Chapter 14 Promotion II: Social Media, Direct/Database Marketing, Personal Selling, and Public Relations 1) Today's consumers are increasingly getting information from one another rather than from the original source. This new communication landscape is referred to as ________. A) the groundswell B) evangelist marketing C) integrated marketing communications D) stealth marketing E) the infiltration Answer: A 2) Which of the following refers to everyday people participating in marketing by sharing their opinions with their friends, neighbors, and acquaintances? A) personal selling B) buzz C) indirect marketing D) stealth marketing E) shilling Answer: B 3) WOM stands for ________. A) with original marketing B) weak owners' market C) word of mouth D) word of marketing E) without original marketing Answer: C 4) Viral marketing is most closely related to which of the following? A) buzz building B) personal selling C) shilling D) public relations E) direct marketing Answer: A 5) A ________ is a loyal customer who works for a brand for free. A) relationship manager B) stealth marketer C) brand ambassador D) public relations specialist E) brand avatar Answer: C 6) Blogs, wikis, and virtual worlds are all examples of ________. A) traditional media B) social media C) virtual worlds D) review sites E) geospatial platforms Answer: B 7) Which of the following is a service that lets users post short text messages to followers who subscribe to their microblog? A) Second Life B) LinkedIn C) Facebook D) Twitter E) Yelp Answer: D 8) An avatar is a ________. A) site that creates a connection between a consumer and a brand B) mobile app with increasing popularity C) type of geospatial platform D) tweet of more than 140 characters E) graphic representation of a user Answer: E 9) Which of the following is true of virtual worlds? A) They are among the most popular product review sites. B) They are likely to replace Twitter. C) They are the most popular tool for stealth marketing campaigns. D) They are a booming marketplace for virtual goods paid for in actual money. E) They use "dashboards" so businesses can monitor the locations of avatars. Answer: D 10) Yelp and TripAdvisor are both examples of ________. A) virtual worlds B) geospatial platforms C) product review sites D) social networking sites E) avatars Answer: C 11) The gap between good buzz and bad buzz is referred to as ________. A) groundswell B) viral marketing C) evangelist marketing D) brand polarization E) the magnifying effect Answer: D 12) Advertising by sampling that is designed to create buzz is called ________. A) tryvertising B) ground swelling C) brand evangelizing D) viral marketing E) location-based networking Answer: A 13) Viral marketing primarily uses which of the following communication channels? A) billboards B) print media C) radio D) cable television E) the Internet Answer: E 14) Which of the following were designed to allow users to alert their friends of their exact whereabouts via their mobile phones? A) virtual worlds B) location-based social networks C) product review sites D) social networking sites E) avatars Answer: B 15) A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive methods of building and maintaining brand awareness and excitement. The marketing department then recruited consumers who were early adopters of technological devices to spread the word about the company's new products. This is an example of using ________. A) avatars B) brand communities C) brand evangelists D) location-based social networks E) direct marketing Answer: C 16) If you visit diamondsforever.com, you can design your own ring. This site, which is operated by Engaging Engagements, then allows you to email a picture of your ring to friends and relatives. This way, they can share in the excitement and be informed of the website's existence. Engaging Engagements is using ________. A) location-based social networking B) viral marketing C) stealth marketing D) direct marketing E) virtual marketing Answer: B 17) The idea of buzz isn't really new, but the magnifying effect that technology has on the spread of buzz is new. Answer: True 18) Happy customers are more likely to tell their friends about their pleasant customer experiences than unhappy customers are to tell their friends about their unpleasant customer experiences. Answer: False 19) Only small companies with limited promotional budgets have successfully used viral marketing. Answer: False 20) Brand ambassadors are volunteers spreading a company's brand message, while brand evangelists are paid employees using potentially unethical marketing tactics to spread a company's brand message. Answer: False 21) Buzz works best when companies put paid consumers in charge of creating their own messages. Answer: False 22) A brand community can be created by marketers or can develop on its own among consumers. Answer: True 23) Tired Toes is a new line of foot care products. The company's marketing team wants to help build buzz for the line by creating a brand community. The marketing team should use social networks to achieve this objective. Answer: True 24) In 2001, IBM had hundreds of "Peace Love Linux" logos painted on sidewalks to publicize the company's adoption of the Linux operating system. This is an example of buzz marketing. Answer: True 25) Compare the traditional one-to-many marketing communication model to the updated many-to-many communication model. What has caused the shift? What are the advantages and disadvantages of the new model for marketers? Answer: The traditional marketing model of one-to-many communication involves mass media tools such as advertising, out-of-home, consumer sales promotions, and public relations. However, through advances in Internet and mobile technologies, consumers are connected in ways they never were before. They can instantly share their opinions on products and consult the opinions of other consumers. This many-to-many communication model involves buzz building activities, viral marketing, and new social media platforms such as social networks, brand communities, product review sites, virtual worlds, and location-based social networks. For marketers, this new model offers benefits and dangers. Consumers are more likely to listen to and trust the opinions of other consumers, which can work two ways. Positive product opinions spread through social media can greatly boost a product's image, but negative reviews can devastate it. Even worse, companies have little or no control over what consumers say about their products. 26) Explain the buzz building form of viral marketing. What are the aims of viral marketing, and how are they accomplished? Give an example of a successful viral marketing campaign. Answer: Through viral marketing, marketers hope to increase brand awareness or sales by encouraging consumers to pass a message along to other consumers, hopefully in an exponential fashion. Viral marketing tends to include entertaining video clips, interactive games, or other activities that consumers will find so unique and interesting that they'll want to share them with their friends. The trick is producing something that consumers will want to independently pass on through email or social networks. Examples of successful campaigns will vary. 27) Why has traditional mass market diminished as a way to talk to younger consumers? Answer: Younger consumers spend more and more time online and are less likely to rely on mass media outlets such as network television, national newspapers, and magazines for information and entertainment. 28) Hotmail put the message "Get Your Free Email at Hotmail.com" at the bottom of every email sent by Hotmail users. What type of marketing technique did Hotmail use? Answer: Viral marketing is the strategy in which a company recruits customers to be sales agents and spread the word about the product. The message about being able to have free email is being spread to potential customers by current customers. 29) Explain how companies identify and use brand ambassadors and brand evangelists. Answer: Companies may seek out customers who blog about a product or share opinions about a product online. Companies give evangelists and ambassadors special access to the company and its marketing strategies, and in turn the evangelists and ambassadors spread positive word of mouth about the brand. 30) Identify an important difference for marketers between Twitter and Facebook. Answer: Facebook requires users to be recognized and accepted as a "friend" to follow another user's posts. Twitter allows users to follow anyone they like. Twitter is a much more narrow service, letting users microblog in text messages of 140 characters or less. 31) Discuss how marketers can use virtual worlds to convey marketing communications. Answer: Virtual worlds allow users to hang out in virtual clubs, shop for virtual clothes and design virtual homes. These are all opportunities for marketers to build enthusiasm and loyalty for actual products. 32) Someone who orders a product through a catalog is responding to ________. A) place-based communication B) point of purchase selling C) direct marketing D) direct selling E) personal selling Answer: C 33) Which of the following is NOT a form of direct marketing? A) mass marketing B) catalogs C) direct mail D) telemarketing E) m-commerce Answer: A 34) Which kind of marketing involves sending a brochure or pamphlet that offers a specific good or service at one point in time? A) personal marketing B) telemarketing C) direct mail D) catalog E) spam Answer: C 35) Catalogs, brochures, and pamphlets are all examples of which type of marketing? A) direct mail B) catalog C) mail order D) personal E) m-commerce Answer: C 36) A collection of products offered for sale in book form, usually consisting of product descriptions accompanied by photos of the items, is a ________. A) brochure B) pamphlet C) catalog D) direct-mail item E) junk-mail item Answer: C 37) Which of the following is the most likely description of the modern catalog customer? A) someone who has little or no access to retail stores B) someone who has little or no access to Internet technologies C) someone who wants to save time shopping D) someone who shops only for sales bargains E) someone who does not accept telemarketing calls Answer: C 38) The National Do Not Call Registry was established by which of the following? A) the Federal Trade Commission (FTC) B) the Direct Marketing Association (DMA) C) the Consumer Review D) the American Marketing Association (AMA) E) the Robinson-Patman Act Answer: A 39) ________ is direct communication to a customer that is conducted over the telephone. A) Direct order B) Telemarketing C) Direct-response advertising D) Direct selling E) Promotional selling Answer: B 40) What are two major forms of direct-response television (DRTV)? A) shows on home shopping networks and infomercials B) home-selling and toll-free response C) home television response and attention commercials D) direct selling and m-commerce E) home shopping networks and short-messaging systems Answer: A 41) The "m" in m-commerce stands for ________. A) market B) mobile C) message-oriented D) millennial E) marketspace Answer: B 42) A 30-minute television advertising program marketing a single product is referred to as a(n) ________. A) home shopping network B) infomercial C) short-messaging system D) m-commercial E) mass marketing advertisement Answer: B 43) A type of m-commerce that simply involves sending a text message is known as ________. A) predictive marketing B) spam C) short-message system marketing D) telemarketing E) e-commerce Answer: C 44) Fiona Lambrech is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries. Fiona wants to reach a selective market of individuals who have recently donated to international charities. Which of the following types of direct marketing is Fiona most likely to use? A) direct-mail marketing B) catalog marketing C) telemarketing D) direct-response TV marketing E) direct-response advertising Answer: A 45) For which of the following operations would telemarketing efforts likely be the most successful and the most profitable? A) selling magazine subscriptions to consumers B) selling double-pane windows to home owners C) selling plastic bottles to a bottling company D) asking people for charitable donations E) selling vacation packages to people who earn $50,000 or more annually Answer: C 46) Organic Designs is a small, successful chain of stores offering stylish clothes made of all-organic materials for infants, toddlers, and young children. Most of the Organic Designs stores are located in urban areas. Now Organic Designs is considering using direct marketing to reach potential customers who live outside of the company's existing markets. Which of the following methods of direct marketing would likely be most effective in accomplishing this goal? A) direct-mail marketing B) m-commerce C) catalog marketing D) infomercials E) telemarketing Answer: C 47) A producer of beverages and snack foods wants to market its products to the 14-to-22-year-old demographic, providing incentives to respond instantly to time-sensitive offers. Which of the following forms of direct marketing would this producer most likely choose? A) direct-response TV B) m-commerce C) telemarketing D) catalog marketing E) direct mail Answer: B 48) Telemarketing is more profitable for consumer markets than for business markets. Answer: False 49) As a result of the federal government's Do Not Call Registry, telemarketing is now rarely used. Answer: False 50) Direct-response TV (DRTV) includes short commercials of less than two minutes, 30-minute or longer infomercials, and home shopping networks such as QVC and HSN. Answer: True 51) Mobile phones are more prevalent in the United States than in any other country. Answer: False 52) Consumers are able to opt-out of receiving telemarketing solicitations and mail-order catalogs. Answer: True 53) Why is the image of telemarketers more positive in business marketing than it is in consumer marketing? Answer: Telemarketing is more successful and more profitable for business markets than consumer markets because the telephone allows sellers to stay in contact with smaller customers. It costs far less than an in-person sales call and lets the small customers know they are important to the company. Telemarketing does not have the poor image in business-to-business marketing that it does in consumer marketing, where consumers often associate telemarketing with unwanted interruptions. Consumers have responded positively to the National Do Not Call Registry, which allows them to limit the number of telemarketing calls they receive. 54) Why are people reached by direct mail better prospects for a company than those reached by mass media such as television or magazines? Answer: Direct mail can be personalized for each individual, which helps to build customer relationships. 55) What is the difference between catalogs and direct mail? Answer: A catalog is a collection of products offered for sale in book form, usually consisting of product descriptions accompanied by photos of the items. Direct mail is a brochure or pamphlet offering a specific product or service at one point in time. 56) Why is m-commerce considered an important form of direct marketing? Answer: M-commerce is mobile commerce conducted over smartphones and other mobile devices. This is an important medium for direct marketing because approximately 85% of the world's population has a mobile phone. 57) ________ has the highest cost per contact with each customer. A) Direct marketing B) Advertising C) Mass marketing D) Personal selling E) Public relations Answer: D 58) Which of the following communication and promotion tools involves establishing direct connections with customers aimed toward building crucial relationships? A) personal selling B) advertising C) e-commerce D) publicity E) m-commerce Answer: A 59) According to an axiom in marketing, the more ________ the product, the more heavily firms tend to rely on personal selling to promote it. A) popular B) available C) intangible D) impersonal E) marketable Answer: C 60) Which of the following is the most logical reason that many organizations rely heavily on personal selling? A) to make more efficient use of the promotional mix B) to quickly move a product to the maturity stage of the product life cycle C) to create consistent marketing communications D) to more effectively sell highly technical or very expensive products E) to decrease promotional expenditures Answer: D 61) Factors that increase a firm's emphasis on ________ include purchases that are "new tasks" for a customer and transactions that require negotiation. A) m-commerce B) mass marketing C) public relations D) direct marketing E) personal selling Answer: E 62) What type of software do salespeople use to track all aspects of customer interaction? A) TQM (total quality management) B) CRM (customer relationship management) C) DRM (direct response management) D) PR (public relations) E) JIT (just in time) Answer: B 63) What type of software links information between selling and buying firms? A) CRM (customer relationship management) B) PRM (partner relationship management) C) TQM (total quality management) D) PR (public relations) E) VoIP (Voice-over Internet Protocol) Answer: B 64) ________, which uses a data network to carry voice calls, is frequently used for communication between salespeople and customers. A) Voice-over internet Protocol (VoIP) B) Customer relationship management (CRM) C) Telemarketing D) Partner relationship management (PRM) E) Total quality management (TQM) Answer: A 65) Voice-over internet protocol (VoIP) systems enable salespeople to ________. A) access data from key partners B) deliver text messages to key customers through a short-messaging system C) track all aspects of customer interaction D) avoid the capital outlay of a CRM system E) make and receive phone calls anywhere just as though they were in the office Answer: E 66) In which of the following situations would personal selling be the LEAST cost-effective choice? A) a manufacturer selling a line of running shoes to a chain of department stores B) an automobile dealer selling luxury cars C) a real estate agent selling a home D) a chain of supermarkets selling convenience products E) a computer systems firm selling hardware and software to a large business Answer: D 67) Personal selling is crucial in business-to-business marketing, especially when the deal involves intense price negotiations. Answer: True 68) On a cost per contact basis, personal selling is much more expensive than national advertising. Answer: True 69) Direct sellers bypass channel intermediaries and sell directly from manufacturers to consumers. Answer: True 70) A representative for Tupperware who is implementing a party plan, demonstrating and selling products at a social gathering of friends, is using direct selling. Answer: True 71) The makers of a new type of soap that can be used to both wash and wax your car with only one application have determined that personal selling would not be best for this product. Explain why this is or isn't a good marketing communication decision. Answer: When the dollar amount of individual purchases is low, it does not make sense to use personal selling. The profit made on each container of soap may not be high enough to warrant a personal sales force. In addition, salespeople can only make so many calls a day. Educating consumers about this product one at a time would be a very slow way to get this product known to all car owners who are potential buyers. On a cost per customer contact basis, an advertising campaign would be more effective for this type of product. 72) Explain and compare the concepts of telemarketing and direct selling. Why might a consumer be more likely to buy Tupperware at a home party than the same product from a telemarketer? Answer: Telemarketing is the use of the telephone to sell directly to consumers and business customers. Direct sellers bypass channel intermediaries and sell directly from manufacturer to consumer. Typically, independent seller representatives do the selling in person in a customer's home or place of business. Tupperware is a firm that uses a party plan approach, with salespeople demonstrating products in front of friends and neighbors. Many people do not like receiving telemarketing calls at their home or place of business. Recent legislation has banned aspects of telemarketing with the National Do Not Call Registry. Consumers may be more willing to speak in person to a direct sales representative in a social setting, such as a Tupperware party, than to speak with someone on the phone about a product or service. 73) Compare and contrast partner relationship management (PRM) and customer relationship management (CRM). Answer: Customer relationship management involves tracking everything a firm knows about its customers, while partner relationship management links information between a seller and buyer. An advantage PRM offers over CRM is that with PRM at least some of the databases and systems of both supplier and buyer firms are shared in order to maximize the utility of the data for decision-making purposes. When firms share their information, they are more likely to strive for win-win solutions. 74) What is the relationship between personal selling and the marketing push strategy? Answer: Generally, a personal selling effort is more important when a firm engages in a push strategy, in which the goal is to "push" the product through the channel of distribution of the retailer so it is available to the consumer. This is a business-to-business use of personal selling; the large customer is the retailer. 75) Of the following, which sales job requires the LEAST creative selling? A) order getter B) order taker C) team selling member D) new-business salesperson E) missionary salesperson Answer: B 76) A(n) ________ promotes the firm and tries to stimulate demand for a product but does not actually complete a sale. A) order taker B) order getter C) missionary salesperson D) relationship manager E) new-business manager Answer: C 77) A group of people from a range of departments tasked with developing products and programs that satisfy the customer's needs is referred to as a ________ team. A) cross-functional B) partner relationship management (PRM) C) customer relationship management (CRM) D) missionary E) transactional Answer: A 78) Which of the following is a salesperson who works to develop long-term relationships with particular customers and may hold the title of "account manager"? A) an order taker B) an order getter C) a missionary salesperson D) a new-business salesperson E) a technical specialist Answer: B 79) PeopleSoft is an enterprise application software that businesses can use to create more efficient relationships with suppliers, customers, and employees. To sell the entire software package, the company uses ________, which includes a technical specialist, an accounting expert, a human resources expert, and a sales representative. A) a selling center B) a buying center C) transactional selling D) team selling E) partner relationship management (PRM) Answer: D 80) Which of the following is a sales technique that focuses on making an immediate sale with little or no attempt to develop a relationship with the customer? A) proactive marketing B) reactive marketing C) transactional selling D) relationship selling E) creative selling Answer: C 81) Which of the following statements about relationship selling is true? A) Relationship selling primarily uses hard-sell tactics. B) A salesperson selling new tires to tourists who are stranded in his community will most likely use relationship selling. C) With relationship selling, the salesperson tries to develop a win-win relationship with customers. D) People who engage in relationship selling do not prospect for new customers. E) Relationship selling is a short-sighted approach. Answer: C 82) When Kenneth called Southern Security to buy a safe in which to store important personal documents and possessions, he most likely talked to a(n) ________ who performed all the activities needed to process the transaction. A) order taker B) order getter C) missionary salesperson D) new-business salesperson E) technical specialist Answer: A 83) You are responsible for supervising order takers at Acme, Inc. Which of the following would you be LEAST likely to expect these people to perform? A) executing the pre-approach stage of the creative selling process B) assisting business customers C) processing customer transactions D) communicating with customers over the phone E) executing the close stage of the creative selling process Answer: A 84) At the sales presentation for EFTPS (a type of software for making the payment of all federal taxes secure, easy, and fast), it would be most logical for which member of the sales staff to demonstrate how payments can be set up 12 months in advance and how easy it is to view payment history? A) the order taker B) the missionary salesperson C) the technical specialist D) the relationship manager E) the reactive salesperson Answer: C 85) At Boeing, salespeople work with company specialists, such as financial analysts, technical specialists, and engineers, to call on potential and current customers. This is an example of ________. A) territorial selling B) team selling C) professional selling D) industry specialization selling E) transactional selling Answer: B 86) In which type of sales job is an employee LEAST likely to focus on relationship selling? A) new-business salesperson B) team selling member C) order taker D) order getter E) missionary salesperson Answer: C 87) A missionary salesperson stimulates demand for a product and is therefore a major part of the close of the sale. Answer: False 88) Today's professional salesperson is more likely to practice relationship selling than transactional selling. Answer: True 89) What is the sales job classification and responsibility of an employee who processes purchases over the phone? Answer: The employee who takes product orders over the phone would be classified as an order taker. An order taker is a salesperson whose primary function is to facilitate transactions that the customer initiates. 90) Pfizer pharmaceutical representatives call on physicians to influence them to prescribe the latest Pfizer medications over competing products. However, no sale is made until doctors call prescriptions into pharmacies that then place orders through their drug wholesalers. What type of sales position do these Pfizer pharmaceutical representatives hold, and what are their job responsibilities? Answer: The Pfizer pharmaceutical representative described here is a missionary salesperson. A missionary salesperson is someone who promotes the firm and tries to stimulate demand for a product but does not actually complete a sale. 91) A major manufacturer of automobile tires sells its products at its dealership retail stores. After a tire is sold, the customer can return to any manufacturers' retail store and the tire can be rotated on the car at no expense to the customer. Should a repair to the tire be needed, the customer will receive a discount from the list price bill as a form of a warranty received at the time of purchase of the tire. Identify and explain the selling approach being implemented by this manufacturer. Answer: Relationship selling is being implemented by the manufacturer at its dealership retail stores. The free rotation of the tire and the discount pricing if a repair is needed are means of developing a long-time relationship with customers who will likely return to this manufacturer the next time they need to buy tires. 92) The first step in the creative selling process is ________. A) pre-approach B) prospect and qualify C) approach D) handle objections E) sales presentation Answer: B 93) Prospect and qualify is the step in the creative selling process in which the salesperson ________. A) meets the customer for the first time B) learns as much as possible about a prospective customer before making a sales call C) identifies potential qualified customers D) conveys the product's competitive advantages to a potential customer E) clarifies and overcomes a customer's concerns about buying Answer: C 94) The step that follows pre-approach in the creative selling process is ________. A) presentation B) qualify C) handle objections D) prospect E) approach Answer: E 95) Which of the following is the LEAST relevant characteristic that a salesperson should consider when qualifying a prospect? A) financial ability B) longevity in the market C) credit history D) volume of business E) likely level of loyalty Answer: B 96) After salesperson Danny O'Reilly has made a sale, he asks his customer if she knows of anyone else who might also be interested in buying his products. Referrals such as these are one method used in ________. A) prospecting B) cold calling C) the pre-approach D) qualifying E) completing follow-up Answer: A 97) Without prior introduction or arrangement, telemarketers telephone your home and business offering to sell you a variety of products. These telemarketers engage in what form of prospecting? A) referring B) cold calling C) networking D) direct selling E) qualifying Answer: B 98) During which stage of the creative selling process would a salesperson most likely try to learn about a customer's prior purchases and personal interests? A) prospect B) pre-approach C) qualify D) close E) follow-up Answer: B 99) The salesperson contacts the customer for the first time in the ________ step of the creative selling process. A) pre-approach B) prospect C) approach D) presentation E) qualify Answer: C 100) A salesperson would be most likely to use Standard & Poor's 500 Directory during which stage of the creative selling process? A) pre-approach B) approach C) sales presentation D) handle objections E) close Answer: A 101) According to your text, sales managers rate which of the following skills as the single most important attribute they look for when hiring relationship salespeople? A) presentation skills B) technical skills C) listening skills D) questioning skills E) time management skills Answer: C 102) After the sales presentation, which of the following is the next step in the creative selling process? A) block objections B) handle objections C) begin building a bridge to the next sale D) wait for signals that the customer is ready to buy E) indirectly ask the customer for her business Answer: B 103) In which step of the sales process would the salesperson call to ensure customer satisfaction and repeat business? A) approach B) presentation C) handle objections D) close the sale E) follow-up Answer: E 104) In which stage of the creative selling process would the salesperson say, "What quantity would you like to order?" A) pre-approach B) close C) qualify D) handle objections E) follow-up Answer: B 105) Which of the following is NOT a closing approach for a salesperson? A) a last objection close B) a bridge close C) a standing-room-only close D) a buy-now close E) an assumptive close Answer: B 106) Which of the following is an input measure of a salesperson's success? A) volume of sales B) number of orders C) number of sales calls D) customer satisfaction E) level of repeat business Answer: C 107) Your new-business sales force is responsible for prospecting and qualifying customers. Which of the following will likely occur? A) The number of qualified customers will exceed the number of prospects. B) The new-business sales force will call on all prospects. C) A salesperson may have to approach many qualified customers just to make one sale. D) Salespeople will only contact a few of the customers they research in the pre-approach stage. E) Order takers will take responsibility for the approach and sales presentation steps. Answer: C 108) A young couple contacted a realtor about buying a new home. Now that the realtor has prospects, his next step should be to ________. A) handle any of their objections B) qualify them C) prepare his approach D) make a thorough sales presentation E) close the sale Answer: B 109) Marlene Arau is a member of the sales force at Urban Fashions, a clothing manufacturer. Marlene is getting ready for a first meeting with a wholesaler who is a potential customer, and she is preparing herself by learning as much as she can about the wholesaler's organization. Marlene is in the ________ step of the personal selling process. A) prospect and qualify B) pre-approach C) approach D) handle objections E) follow-up Answer: B 110) As the salesperson entered the prospect's office, the salesperson extended his hand and said, "Your old college roommate Tiara Johns suggested I call on you." This action occurred in which stage of the creative selling process? A) approach B) prospect and qualify C) pre-approach D) close E) follow-up Answer: A 111) Southern Security makes safes for storing valuables such as jewelry and family records. When Ed sold safes for the company, he had to be prepared with a response when a prospect said, "I have no room for a safe" or "My family heirlooms aren't valuable enough to put in a safe." In other words, Ed had to ________. A) prepare several different closings B) use a canned sales presentation C) treat each sale as a transaction D) utilize cold calling E) anticipate objections Answer: E 112) Southern Security makes safes for storing valuables. When Ed sold safes for the company, he would deal with a prospect's concerns such as the cost of the safe and then ask, "Are you ready to purchase a safe for your family, or are there other concerns that we need to discuss?" When Ed asked this question, he was ________. A) using a last objection close B) fostering a transactional relationship C) anticipating objections D) engaging in the approach stage of the creative selling process E) using a standing-room-only close Answer: A 113) Southern Security makes safes for storing valuables. When Ed sold safes for the company, he sometimes told a prospect, "The model safe you are looking at is on sale this week. If you wait until next week to buy, you will spend $100 more." When Ed used this approach, he was using the ________ close. A) canned B) standing-room-only C) assumptive D) minor points E) stimulus-response Answer: B 114) You want to collect information to evaluate your sales force in New England. Which of the following would you be LEAST likely to consider in doing so? A) call reports B) expense reports C) customer satisfaction surveys D) customer turnover rates E) partner relationship management data (PRM) Answer: E 115) Because customers almost always have objections during the presentation or closing step of the selling process, all salespeople should anticipate and be prepared to respond to objections. Answer: True 116) The final stage of the creative selling process is the close. Answer: False 117) Prospecting and cold calling are interchangeable terms. Answer: False 118) Identify the seven steps in the creative selling process. What may be the most difficult step for most salespeople? Answer: Prospecting and qualifying begin the process, followed by the preapproach. Next, the salesperson makes an approach to make a presentation. Handling objections follows, leading into closing the sale. Each sale requires a follow up to make it complete. For most salespeople, especially new ones, the closing step is the most difficult and requires much skill. It takes practice for asking for the sale to become a natural progression of the dialogue between seller and buyer. 119) Explain the follow-up step of the creative selling process. Answer: The follow-up step is necessary if the salesperson wants to ensure customer satisfaction and repeat business. After closing, the salesperson should complete any details on delivery time, purchase terms, and other matters. The salesperson then should schedule a follow-up call when the initial order is received to make sure delivery went well and the customer is satisfied. This is an opportunity for the salesperson to bridge to the next purchase, developing a mutually beneficial relationship with the buyer. 120) Why does a firm's number of prospects always equal or exceed its number of qualified customers? Answer: Prospecting identifies the total number of potential customers in an area; qualifying breaks that number of prospects down into the actual group that it is worthwhile for the salesperson to target. 121) Which of the following promotion tools is most closely associated with building up a positive corporate image and handling unfavorable stories and events? A) sales promotion B) personal selling C) direct marketing D) public relations E) advertising Answer: D 122) The basic rule of ________ is "do something good, then talk about it." A) customer relationship management B) public affairs C) public relations D) social marketing E) promotions Answer: C 123) There are three steps involved in creating a public relations campaign. The first step is to ________. A) conduct a SWOT analysis B) develop objectives C) formulate a mission statement D) recruit and train public relations specialists E) pretest components of the proposed public relations campaign Answer: B 124) One of the barriers to greater reliance on ________ is the difficulty of gauging its effectiveness. A) online advertising B) catalog marketing C) direct mail D) sales promotion E) public relations Answer: E 125) The most common way for public relations specialists to communicate is through the use of ________. A) sponsorship B) lobbying C) press releases D) special events E) speech writing Answer: C 126) Timely topics and research project stories are both types of ________. A) advertising appeals B) advocacy advertising C) puffery D) press releases E) creative strategies Answer: D 127) Which of the following is a relatively inexpensive objective measurement that public relations (PR) specialists can use to gauge the effectiveness of their efforts? A) personal evaluation of PR activities B) opinion surveys among the firm's publics C) coverage in print and broadcast media D) gross ratings points (GRP) E) cost per thousand (CPM) Answer: C 128) A company newsletter is an example of ________. A) media relations B) sponsorship C) corporate identity D) internal PR E) publicity Answer: D 129) Lobbying, or building and maintaining relations with legislators and government officials to influence legislation and regulation, is part of ________. A) outdated business ethics B) media relations C) reactive PR D) crisis management E) public relations Answer: E 130) ________ in the form of logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms, and company trucks can be used to help a company create an identity that the public immediately recognizes. A) Direct marketing B) Social marketing C) Public service activities D) Corporate identity materials E) Sponsorships Answer: D 131) Planning and implementing special events are typically responsibilities of ________. A) a planning agency B) a full-service agency C) creative services D) the PR department E) the sales promotion department Answer: D 132) Which of the following is a strategy that involves a company "ambushing" consumers with promotional content in places consumers would typically not expect to see information about a product or service? A) sales promotion B) guerrilla marketing C) sponsorships D) internal PR E) crowdsourcing Answer: B 133) Which of the following is NOT a public relations activity? A) speech writing B) advice and counsel to management C) creative strategy D) sponsorships E) investor relations Answer: C 134) Internal PR activities target a company's ________. A) current customers B) prospective customers C) brand ambassadors D) investors E) employees Answer: E 135) Annual and quarterly financial reports are both examples of ________ activities. A) lobbying B) corporate identity C) sponsorship D) investor relations E) media relations Answer: D 136) A flash mob is a type of ________. A) lobbying B) guerilla marketing C) sponsorship D) crisis management E) ambient advertising Answer: B 137) Which of the following is the placement of messages in nontraditional media, such as signs on elevator doors or in a restaurant's restrooms? A) lobbying B) mobbing C) sponsorship D) ambient advertising E) direct marketing Answer: D 138) When a company provides financial support for an event such as a concert or tournament, it is using the public relations activity of ________. A) lobbying B) sponsorship C) ambient advertising D) guerilla marketing E) flash mobbing Answer: B 139) A manufacturer of toilet tissue sent its brand mascot to help refurbish restrooms at fairgrounds across the country. As part of this project, each restroom was to provide fairgoers with a clean oasis featuring aromatherapy, soothing music, constant maintenance, and premium toilet tissue. Newspaper articles about the company's role in making restrooms inviting are an example of ________. A) corporate advertising B) a sales promotion C) media planning D) publicity E) sponsorship Answer: D 140) Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly contacts members of the local and state-wide media with information about community events and charity fundraisers sponsored by her company. She is using ________. A) press releases B) product publicity C) crisis management D) institutional advertising E) lobbying Answer: A 141) In an attempt to set the company apart from its competitors, United Parcel Service has its employees wear brown uniforms and drive brown trucks. What type of public relations tool is UPS using? A) buzz marketing B) social networking C) corporate identity materials D) product publicity E) public service materials Answer: C 142) The Red Baron Gallery has provided funding to Georgia Public Television to help pay for the rights to broadcast the Antiques Roadshow and is credited at the beginning of the show for its financial support. This is an example of ________. A) ambient advertising B) a special event C) a sponsorship D) a sales promotion E) guerilla marketing Answer: C 143) Dancers and singers hired by the California Board of Tourism staged a series of seemingly impromptu performances of a medley of Beach Boys songs, including "Surfing U.S.A." and "California Girls," in busy airport terminals around the country. This is an example of ________. A) lobbying B) guerrilla marketing C) sponsorship D) media relations E) internal PR Answer: B 144) Public relations activities can be used to influence the attitudes and perceptions of various publics toward politicians and celebrities. Answer: True 145) Crisis management is typically a public relations function. Answer: True 146) Introducing new products to consumers is not an objective that falls within the responsibilities of the PR department. Answer: False 147) Planning a public relations campaign is a two-step process: develop objectives and then execute those objectives. Answer: False 148) It is more difficult to assess the bottom-line impact of public relations activities than the bottom-line impact of advertising. Answer: True 149) Special events are public relations activities for which companies provide financial support to help fund an event in return for publicized recognition of the company's contribution. Answer: False 150) Guerrilla marketing strategies can be used to achieve public relations objectives. Answer: True 151) When the Pharmaceutical Manufacturers Association spent eight million dollars creating and placing a print campaign arguing that the most expensive drugs represent just five percent of national health care expenditures, the association was using public relations. Answer: False 152) Compare and contrast proactive public relations activities and crisis management. Answer: Proactive public relations activities stem from the company's marketing objectives. They may include creating and managing publicity, announcing new products, developing press releases about industry events, and developing buzz. Crisis management is a PR activity that does not stem from the company's marketing objectives; instead, it arises from unanticipated negative publicity. The goal of crisis management is to address the concerns of consumers and channel members so that the brand's or company's image is not negatively affected. 153) Describe public relations and four objectives it is often used to achieve. Answer: Public relations departments build good relations with the company's various publics and handle or head off unfavorable rumors, stories, and events. Public relations objectives include: a. introducing new products to retailers and consumers b. enhancing the image of the organization c. influencing government legislation d. providing advice and counsel for top management e. enhancing the image of a city, region, or country f. calling attention to a firm's involvement with the community 154) Why might public relations efforts have a strong impact on public awareness at a substantially lower cost than advertising? Answer: With public relations, the company is paying for a staff to develop and circulate information and plan events instead of paying for space or time in the media. 155) Why might a company with a small advertising budget turn to guerilla marketing? Answer: Guerrilla marketing involves "ambushing" customers with promotional materials and content in unexpected places. Guerrilla marketing activities are increasingly popular because they are relatively cheap and can generate buzz. Test Bank for Marketing: Real People, Real Choices Michael R. Solomon, Greg W. Marshall, Elnora W. Stuart 9780132948937, 9780135199893, 9780134292663, 9780135209929
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