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Chapter 16

1. The oldest form is sales promotion is: cents-off coupons

2. ______ is defined as a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or to ultimate consumer with the primary objective of creating an immediate sale. A sales promotion

3. Which of the following elements of the integrated marketing communications programs is designed to provide an extra incentive to consumers to purchase a brand? sales promotion

4. (p. 510) Which of the following statements about sales promotion programs is true? A. Sales promotion programs are targeted only at consumers. B. Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it to their customers. C. Nearly three quarters of all sales promotion dollars are spent on consumer promotions. D. Sales promotion dollars for most companies are allocated equally between consumers and the trade. E. Sales promotion strategies aimed at marketing intermediaries are called pull strategies.

5. (p. 511) How has the view of sales promotions changed during the past decades? A. Sales promotions are now considered an essential part of an organization's branding strategies. B. Sales promotion tactics are now developed before the strategy is determined. C. Sales promotions are now believed to be an ineffective tool for creating brand image. D. Creatives have become more sophisticated, and this sophistication has led to a decline in their dependence on sales promotion. E. There is no difference between how marketers used to treat sales promotions and how they treat them now.

6. (p. 509) Which of the following statements does NOT describe an aspect or characteristic of sales promotion? A. A sales promotion provides an extra incentive to buy. B. A sales promotion is an acceleration tool designed to speed up the selling process. C. Sales promotion can be targeted to different parties in the marketing channel. D. Sales promotions now account for more of marketer's promotional budget than media advertising. E. Most of the sales promotional dollars are spent on consumer-oriented promotions.

7. (p. 510) Consumer-oriented sales promotions are part of a promotional ______ strategy. A. EDLP B. pull C. trade D. premium E. push

8. (p. 510) All of the following are examples of consumer-oriented sales promotion activities EXCEPT: A. samples B. coupons C. refunds/rebates D. trade shows E. bonus packs

9.(p. 518) Which of the following is a reasonable objective for consumer-oriented sales promotions? A. to obtain trial of a new brand B. to encourage repurchase of a brand C. to increase consumption of an established brand D. to enhance advertising and marketing efforts E. all of the above

10. Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. The appearance of Bart Simpson on the watch and not the Kellogg's logo would: detract from the consumer franchise building value of the promotion

11. (p. 517) Which of the following is an example of a nonfranchise building promotion? A. consumer sampling B. contests targeted to ultimate consumers C. price-off deals D. event sponsorship E. frequency programs

12. (p. 518) Promotional activities designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand's unique features or benefits are known as: A. consumer franchise-building promotion B. nonfranchise-building promotion C. sweepstakes D. image promotionsE. trade promotions

13. (p. 518) Which of the following would be NOT an example of a nonfranchise-building promotion? A. price-off deals B. bonus packs C. rebates D. image advertising E. promotional deals to retailers

14. (p. 517) In a sales promotion sponsored jointly by Puerto Rico Tourism Board and Rums of Puerto Rico, couples were invited to enter a contest for a chance to win the perfect wedding. According to the ad, enjoying Puerto Rico hospitality is "As Easy As Saying I Do." The contest is an example of: A. a nonfranchise building promotion B. a franchise building promotion C. a high-involvement sales promotion D. a sales promotion trap E. event marketing

15. (p. 517) Tropicana developed a "Win the Perfect Vacation" sweepstakes to complement an advertising campaign theme promoting its grapefruit juice as the perfect beverage. This is an example of: A. a nonfranchise building promotion B. a franchise building promotion C. a high-involvement sales promotion D. a sales promotion trap E. event marketing

16. (p. 522) _____ is generally considered the most effective method for generating trial of a new product. A. Couponing B. Sampling C. A rebate award D. A bonus pack E. A contest

17. (p. 522) Sampling programs are most effective when the product: A. is of low unit value and samples do not cost too much B. is divisible and can be broken into small sampling units C. has a short purchase cycle so that consumers will be motivated to make an immediate purchase D. has features and benefits that are easily experienced and appreciated E. has any or all of the above characteristics

18. (p. 522) Sampling for a product such as expensive skin cream that is designed to reduce wrinkles over a long period of time might not be feasible because: A. it cannot be broken down into small sizes B. it may be too expensive to give away sample sizes that would be adequate to demonstrate the cream's benefits since it has to be used repeatedly C. it may be too difficult to find a way to distribute the samples D. consumers may think it is of poor quality since samples are being given away E. it would create an easily imitated competitive advantage

19. (p. 522-523) Which of the following is NOT a sampling distribution method? A. door-to-door sampling B. sampling through the mail C. in-store sampling D. in or on package sampling E. self-liquidating sampling

20. (p. 523) _____ is a common sampling technique for small, lightweight products that are nonperishable. A. Door-to-door sampling B. Sampling through the mail C. In-store sampling D. On-package sampling E. Location sampling

21. (p. 549) Which of the following statements about the coordination of advertising and sales promotion efforts is true? A. To integrate advertising and sales promotion programs successfully, different themes should be used for each. B. Consumers are less likely to redeem a coupon or respond to a price-off deal for a brand they are familiar with than one they know nothing about. C. Product trial created through sales promotion techniques such as sampling or couponing is more likely to result in long-term use of the brand when accompanied by advertising. D. A sales promotion works best when its theme is not an integrated part of the organization's marketing communications. E. All of the above statements about the coordination of advertising and sales promotion efforts are true.

22. (p. 528) An in/on package coupon that is redeemable for a future purchase of the same brand is known as a(n) _____ coupon. A. cross-ruff B. bounce-back C. instant D. cross sell E. same purchase

23. (p. 528) On the inside of the Tortino's brand pizza box was a $1-off coupon for the purchase of the next Tortino's pizza. Tortino's used a(n) _____ coupon. A. cross-ruff B. bounce-back C. instant D. cross sell E. same purchase

24. (p. 528) A package of Gillette Sensor razor blades contains a 75-cent-off coupon for Gillette Foamy shaving cream. This is an example of a(n) _____ coupon. A. cross-ruff B. bounce back C. same purchase coupon D. instant coupon E. rebate coupon

25. (p. 528) Kellogg's places a 50-cent-off coupon for Rice Krispies brand cereal on the outside of a box of its Frosted Mini-Wheats brand of cereal. This is an example of a(n) _____ coupon. A. bounce-back B. cross-ruff C. instant D. premium E. cross-sell

26. (p. 528) Affixed to the front of a bag of Aunt Jemima corn meal was a(n) _____ coupon that could be torn off (without damaging the bag) and redeemed at the time of the purchase. A. bounce-back B. cross-ruff C. instant D. premium E. cross-sell

27. (p. 529) _____ couponing is a method for distributing coupons by identifying a customer's purchases through bar codes scanners and then printing the coupon for a competing or complementary product. A. On-package B. In-Store C. Shelf-dispensed D. Cross-ruff E. Instant

28. (p. 529) Gillette's market research shows that most consumers decide upon a brand of deodorant at the point-of-purchase rather than before entering the store. Based on these findings, what form of promotion should be most effective for Gillette's Right Guard brand? A. direct mail coupons B. event marketing C. coupons distributed through freestanding inserts in newspapers D. in-store coupons E. spiffs

29. (p. 530) Serta, the manufacturer of mattresses, gave away a Serta Sheep Plushie toy to any customer who purchased a mattress from a Serta dealer. The toy was only available for a limited time. The stuffed toy is an example of a(n): A. coupon B. sample C. free premium D. rebate E. self-liquidating premium

30. (p. 530) Quaker Oats cereal included tubes of Colgate Junior toothpaste inside each box of Life brand cereal. This is an example of a: A. free premium B. self-liquidating premium C. rebate D. bonus pack E. non-subsidized premium

31. (p. 531) Consumers must pay the manufacturers' out-of-pocket costs for a _____ premium. A. cost-covered B. self-liquidating C. subsidized D. cost-plus E. base-cost

32. (p. 530) A(n) _____ is an offer of an item of merchandise or service either free or at a reduced price that is used to provide an extra incentive to purchase. A. coupon B. sample C. premium D. rebate E. off-price deal

33. (p. 531) Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. This is an example of a _____ premium. A. cost-covered B. self-liquidating C. subsidized D. cost-plus E. base-cost

34. (p. 531) Which of the following statements about the use of premiums as a sales promotion tool is true? A. The use of premiums is very popular among fast food restaurants as a way of attracting children. B. Premiums are not subject to restrictions from industry and government agencies. C. Redemption rates for mail-in premium offers are very high. D. Consumers are always required to pay at least some of the costs of a premium offer. E. Mail-in premiums offer immediate reinforcement to the purchaser.

35. (p. 531) Which of the following statements about the use of premium offers by fast-food chains such as McDonald's and Burger King is true? A. Many of the premiums used by these companies have cross-promotional tie-ins with popular movies. B. Most of the premiums used by these companies are self-liquidating. C. Many of the premium offers used by these companies are targeted at adults. D. Most of the premium offers used by these restaurants are not effective at generating incremental sales. E. Free premiums always produce positive public relations for the company providing them.

36. (p. 531) An effective premium is one that: A. distracts consumers from the firm's main reason for existing B. ties into the overall positioning and communications campaign of the brand C. induces one-time trial purchase of a brand for which there is low awareness D. encourages repeat purchase of some brand other than that for which the premium is delivered E. has no impact on an organization's pioneering advertising

37. (p. 531) Which of the following would be the best example of a premium offer that contributes to consumer-franchise building efforts for a brand? A. a free tube of Colgate toothpaste in a box of Life cereal B. a pack of baseball cards in a box of Cheerios cereal C. a free sport bottle with the purchase of a four-pack of Gatorade D. a dish towel in a box of Tide laundry detergent E. a pack of golf tees inside a box of golf balls

38. (p. 532) With a _____ consumers compete for prizes and/or money on the basis of skills or ability, while with a _____ winners are determined purely by chance. A. sweepstakes; contest B. contest; sweepstakes C. contest; event sponsorship D. sweepstakes; event sponsorship E. contest; rebate

39. (p. 532) Because they are easier to enter, _____ attract more entries than _____ and have become a more widely used sales promotion technique. A. contests; sweepstakes B. sweepstakes; contests C. sweepstakes; premiums D. contests; premiums E. contests; rebates

40. 97. (p. 532) Which of the following sales promotion techniques would be most effective for generating excitement or interest in a brand? A. coupons B. price-off deals C. bonus packs D. contests/sweepstakes E. samples

41. (p. 532) Sweepstakes and contests: A. are primarily used to move consumers into the conviction stage of the hierarchy of effects model B. can be used to generate excitement and involvement with a popular and timely event C. contribute minimally to consumer franchise building D. do not distract from consumer franchise building activities E. are accurately described by all of the above

42. 105. (p. 533) The redemption rate for refunds is lower than that for coupons because: A. the payoff is smaller B. the reinforcement is immediate C. more effort is required D. the payoff is larger E. the offers tend to expire very quickly

43. (p. 534) Acushnet ran a promotion offering a box of fifteen Pinnacle golf balls for the same regular price as twelve balls. This is an example of a: A. price-off deal B. premium C. bonus pack D. rebate E. trade allowance

44. (p. 534) Bonus packs: A. offer consumers an extra amount of a product or service but a higher than normal price B. provide marketers with a way to provide extra value to consumers without having them do anything other than purchase the product C. are not an effective way of loading consumers with a product and reducing their susceptibility to a competitor's promotional offer D. are always welcome by retailers since bonus packs never require extra shelf space and increase retailers' profit margins E. are accurately described by all of the above

45. (p. 534) When reductions from the regular price of a product are offered at the point-ofpurchase through specially marked packages, a marketer is using a: A. bonus pack B. rebate C. refund offer D. bounce back coupon E. price-off deal

46. (p. 536) The use of rebates by marketers has increased dramatically partly because: A. bonus packs are no longer effective in creating customer loyalty B. situational factors are increasing the likelihood of rebate redemption C. price-off deals are correlated with rebate redemption D. consumers prefer rebates over lower prices E. they know 40 percent of rebates never get redeemed Ethical Perspective 16.1

47. (p. 537) Which of the following statements describe an advantage associated with price-off deals? A. Price-off deals ensure the price discount reaches the consumer. B. The value of price-off deals offer is usually very apparent to the shopper. C. Price-off deals can encourage consumers to buy larger quantities. D. Price-off deals can provide a strong point-of-purchase influence. E. All of the above are advantages associated with price-off deals.

48. (p. 519) The American Airline AAdvantage promotional program rewarded consumer: A. loyalty B. diversity C. diversification D. price sensitivity E. demographic segmentation

49. (p. 538) Coors Light beer's heavy financial involvement with and support of freestyle skiing competitions, beach volleyball tournaments, and other sporting events are examples of: A. premiums B. trade shows C. exhibitions D. event marketing E. contests

50. (p. 538) May is National Arthritis Month. To celebrate this month, the manufacturer of Aleve pain reliever sponsored fundraiser walks to raise money to find a cure for arthritis. Aleve's manufacturer engaged in: A. a self-liquidating premium B. a trade show C. an exhibition D. event marketing E. a corporate contest

51. (p. 538) Which of the following statements about event sponsorships is true? A. the amount of money spent on event sponsorships has been declining in recent years. B. Event sponsorships are not typically integrated into a company's marketing communications strategy. C. Event marketing and event sponsorship are synonymous. D. Decisions and objectives for event sponsorships are often part of an organization's public relations activities. E. All of the above statements about event sponsorship are true.

Chapter 18

1. The set of principles adopted by large advertising agencies to improve preparation and testing of ads is referred to as: Positioning Advertising Copy Testing (PACT)

2. Most television commercials are designed so they can be readily understood by viewers with a 12th grade education. Which of the following measures should be used to test an ad to see if it met this criterion?vehicle option source

Chapter 19

1. The communications, transportation, financial, and distribution networks of a country are part of its: economic infrastructure

2. When the CEO of International Partners, Ltd. was in the capital of Angola in Africa, he found that 90 percent of his telephone calls didn't connect to the party he was calling. This represents a problem with Angola's: economic infrastructure

3. Factors such as size of the population, age distribution, education, and income levels are part of a country's _____ characteristics. demographic

4. A U.S. exporter of baby furniture would be interested in how many people are in the Full Nest I stage of the family life cycle in a country that is was planning on exporting its products to. This type of information is part of a nation's _____ environment. demographic

5. Variables such as language, customs, tastes, values, and life styles are part of a country's: cultural environment

6. _____ factors of the international environment probably create more problems for advertisers than any others since they directly impact the ability to communicate effectively with consumers in foreign countries. Cultural

7. In France, cosmetics are used heavily by men as well as women and advertising directed to the male market is common. Consumers in the U.S. are heavier users of personal hygiene products such as deodorants and mouthwashes. These are examples of _____ differences that affect consumption patterns. Cultural

8. A delivery service must understand that as a result of _____ differences, Europeans are not as time-sensitive as Americans, and Asians are even less time sensitive than Europeans. cultural

9. Advertisers can handle potential problems that may arrive from diversity in language and cultural differences in signs and symbols in various countries by: using a local ad agency hiring companies that specialize in translating advertising slogans and copy into local languages consulting local employees doing any or all of the above

10. _____ are beliefs and goals shared by members of a society regarding ideal end states of life and modes of conduct. Cultural values

11. Direct marketing experts believe loyalty programs are poised for tremendous growth in South America. These experts believe as a result of the importance of personal relationships as well as a strong sense of family that is pervasive on the continent, marketing programs that emphasize relationships will perform better than others. This strong sense of family and the importance of relationships would both be classified as: cultural values

12. Since the European Union banned the use of food dyes in seafood, the salmon market has suffered. People mistakenly believe that salmon is naturally pink. Unfortunately, salmon is an unappetizing gray color. This is an example of how _____ factors can inadvertently hurt small businesses. political/legal

13. Diet Coke is known as Coca-Cola Light in Germany, France, and many other countries because these countries have legal restrictions prohibiting the use of the word diet. This is an example of how _____ factors affect global marketing. political/legal

14. Here in the United States, people with golden tans are generally seen as attractive and possibly even well-to-do. However, in other countries, such as the Philippines, suntans are indicative of laborers and even underprivileged people. A U.S. company planning on marketing a line of tanning lotions, bronzing creams, and salves for sunburns globally realizes it is important to select an advertising agency that truly understands each foreign market. The company should: use a superagency with global marketing capabilities

15. _____ is a marketing approach that assumes the needs satisfied by a product or service and the way it is used are the same everywhere in the world, and therefore, utilizes a common marketing approach in all countries. Global marketing

16. The concept of ______ deals with all elements of a firm's marketing mix while the concept of _____ deals specifically with the communication aspect of marketing. global marketing: global advertising

17. _____ was the marketing scholar who popularized the concept of global marketing. Theodore Levitt

18. Which of the following is NOT an advantage associated with the use of global marketing and advertising? economies of scale in production and distribution lower marketing and advertising administrative costs lower advertising production costs the need to adapt the marketing and advertising program to cultural differences the ability to develop and maintain a consistent international brand or company image

19. Which of the following is an advantage associated with the use of global marketing and advertising? economies of scale in production and distribution lower marketing and advertising administrative costs simplification of coordination and control of marketing and promotional programs the ability to develop and maintain a consistent international brand or company image all of the above

20. Coffee seems like a fairly simple and unambiguous term. But, in Great Britain, the word suggests a large mug filled with equal quantities of lukewarm water, instant coffee granules, milk, and sugar. Many other terms that seem the same aren't, and help to explain why marketers have so much trouble with: global advertising

21. Which of the following products/services would be LEAST suitable for global advertising appeals? Duncan-Hines cake mixes

22. _____ is an advertising format where ads follow the same basic approach but themes, copy, and visual elements may be adjusted Pattern advertising

23. Weight Watchers having achieved a 50 percent market share in the United States was ready to move into international markets. The company found it had to introduce new diets and weight-loss measures on a country-by-country basis even though it maintained its basic ad campaign. Weight Watchers used: pattern advertising

24. Gillette had a worldwide advertising campaign for its Sensor razors using an ad campaign theme of Gillette--the best a man can get. Some of the ads featured sports stars from the host country rather than using only one sports star in all of the ads. This is an example of a(n): application of the think global, act local approach to international advertising

25. The dominant strategy used by most international advertisers today is to think globally and act regionally

26. Which of the following would make the use of a standardized, global advertising approach difficult? cultural differences differences in economic development of countries differences in media availabilities differences in consumer needs and usage patterns all of the above

27. Which of the following types of products/service would be well suited to the use of a global advertising appeal? brands that are promoted with image campaigns that play to universal appeals such as sex or wealth products that play to universal motives and can be advertised using image or emotional appeals high-tech products being introduced for the first time products that appeal to market segments in each country with similar tastes, interests, needs, and values all of the above