CHAPTER 12

CRS Questions & Answers

COMMUNICATING
CUSTOMER VALUE:
Advertising, Sales Promotion,
and Public Relations
 The promotional tool that results in the most
credible and believable message is:

1. Advertising
2. Personal selling
3. Public relations
4. Direct Marketing

Copyright 2007, Prentice-Hall Inc. 12-2

 The promotional tool that results in the most
credible and believable message is:

1. Advertising
2. Personal selling
3. Public relations
4. Direct Marketing

Public relations activities that result in news stories

capitalize on the credibility of the news media; consumers
view the information as more believable than advertising.

Copyright 2007, Prentice-Hall Inc. 12-3

 Your firm decides to use product placement
within a soon-to-be released video game as
one method of reaching the teen market.
This decision would be an example of:
1. Integrated marketing communications
2. Narrowcasting
3. Public relations
4. Broadcasting

Copyright 2007, Prentice-Hall Inc. 12-4

 Your firm decides to use product placement
within a soon-to-be released video game as
one method of reaching the teen market.
This decision would be an example of:
1. Integrated marketing communications
2. Narrowcasting
3. Public relations
4. Broadcasting

Narrowcasting occurs when marketers add

highly specialized and targeted media to
reach smaller customer segments.

Copyright 2007, Prentice-Hall Inc. 12-5

 The Cromer Manufacturing Company has
initiated an aggressive coupon program to
boost sales. Which of the following promotional
tools is Cromer employing?
1. Advertising
2. Sales promotion
3. Public relations
4. Direct marketing

Copyright 2007, Prentice-Hall Inc. 12-6

 The Cromer Manufacturing Company has
initiated an aggressive coupon program to
boost sales. Which of the following promotional
tools is Cromer employing?
1. Advertising
2. Sales promotion
3. Public relations
4. Direct marketing

Sales promotions offer strong incentives to purchase now.

Contests, rebates, premiums, and many other forms exist.

Copyright 2007, Prentice-Hall Inc. 12-7

 A _____ strategy calls for promoting extensively
to final consumers. When effective, consumers
will ask their retailers for the product, the
retailers will then ask the wholesalers for it,
who ultimately ask the producers for it.
1. public relations
2. push
3. pull
4. partner

Copyright 2007, Prentice-Hall Inc. 12-8

 A _____ strategy calls for promoting extensively
to final consumers. When effective, consumers
will ask their retailers for the product, the
retailers will then ask the wholesalers for it,
who ultimately ask the producers for it.
1. public relations
2. push
3. pull
4. partner

Advertising and sales promotions directed toward final

consumers incite desire for the product, and consumer
demand pulls the product through the channels.
Copyright 2007, Prentice-Hall Inc. 12-9
 The most logical method of setting a promotion
budget is the ________ method, whereby the
company sets its budget on what it wants to
accomplish with the promotion.
1. objective-and-task
2. percentage-of-sales
3. affordable
4. competitive-parity

Copyright 2007, Prentice-Hall Inc. 12-10

 The most logical method of setting a promotion
budget is the ________ method, whereby the
company sets its budget on what it wants to
accomplish with the promotion.
1. objective-and-task
2. percentage-of-sales
3. affordable
4. competitive-parity

Although the objective-and-task method is the best method of

budget setting, it is also the most difficult to use as tasks, and
the costs of performing tasks, must be accurately estimated.

Copyright 2007, Prentice-Hall Inc. 12-11

 The public perceives your product and those of
your competitors as being fundamentally
identical. Your best advertising choice to
respond to this problem is:
1. Informative advertising
2. Reminder advertising
3. Comparative advertising
4. None of the above

Copyright 2007, Prentice-Hall Inc. 12-12

 The public perceives your product and those of
your competitors as being fundamentally
identical. Your best advertising choice to
respond to this problem is:
1. Informative advertising
2. Reminder advertising
3. Comparative advertising
4. None of the above

Comparative advertising is a specific form of persuasive

advertising that seeks to build selective demand for a brand
by comparing it directly or indirectly to the competition.

Copyright 2007, Prentice-Hall Inc. 12-13

 An ad shows how a college student uses her
laptop to take notes during class, send email to
her grandparents, pay bills online, and research
a paper. Which execution style is being used?
1. Fantasy
2. Lifestyle
3. Slice-of-life
4. Technical expertise

Copyright 2007, Prentice-Hall Inc. 12-14

 An ad shows how a college student uses her
laptop to take notes during class, send email to
her grandparents, pay bills online, and research
a paper. Which execution style is being used?
1. Fantasy
2. Lifestyle
3. Slice-of-life
4. Technical expertise

The slice-of-life execution style shows one or more

typical people using the product in a normal setting.

Copyright 2007, Prentice-Hall Inc. 12-15

 The measure of how many times the average
person in the target market is exposed to the
message is called:
1. Reach
2. Frequency
3. Impact
4. Exposures

Copyright 2007, Prentice-Hall Inc. 12-16

 The measure of how many times the average
person in the target market is exposed to the
message is called:
1. Reach
2. Frequency
3. Impact
4. Exposures

Typically, a minimum average frequency of 3 is desired

during a 4 week period for established brands; new
products obviously require greater frequency.

Copyright 2007, Prentice-Hall Inc. 12-17

 In terms of sales promotion techniques, which
of the following is the most effective but also
the most expensive way to help introduce a
new product?
1. Sampling
2. Rebates
3. Coupons
4. Sweepstakes

Copyright 2007, Prentice-Hall Inc. 12-18

 In terms of sales promotion techniques, which
of the following is the most effective but also
the most expensive way to help introduce a
new product?
1. Sampling
2. Rebates
3. Coupons
4. Sweepstakes

Sampling offering a trial of the product for free or at

very low cost is a highly effective technique because
it allows buyers to try the product virtually risk-free.

Copyright 2007, Prentice-Hall Inc. 12-19

 If you were going to launch a new movie based
on a popular childrens book, which of the
following would likely be the least effective
public relations activity for this purpose?
1. Premiere movie screening at Disney World
2. News releases and video clips sent to
newspapers and TV stations
3. News conference with movie stars in
attendance
4. Speeches to educators and city officials

Copyright 2007, Prentice-Hall Inc. 12-20

 If you were going to launch a new movie based
on a popular childrens book, which of the
following would likely be the least effective
public relations activity for this purpose?
1. Premiere movie screening at Disney World
2. News releases and video clips sent to
newspapers and TV stations
3. News conference with movie stars in
attendance
4. Speeches to educators and city officials
Given the audience targeted, speeches would be
relatively ineffective at creating news.
Copyright 2007, Prentice-Hall Inc. 12-21