm. d. hiring communications experts to handle the communication problems of the firm. Answer: (/! D"##"$%&'(: (.! P)*e: +,4 22. "he concept of ############## suggests that the company must blend the promotion tools carefully into a coordinated promotion mix. a. public relations b. integrated market planning c. integrated marketing communications d. global cultural imperatives Answer: ($! D"##"$%&'(: (.! P)*e: +,4 2!. )f a companys ob$ective *ere to reach masses of buyers that *ere geographically dispersed at a lo* cost per exposure, the company *ould likely choose *hich of the follo*ing promotion forms a. advertising b. personal selling c. public relations d. sales promotion Answer: ()! D"##"$%&'(: (.! P)*e: +,5 2%. Which of the follo*ing promotional forms is often described as being too impersonal and only a one&*ay communication form a. advertising b. personal selling c. public relations d. sales promotion

%!

Answer: ()! D"##"$%&'(: (.! P)*e: +,5 2(. Which of the follo*ing promotional tools is often the most effective tool at certain stages in the buying process, particularly in building up buyers preferences, convictions, and actions a. advertising b. personal selling c. public relations d. sales promotion Answer: (/! D"##"$%&'(: (.! P)*e: +,5 2-. Which of the follo*ing promotional tools is thought to be the most expensive to use a. advertising b. personal selling c. public relations d. sales promotion Answer: (/! D"##"$%&'(: (3! P)*e: +,5 21. .ersonal selling is an expensive form of promotion. 7or example, research sho*s that personal selling costs companies ####### per sales call. a. ?113 b. ?1%3 c. ?133 d. ?1( Answer: ()! D"##"$%&'(: (3! P)*e: +,5 22. "he promotion tool that may include coupons, contests, premiums, and other means of attracting consumer attention is best described as being *hich of the follo*ing a. advertising b. personal selling c. public relations d. sales promotion Answer: ( ! D"##"$%&'(: (.! P)*e: +,5 2'. Which of the follo*ing promotional tools can reach many prospects *ho other*ise avoid salespeople and is received as ne*s rather than as a sales&directed communication a. advertising b. personal selling c. public relations d. sales promotion

%%

Answer: ($! D"##"$%&'(: (.! P)*e: +,, !3. "he promotional tool that marketers tend to underuse or use only as an afterthought is best described as being *hich of the follo*ing a. advertising b. personal selling c. public relations d. sales promotion Answer: ($! D"##"$%&'(: (.! P)*e: +,, !1. @o matter *hich form of direct marketing might be used by a promotional manager, all of the forms have several characteristics in common. Which of the follo*ing W5AB/ @5" be among those characteristics a. nonpublic b. immediate c. producer controlled d. interactive Answer: ($! D"##"$%&'(: (3! P)*e: +,, !2. ################## is *ell suited to highly targeted marketing efforts and to building one&to&one customer relationships. a. Advertising b. .ublic relations c. 0ales promotion d. /irect marketing Answer: ( ! D"##"$%&'(: (.! P)*e: +,, !!. A ################ is a promotion strategy that calls for using the sales force and trade promotion to move the product through channels. a. push strategy b. pull strategy c. blocking strategy d. integrated strategy Answer: ()! D"##"$%&'(: (.! P)*e: +,,, +,6, 7"*%re 133.

%(

!%. A ################## is a promotion strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand. )f the strategy is successful, consumer demand *ill move the product through the channel. a. push strategy b. pull strategy c. blocking strategy d. integrated strategy Answer: (/! D"##"$%&'(: (.! P)*e: +,,, +,6, 7"*%re 133. !(. Which of the follo*ing strategies is usually follo*ed by C28 companies *ith respect to promotion strategy a. push strategy b. pull strategy c. blocking strategy d. integrated strategy Answer: (/! D"##"$%&'(: (3! P)*e: +,,, +,6, 7"*%re 133. !-. Which of the follo*ing strategies is usually follo*ed by C2C companies *ith respect to promotion strategy a. push strategy b. pull strategy c. blocking strategy d. integrated strategy Answer: ()! D"##"$%&'(: (3! P)*e: +,,, +,6, 7"*%re 133. !1. 0ome of the earliest traces of *hat could be called advertising *ere found in: a. 8olonial @e* Dork. b. 1-th century 9ngland. c. 2nd century 8hina. d. ancient =ome. Answer: ( ! D"##"$%&'(: (.! P)*e: +,6 !2. Advertising reaches almost all facets of business in the Anited 0tates. )t has been estimated that advertising runs an annual bill of ################ in the Anited 0tates alone. a. ?2 billion b. ?2%% billion c. ?2( billion d. ?1(3 billion Answer: (/! D"##"$%&'(: (.! P)*e: +,6

%-

!'. 6arketing management must make four important decisions *hen developing an advertising program. All of the follo*ing *ould be among those decisions 9:89.": a. setting advertising ob$ectives. b. setting the advertising budget. c. setting procedures for an advertising culture audit. d. developing advertising strategy. Answer: ($! D"##"$%&'(: (1! P)*e: +,8, 7"*%re 1333 %3. "he first step in developing an advertising program should be to: a. set advertising ob$ectives. b. set the advertising budget. c. evaluate advertising campaigns. d. develop advertising strategy. Answer: ()! D"##"$%&'(: (.! P)*e: +,8, 7"*%re 1333 %1. A specific communication task to be accomplished *ith a specific target audience during a specific period of time is called an: a. advertising campaign. b. advertising ob$ective. c. advertising criterion. d. advertising evaluation. Answer: (/! D"##"$%&'(: (3! P)*e: +,8 %2. Which of the follo*ing W5AB/ @5" be one of the primary advertising ob$ectives as classified by primary purpose a. to inform b. to persuade c. to remind d. to make profits Answer: ( ! D"##"$%&'(: (.! P)*e: +,8 %!. ################### is used heavily *hen introducing a ne* product category. a. .ersuasive advertising b. )nferential advertising c. =eminder advertising d. )nformative advertising Answer: ( ! D"##"$%&'(: (1! P)*e: +,8

%1

%%. Cuilding selective demand is the ob$ective of *hich type of advertising a. informative advertising b. persuasive advertising c. reminder advertising d. demand&driven advertising Answer: (/! D"##"$%&'(: (3! P)*e: +,8 %(. )f 0ony tries to convince consumers that its brand of computer disks is the best ;uality for the money, it is using *hich of the follo*ing forms of advertising a. informative advertising b. psychological advertising c. reminder advertising d. persuasive advertising Answer: ( ! D"##"$%&'(: (3! P)*e: +,8 %-. When Avis positioned itself against market&leading Eert4 by claiming, +Were number t*o, so *e try harder,, it *as using *hich of the follo*ing forms of advertising a. informative advertising b. psychological advertising c. reminder advertising d. comparative advertising Answer: ( ! D"##"$%&'(: (.! P)*e: +,8 %1. Feeping consumers thinking about the product is the ob$ective for *hich type of advertising a. informative advertising. b. psychological advertising. c. reminder advertising. d. persuasive advertising. Answer: ($! D"##"$%&'(: (1! P)*e: +6%2. After determining its advertising ob$ectives, a company next sets its ############ for each product. a. advertising strategy b. advertising budget c. advertising goals d. advertising format Answer: (/! D"##"$%&'(: (.! P)*e: +6-

%2

%'. All of the follo*ing are commonly recogni4ed promotion budget formats 9:89.": a. the affordable method. b. the B)75 method. c. the percentage&of&sales method. d. the ob$ective&and&task method. Answer: (/! D"##"$%&'(: (.! P)*e: +6(3. /etermining the promotion budget on the basis of financial availability of capital is characteristic of *hich of the follo*ing budget methods a. affordable method b. percentage&of&sales method c. competitive&parity method d. ob$ective&and&task method Answer: ()! D"##"$%&'(: (.! P)*e: +6(1. Which of the follo*ing budget methods ignores the effects of promotion on sales a. affordable method b. percentage&of&sales method c. competitive&parity method d. ob$ective&and&task method Answer: ()! D"##"$%&'(: (3! P)*e: +6(2. Which of the follo*ing promotional budget methods *rongly vie*s sales as the cause of promotion rather than as the result a. affordable method b. percentage&of&sales method c. competitive&parity method d. ob$ective&and&task method Answer: (/! D"##"$%&'(: (.! P)*e: +61 (!. 0etting the promotion budget so as to match the budgets of the competition is characteristic of *hich of the follo*ing budget methods a. affordable method b. percentage&of&0ales method c. competitive&parity method d. ob$ective&and&task method Answer: ($! D"##"$%&'(: (1! P)*e: +61

%'

(%. 5ne of the arguments that supports the competitive&parity method for budgeting promotions is that: a. it is the fairest budget method. b. it is generally the cheapest method of allocating funds. c. competitors budgets represent the collective *isdom of the industry. d. it is the easiest budget method to use on a global basis. Answer: ($! D"##"$%&'(: (.! P)*e: +61 ((. "he most logical budget setting method is found in the list belo*. Which is it a. affordable method b. percentage&of&sales method c. competitive&parity method d. ob$ective&and&task method Answer: ( ! D"##"$%&'(: (.! P)*e: +61 (-. "he first step in using the ob$ective&and&task promotional budgeting method is to: a. define specific advertising tools that can be afforded. b. analy4e competitive budgets for perceived *eaknesses. c. calculate last years sales percentages. d. define specific ob$ectives. Answer: ( ! D"##"$%&'(: (.! P)*e: +6. (1. According to the chapter, all of the follo*ing have promoted the importance of the media&planning function 9:89.": a. media fragmentation. b. the development of the )nternet. c. soaring media costs. d. more focused target marketing strategies. Answer: (/! D"##"$%&'(: (3! P)*e: +6. (2. @o matter ho* big the advertising budget, advertising can succeed only if commercials: a. are economically feasible. b. gain attention and communicate *ell. c. are acceptable on a global level. d. are artistically pleasing. Answer: (/! D"##"$%&'(: (.! P)*e: +63

(3

('. /eveloping an effective message strategy begins *ith identifying customer ########### that can be used as advertising appeals. a. demographics b. lifestyles c. psychographics d. benefits Answer: ( ! D"##"$%&'(: (3! P)*e: +6+ -3. Advertising appeals should have three characteristics. All of the follo*ing are among those characteristics 9:89.": a. be meaningful. b. be tasteful. c. be believable. d. be distinctive. Answer: (/! D"##"$%&'(: (.! P)*e: +6+ -1. )n evaluating messages for advertising, pointing out the benefits that make the product more desirable or interesting to consumers ensures that the message *ill be: a. meaningful. b. distinctive. c. believable. d. remembered. Answer: ()! D"##"$%&'(: (.! P)*e: +6+ -2. )n evaluating messages for advertising, telling ho* the product is better than the competing brands aims at making the ad: a. meaningful. b. distinctive. c. believable. d. remembered. Answer: (/! D"##"$%&'(: (.! P)*e: +6+ -!. )n terms of execution styles, a family seated at the dinner table en$oying the advertised product *ould be an example of *hich of the follo*ing types of advertising a. slice of life b. lifestyle c. mood or imagery d. personality symbol Answer: ()! D"##"$%&'(: (.! P)*e: +6,

(1

-%. )n terms of execution styles, *hich type of advertising might sho* ho* a product contributes to a persons *orkout and health regime a. slice of life b. lifestyle c. mood or imagery d. personality symbol Answer: (/! D"##"$%&'(: (.! P)*e: +6, -(. )n terms of execution styles, *hich type of advertising makes no claim about the product except to suggest that the product is part of such feelings as love or beauty a. slice of life b. lifestyle c. mood or imagery d. personality symbol Answer: ($! D"##"$%&'(: (.! P)*e: +6, --. When a company chooses to use an animated character such as the Golly Hreen Hiant or Harfield the 8at in their commercial, they are using *hich of the follo*ing advertising execution formats a. testimonial evidence b. lifestyle c. mood or imagery d. personality symbol Answer: ( ! D"##"$%&'(: (.! P)*e: +6, -1. "he first thing a reader notices in a printed advertising is the: a. headline. b. illustration. c. copy. d. format. Answer: (/! D"##"$%&'(: (.! P)*e: +66 -2. "he measure of the percentage of people in the target market *ho are exposed to the ad campaign during a given period of time is called: a. reach. b. fre;uency. c. impact. d. performance. Answer: ()! D"##"$%&'(: (.! P)*e: +66

(2

-'. "he measure of ho* many times the average person in the target market is exposed to the message is called: a. reach. b. fre;uency. c. impact. d. performance. Answer: (/! D"##"$%&'(: (1! P)*e: +66 13. 6edia planners consider many factors *hen making their media choices. According to the text, all of the follo*ing factors *ould be considered 9:89.": a. the fashionability of the media. b. the media habits of target consumers. c. the nature of the product. d. the type of message to be used. Answer: ()! D"##"$%&'(: (1! P)*e: +68 11. )f an advertiser *ants flexibility, timeliness, good local market coverage, broad acceptability, and high believability, the advertiser *ill probably choose *hich of the follo*ing mass media types a. ne*spapers b. television c. direct mail d. radio Answer: ()! D"##"$%&'(: (3! P)*e: +68, T)/&e 133. 12. ################# combine<s> sight, sound, and motionI appeals to the sensesI and, has a lo* cost per exposure as advantages. a. @e*spapers b. "elevision c. /irect mail d. =adio Answer: (/! D"##"$%&'(: (.! P)*e: +68, T)/&e 133. 1!. "he advantages of audience selectivity, no ad competition, and personali4ation apply to *hich type of media a. ne*spapers b. television c. direct mail d. radio Answer: ($! D"##"$%&'(: (.! P)*e: +68, T)/&e 133.

(!

1%. ################ has the advantage of being high in selectivity, lo* cost, immediacy, and interactive capabilities. a. /irect mail b. 5utdoor c. 5nline d. =adio Answer: ($! D"##"$%&'(: (.! P)*e: +68, T)/&e 133. 1(. Which of the follo*ing mass media forms has the disadvantages of long ad&purchase lead time, high cost, no guarantee of position a. ne*spapers b. television c. maga4ines d. radio Answer: ($! D"##"$%&'(: (.! P)*e: +68, T)/&e 133. 1-. "o be effective, ads should have some form of pattern <given that more than one ad is going to be used>. )f an advertiser *ere to schedule ads evenly over a given period of time, this pattern *ould be called: a. pulsing. b. flo*. c. rollout. d. continuity. Answer: ( ! D"##"$%&'(: (.! P)*e: +811. A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs is called a<n>: a. marketing control group. b. product services unit. c. advertising agency. d. situation consultant. Answer: ($! D"##"$%&'(: (1! P)*e: +83 12. "he largest A.0. advertising agency is ############ *ith an annual gross income of ?1.2 billion on billings. a. G. Walter "hompson b. 0aatchi J 0aatchi c. CC/J5 Hlobal d. 6c8ann&9rikson World*ide Answer: ( ! D"##"$%&'(: (3! P)*e: +83

(%

1'. All of the follo*ing are benefits of a standardi4ation policy in global advertising 9:89.": a. lo*er advertising costs. b. greater global advertising coordination. c. an attention to local differences in various global markets. d. more consistent *orld*ide image. Answer: ($! D"##"$%&'(: (.! P)*e: +83 23. ################# is short&term incentives to encourage purchase or sales of a product or service. a. Advertising b. 0ales promotion c. 5nline advertising d. .ublic relations Answer: (/! D"##"$%&'(: (1! P)*e: +84 21. 0everal factors have contributed to the rapid gro*th of sales promotion. All of the factors listed belo* have played a part in that gro*th 9:89.": a. greater pressure to increase sales. b. more competition and a decline in differentiation of brands. c. a relaxing of government regulations governing sales promotion. d. advertising efficiency has declined. Answer: ($! D"##"$%&'(: (3! P)*e: +85 22. Which type of sales promotion uses free samples, coupons, and rebates a. consumer promotion b. trade promotion c. sales force promotion d. place promotion Answer: ()! D"##"$%&'(: (1! P)*e: +8, 2!. All of the follo*ing are considered to be consumer&promotion tools 9:89.": a. samples. b. push money. c. coupons. d. patronage re*ard. Answer: (/! D"##"$%&'(: (.! P)*e: +8,

((

2%. Which of the follo*ing consumer&promotion tools is the most effective, but most expensive, *ay to introduce a ne* product a. coupons b. price packs c. contests d. samples Answer: ( ! D"##"$%&'(: (3! P)*e: +8, 2(. ########### are certificates that give buyers a saving *hen they purchase specified products. a. 0amples b. .remiums c. 8oupons d. .atronage re*ards Answer: ($! D"##"$%&'(: (1! P)*e: +8, 2-. )f a retailer *ere to offer the consumer a +t*o for one, deal in purchasing merchandise, *hich of the follo*ing sales promotional techni;ues *ould have been used a. samples b. premiums c. coupons d. price packs Answer: ( ! D"##"$%&'(: (.! P)*e: +86 21. )f 8heerios includes a free toy from a /isney movie in its cereal boxes as an incentive to purchase cereal, *hich of the follo*ing forms of sales promotion *as used a. samples b. premiums c. coupons d. price packs Answer: (/! D"##"$%&'(: (.! P)*e: +86, +88 22. )f an advertiser *ere to give consumers useful articles <imprinted *ith the advertisers name> as gifts <such a pen or calendar>, *hich of the follo*ing sales promotional forms *ould the advertiser be using a. samples b. premiums c. point&of&purchase promotions d. advertising specialties

(-

Answer: ( ! D"##"$%&'(: (.! P)*e: +88 2'. 6anufacturers direct most of their sales promotional dollars to*ard *hich of the follo*ing groups a. consumers b. retailers and *holesalers c. lobbyists d. publics such as shareholders Answer: (/! D"##"$%&'(: (.! P)*e: +88 '3. ########## is defined as being cash or gifts to dealers or their sales forces to +push, the manufacturers goods. a. A display allo*ance b. A price&off c. A spiff d. .ush money Answer: ( ! D"##"$%&'(: (1! P)*e: +88, 4-'1. Which type of promotion uses buying allo*ances, push money, and free goods a. consumer promotion b. trade promotion c. sales force promotion d. place promotion Answer: (/! D"##"$%&'(: (1! P)*e: +88 '2. "he type of trade&promotion tool in *hich the manufacturer takes a fixed amount off the list price on each case purchased during a stated period of time is called a<n>: a. discount. b. allo*ance. c. premium. d. rebate. Answer: ()! D"##"$%&'(: (.! P)*e: +88 '!. "he type of trade&promotion discount in *hich manufacturers agree to reduce the price to the retailer in exchange for the retailers agreement to feature the manufacturers products in some *ay is called a<n>: a. discount. b. allo*ance. c. premium. d. rebate. Answer: (/! D"##"$%&'(: (.! P)*e: +88

(1

'%. ################ is a ma$or promotion function *hose ob$ective is to build good relations *ith the companys various publics. a. Advertising b. /irect marketing c. .ublic relations d. 0pecialty events Answer: ($! D"##"$%&'(: (1! P)*e: 4-1 '(. All of the follo*ing *ould be considered to be functions performed in public relations 9:89.": a. press relations. b. public affairs. c. bribery <*hen necessary>. d. lobbying. Answer: ($! D"##"$%&'(: (1! P)*e: 4-1 '-. /espite its potential strengths, public relations is often described as a<n>: a. unethical business. b. marketing stepchild. c. corrupt practice. d. cost drain that is not fruitful. Answer: (/! D"##"$%&'(: (.! P)*e: 4-. '1. All of the follo*ing *ould be considered to be ma$or public relations tools 9:89.": a. ne*s. b. speeches. c. testifying. d. special events such as ne*s conferences. Answer: ($! D"##"$%&'(: (.! P)*e: 4-3 '2. )f an advertiser *ere to use corporate stationery, brochures, signs, and business cards to advance the public relations interests of the company, they *ould be using *hich of the follo*ing forms of .= a. slick&back materials b. audiovisual materials c. corporate identity materials d. public service materials Answer: ($! D"##"$%&'(: (.! P)*e: 4-+

(2

TRUE97ALSE QUESTIONS ''. According to evaluations of American 0tandards integrated direct&marketing campaign, the key to success *as to get customers *ho had made in;uires to purchase at least ?%33 of merchandise. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +58 133. /irect marketing is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +,131. As a form of promotion, personal selling is a personal presentation by the firms sales force for the purpose of making sales and building customer relationships. Answer: (Tr%e! D"##"$%&'(: (1! P)*e: +,132. 0hort&term incentives to encourage the purchase or sale of a product or service is called public relations. Answer: (7)&se! D"##"$%&'(: (1! P)*e: +,13!. Kast improvements in information technology are speeding marketing communications to*ard segmented marketing. Answer: (Tr%e! D"##"$%&'(: (.! P)*e: +,1 13%. 6arket fragmentation has also resulted in profit fragmentation. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +,. 13(. "oday, companies are doing less broadcasting and more narro*casting. Answer: (Tr%e! D"##"$%&'(: (1! P)*e: +,. 13-. )ntegrated marketing communications means that all communications <such as public relations, sales promotion, and direct marketing> have been adapted to television. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +,. 131. 5ne of the chief limitations of the )nternet *ith respect to communication is format and ;uality constraints. Answer: (Tr%e! D"##"$%&'(: (.! P)*e: +,3, M)r0e'"n* )' 12r0 1331

('

132. "he communications process should begin *ith a creative spark&&a big bang. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +,4 13'. )f you *ant to get a mass audience, ne*spaper is *here you have to be. Answer: (7)&se! D"##"$%&'(: (3! P)*e: +,5 113. 5ne of the shortcomings of advertising is that it is impersonal and cannot be as directly persuasive as a companys salespeople. Answer: (Tr%e! D"##"$%&'(: (1! P)*e: +,5 111. .ersonal selling is the most expensive promotion tool. Answer: (Tr%e! D"##"$%&'(: (.! P)*e: +,5 112. )f a company *ere to use coupons, contests, and premiums, they *ould be using some of the various forms of advertising. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +,5 11!. /irect marketing is nonpublic. Answer: (Tr%e! D"##"$%&'(: (.! P)*e: +,, 11%. "he push strategy of promotion suggests a promotion strategy that calls for spending a lot <pushing> on advertising and consumer promotions to build up consumer demand. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +,,, +,6, 7"*%re 133. 11(. C2C marketers tend to use a push strategy <push more>, putting more funds into personal selling, follo*ed by sales promotion, advertising, and public relations. Answer: (Tr%e! D"##"$%&'(: (.! P)*e: +,6 11-. Advertising can be traced back to the very beginnings of recorded history. Answer: (Tr%e! D"##"$%&'(: (1! P)*e: +,6 111. "he largest A.0. advertiser is Heneral 6otors. Answer: (Tr%e! D"##"$%&'(: (.! P)*e: +,6

-3

112. Cuilding primary demand is one of the possible ob$ectives of persuasive advertising. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +,8, +6-, T)/&e 1331 11'. Advertising ob$ectives can be classified by primary purpose&&such as do you eat, *ear, or drive it. Answer: (7)&se! D"##"$%&'(: (3! P)*e: +,8 123. "he affordable method of establishing an advertising budget is valuable because it appreciates the impact of promotion on sales. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +6121. 5ne of the arguments to support the competitive&parity method of setting advertising budgets is that spending *hat competitors spend helps to prevent promotion *ars. Answer: (Tr%e! D"##"$%&'(: (.! P)*e: +61 122. 5ne of the characteristics of an advertising appeal is that it should be price& oriented. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +6+ 12!. 0no*boarding using a Curton 0no* Coard could be a theme incorporated into a lifestyle commercial. Answer: (Tr%e! D"##"$%&'(: (1! P)*e: +6, 12%. )n mood or image advertising, no claim is made about the product except through suggestion. Answer: (Tr%e! D"##"$%&'(: (.! P)*e: +6, 12(. =each is a measure of ho* many times the average person in the target market is exposed to the message. Answer: (7)&se! D"##"$%&'(: (1! P)*e: +66 12-. 0ome of the very real problems *ith direct mail are high absolute costs, high clutter, fleeting exposure, and less audience selectivity. Answer: (7)&se! D"##"$%&'(: (3! P)*e: +68, T)/&e 133.

-1

121. )f a company *ants the advantage of no ad competition *ithin the same medium *hen picking a media form for advertising, they *ould choose direct mail. Answer: (Tr%e! D"##"$%&'(: (.! P)*e: +68, T)/&e 133. 122. )f a company *ants the advantage of high repeat exposure, lo* cost, lo* message competition, and good positional selectivity *hen picking a media form for advertising, they *ould choose radio. Answer: (7)&se! D"##"$%&'(: (3! P)*e: +68, T)/&e 133. 12'. .ulsing means scheduling ads unevenly over a given time period. Answer: (Tr%e! D"##"$%&'(: (1! P)*e: +81!3. 0ales effects of advertising are often easier to measure than the communication effects. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +8. 1!1. "he largest A.0. advertising agency is no* G. Walter "hompson )nternational. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +83 1!2. 6ost international advertisers think globally and act locally. Answer: (Tr%e! D"##"$%&'(: (1! P)*e: +83 1!!. 0ales promotion offers reasons to buy in the future since the buyer *ill probably not buy no*. Answer: (7)&se! D"##"$%&'(: (1! P)*e: +84 1!%. An example of a consumer promotion tool is an allo*ance. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +8,3+88 1!(. .rice packs are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +86

-2

1!-. Frogers grocery stores agreed to feature 8oca&8ola products in three end&of& aisle displays for t*o *eeks in 5ctober. )n return, 8oca&8ola agreed to reduce the price of their products to Frogers by five cents a carton. "his *ould be called an allo*ance. Answer: (Tr%e! D"##"$%&'(: (.! P)*e: +88 1!1. .ush money is a bribe in most circumstances and is deemed illegal by the 7ederal "rade 8ommission. Answer: (7)&se! D"##"$%&'(: (.! P)*e: +88, 4-1!2. 5ne of the functions of advertising is to head off unfavorable rumors, stories, and events that might negatively impact a firm and its goods and services. Answer: (7)&se! D"##"$%&'(: (.! P)*e: 4-1 1!'. "he public affairs role of public relations activities is to build and maintain national or local community relations. Answer: (Tr%e! D"##"$%&'(: (1! P)*e: 4-1 1%3. .ublic relations is often described as a marketing stepchild because of its limited and scattered use. Answer: (Tr%e! D"##"$%&'(: (1! P)*e: 4-. 1%1. 5ne of the difficulties in transferring marketing and communications functions to the )nternet and a companys Web site is the inability of these Web sites to perform an ade;uate public relations role. Answer: (7)&se! D"##"$%&'(: (.! P)*e: 4-+ ESSA: QUESTIONS 1%2. @ame and define the five tools of the promotional mix suggested by the text. Answer: <a> Advertising&&any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. <b> .ersonal selling&&personal presentation by the firms sales force for the purpose of making sales and building customer relationships. <c> 0ales promotion&&short&term incentives to encourage the purchase or sale of a product or service.

-!

<d> .ublic relations&&building good relations *ith the companys various publics by obtaining favorable publicity, building up a good +corporate image,, and handling or heading off unfavorable rumors, stories, and events. <e> /irect marketing&&direct communications *ith carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships. D"##"$%&'(: (.! P)*e: +,1%!. /efine and $ustify the need for integrated marketing communications <)68>. Answer: )ntegrated marketing communications is defined as being the concept under *hich a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organi4ation and its products. "he shift from mass marketing to targeted marketing, and the corresponding use of a larger, richer mix of communication channels and promotion tools, poses a problem for marketers. 8onfusion often arose in the minds of consumers because of the multiple communication messages they received. )ntegration has proved to be the key for solving this problem. D"##"$%&'(: (1! P)*e: +,. 1%%. 8ompare the situations *hen advertising and personal selling are most effective <advantages of the medium> in reaching and impacting consumers and their decision& making processes. Answer: Advertising can reach masses of geographically dispersed buyers at lo* cost per exposure, and it enables the seller to repeat a message many times. Ceyond reach, large& scale advertising says something positive about the sellers si4e, popularity, and success. Advertised products are vie*ed as being legitimate and advertising is expressive. )t can be used to build a long&term image for a product or trigger ;uick sales. .ersonal selling is the most effective tool at certain stages of the buying process, particularly in building up buyers preferences, convictions, and actions. )ts personal interaction feature is a positive. .ersonal selling allo*s all kinds of relationships to spring up. Ander personal selling, a buyer usually feels a greater need to listen and respond to message being delivered. D"##"$%&'(: (.! P)*e: +,5

-%

1%(. 9xplain push and pull promotion mix strategies for reaching the market. Answer: "he push strategy is as promotion strategy that calls for using the sales force and trade promotion to push the product through channels. "he pull strategy is a promotion strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand. )f the strategy is successful, consumer demand *ill pull the product through the channel. D"##"$%&'(: (1! P)*e: +,,, +,6, 7"*%re 133. 1%-. Bist and briefly describe the ma$or advertising decisions described in the text. Answer: "here are four distinct steps suggested in the text. 0tep one is to set advertising ob$ectives <in this step communication and sales ob$ectives should be established>. 0tep t*o is to set the advertising budget <one of four forms can be selected&&affordable method, percent of sales, competitive parity, or ob$ective and task>. 0tep three is to establish advertising strategy that consists of creating advertising messages and selecting advertising media. 0tep four is performing an advertising or campaign evaluation <the program evaluates its effectiveness in communication as *ell as sales effects>. 0tudents should elaborate and describe each step as per information found in the text. D"##"$%&'(: (.! P)*e: +,83+83, 7"*%re 1333 1%1. Advertising ob$ectives can be classified as to primary purpose. "he text lists three broad forms of ob$ectives. /efine each and give an example of a specific ob$ective that might be accomplished by the advertiser should they choose the general ob$ective form. Answer: Advertising ob$ectives can be classified as being informative, persuasive, or reminder in nature. <a> )nformative advertising is advertising used to inform consumers about a ne* product or feature and to build primary demand. An example *ould be +informing the market of a price change., L7or additional ob$ectives see "able 1!&1.M <b> .ersuasive advertising is advertising to build selective demand for a brand by persuading consumers that it offers the best ;uality for their money. An example *ould be +encouraging s*itching to your brand., L7or additional ob$ectives see "able 1!&1.M <c> =eminder advertising is advertising used to keep consumers thinking about a product. An example *ould be +reminding customers *here to buy the product., L7or additional ob$ectives see "able 1!&1M D"##"$%&'(: (.! P)*e: +,8, +6-, T)/&e 1331

-(

1%2. Bist and briefly identify each of the ma$or budget forms that can be applied to advertising. Answer: 7orms include the affordable method, the percentage&of&sales method, the competitive& parity method, and the ob$ective&and&task method. "he affordable method&&the advertiser sets the promotion budget at the level they think the company can afford. 5ften used by small companies. )gnores the effects of promotion on sales. "he percentage&of&sales method&&sets the promotion budget at a certain percentage of current or forecasted sales. 5r a percentage of the unit sales price is used. )t is simple to use and makes management think about advertising *ith respect to sales. Eo*ever, it *rongly vie*s the cause and effect present in the advertising and sales relationship. )t is usually based on availability of funds. @o advice is given on choosing a specific percentage. "he competitive&parity method&&sets the promotional budget to match competitors outlays. 0ome think this method represents the collective *isdom of the industry and it avoids price *ars by maintaining status ;uo. @either of these arguments is valid. "he ob$ective&and&task method&&the most logical of the methods, the company sets its promotional budget based on *hat it *ants to accomplish *ith promotion. )t forces management to state *hat they *ant to do, ho*ever, this method is hard for many companies. D"##"$%&'(: (3! P)*e: +6-3+6. 1%'. Advertising appeals should have three characteristics. What are they Answer: Advertising appeals should be meaningful, believable, and distinctive. D"##"$%&'(: (1! P)*e: +6+ 1(3. "he text identifies nine execution styles that might be used by the advertiser to present its message to the consumer. .ick one of these styles and collect four advertisements that illustrate the style. Ce sure to explain *hy your chosen ads fit the style you have chosen. 0ubmit these ads to your professor.

--

Answer: "his ;uestion is designed as a take&home assignment. "he ;uestion can be changed to fit the examination format. Ce sure students understand exactly *hat you *ant them to do *ith this ;uestion to avoid confusion. D"##"$%&'(: (.! P)*e: +6,, +66 1(1. /efine and briefly explain the terms reach, frequency, and impact. Answer: Reach is a measure of the percentage of people in the target market *ho are exposed to the ad campaign during a given period of time. Frequency is a measure of ho* many times the average person in the target market is exposed to the message. Impact <media impact> is the ;ualitative value of a message exposure through a given medium. D"##"$%&'(: (1! P)*e: +66, +68 1(2. )t is often difficult to determine *hich of the mass media forms are most appropriate in certain situations. Bist the advantages and disadvantages for using ne*spapers, television, radio, and maga4ines. Answer: <a> @e*spapers&&advantages: flexibilityI timelinessI good local market coverageI broad acceptabilityI high believability. /isadvantages: short lifeI poor reproduction ;ualityI small pass&along audience. <b> "elevision&&advantages: good mass&market coverageI lo* cost per exposureI combines sight, sound, and motionI appealing to the senses. /isadvantages: high absolute costsI high clutterI fleeting exposureI less audience selectivity. <c> =adio&&advantages: good local acceptanceI high geographic and demographic selectivityI lo* cost. /isadvantages: audio onlyI fleeting exposureI lo* attentionI fragmented audiences. <d> 6aga4ines&&advantages: high geographic and demographic selectivityI credibility and prestigeI high ;uality reproductionI long life and good pass&along readership. /isadvantages: long ad purchase lead timeI high costI no guarantee of position. D"##"$%&'(: (3! P)*e: +68, T)/&e 133.

-1

1(!. 6any tools can be used to accomplish sales promotion ob$ectives. Bist and briefly describe the main consumer&promotion tools. Ce specific in your listing and descriptions. Answer: "here are nine specific areas mentioned in the text. "hey are as follo*s: <a> 0amples&&this offers the customer a trial amount, they are free in many cases, are often used to introduce a ne* product, and are often combined into sample packs <*hich have several products contained in them>. <b> 8oupons&&certificates that give buyers a saving *hen they purchase specified products. "hey can stimulate the sales of mature products or promote trial of a ne* brand. "hey can be delivered via the mail or through point&of&purchase displays. <c> 8ash refund <or rebates>&&like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. "he consumer sends in a +proof of purchase, to get the refund. <d> .rice packs <cents&off deals>&&offer consumers savings off the regular price of a product <such as t*o&for&one>. <e> .remiums&&goods offered either free or lo* cost as an incentive to buy a product, ranging from toys <included *ith kids products> to phone cards, compact discs, and 8/& =56s. A premium may come inside the package, outside the package, or through the mail. <f> Advertising specialties&&useful articles imprinted *ith an advertisers name given as gifts to consumers. "ypical items include pens, calendars, key rings, matches, shopping bags, "&shirts, caps, et cetera. <g> .atronage re*ards&&these are cash or other a*ards offered for the regular use of a certain companys products or services. An example *ould be a +fre;uent flyer, plan. <h> .oint&of&.urchase <.5.> promotions&&include displays and demonstrations that take place at the point&of&purchase or sale. Barge cardboard cutouts placed close to the products they represent are examples. <i> 8ontests, s*eepstakes, and games&&give customers the chance to *in something, such as cash, trips or goods, by luck or through extra effort. D"##"$%&'(: (3! P)*e: +8,3+88 1(%. Bist and briefly describe the primary functions performed *ithin public relations. Answer: .ress relations or press agentry&&creating and placing ne*s*orthy information in the ne*s media to attract attention to a person, product, or service. .roduct publicity&&publici4ing specific products. .ublic affairs&&building and maintaining national or local community relations. Bobbying&&building and maintaining relations *ith legislators and government officials to influence legislation and regulation. )nvestor relations&&maintaining relationships *ith shareholders and others in the financial community. /evelopment&&public relations *ith donors or members of nonprofit organi4ations to gain financial or volunteer support.

-2

D"##"$%&'(: (3! P)*e: 4-134-. APPLICATION QUESTION 1((. 6ark Gohnson is the advertising director for a ne* home entertainment company that has $ust recently opened in the 0t. Bouis area. 6r. Gohnsons company sells large screen "Ks, E/"K systems, satellite dishes, and custom home theater and audio systems. Gohnson reali4es that his companys products are expensive, ho*ever, all marketing research performed by the company indicates that an upscale market <those that earn above ?1(3,333 per year in income> exists in 0t. Bouis for the products carried by the firm. "he decision facing 6r. Gohnson is ho* to effectively spend the companys ?(3,333 advertising budget for the next six months. Asing mass media forms of your choice, allocate the ?(3,333 among one or all of the media forms discussed in the text. =emember, *hen making this allocation, $ustify your picks and amount of allocation. "he best *ay to do this is to remember the advantages and disadvantages of each of the media forms. Ce sure to define your proposed target market and indicate ho* the mass media that you have selected might feasibly reach this market. Answer: *****Instructors Note: The instructor may choose to give additional instructions with this question or give it as a take home assignment! If the instructor wants additional restrictions put on the question parameters" #e sure to e$plain them! The student should #e given creative freedom on this question and #e primarily graded on the correct usage of Ta#le %& ' in formulating an answer!***** A suggested ans*er to this ;uestion *ould be as follo*s: Allocate ?2(,333 in local maga4ines&&rationale: maga4ines <*hen carefully selected> have high geographic and demographic selectivity, credibility, and prestige. "hey can also target those in affluent subdivisions. Allocate ?1(,333 to a targeted direct mail campaign&&rationale: direct mail, even though it has a $unk mail image, can be used effectively to reach an upscale marketI personali4ation is a factor. 8onsider ho* 8adillac or Bincoln reaches their customers. "he company might enter into a co&op arrangement *ith a local distributor <provide them *ith a system for their sho*room in exchange for their direct mail list>. .rint provides the best *ay to explain the companys services. "his money could also be used on the )nternet if the company has a Web site or can find a *ay to use database information. 0ome students *ill choose this option rather than traditional media options. Allocate ?13,333 to an introductory campaign in the local ne*spaper&&rationale: this *ould allo* readers to see ho* the ne* company has begun its business.

-'

All other media forms are either too expensive <television&&especially considering the cost of making the commercial>, directed to*ard the *rong audience <radio&&even though a case could be made for narro*&focused stations such as Ga44>, or lacks audience selectivity <5utdoor>. "he company could attempt online marketing but they *ould again face the problem of reaching their target audience. 9xamine ho* students devised their plan. "he amounts of money selected are not as important as the rationale for their plan. D"##"$%&'(: (3! P)*e: +68, T)/&e 133.

13