CH-15 Marketing Communications – MKTG : Exam Guide

Chapter 15—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. Answer: True Rationale: Promotion encompasses various marketing communications aimed at informing, persuading, and reminding potential buyers about a product, ultimately influencing their purchasing decisions. 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. Answer: True Rationale: Black & Mild FT's unique feature of using a blend of premium pipe tobaccos and a filter tip provides a distinctive product offering that can create a competitive advantage by appealing to consumers looking for a smooth smoking experience that combines elements of both cigars and pipes. 3. A 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. Answer: True Rationale: Communication involves the exchange of information and meaning. Even when language barriers exist, communication can occur through symbols that convey intended messages and meanings effectively. 4. Nature Valley uses popular magazines, radio, and cable television to promote its brand of trail mix. Nature Valley uses mass communication. Answer: True Rationale: Nature Valley's use of popular magazines, radio, and cable television for promoting its trail mix brand constitutes mass communication, reaching a broad audience through widely accessible media channels. 5. One way of conveying a message that the receiver will hear properly is to use abstract words and pictures. Answer: False Rationale: Concrete words and pictures should be used, not abstract. 6. Nutri-Foods 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. Answer: True Rationale: In the communication process, noise refers to any interference that distorts or disrupts the message being conveyed. In Nutri-Foods' case, factors like disliked music in radio ads and an unappealing spokesperson voice act as forms of noise, hindering effective message delivery to the target audience. 7. Marketers targeting consumers in foreign countries must worry about the translation and possible miscommunication of their promotional messages by other cultures. Answer: True Rationale: Marketers targeting consumers in foreign countries need to consider translation and cultural differences to ensure that their promotional messages are effectively understood and do not lead to miscommunication or misunderstanding among different cultures. 8. 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. Answer: False Rationale: Charles Schwab relies on indirect feedback. Direct feedback would imply immediate interaction. 9. Informative promotion is used to keep the product and brand name in the public’s mind. Answer: False Rationale: This is the function of reminder promotion. 10. All promotions are designed to inform, persuade, or remind the target audience. Answer: True Rationale: All promotional activities—whether advertising, personal selling, sales promotions, or public relations—are designed to inform, persuade, or remind the target audience about a product or service. 11. 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. Answer: False Rationale: Early in the life cycle, the primary focus of promotions should be to inform consumers of the product. 12. 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. Answer: True Rationale: In the growth stage of the product life cycle, competitive pressures are high, so persuasive promotions are crucial to differentiate a brand and persuade customers to choose it over competitors. 13. The promotional mix is the combination of promotional tools used to reach the target market and fulfill the organization’s overall goals. Answer: True Rationale: The promotional mix refers to the blend of promotional tools—such as advertising, personal selling, sales promotion, and public relations—that a company uses to achieve its marketing objectives and reach its target audience effectively. 14. Advertising is impersonal, one-way mass communication about a product or organization that is paid for by a marketer. Answer: True Rationale: Advertising involves one-way, paid communication aimed at promoting a product or organization to a mass audience, making it an impersonal form of communication. 15. Benedict and Taapo are arguing about newspaper publicity. Benedict 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. Benedict has a more accurate grasp of the definition of publicity. Answer: False Rationale: Publicity is not free. Preparing news releases, staging special events, and persuading media to broadcast them cost money. 16. Publicity is free. Answer: False Rationale: Preparing news releases, staging special events, and persuading media to broadcast them cost money. 17. Sales promotion consists of all marketing activities other than personal selling, advertising, and public relations that stimulate consumer buying and dealer effectiveness. Answer: True Rationale: Sales promotion includes all promotional activities besides personal selling, advertising, and public relations that are designed to stimulate consumer buying and improve dealer effectiveness. 18. Communication via telephone is not considered personal selling because it is not face-to-face. Answer: False Rationale: Selling over the phone is a form of personal selling. It does allow for immediate interaction. 19. AIDA is an acronym for attention, interest, desire, and action. Answer: True Rationale: AIDA stands for Attention, Interest, Desire, and Action, which are the stages in the consumer decision-making process that marketing communications aim to move consumers through. 20. A person buying a Valentine’s Day gift for a significant other is more likely to go through all of the steps in the AIDA process than a person buying a gift certificate for his or her mail carrier. Answer: True Rationale: 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. 21. The AIDA concept can be used to explain how all promotions influence purchase decisions. Answer: False Rationale: The order of stages in the model, as well as whether consumers go through all its steps, has been much debated. 22. In terms of the AIDA process, public relations has its greatest impact in gaining attention and interest for a company, good, or service. Answer: True Rationale: Public relations activities, such as media coverage or events, are often effective in capturing attention and generating interest in a company, product, or service as part of the AIDA model. 23. Allyson Brown is trying to develop a promotional mix for her firm’s new product, a sophisticated modular sun porch 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. Answer: True Rationale: Personal selling is effective for complex products with high financial risks because it allows for direct communication, relationship-building, and addressing specific consumer concerns or questions. 24. From the consumer’s point of view, a company’s communications are already integrated, no matter how the company itself defines them. Answer: True Rationale: From the consumer's perspective, they interact with a company's various communication channels holistically, regardless of how the company internally organizes or defines these channels. 25. One of the reasons for the growing popularity of integrated marketing communications is the proliferation of thousands of new media choices. Answer: True Rationale: Integrated marketing communications (IMC) integrates various promotional tools and media channels to deliver a consistent message to consumers, which is increasingly important due to the diverse and numerous media options available today. 26. All promotion, especially advertising, is reduced as a product enters the decline stage. However, personal selling and sales promotion efforts might be maintained, especially at the retail level. Answer: True Rationale: During the decline stage of a product's life cycle, overall promotion, especially advertising, is typically reduced. However, personal selling and sales promotion efforts might still be maintained, especially at the retail level. 27. 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. Answer: True Rationale: Lansky's use of aggressive personal selling and sales promotions to encourage intermediaries to carry and sell its sharpeners represents a push strategy. 28. Marketers typically use either a push or a pull strategy exclusively. Answer: False Rationale: Companies rarely use one or the other exclusively. The strategy that best supports their promotional objectives (usually in combination) is what is selected. MULTIPLE CHOICE 1. _____ is communication by marketers that informs, persuades, and reminds 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 Answer: D Rationale: This is the definition of 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. Answer: A Rationale: Promotional strategy is a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales 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 Answer: B Rationale: Promotional strategy is a plan for the optimal use of the elements of the promotion mix. 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. Answer: A Rationale: 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. 5. The National Pork Board wants to create more consumer demand for pork products. The board 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 Answer: A Rationale: Promotional strategy is a plan for the optimal use of the elements of the promotional mix. 6. A _____ is defined as a unique aspect of an organization that causes target consumers to patronize that firm rather than competitors. A. comparative differentiation B. competitive advantage C. marketing mix D. special benefit E. promotional plan Answer: B Rationale: This is the definition of competitive advantage. 7. 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. Answer: C Rationale: A competitive advantage is the unique set of features of a company and its products that are 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. 8. 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 Answer: C Rationale: A competitive advantage is the unique set of features of a company and its products that are 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. 9. 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. Answer: C Rationale: A competitive advantage is one or more unique aspects of an organization that cause target customers to patronize that brand rather than others. 10. _____ is the process by which we exchange or share meanings through a common set of symbols. People also assign meanings to feelings, ideas, facts, and attitudes. A. Feedback B. Promotion C. Advertising D. Publicity E. Communication Answer: E Rationale: This describes communication. 11. While talking to Mr. and Mrs. Knighton, the appliance salesperson described one of the refrigerators as “a real money saver” and “a true bargain,” but he also kept looking down at his feet and shuffling around. His nonverbal cues: A. create subservient selling. B. create differential disadvantages. C. are part of how he communicated to the Knightons. D. are a type of marketing mix feedback. E. will not affect interpersonal communications. Answer: C Rationale: Communication is the process by which we exchange or share meanings through a common set of symbols. 12. Interpersonal communication is: A. nonpaid information such as publicity. B. paid communication placed in personal media. C. long-distance communication between a business and its target market. D. direct face-to-face communication between two or more people. E. noise-free communication. Answer: D Rationale: Interpersonal communication is direct, face-to-face communication between two people. 13. The two major categories of communications are: A. verbal and nonverbal. B. direct and indirect. C. long term and short term. D. mass and interpersonal. E. informative and persuasive. Answer: D Rationale: Communication can be divided into two major categories: interpersonal communication and mass communication. 14. Usborne Books consultants sell books directly to customers via presentations in customers’ homes, at book fairs and community events, and at craft shows. Usborne consultants are engaged in: A. telemarketing. B. interpersonal communication. C. publicity. D. mass communication. E. crowd selling. Answer: B Rationale: Interpersonal communication is direct, face-to-face communication between two or more people. 15. Communication to large audiences, usually through a medium such as television or a newspaper, is called _____ communication. A. mass B. feedback-proof C. referential D. interpersonal E. public Answer: A Rationale: This describes mass communication. 16. USA cable television uses billboard, television, magazine, and newspaper advertising to inform television viewers about new episodes of Monk, a popular television series. USA uses _____ communication. A. referential B. mass C. factual D. interpersonal E. public Answer: B Rationale: Mass communication involves communicating a concept or message to large audiences. 17. Which of the following is NOT a disadvantage a firm using mass communication might experience? A. Inability to assess customer reactions to the promotion immediately B. Clutter from competitors’ messages C. Distractions around the consumer at the time of receipt of the message D. Inability to know exactly who is receiving the message E. Great expense on a per person exposed basis Answer: E Rationale: Mass media reaches so many people that even though the initial investment is large, cost per person is small. 18. The communication process itself consists of: A. message, media, and transmittal. B. source, receiver, and channel. C. sender, receiver, and message. D. encoding, decoding, channel, sender, and receiver. E. comprehension, noise, and feedback. Answer: D Rationale: See Exhibit 15.2. The communication process involves encoding (message creation), decoding (message interpretation), the channel through which the message is transmitted, the sender (source of the message), and the receiver (recipient of the message). 19. The _____ is the originator of the message in the communication process. A. communicator B. encoder C. channeler D. sender E. receiver Answer: D Rationale: This is the definition of a sender. 20. For its new Jeep Compass, DaimlerChrysler launched a campaign targeting young, hip consumers. To reach its target, Jeep’s advertising agency used music, talking bobbleheads, and other nontraditional marketing tactics to capture consumers’ interest. The agency devised a host of bobblehead characters that represented the wide variety of potential Compass buyers. DaimlerChrysler was the _____ of the message in this communication process. A. sender B. decoder C. channeler D. receiver E. communicator Answer: A Rationale: The sender is the originator of the message in the communication process. 21. The manufacturer of Meridian yam products spent $25,000 to create an ad that ran in the Thanksgiving issue of a popular cooking magazine. Because it was the originator of the communication process, Meridian acted as a: A. channel. B. noise filter. C. receiver. D. decoder. E. sender. Answer: E Rationale: The sender is the originator of the message in the communication process. 22. The maker of Frank’s RedHot pepper sauce spent $25,000 to create an ad that was targeted to consumers in the southwestern U.S. market. Because it created the ad itself and did not use an ad agency, Frank’s RedHot sauce engaged in: A. channeling. B. creating noise. C. receiving. D. decoding. E. encoding. Answer: E Rationale: Encoding is the conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs. 23. _____ is the interpretation of the language and symbols sent by a source through a channel. A. Development B. Envelopment C. Processing D. Decoding E. Encoding Answer: D Rationale: This defines Decoding. 24. Encoding is the: A. creation of the original ideas and thoughts of a message. B. conversion of the sender’s ideas and thoughts into a message. C. transmission of a message. D. receipt and comprehension of a message. E. deciphering and understanding of a message. Answer: B Rationale: Encoding is the conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs. 25. For its new Jeep Compass, DaimlerChrysler has launched a new campaign targeting young, hip consumers. To reach its target, DaimlerChrysler’s advertising agency is using music, talking bobbleheads, and other nontraditional marketing tactics to capture consumers’ interest. The agency has devised a host of bobblehead characters that represent the wide variety of potential Compass buyers. The ad agency is acting as the _____ of the message. A. decoder B. sender C. encoder D. receiver E. channeler Answer: C Rationale: Encoding is the conversion of the sender’s ideas and thoughts into a message. 26. A channel in communication is: A. the only source of noise. B. the same as in distribution. C. usually an ad agency or public relations firm. D. someone who places advertising into media. E. any communication medium. Answer: E Rationale: A channel is the transmitter of the message such as a voice, gesture, radio, newspaper, or any other communication medium. 27. Campbell’s soup has been promoted with television commercials, radio spots, newspaper coupons, and magazine advertisements. In the communication process, these media served as _____ for transmitting the message. A. senders B. decoders C. encoders D. channels E. receivers Answer: D Rationale: A channel is the transmitter of the message such as a voice, gesture, radio, newspaper, or any other communication medium. 28. When Castrol Syntec, a premium motor oil, sought a new way to reach its young, car-passionate audience, the brand found its mark with video games. In its first-ever attempt at in-game advertising, Castrol Syntec found a way to show consumers (in a virtual world) the brand’s power and performance. In the communication process, the game served as a(n) _____ for transmitting the message. A. sender B. decoder C. encoder D. channel E. receiver Answer: D Rationale: A channel is the transmitter of the message such as a voice, gesture, radio, newspaper, or any other communication medium. 29. The marketing campaign for Alpo dog food uses posters in veterinarians’ offices, radio and television ads, and a Web site to promote benefits of the dog food. In terms of the communication process, Alpo uses several different: A. source of feedback. B. channels. C. encoders. D. decoders. E. noise interrupters. Answer: B Rationale: Channels are media of communication used for transmitting a message. 30. _____ is anything that interferes with, distorts, or slows down the transmission of information. A. Media communication B. Feedback C. Static D. Nonpaid communication E. Noise Answer: E Rationale: This is the definition of noise. 31. Just as Grace was in sight of a billboard for the Riverbend Antique Mall, a police car drove by with its lights flashing. Grace was so concerned with watching where the police car went that she totally missed seeing the mall’s billboard. In terms of the communication process, the police car acted as: A. media interruptus. B. negative feedback. C. static. D. explicit communication. E. noise. Answer: E Rationale: Noise is anything that interferes with, distorts, or slows down the transmission of information. 32. Within the communication process for a car dealer’s ad, which of the following would be an example of noise? A. Competing ads B. News stories in the newspaper C. The physical surroundings in which the individual reading the ad is located D. The presence of other people while the ad is being read E. All of these Answer: E Rationale: Noise is anything that interferes with, distorts, or slows the transmission of information. 33. For its new Jeep Compass, DaimlerChrysler came out with a new campaign targeting young, hip consumers. To reach its target, DaimlerChrysler used music, talking bobbleheads, and other nontraditional marketing tactics to capture consumers’ interest. These communications were directed at the _____, the persons who would decode the message. A. senders B. receivers C. encoders D. channels E. communicators Answer: B Rationale: Customers are the receivers who decode the message. 34. _____ is the interpretation of the language and symbols sent by the source through a channel. A. Encoding B. Perceiving communication C. Decoding D. Channeling E. Semiotics Answer: C Rationale: This is the definition of decoding. 35. For communication to be effective: A. marketing managers should use both interpersonal and mass communications. B. all steps of the communications process model must take place. C. marketing managers must ensure a proper match between the message to be conveyed and the target market’s attitudes and ideas. D. advertising messages must be general enough to cover all ages, social classes, and education levels. E. marketers should use televised instead of print communication. Answer: C Rationale: Common understanding between two communicators is required for effective communication. 36. Ernest has three engineering degrees. He has hired an interior decorator to update his home. He is tremendously frustrated when he asks what he thinks are simple questions about weight-bearing walls and insulation requirements that the designer is unable to understand. Yet Ernest has the same problems when the designer starts talking about mauve, cerise, and magenta. Why is the communication process not working in this instance? A. The designer is not intelligent enough to understand engineering. B. Noise is interfering with both encoding and decoding. C. The wrong medium has been used. D. The sender and receiver do not share overlapping frames of reference. E. Personal selling should not be used to market this type of product. Answer: D Rationale: Common understanding between two communicators, or a common frame of reference, is required for effective communication. In this case, the designer has no knowledge base in engineering, and Ernest has no knowledge base in the designer’s colors. 37. The receiver’s response to a message is _____ to the source. A. decoded B. noise C. feedback D. channeled E. static filled Answer: C Rationale: In interpersonal communication, the receiver’s response to a message is direct feedback to the source. 38. When Becca saw the ad suggesting Subway sandwiches as a dinner meal, she was offended by the spokesperson and wondered why anyone would want to do business with a company that thought being obnoxious was a good business practice. In terms of the communication process, Becca: A. correctly encoded the message. B. created a longer than normal communication channel. C. improperly decoded the message. D. had no feedback. E. improperly encoded the message. Answer: C Rationale: Decoding is interpreting the language and symbols sent by the source through a channel. 39. Vera ordered the Chihuahua Christmas ornament she saw advertised in the Sunday coupon supplement by phoning The Danbury Mint and placing her order. In terms of the communication process, Vera’s purchase was an example of: A. feedback. B. noise. C. implicit communication. D. channeled communication. E. message encoding. Answer: A Rationale: The receiver’s response to a message is feedback to the source. 40. Because marketers do not control consumers’ comments on social media sites such as Twitter and Facebook: A. there is a chance that comments and postings will be negative. B. any comments consumers leave are virtually useless to marketers. C. filtered feedback channel has been created. D. most consumers do not trust the comments they read there. E. any feedback marketers receive there will be impersonal. Answer: A Rationale: Because there is no control over social media, there is chance that comments and postings will be negative. 41. Bag Media is a British company that sells space on paper bags to advertisers who want to drive consumers to their Web sites. A Bag Media representative made a presentation to several Internet entrepreneurs who are interested in getting traffic to their sites. When one of the entrepreneurs ordered its Web address printed on 25,000 bags, it was an example of: A. feedback. B. decoding. C. Noise. D. indirect transmission. E. nonverbal communication. Answer: A Rationale: The receiver’s response to a message is feedback to the source. 42. What are the four basic tasks of promotion? A. Informing, persuading, instituting and convincing B. Persuading, convincing, remixing, and reminding C. Informing, providing, convincing, and reminding D. Informing, persuading, reminding, and connecting E. Persuading, implementing, comparing, and reminding Answer: D Rationale: Promotion can perform one or more of four tasks: inform the target audience, persuade the target audience, remind the target audience, or connect with the target audience. 43. Which of the following is one of the basic tasks typically performed by promotion? A. Managing B. Organizing C. Rewarding D. Persuading E. Perceiving Answer: D Rationale: Persuasive promotion is designed to stimulate a purchase or an action. 44. Informative promotion is generally used: A. when memory stimulus is needed. B. when the brand name is well-known to consumers. C. during the early stages of the product life cycle. D. during an attempt to gain the immediate action of a consumer. E. when advertising a simple, nontechnical, mature product. Answer: C Rationale: Informative promotion is generally more prevalent during the early stages of the product life cycle. 45. The Hollymatic Patty Machine grinds and shapes meat into perfectly sized patties using a revolutionary new process that decreases shrinkage. The advertising agency is writing copy for the Hollymatic Patty Machine and has decided on a(n) _____ format because the product is so technical. A. influencer B. persuasive C. reminder D. reseller E. informative Answer: E Rationale: Informative promotion is a necessary ingredient for a highly technical product category. 46. When Heinz introduced its ketchup globally, it first had to deal with the fact that ketchup is not a household staple outside the United States. Heinz had to show foreign users how ketchup can be used. Globally, Heinz has had to rely primarily on _____ advertising. A. reminder B. persuasive C. informative D. compulsive E. influential Answer: C Rationale: Informative promotion seeks to convert an existing need into a want or to stimulate interest in a new product, generally during the early stages of the product life cycle. 47. 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. The goal of promotion developed for this new healthy alternative beverage for children would be to _____ consumers. A. inform B. remind C. prompt D. influence E. encourage Answer: A Rationale: Informative promotion seeks to stimulate interest in a new product. 48. The American Plastics Council wants to stimulate more consumer demand for products that are packaged in plastic. The ads will explain how plastics protect families from food spoilage and contamination. The ads will also describe how tamper-evident plastic seals provide an extra measure of product safety assurance. By trying to change customers’ perception of plastic packaging, the council is using _____ promotion. A. reminder B. persuasive C. declarative D. diffusive E. mass Answer: B Rationale: The council is trying to stimulate demand for consumer products packaged in plastics. 49. The goal of persuasive promotion is to: A. stimulate a purchase or an action. B. increase brand awareness. C. describe available services. D. remind the consumers of where to buy the product. E. maintain top-of-mind consumer awareness. Answer: A Rationale: Persuasion generally attempts to motivate a consumer to purchase a product. 50. Persuasion normally becomes the primary promotion goal when: A. a firm is trying to increase brand awareness. B. the product enters the growth stage of the product life cycle. C. selling a highly technical product. D. reminding consumers where to buy the product. E. new products are in early stages of the product life cycle. Answer: B Rationale: Persuasion attempts to motivate a consumer to purchase a particular product. It is useful after the product has been made known through informational advertising during introduction. 51. Innovyx is an e-mail marketing service provider. It has a new ad campaign aimed at changing negative perceptions of e-mail. The ads explain how much cheaper e-mail advertising is than traditional advertising and what a high return on investment it can generate if used properly. Finally, the message ends by suggesting that companies wanting to promote their products give e-mail a chance to show what it can do. This promotion has the task of: A. persuading. B. informing. C. reminding. D. suppressing. E. rewarding. Answer: A Rationale: This promotion is aimed at persuading consumers to change their attitudes and try e-mail. 52. _____ promotion is used to keep a familiar brand name in the public’s mind and is prevalent during the maturity stage of the product life cycle. A. Influence B. Amusement C. Informative D. Persuasive E. Reminder Answer: E Rationale: This describes reminder promotion. 53. Hasbro, Inc. hired actress Jamie Lee Curtis as its spokesperson to promote the company’s board games. As part of the campaign, Curtis appeared in television spots dressed as characters from various Hasbro games such as Battleship, Monopoly, and Clue to promote the games as great Christmas gifts to parents who played the games as children. This promotion was intended to: A. amuse consumers. B. influence consumers to switch to Hasbro games. C. act as a reminder advertisement. D. persuade nonplayers of games to try them. E. act as a persuasive device for the product category. Answer: C Rationale: Reminder promotion is used to keep a familiar brand name in the public’s mind and is prevalent during the maturity stage of the product life cycle. 54. For many years Jell-O gelatin has run advertisements that tell consumers there is “always room for Jell-O.” This is an example of _____ promotion. A. influence B. amusement C. informative D. prevalent E. reminder Answer: E Rationale: Reminder promotion is used to keep a familiar brand name in the public’s mind and is prevalent during the maturity stage of the product life cycle. 55. Which of the following products is MOST likely to use reminder promotion? A. Samsung 3-D television B. Brother electronic typewriter C. iPhone D. Crest toothpaste E. All of the above. Answer: D Rationale: Reminder promotion is used to keep a familiar brand name in the public's mind and is prevalent during the maturity stage of the product life cycle. 56. Social media include all of the following EXCEPT: A. blogs B. LinkedIn C. a pop-up ad on the ESPN Web site D. YouTube E. All of the above are examples of social media. Answer: C Rationale: A pop-up ad on a Web site would be classified as an advertisement, not as social media. 57. 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, public relations, sales promotion, personal selling, and social media. E. advertising, telemarketing, public relations, and sales promotions. Answer: D Rationale: The promotional mix is the combination of promotional tools––including advertising, public relations, social media, personal selling, and sales promotion––used to reach the target market and fulfill the organization’s overall goals. 58. The five major promotional tools (advertising, personal selling, sales promotion, social media, and public relations) are known collectively as the: A. communication model. B. advertising campaign. C. marketing mix. D. publicity four. E. promotional mix. Answer: E Rationale: The promotional mix includes the five major promotional tools of advertising, personal selling, sales promotion, public relations, and social media. 59. _____ is any form of sponsor-identified, impersonal paid mass communication. A. Advertising B. Publicity C. Promotion D. Public relations E. Nonpaid communication Answer: A Rationale: Advertising is any form of impersonal paid communication in which the sponsor or company is identified. 60. To increase its revenues, US Airways has decided to sell space on airsickness bags to companies that would like to use this unique channel for their promotional messages. In terms of the promotional strategy, the airsickness bags will be used for: A. implicit communications. B. publicity. C. sales promotion. D. public relations. E. Advertising. Answer: E Rationale: Advertising is a form of sponsor-paid, impersonal one-way mass communication. 61. 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. Answer: C Rationale: 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. 62. The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to gain public understanding is called: A. public relations. B. advertising. C. implicit communications. D. personal selling. E. sales promotion. Answer: A Rationale: This is the definition of public relations. 63. 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 Answer: E Rationale: Public relations is used to achieve all of these things. 64. 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 Georgia 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. Answer: E Rationale: The public relations activities involved in the race in Iraq led to publicity in the form of news media reporting. 65. 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 television 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. Answer: B Rationale: Publicity is public information about a company, product, or issue appearing in the mass media as a news item. 66. Public information about a company, good, or service appearing in the mass media as a news item is called: A. personal selling. B. advertising. C. mass communications. D. publicity. E. sales promotion. Answer: D Rationale: This is the definition of publicity. 67. Publicity: A. will never damage a company because it performs the information task of promotion. B. is free communication. C. is not persuasive among customers. D. has to be purchased from the mass media. E. has internal costs to the company associated with it. Answer: E Rationale: A firm may have to hire a public relations firm to prepare new releases and persuade media personnel to print or broadcast the news. This can be expensive. 68. The Steel Recycling Institute is an industry association that promotes and sustains the recycling of all steel products. An article in BusinessWeek magazine about how the institute plans to stimulate consumer demand would be an example of: A. direct selling. B. news marketing. C. publicity. D. event marketing. E. direct marketing. Answer: C Rationale: Publicity is public information in mass media about a company and its products. 69. Which of the following statements about sales promotions is true? A. Public relations cannot effectively be used with sales promotions. B. Sales promotion is a type of direct marketing. C. Marketers view sales promotions as more effective when they are created as long-run stimulation tools. D. Trade shows, coupons, premiums, and vacation giveaways are types of sales promotions. E. All sales promotions must be aimed outside the organization. Answer: D Rationale: Sales promotions can be used to improve the effectiveness of advertising and public relations activities. They are most effective as short-run tools. Sales promotions are commonly directed at the organization’s employees as well as to consumers and dealers. 70. _____ consists of all marketing activities that stimulate consumer purchasing such as coupons, contests, free samples, and trade shows. A. Sales promotion B. Publicity C. Personal selling D. Advertising E. Sponsorship Answer: A Rationale: Sales promotions include free samples, contests, premiums, trade shows, vacation giveaways, and coupons. 71. A $1-off coupon for Carnation Instant Breakfast powder is a form of: A. public relations. B. sales promotion. C. personal selling. D. Advertising. E. Publicity. Answer: B Rationale: A sales promotion is a marketing activity that stimulates consumer buying and dealer effectiveness. 72. During a recent summer, Volvo Cars of North America drove traffic to its dealerships via a sweepstakes tied to Walt Disney’s summer blockbuster Pirates of the Caribbean: Dead Man’s Chest. This was an example of: A. a sales promotion. B. publicity. C. advertising. D. implicit communications. E. a personal sales presentation. Answer: A Rationale: A sales promotion is a marketing activity that stimulates consumer buying and dealer effectiveness. 73. All of the following are examples of sales promotion EXCEPT: A. coupons. B. transit advertising. C. free samples. D. contests. E. trade shows. Answer: B Rationale: Transit advertisements on buses and taxis are not examples of sales promotion. 74. Java Jacket is a company that designs and prints ads on the paper jackets that go around hot coffee cups sold in coffee shops. To find clients to advertise on the coffee cup jackets, the company sent a representative to companies like Warner Brothers, eBay.com, and the Wall Street Journal to tell them how their ads on coffee cup jackets would give them inexpensive exposure to a large number of potential customers. Java Jacket’s activities can best be described as: A. mass communication. B. implicit communication. C. personal selling. D. public relations. E. telemarketing. Answer: C Rationale: Personal selling is the planned, face-to-face presentations in a conversation with one or more prospective purchasers for the purpose of making sales. 75. To increase its revenues, US Airways has decided to sell space on airsickness bags to sponsoring companies as a different medium for their promotional messages. The most effective promotional method for US Airways to use to find companies that would like to pay to have their promotional messages delivered to the hundred or so travelers on each of its flights would be: A. push advertising. B. personal selling. C. direct advertising. D. sales promotions. E. publicity. Answer: B Rationale: Personal selling is a purchase situation involving a personal, paid-for communication between a buyer and a seller. 76. Which of the following statements about the characteristics of the elements in the promotional mix is true? A. The speed of feedback is delayed in sales promotion, advertising, and personal selling. B. Message flexibility is greatest with advertising. C. The message flow is two-way in public relations, sales promotions, and personal selling. D. Important promotional ingredients tend to receive the most funding. E. The sponsor is identified in public relations, advertising, and personal selling. Answer: D Rationale: The more funds allocated to each promotional ingredient and the more managerial emphasis placed on each technique, the more important that element is thought to be in the overall mix. 77. Which of the following statements about the characteristics of the elements in the promotional mix is true? A. Control over message content is greatest when public relations is used. B. A large audience is best reached with personal selling. C. The sponsor or company is identified in advertising. D. The mode of communication for sales promotion is usually direct and personal. E. The message flow with advertising is two-way. Answer: C Rationale: Advertising is any form of impersonal paid communication in which the sponsor or company is identified. 78. GM uses blogging to communicate with customers online. GM’s vice chairman Bob Lutz—an auto industry veteran and the company’s director of product development—began an online journal about the company in 2005. Once readers realized it really was Lutz and not an advertising ploy, they quickly warmed to the idea and appreciated his candid comments about GM and its competition. This is an example of: A. a blog. B. an interactive podcast. C. narrowcasting. D. social media. E. answers A and D. Answer: E Rationale: A blog is an online journal, a type of social media. Social media are promotion tools used to facilitate conversations among people online. 79. Which of the following outlines a sequential four-step process for achieving promotional goals? A. The communication model B. The hierarchy of impacts C. The AIDA concept D. Maslow’s hierarchy of needs E. Schramm’s model Answer: C Rationale: The AIDA acronym stands for attention, interest, desire, and action. 80. The AIDA concept: A. proves that promotional effectiveness is an insignificant abstract term. B. demonstrates that buyers go through nine stages on the way to making a decision. C. is a model effectively showing that advertising can move people to the purchase stage. D. is a model for reaching promotional objectives that outlines a sequential process for effective promotion. E. is a budget plan based on the effectiveness of various promotional mixes in achieving certain objectives. Answer: D Rationale: This describes the model called the AIDA concept. 81. AIDA stands for: A. attitude, interest, demand, activity. B. attention, interest, desire, action. C. awareness, intent, demand, action. D. avoidance, interest, desire, acceptance. E. attitudes in developing acquisitions. Answer: B Rationale: The AIDA acronym stands for attention, interest, desire, and action. 82. According to the AIDA concept, the first step an advertiser must take is to gain the consumers’: A. attention. B. attitude alignment. C. action. D. adaptation. E. adoption. Answer: A Rationale: The advertiser must first gain the attention of the target market. 83. Lyndon went to a Web site that sells barbeque grills and read reviews of several different models. He has requested more information about a Weber grill that appeared to meet his needs, but he is not yet willing to give up his search to find the perfect grill. As far as Weber is concerned, Lyndon is in the _____ step of the AIDA concept. A. action B. attention C. liking D. interest E. desire Answer: D Rationale: Lyndon is aware of the product, but he is not yet convinced it is the one he wants to purchase. 84. When Vincent saw Mike’s new Iron Horse Yakuza Aniki mountain bike, Vincent immediately knew he wanted to own one just like it someday. According to the AIDA concept, Vincent entered the _____ stage. A. action B. attention C. liking D. interest E. desire Answer: E Rationale: The Yakuza Aniki mountain bike has created a brand preference. 85. Point-of-purchase displays in grocery stores, coupons, premiums, and trial-size packages are most useful when the consumer is near the _____ stage of the AIDA model. A. liking B. awareness C. action D. preference E. knowledge Answer: C Rationale: These extras are the sales promotion techniques that often push the complacent consumer into the purchase stage. 86. For which of the following purchases is Gordo most likely to pass through all four stages of the AIDA process? A. A pair of white socks B. A two-pack of light bulbs C. A loaf of bread D. Gear for mountain climbing E. A six-pack of beer Answer: D Rationale: Most buyers involved in high-involvement purchases pass through the four stages of the AIDA model. The climbing gear would be the alternative most likely to create a high level of psychological risk. 87. Which of the following statements about the AIDA model is true? A. The AIDA model explains why public relations is the most important element in the promotional mix. B. Advertising is most effective at the purchase stage of the AIDA model. C. Certain promotional tools are more effective at certain stages of the AIDA model. D. Sales promotion is not helpful during the attention stage of the AIDA model. E. The promotional mix should not be influenced by the AIDA model. Answer: C Rationale: A helpful concept for marketing managers is that as the customer moves from awareness to purchase, different promotional tools are more effective at certain points. 88. The AIDA concept: A. assumes that the second step in the purchase-decision process is inertia. B. does not explain how all promotions influence purchase decisions. C. assumes that consumers regularly go through each stage of the process during all purchases. D. indicates that the purchase decision is the same for high-involvement and low-involvement products. E. is accurately described by none of the choices. Answer: B Rationale: The AIDA concept does not explain how all promotions influence purchase decisions. The model suggests that promotional effectiveness can be measured in terms of consumers progressing from one stage to the next. However, the order of stages in the model, as well as whether consumers go through all steps, has been much debated. 89. Protons are new, poppable snacks 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. Which elements of the promotional mix would be most useful in attracting attention to this new snack food? A. Public relations and sales promotion B. Advertising and direct marketing C. Direct marketing and personal selling D. Public relations and direct marketing E. Advertising and public relations Answer: E Rationale: Advertising is useful in gaining attention for goods or services, and public relations has its greatest impact in gaining attention for a company, good, or service. 90. To provide more delivery service to the consumer market, UPS created UPS stores. According to the AIDA model, to create attention for this more convenient and less expensive way to mail packages through UPS, its marketing department should have relied on which element of the promotional mix? A. Public relations B. Sales promotion C. Event sponsorship D. Personal selling E. Direct marketing Answer: A Rationale: Public relations is best at drawing attention to a product or company. 91. In terms of the AIDA concept, sales promotion is most effective at creating: A. strong desire and purchase intent. B. positive attitudes toward a brand. C. awareness of a product. D. long-term interest. E. awareness of a product and purchase intent. Answer: A Rationale: Sales promotion’s greatest strength is in creating strong desire and purchase intent. 92. Entrepreneur Krissa Fernandes has developed flour made from ground almonds that she sells under the Platinum Nut brand for use in baking. Everyone who has baked with the new flour loves it, but she is having trouble getting potential consumers to the desire stage of the AIDA concept. Which of the following elements of the promotional mix would be most likely to move people to look for the product and buy it? A. Flyers placed under windshield wipers at crafts festivals B. An article in local newspaper about entrepreneurs C. Increasing the number of stores carrying Platinum Nut D. A $2-off coupon for a five-pound bag of almond flour E. A classified ad Answer: D Rationale: Sales promotions (coupons) are very effective at creating desire and action. 93. In January 2005, Burger King sponsored the opener of the third season of The Apprentice. The Apprentice sponsorship was an important element in Burger King’s overall marketing strategy to build social currency for the brand through contests, advertising, and other sales promotion. That is, the brand set out to reverse negative perceptions of Burger King through the use of a consistent and coordinated promotional message. Burger King used: A. coordinational promotion. B. promotional mixing. C. integrated marketing communications. D. creative selling. E. processed marketing. Answer: C Rationale: Integrated marketing communications is the careful coordination of promotional messages for a product to assure the consistency of messages at every contact point where a company meets the consumer. 94. _____ is the careful coordination of all promotional activities to produce a consistent, unified message that is customer focused. A. Interpersonal and mass communications (IMC) approach B. Promotional mixing C. Integrated marketing communications D. Creative selling E. Relationship marketing Answer: C Rationale: Integrated marketing communications is the careful coordination of promotional messages for a product to assure the consistency of messages at every contact point where a company meets the consumer. 95. Molson beer was produced in Canada. Coors was manufactured in the United States. A merger of the two breweries gave each brand access to a significantly larger market. To effectively reach both markets, the merged company needed to coordinate its promotional mix to produce a consistent, unified, and customer-focused message. In other words, the brewery needed to use: A. coordinational promotion. B. integrated marketing communications. C. transformational marketing. D. creative selling. E. transactional communications. Answer: B Rationale: Integrated marketing communications is the careful coordination of promotional messages for a product to assure the consistency of messages at every contact point where a company meets the consumer. 96. Why is the concept of integrated marketing communications (IMC) growing in popularity? A. The proliferation of thousands of media choices beyond the traditional media has made promotion a complicated task. B. The mass market has fragmented. C. Critics of promotion have suggested that uncoordinated promotion is wasteful and inefficient. D. Marketers have slashed their advertising spending in favor of promotional techniques that generate immediate sales responses and have more easily measured effects. E. All of these statements help to explain why IMC is growing in popularity. Answer: E Rationale: All of these statements help to explain the growing popularity of integrated marketing communications. 97. The various Survivor shows have been promoted through personal appearances by show participants, Web sites, and merchandise with the Survivor logo as well as print and broadcast advertising. To make sure that all of the promotional messages are coordinated, CBS (the network on which the show is broadcast) should use the: A. integrated marketing communications approach. B. integrated communications management approach. C. AIDA concept. D. interpersonal and mass communications approach. E. coordinated market management approach. Answer: A Rationale: Integrated marketing communications is the careful coordination of all promotional messages for a product or service to assure the consistency of messages at every contact point where a company meets the consumer. 98. Which of the following is LEAST likely to be a factor that would determine the nature of the promotional mix? A. Stage in the product life cycle B. Target market characteristics C. Funds available for promotion D. Use of a push or pull strategy E. Size of the company Answer: E Rationale: Size of the company may or may not affect the promotional mix, depending on other factors such as available funds or product type. 99. Frigo Design has developed easy-to-install panel sets to update any refrigerator, dishwasher, or compactor made since 1942. As Frigo Design plans its promotion for its new chalkboard panels, which of the following factors will be likely to affect its promotional mix? A. Its chalkboard panels are a new product. B. Its chalkboard panels are targeted to families with school-age children. C. Its chalkboard panels are easy to install. D. Its panels fit any refrigerator, dishwasher, or compactor made since 1942. E. All of these factors will affect Frigo’s promotional mix. Answer: E Rationale: Nature of the product, target market, and product life cycle stage are all factors that would affect the choice of promotional mix elements. 100. The promotional mix elements that should be emphasized for products moving into the growth stage of the product life cycle are: A. public relations and reminder advertising. B. sales promotion and public relations. C. personal selling and persuasive advertising. D. sales promotion and personal selling. E. informational advertising and publicity. Answer: C Rationale: During the growth stage, advertising and public relations remain strong, sales promotion declines in importance, and personal selling is used. Advertising is persuasive. 101. Because automobile tires are in the maturity stage of their product life cycle, the promotional mix element _____ should NOT be emphasized in the marketing of this product. A. public relations B. persuasive advertising C. sales promotion D. reminder advertising E. personal selling Answer: A Rationale: During the maturity stage, persuasive and reminder advertising are emphasized, as well as sales promotion. Personal selling is maintained, while the usefulness of public relations is doubtful. 102. For products like compact discs (which are in the decline stage of the product life cycle): A. persuasive advertising is commonly used. B. heavy public relations is used to maintain brand loyalty. C. personal selling should be used to obtain distribution. D. sales promotion is used to build market share. E. none of these is true. Answer: E Rationale: All promotion, especially advertising, is reduced as the product enters the decline stage. 103. Fans of Ale-8, a ginger-flavored soft drink, are able to explain why Ale-8 is superior to any other type of cherry cola. They are scattered throughout eastern Kentucky and southern Ohio and are extremely brand loyal. Though Ale-8 is available in bottles or cans, most connoisseurs prefer glass bottles. Ale-8 “traditionalists” even insist on drinking the beverage from the old-style “long-neck” bottles as opposed to the newer, short-neck design. The characteristics of this target market indicate that a promotional mix with _____ should be used. A. less publicity and sales promotion and more personal selling B. more advertising and sales promotion and less personal selling C. more sales promotion and personal selling and less advertising D. less sales promotion and more advertising and personal selling E. more advertising and less sales promotion and public relations Answer: B Rationale: A target market characterized by widely scattered customers, highly informed buyers, and brand-loyal repeat purchases generally requires a promotional mix with more advertising and sales promotion and less personal selling. 104. When a product is in the growth stage of its product life cycle: A. all elements of the promotional mix are equally important. B. advertising and public relations are particularly important. C. persuasive and reminder advertising is decreased. D. personal selling is ineffective. E. personal selling and sales promotions are the major elements of the promotional mix used. Answer: B Rationale: Although advertising and public relations continue to be major elements of the promotional mix, sales promotion can be reduced because consumers need fewer incentives to purchase. 105. What is the most effective promotional mix to use with products that are convenience goods and purchased routinely? A. Personal selling and advertising B. Public relations and personal selling C. Personal selling and sales promotion D. Advertising and public relations E. Sales promotion and advertising Answer: E Rationale: For routine buying decisions, the most effective promotional tools are advertising and sales promotion. 106. Which of the following elements of the promotional mix would be most effective for helping highly involved consumers make complex buying decisions? A. Personal selling B. Reminder advertising C. Sales promotion D. Public relations E. Informative advertising Answer: A Rationale: Consumers making complex buying decisions are more extensively involved. Personal selling is most effective in helping these consumers decide. 107. _____ is probably the most important factor in determining the promotional mix. A. The advertising agency B. The need for feedback C. Money D. Media availability E. Message flexibility Answer: C Rationale: Without available funds, the promotional mix is severely limited. 108. The use of aggressive personal selling and trade advertising by a manufacturer to convince a wholesaler or retailer to carry and sell particular merchandise is known as a _____ strategy. A. strong-arm B. kinetic C. pull D. foot-in-the-door E. push Answer: E Rationale: This is the definition of a push strategy. 109. Petra McCoy has developed a product for cleaning grout called Grout-Chee. Everyone who has tried the product really appreciates how quickly it works, but McCoy is having trouble getting retail stores to carry the product. She has decided to send retailers free samples and use other trade promotions to encourage stores to carry her product. McCoy is using a(n) _____ promotional strategy. A. kinetic B. inert C. push D. advertorial E. pull Answer: C Rationale: This describes a push promotional strategy. 110. An ad in a trade magazine targeted to veterinarians urges them to prescribe Hepato for cats and dogs with damaged livers. This ad was placed by the product’s manufacturer. This ad is an example of how manufacturers use a(n) _____ strategy. A. kinetic B. pull C. inertia D. advertorial E. push Answer: E Rationale: A push strategy is a marketing strategy that uses trade advertising to convince a retailer (in this case the veterinarian) to carry and sell particular merchandise. 111. Slatescape sells crushed slate to be used as a decorative, permanent mulch to keep weeds out of flower beds. Initially, Slatescape was marketed heavily to home owners, but after years of radio and television advertising, Slatescape has decided to put a majority of its promotion budget into personal selling and sales promotion to lawn and garden supply stores and large discount stores such as Walmart. This new strategy is a _____ strategy. A. kinetic B. push C. pull D. foot-in-the-door E. reinforcement Answer: B Rationale: The use of aggressive personal selling and trade advertising by a manufacturer to convince a wholesaler or retailer to carry and sell its merchandise is known as a push strategy. 112. Shannon Murphey wanted to increase sales at his Tyler, Texas, jewelry store, Murphey the Jeweler. After analyzing his sales figures, he decided to give away $50 gift certificates for local businesses to give to their employees. “Many people used the gift certificates as credit toward more expensive items,” explains Murphey. Murphey used a(n) _____ strategy. A. pull B. push C. kinetic D. inertia E. cash-flow Answer: A Rationale: A pull strategy is a marketing strategy that stimulates consumer demand to obtain product distribution. 113. The American Plastics Council wants to stimulate more consumer demand for products that are packaged in plastic. The ads will be run in consumer magazines and will hopefully cause customers to ask retailers to carry more products packaged in plastic. The American Plastics Council is planning to use a(n) _____ strategy. A. kinetic B. pull C. inertia D. advertorial E. push Answer: B Rationale: A pull strategy is a marketing strategy that stimulates consumer demand to obtain product distribution. 114. A manufacturer using the _____ promotional strategy focuses its promotional efforts on the consumer. A. reinforcement B. personal selling C. push D. pull E. kinetic Answer: D Rationale: A pull strategy is a marketing strategy that stimulates consumer demand to obtain product distribution. 115. An ad for a prescription-only antihistamine that does not make its users sleepy like many other allergy medications was run in several health and fitness magazines. The ad said that if you were interested in learning more about the new product or trying it out, you should ask your physician. The manufacturer of the drug was using a _____ promotional strategy. A. reinforcement B. personal selling C. push D. pull E. kinetic Answer: D Rationale: A manufacturer using the pull promotional strategy focuses its promotional efforts on the consumer. 116. Procter & Gamble uses cents-off campaigns, couponing, and free samples to increase sales of Tide detergent. In other words, it uses a _____ promotional strategy. A. push B. personal selling C. pull D. reinforcing E. kinetic Answer: C Rationale: A manufacturer using the pull strategy focuses its promotional efforts on the consumer. 117. To get more retailers to stock its products, Rust-Oleum paint developed a strong advertising campaign aimed at consumers. The ads show creative ways to use paint to make homes more attractive and emphasize that the paint doesn’t chip, peel, or fade. Rust-Oleum is using a _____ promotional strategy. A. push B. channel C. reinforcement D. pull E. kinetic Answer: D Rationale: A pull strategy involves ad campaigns aimed at consumers in hopes of getting consumers to demand the product from retailers who in turn will demand it from manufacturers. Cable TV It wasn’t so long ago that cable swaggered around the television industry as the upstart threatening the broadcast networks. Now, cable is old news. The antagonist is the satellite dish with the capability of delivering hundreds of channels and offering an array of movies and sports events. The technology is known as direct broadcast satellite, or DBS. The new challenger has awakened the “sleeping giant” cable industry, which has hit the airwaves with some of the most aggressive advertisements the television industry has seen. The ads emphasize the downside of disconnecting cable and choosing to purchase a satellite dish. One commercial opened with a man on a couch joined by his wife with a large bowl of popcorn. They snuggled in front of their television set, hooked up to DBS. She seemed excited about their new system and exclaimed, “So this is it?” She then asked how much the satellite dish cost. When her husband answered, the excitement was off. “There’s no monthly fee?” she asked. “No more than cable,” he responded. When she asked to watch the news, he sheepishly said, “Uh, can’t get local news.” At the end of the commercial, the spokesperson for the cable industry declared, “These days when everyone is promising you the future of television, isn’t it nice to know you already have it?” 118. Refer to Cable TV. The television advertising utilized by cable operators represents the means by which the company communicates to current users to influence an opinion or elicit a response. This is called: A. distribution. B. price. C. research and development. D. promotion. E. publicity. Answer: D Rationale: Promotion is communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. 119. Refer to Cable TV. The cable industry’s ad campaigns are designed to communicate to a large audience via television and radio. It uses _____ communication. A. mass B. clutter C. interpersonal D. intrapersonal E. public Answer: A Rationale: Mass communication involves communicating to large audiences, usually through a mass medium such as television or newspaper. 120. Refer to Cable TV. The cable industry is the originator of this ad campaign against satellite dishes. The industry represents the _____ in the communication process. A. communicator B. encoder C. sender D. channeler E. receiver Answer: C Rationale: The sender is the originator of the message in the communication process. 121. Refer to Cable TV. Television represents the _____ in the communication process used by the cable industry to transmit its message. A. feedback loop B. channel C. encoder D. receiver E. communicator Answer: B Rationale: A channel is any communication medium utilized to transmit a message. 122. Refer to Cable TV. Keisha is watching television and sees an ad for DBS. Two ads later, she sees the new television ad for her local cable system. When questioned an hour later about advertising she has seen most recently, Keisha remembers a “cable” ad but cannot recall the details. Keisha’s inability to recall the ad is most likely caused by _____ in the communication process. A. feedback B. the use of a channel C. a shared frame of reference D. cognitive dissonance E. noise Answer: E Rationale: Noise is anything that interferes with, distorts, or slows down the transmission of information. Competing ads can be a source of noise. RugRatReaders Greg Martin has developed his own line of children’s books. The books are written for children ages 3 to 6 and are produced using cotton fiber as pages, rendering them “nearly” indestructible. This unique feature makes Martin’s books superior to the competition. His products are called RugRatReaders. Martin has decided to advertise the books to his target market (women with children ages 3 to 6) via radio. He does not have a formal advertising budget, but he will spend whatever money he has in the bank after producing the books each month. His message will focus on the product and its unique features. Martin has been having problems getting retailers to stock his new product. It is Martin’s hope that consumers will go to their local bookstores and ask for the RugRatReaders. 123. Refer to RugRatReaders. In all of Martin’s ads, he will emphasize the books’ indestructibility. This represents the product’s: A. tactical advantage. B. competitive advantage. C. feedback. D. promotional result. E. objective strategy. Answer: B Rationale: A competitive advantage is the unique set of features of a company and its products that are perceived by the target market as significant and superior to the competition. 124. Refer to RugRatReaders. The promotional campaign Martin is utilizing is designed to accomplish which basic promotional task? A. Rewarding B. Persuading C. Informing D. Influencing E. Reminding Answer: C Rationale: Informative promotion is important for a new product and more prevalent during the early stages of the product life cycle. 125. Refer to RugRatReaders. Martin’s choice of radio as his promotional tool is based on the fact that it is a one-way mass communication vehicle. Radio is most commonly used with which promotional mix element? A. Public relations B. Advertising C. Direct marketing D. Sales promotion E. Sponsorship Answer: B Rationale: Advertising is any form of impersonal, one-way communication paid for by the sponsor. Radio is an example of an advertising medium. 126. Refer to RugRatReaders. According to the AIDA model, the first step Martin must achieve with his target market is: A. attention. B. interest. C. liking. D. desire. E. action. Answer: A Rationale: The first step in AIDA is to draw customers’ attention to the product. 127. Refer to RugRatReaders. In attempting to get consumers to ask the retailer for his product, Martin is using a _____ promotional strategy: A. push B. pull C. kinetic D. publicity E. reinforcement Answer: B Rationale: A pull strategy stimulates consumer demand to obtain product distribution. Methodist Church In 2001, the United Methodist Church, the second-largest Protestant denomination in the United States, launched a four-year, $20 million national ad campaign. The theologically gentle but culturally edgy ads are aimed at Americans who are unchurched––people who know the name “Methodist” but don’t know anything else about it. The “Igniting Ministries” ads have appeared on CBS and cable television. The purpose of the ads is to draw more people through Methodist Church doors in a time when mainline Protestant denominations are struggling. 128. Refer to Methodist Church. The ad campaign will use _____ communication. A. mass B. interpersonal C. direct D. hierarchical E. functional Answer: A Rationale: Mass communication involves communicating a concept or message to large audiences. 129. Refer to Methodist Church. In terms of the communication process, the unchurched who see the ads while watching television are expected to be: A. channels and encoders. B. senders and receivers. C. receivers and decoders. D. channels and decoders. E. receivers and channels. Answer: C Rationale: The receiver is the person who decodes a message. The decoder interprets the language and symbols sent by the source through a channel. 130. Refer to Methodist Church. The church is hoping to see an increase of 3 percent in visitors to Methodist churches as a result of this ad. In terms of the communication process, this is the desired: A. noise. B. encoding. C. reception. D. channel. E. feedback. Answer: E Rationale: Feedback is the response to the promotional message. 131. Refer to Methodist Church. A news article about the Methodist Church that appeared in the Rome News-Tribune was an example of which promotional mix element? A. Advertising B. Sales promotion C. Pull strategy D. Public relations E. Personal selling Answer: D Rationale: Public relations is the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance. 132. Refer to Methodist Church. According to the AIDA concept, the ads must first: A. create interest in the Methodist Church. B. draw attention to the Methodist Church. C. act on unfulfilled needs of the unchurched. D. augment current knowledge. E. create a desire to attend the Methodist Church. Answer: B Rationale: AIDA is attention, interest, desire, and action. 133. Refer to Methodist Church. How might the United Methodist Church benefit from use of integrated marketing communications (IMC)? A. Ads built using the IMC concept are not as closely regulated by the Federal Trade Commission. B. Noise can be eliminated from the communication channel with the use of IMC concepts. C. Correct decoding is guaranteed with the application of IMC concepts. D. The application of IMC concepts allows marketers to reach a more fragmented market. E. None of these statements explains how the United Methodist Church could benefit from the use of IMC. Answer: D Rationale: Instead of promoting a product just through mass media options, like television and magazines, promotional messages today can appear in many varied sources. Amtrak Amtrak is taking the gloves off in advertisements and belittling its major competition, which is airline shuttles. Amtrak’s new name for its Metroliner is The Smart Shuttle. Gone are ads that were inwardly directed and sold the Metroliner on its leisurely pace. In their place are ads showing rapid shots of the sleek train and business executives conducting no-nonsense meetings “eyeball-to-eyeball.” The campaign, which includes television, radio, print, billboards, and posters in commuter railroad cars, targets business travelers, who, Amtrak says, incorrectly believes the train takes far longer than the airplane to travel between two cities. One television spot opens with a shot of airplanes stacked up in a tarmac traffic jam. Another shows a business traveler lumbering into the airport during a snowstorm. The announcer says, “Schedule a meeting. Take the shuttle. Then cross your fingers.” The poor soul looks up at the departure board and sees a row of “Canceled” signs. The announcer continues, “Schedule a meeting. Take the Metroliner. Then cross your legs.” 134. Refer to Amtrak. The means by which Amtrak communicates with business travelers about the merits and characteristics of the Metroliner is called: A. distribution. B. direct marketing. C. promotion. D. publicity. E. personal selling. Answer: C Rationale: Promotion is the means by which businesses communicate with their target audiences. 135. Refer to Amtrak. The plan to optimally utilize television, radio, print, and out-of-home vehicles to target business travelers is called a: A. promotional strategy. B. marketing mix. C. promotion goal. D. selling plan. E. publicity plan. Answer: A Rationale: A promotional strategy is a plan for the optimal use of the elements of promotion. 136. Refer to Amtrak. Amtrak’s campaign stresses that the Metroliner is more comfortable and more likely to be on time and run in inclement weather. The promotional campaign focuses on Amtrak’s: A. superior skill set B. special feature C. tactical strategy D. differential parity E. competitive advantage Answer: E Rationale: A competitive advantage is the unique set of features of a company and its products. 137. Refer to Amtrak. Amtrak’s campaign is designed to communicate to a large audience via television, radio, and print. This is an example of _____ communication. A. mass B. clutter C. interpersonal D. intrapersonal E. public Answer: A Rationale: Mass communication involves communicating to large audiences, usually through a mass medium such as television or newspaper. 138. Refer to Amtrak. Amtrak originated the new campaign. Amtrak represents the _____ in the communication process. A. promotional impetus B. decoder C. sender D. channeler E. receiver Answer: C Rationale: The sender is the originator of the message in the communication process. 139. Refer to Amtrak. Television, radio, print, and out-of-home media represent the _____ in the communication process used by Amtrak. A. feedback loop B. channel C. encoder D. receiver E. communicator Answer: B Rationale: A channel is any communication medium utilized to transmit a message. 140. Refer to Amtrak. Amtrak’s careful coordination of all of its promotional activities to present a single, focused communication to its consumers is an example of: A. coordinational promotion. B. promotional mixing. C. integrated marketing communications. D. creative selling. E. processed marketing. Answer: C Rationale: Integrated marketing communications is the careful coordination of promotional messages for a product to assure the consistency of messages at every contact point where a company meets the consumer. ESSAY 1. What is promotion? Why is it a vital part of a company’s marketing mix? Answer: Promotion is communication by marketers that informs, persuades, and/or reminds potential buyers of a product in order to influence an opinion or elicit a response. It is a vital part of the marketing mix because few goods or services, no matter how well developed, can survive in the marketplace without effective promotion. It also informs the consumer of the product’s benefits, thus positioning it in the marketplace. The main function of promotion is to convince target customers that the goods and services offered provide a competitive advantage over the competition. 2. What is the basic definition of communication? What are two forms of communication? Give specific examples of these two forms and indicate how a company could use each of them. Answer: Communication is the process by which meanings are exchanged or shared though a common set of symbols. Individuals assign meanings to feelings, ideas, facts, and attitudes. INTERPERSONAL COMMUNICATION is direct, face-to-face communication between two or more people. With this communication, people know whom they are communicating with and can respond to the other person’s reaction almost immediately. An example of this is a salesperson speaking directly with a client. MASS COMMUNICATION is the communication of a concept or message to large audiences, usually through a mass medium such as television, radio, magazine, or a newspaper. In this case, the company does not know individually the people with whom it is communicating, and there is no way to respond immediately to the consumers’ reactions. 3. You are the promotions director for Sunland Farm cholesterol-free eggs. Describe the steps in the communication process in your promotion campaign, using specific examples of the actions that will take place in promoting the eggs. Answer: 1. The sender encodes ideas into a promotional message. In this case, the promotions director at Sunland Farm is the sender of the message and may hire an advertising agency to create or encode an advertising message. 2. The message is transmitted through a channel, or communication medium. Sunland Farm’s promotion may be carried by television, radio, magazines, newspapers, billboards, or other media. 3. The message may or may not be received by the intended target market. The audience may not be exposed to the channel. 4. Receivers decode the message by interpreting the contents of the promotion. Messages may or may not be properly decoded. When people receive messages, they tend to manipulate, alter, and modify the messages to reflect their own biases, needs, knowledge, and culture. 5. The receiver’s response to a message is feedback to the source. In mass communications, feedback is indirect rather than direct. Sunland Farm may need to conduct marketing research to see if the audience can recognize, recall, or state that they have been exposed to the message. 6. Any phase of this process may be hindered by noise, such as competitors’ advertisements. 4. What are the four basic tasks of promotion? For each of these four tasks, give two specific promotions examples of how that task might be accomplished. Answer: INFORM • Increase awareness of a new product or brand • Inform the market of new product attributes • Suggest new uses for a product • Reduce consumers’ anxieties • Tell the market about a price change • Describe available services • Correct false impressions • Explain the way a product or service works • Build a company image PERSUADE • Build brand preference • Encourage brand switching • Change customers’ perceptions of product attributes • Influence consumers to buy now • Persuade customers to receive a sales call REMIND • Remind consumers that the product may be needed in the near future • Remind consumers where to buy the product • Keep the product in consumers’ minds during off times • Maintain consumer awareness CONNECT • Share ideas, information and feedback • Facilitate an exchange of information • Create brand advocates that promote the brand • Use social networks, social games, social publishing tools, and social commerce 5. The promotional mix is made up of a blend of five promotional tools. Name and briefly define each of these five tools. Answer: ADVERTISING is impersonal, one-way mass communication about a product or organizer that is paid for by the marketer. Advertising is transmitted by different media, including television, radio, newspapers, magazines, books, direct mail, billboards, and transit cards. PUBLIC RELATIONS is the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance. A solid public relations program can generate favorable publicity. SALES PROMOTION consists of all marketing activities that stimulate consumer purchasing and dealer effectiveness. Examples include free samples, contests, premiums, trade shows, vacation giveaways, and coupons. PERSONAL SELLING is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other. It involves a planned face-to-face presentation to one or more prospective purchasers for the purpose of making sales. Personal selling was initially more prevalent in the industrial goods field but now plays an important role in relationship marketing. SOCIAL MEDIA are promotion tools used to facilitate conversations among people online. When used by marketers, these tools facilitate consumer empowerment. Social media include blogs, microblogs, podcasting, vodcasts, and social networks. 6. You are the promotions manager for a new weight-loss program that is based on a low-carbohydrate diet. Describe how you might use all five tools of the promotional mix to promote the product. Answer: Promotion tools should be directed toward a weight-conscious target audience. General examples of tools are: ADVERTISING could take place in many different media, including television, radio, newspapers, magazines, books, direct mail, billboards, and transit cards. PUBLIC RELATIONS could be used to generate publicity for the new product in the form of news items, feature articles, or sporting event sponsorship. SALES PROMOTION could include free samples, contests, premiums, trade shows, vacation giveaways, and coupons. PERSONAL SELLING may be needed to encourage wholesalers and/or retailers to carry the product. However, personal selling may not be feasible to reach a large target audience. SOCIAL MEDIA could include online videos posted on YouTube that inform consumers of the new product; a Twitter and/or Facebook account where customers can interact with the company; and a corporate blog that talks about various aspects of the product and invites consumer responses. 7. The ultimate objective of any promotion is a purchase or some other activity. A model for reaching promotional objectives is called the AIDA concept. What does this acronym stand for? Describe what marketing actions might take place in each stage of this model. Answer: AIDA stands for attention, interest, desire, and action. A promotion manager attracts a person’s attention by a greeting and approach (personal selling) or loud volume, unusual contrasts, bold headlines, movement, bright colors, and so on (advertising and sales promotion). Second, a good sales presentation, demonstration, or promotional copy creates interest in the product. Third, desire is created by illustrating how the product’s features will satisfy the consumer’s needs. Finally, a special offer or a strong closing sales pitch may be used to obtain purchase action. 8. The ultimate objective of any promotion is a purchase or some other activity. One model for reaching promotional objectives is called the AIDA concept. This model proposes that consumers are moved through four stages by the promotional mix. Suppose you are the promotional manager for the new B-Gone squirrel-proof bird feeders. (Before the B-Gone, there were no feeders on the market that were really squirrel proof.) This bird feeder is guaranteed to prevent squirrels from reaching and eating its contents. Describe the promotional activities you would recommend in each stage of AIDA model for the B-Gone feeder. Assume that personal selling will NOT be used. Answer: ATTENTION. General awareness could be created with heavy publicity, advertisements on television during nature shows, and print ads in bird-watching magazines. INTEREST. Simple awareness generally does not result in a sale. The target market should be informed about the product’s benefits. Print advertisements could detail features of the B-Gone, including price, availability, construction material, installation instructions, and so forth. These ads could also explain how the feeder keeps squirrels out. To generate a favorable attitude, bird-watching clubs could be sent a sample B-Gone and then be asked to recommend the feeders in television, radio, and magazine advertisements. Managers of stores catering to nature lovers could also be sent free samples and then be asked to recommend the B-Gone to their customers. DESIRE. In this stage, promotion should create brand preference. Promotions should tell bird lovers how much better off the birds will be if they install a B-Gone feeder. Promotions should also emphasize that bird lovers will spend fewer aggravating hours trying to chase squirrels away. The fact the feeder is squirrel proof should be promoted as the competitive advantage. ACTION. Catchy displays in stores targeted to nature lovers, coupons in bird-watching magazines, premiums (such as free seed or bird food), a display of how a B-Gone feeder works in some public park, or other forms of sales promotion could be used to encourage a consumer to purchase. 9. What is integrated marketing communications (IMC)? How is IMC implemented? Answer: Integrated marketing communications (IMC) is the careful coordination of all promotional activities to produce a consistent, unified message that is consumer focused. To implement IMC, marketing managers carefully work out the roles that the various promotional elements will play in the marketing mix. Timing of promotional activities is coordinated, and the results of each campaign are carefully monitored to improve future use of the promotional mix tools. Typically, one individual in the firm is given the overall responsibility for integrating the company’s marketing communications. 10. List three reasons why the concept of integrated marketing communications has been growing in popularity. Answer: 1. The proliferation of thousands of media choices beyond traditional media has made promotion a more complicated process. 2. The mass market has become increasingly more fragmented. 3. Marketers have slashed their advertising spending in favor of promotional techniques that generate immediate sales responses and those that are more easily measured. 4. The interest in IMC is largely a reaction to the scrutiny that marketing communications has come under and particularly to suggestions that uncoordinated promotional activities are wasteful and inefficient. 11. Several factors affect the choice of promotional mix. Name five of these factors. Answer: • Nature of the product (consumer or industrial) • Stage in the product life cycle • Target market characteristics • Type of buying decision • Funds available for promotion • Whether a push or pull strategy will be used 12. Several factors inherent to the product itself influence the promotional mix. Name and briefly describe three of these factors. Answer: NATURE OF THE PRODUCT. If the product is a business product, it is less likely to be well suited for mass communication. Since they are often custom-tailored, business products are better suited for personal selling. Consumer products are designed to appeal to a large audience, so advertising and sales promotion are more appropriate. STAGE IN THE PRODUCT LIFE CYCLE. During the introduction stage, emphasis is placed on advertising and public relations as well as some sales promotion and personal selling. During growth, sales promotion efforts are reduced, while advertising and public relations continue. At maturity, sales promotion and advertising become the focus. All promotion is reduced during the decline stage. TARGET MARKET CHARACTERISTICS. A target market characterized by widely scattered potential customers, highly informed buyers, and brand-loyal repeat purchasers generally requires a promotional mix with more advertising and sales promotion and less personal selling. TYPE OF BUYING DECISION. The promotional mix depends on the type of buying decision—for example, a routine decision or a complex decision. Advertising and sales promotion are the most effective promotional tools for routine purchase decisions, such as buying toothpaste. A decision that is neither routine nor complex may be influenced by advertising and public relations that create awareness of a product. For complex, high-involvement decisions, personal selling and print advertising are effective and provide the information needed. AVAILABLE FUNDS. Money, or the lack of it, may easily be the most important factor in determining the promotional mix. When funds are available to permit a mix of promotional elements, a firm will generally try to optimize its return on promotion dollars while minimizing the cost per contact, or the cost of reaching one member of the target market. 13. List the four stages of the product life cycle. Then describe the promotional strategies used in each stage. Answer: INTRODUCTION. During the introduction stage, emphasis is placed on general product class factors and informative messages. Heavy advertising and public relations are used to build awareness, while sales promotion can be used to induce trial. Personal selling is used in this stage to obtain distribution. GROWTH. In this stage, promotion emphasizes the product’s competitive advantage over the competition. Heavy advertising and public relations are used to build brand loyalty. Sales promotion decreases, while personal selling is used to maintain distribution. MATURITY. With increased competition, advertising may decrease slightly, and the advertising used is more often the persuasive and/or reminder type. Sales promotion increases to build market share, and personal selling is used to maintain distribution. DECLINE. In general, all products decline, and promotional messages may be focused on other firm products. Because of expense, advertising and public relations are dramatically decreased. Sales promotion and personal selling may be maintained at low levels. 14. You are the promotions manager for a small, financially strapped company. Describe how a lack of funds affects the use of each of the promotional tools. Describe the trade-offs that occur between funds available and other aspects of promotion. Answer: A firm with limited funds can rely heavily on publicity if the product is unique. If personal selling is necessary, the firm may use manufacturers’ agents who work on a commission basis. Some sales promotions can also be inexpensive. Although advertising is very expensive, it has low cost per contact, which may be necessary for a large potential market. There is usually a trade-off among the funds available, the number of people in the target market, the quality of communication needed, and the relative costs of the various promotional elements. 15. You are the promotions manager for Pyrolave, a company that turns lava rock into counter tile. The company’s counter tile is easy to clean and resistant to scratches but is more expensive than other materials used for countertops. You need to decide whether to implement a push or a pull promotional strategy. Define and describe both the push and the pull strategy, and describe what promotions might be used in each strategy. Answer: PUSH STRATEGY is when manufacturers use aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell their merchandise. The wholesaler, in turn, must push the merchandise forward by persuading the retailer to handle the goods. The retailer then uses advertising, displays, and so on to convince the consumer to buy the pushed products. PULL STRATEGY stimulates consumer demand to obtain product distribution. In this case, the manufacturer focuses its promotional efforts on final consumers, usually with mass media. As consumers demand the product, the retailer orders the merchandise from the wholesaler. As the wholesaler is confronted with rising demand, it places orders for the merchandise from the manufacturer. Stimulating final consumer demand pulls the product through the distribution channel. Consumer advertising, cents-off campaigns, and couponing are part of a pull strategy. Test Bank for MKTG Charles W. Lamb, Jr. Hair, Joseph F., Carl McDaniel 9781285091860