8eCHAPTER 16 USING EFFECTIVE PROMOTIONAL TECHNIQUES Chap016D1

CHAPTER 16 USING EFFECTIVE PROMOTIONAL TECHNIQUES
TRUE/FALSE
Learning Goal 1
Define promotion and list the four traditional tools that make up the promotion mix.
Level o Learning 1 (Knows basic terms and facts)
16-1.
As a component of the promotion mix, advertising includes each of the activities marketers use to inform people about products and persuade them to participate in an exchange. Answer: alse !": #$!!: # %age: &'(
16-2.
A firm)s promotion mix refers to the combination of different promotional tools used to persuade consumers to participate in an exchange. Answer: *rue !": #$!!: # %age: &'(
16-3.
+ntegrated marketing communication simplifies the marketing process b, replacing personal selling with extensive use of advertising to create a positive brand image. Answer: alse !": #$!!: # %age: &'(
16-4.
+ntegrated marketing communication combines all the promotional tools into one comprehensive, unified promotional strateg,. Answer: *rue !": #$!!: # %age: &'(
16-5.
+ntegrated marketing communication combines each element of the promotional effort to create a uni-ue message for a product sold in different markets. Answer: alse !": #$!!: # %age: &'(
16-6.
.reating a unified positive image of a compan, in the public)s mind is the end result of effective integrated marketing communication. Answer: *rue !": #$!!: # %age: &'(
16-7.
.ombining a firm)s promotional tools and resources to create a positive brand image is the goal of integrated marketing communication. Answer: *rue !": #$!!: # %age: &'(
1
Nickels, McHugh & McHugh, Understanding Business, Eighth Edition
16-8.
*he promotional budget will clarif, how much can be spent on advertising and personal selling. Answer: *rue !": #$!!: # %age: &'(/ figure #0.(
16-9.
*he first step in creating a promotional campaign is to define the ob1ectives for each element of the marketing mix. Answer: alse !": #$!!: # %age: &'(/ figure #0.(
16-10.
*he last step in creating a promotional campaign is to evaluate the effectiveness of each element of the promotional mix. Answer: *rue !": #$!!: # %age: &'(/ figure #0.(
16-11.
*he development of a unified promotional strateg, that uses each element of the promotion mix to create a favorable brand image is the goal of a primar, promotional process. Answer: alse !": #$!!: # %age: &'(
Level o Learning ! (2nderstands concepts and principles)
16-12.
%hil)s activities as a salesperson for 3ar-uette %ublishing are part of 3ar-uette4s promotion mix. Answer: *rue !": #$!!: ( %age: &'(
5ationale: Advertising, personal selling, public relations, publicit,, and sales promotion are all part of a firm4s promotion mix.
16-13.
A firm)s promotion mix consists of its pricing and distribution strategies. Answer: alse !": #$!!: ( %age: &'(
5ationale: A promotionl mix includes advertising, personal selling, public relations and sales promotion.
16-14.
After adopting integrated marketing communication, 3adison urniture puts less emphasis on public relations, sales promotion, and personal selling, and concentrates on advertising designed to provide a uniform message to all markets. Answer: alse !": #$!!: ( %age: &'(
5ationale: *he goal of integrated marketing communication is to create a unified image of the compan,, but it does not downpla, the role of public relations, sales promotion and personal selling to achieve this goal. +nstead, it focuses on uniting and coordinating all of the elements of the promotion mix.
16-15.
6hen developing the promotional campaign for a new product, the first step for a firm is to identif, their target market. Answer: *rue !": #$!!: ( %age: &'(/ figure #0.(
5ationale: igure #0.( identifies the 0 steps in a promotional campaign. *he first step involves the identification of the target market. #07#0. 3arla has developed a new advertising message for one of her firm)s new products. 8he has sent copies of the ad to all of the salespeople in the firm and asked them to stress the benefits mentioned in the ad when the, call on their customers. inall,, the ad includes a free sample coupon to encourage people to tr, this new product. 8he is attempting to create one positive, unified brand image for the new product. 3arla is practicing brand communication. Answer: alse !": #$!!: ( %age: &'(
5ationale: 3arla is practicing integrated marketing communication because she is combining the promotional tools of advertising, personal selling, and sales promotion to achieve a positive, unified brand image for the new product.
Learning Goal !
Define advertising and describe the advantages and disadvantages of various advertising media, including the +nternet.
16-17.
Depending upon the promotional campaign, advertising ma, include paid and non7 paid forms of nonpersonal communication. Answer: alse !": ($!!: # %age: &''
16-18.
*rade advertising is advertising to consumers b, manufacturers to encourage them to tr, their products. Answer: alse !": ($!!: # %age: &''/ figure #0.'
#07#9.
+nstitutional advertising creates an attractive image for an organi:ation rather than for a product. Answer: *rue !": ($!!: # %age: &''/ figure #0.'
#07(;.
Advocac, advertising is advertising that supports a particular view of an issue such as gun control. Answer: *rue !": ($!!: # %age: &''/ figure #0.'
16-21.
6hen a manufacturer advertises to wholesalers and retailers in an attempt to encourage them to carr, its products, it is engaging in institutional advertising. Answer: alse !": ($!!: # %age: &''/ figure #0.'
16-22.
*he purpose of institutional advertising is to create an attractive image for an organi:ation. Answer: *rue !": ($!!: # %age: &''/ figure #0.'
16-23.
*otal ad volume exceeds <(&= billion ,earl,. Answer: *rue !": ($!!: # %age: &''
16-24.
Advertising provides the public with free *> and radio programs. Answer: *rue !": ($!!: # %age: &''
16-25.
?ewspapers, radio, and the @ellow %ages are especiall, attractive to local advertisers. Answer: *rue !": ($!!: # %age: &''
16-26.
Advertising helps to cover the production costs of newspapers and maga:ines. Answer: *rue !": ($!!: # %age: &''
16-27.
*he ma1or complaint with advertising is that it provides no real benefits to the public. Answer: alse !": ($!!: # %age: &''
16-28.
ree *> and radio broadcasting is made possible b, advertising. Answer: *rue !": ($!!: # %age: &''
16-29.
Advertising on the +nternet now ranks ahead of newspapers, based on total advertising expenditures. Answer: alse !": ($!!: # %age: &'&/ figure #0.&
16-30.
*elevision (broadcast and cable) and direct mail are the top two advertising media when ranked b, total expenditures. Answer: *rue !": ($!!: # %age: &'' A &'&/ figure #0.&
16-31.
+nternet advertising ranks third in terms of total advertising expenditures. Answer: alse !": ($!!: # %age: &'' A &'&/ figure #0.&
16-32.
Broadcast and cable television along with newspaper advertising are the top two advertising media when ranked b, total expenditures. Answer: alse !": ($!!: # %age: &'' A &'&/ figure #0.&
16-33.
*he number one advertising medium in terms of total dollar expenditures is newspapers. Answer: alse !": ($!!: # %age: &'' A &'&/ figure #0.&
16-34.
Because *> advertising is so expensive, it is less popular than in the past and now ranks sixth in total advertising expenditures. Answer: alse !": ($!!: # %age: &'' A &'&/ figure #0.&
16-35.
Direct mail is usuall, the best advertising medium to reach specific target markets. Answer: *rue !": ($!!: # %age: &'&/ figure #0.=
16-36.
A recent '; second 8uper Bowl commercial costs about <(.= million. Answer: *rue !": ($!!: # %age: &'&
16-37.
3aga:ine ads have high visibilit,, repeat exposures, and are low cost. Answer: alse !": ($!!: # %age: &'&/ figure #0.=
16-38.
Cne problem with newspaper advertisements is that the, have a short life span. Answer: *rue !": ($!!: # %age: &'&/ figure #0.=
16-39.
5adio advertising offers businesses an opportunit, to reach a specific target market. Answer: *rue !": ($!!: # %age: &'&/ figure #0.=
16-40.
A *> program devoted exclusivel, to promoting goods and services is called an infomercial. Answer: *rue !": ($!!: # %age: &'=
16-41.
*he popularit, of infomercials has declined in recent ,ears. Answer: alse !": ($!!: # %age: &'=
16-42.
According to the "#ealing $i%& C&ange' box in .hapter #0, some marketers have found traditional forms of advertising too expensive for the responses the, were getting.
"
Answer: *rue
!": ($!!: #
%age: &'0/ #ealing $i%& C&ange box
16-43.
6hen marketers advertise on a big online propert,, such as @ahoo, the, can reach the people the, most want to reach. Answer: *rue !": ($!!: # %age: &'0
16-44.
Cne of the benefits of advertising on the +nternet is that it provides a wa, to link firms and customers so that the, can learn more about each other. Answer: *rue !": ($!!: # %age: &'0
16-45.
+nteractive promotion allows customers and companies to work together to create mutuall, beneficial exchange relationships in an ongoing dialogue. Answer: *rue !": ($!!: # %age: &'D
16-46.
Cnline advertising allows advertisers to see how man, people have clicked on a advertisement and how much of it the potential customer has read or watched. Answer: *rue !": ($!!: # %age: &'D
16-47.
*he +nternet has changed the emphasis of promotion from Epromoting toF customers to Eworking withF customers. Answer: *rue !": ($!!: # %age: &'D
16-48.
*he +nternet allows firms to listen to customers) wants, track their purchases, provide them with better service, and more access to information. Answer: *rue !": ($!!: # %age: &'D
16-49.
*he purpose of interactive promotion is to create a monologue that convinces customers to act -uickl,. Answer: alse !": ($!!: # %age: &'D
16-50.
6hen it comes to reaching global markets, evidence supports the conclusion that the Eone si:e fits allF approach to promotional mix design is best. Answer: alse !": ($!!: # %age: &'G
16-51.
"lobal advertising saves companies mone, in research and ad design. Answer: *rue !": ($!!: # %age: &'D
#07=(.
Advertising toda, is moving from regionalism to globalism. Answer: alse !": ($!!: # %age: &'G
#07='.
According to the "Rea(&ing )e*on+ O,r )or+er-' box in .hapter #0, it is important to learn the rules and regulations of each countr, ,ou advertise in, because all countries regulate what ,ou can sa, and where and how ,ou sa, it. Answer: *rue !": ($!!: # %age: &'G/ Rea(&ing )e*on+ O,r )or+er- box
16-54.
"reen 8pace is an organi:ation concerned about preserving forests and wilderness areas. *he, hope to raise the public)s awareness regarding this issue. "reen 8pace can communicate their concern b, utili:ing advocac, advertising. Answer: *rue !": ($!!: ( %age: &''/ figure #0.'
5ationale: Advocac, advertising, also known as cause advertising, supports a particular view of an issue. "un control and anti7smoking ads represent examples of advocac, advertising.
16-55.
Advertising reaches a national audience more effectivel, than it communicates with a local market. Answer: alse !": ($!!: ( %age: &'&
5ationale: ?ewspapers, radio, and the @ellow %ages are all advertising media that do an excellent 1ob of covering a local market.
16-56.
%at4s %ie %antr, generates significant word7of7mouth advertising b, delighting their customers with delicious pies. 6ord of mouth represents the use of advertising. Answer: alse !": ($!!: ( %age: &''
5ationale: 6ord of mouth does not meet several of the criteria that characteri:e advertising. Advertising is paid nonpersonal communication through various media. 6ord of mouth is unpaid personal communication that does not go through a medium.
16-57.
3ailing ads to nearb, residents helps grocer, stores reach their target market with information of special sales. *his represents direct mail advertising. Answer: *rue !": ($!!: ( %age: &''
5ationale: Advertising refers to paid, nonpersonal communication through various media. 8ince direct mail is a paid, nonpersonal communication through the mail, it should be considered advertising.
1%
16-58.
3aga:ines such as &eople, 'ports (llustrated, and Business )eek pa, for much of the cost of producing their publications b, selling advertising space in the maga:ines. Answer: *rue !": ($!!: ( %age: &''
5ationale: Advertising covers the ma1or costs of producing newspapers and maga:ines.
16-59.
+nforming consumers about goods and services represents advertising4s onl, benefit to societ,. Answer: alse !": ($!!: ( %age: &''
5ationale: Advertising most importantl, informs us about products. +t also provides us with free *> and radio programs because business advertisers pa, for advertising time.
16-60.
*he use of infomercials represents an effective use of advertising dollars. Answer: *rue !": ($!!: ( %age: &'=
5ationale: Cne of the faster7growing forms of advertising is the use of infomercials. 6hat makes them so successful is that the, present the product in great detail.
16-61.
Businesses pa, to have their products prominentl, displa,ed in a *> episode of *riends or a feature movie. Answer: *rue !": ($!!: ( %age: &'=
5ationale: %roduct placement refers to advertising dollars spent to put products into *> shows and movies where the, will be widel, seen. #070(. "arden.com uses interactive promotion b, allowing customers to chat with each other online about gardening. Answer: *rue !": ($!!: ( %age: &'D
5ationale: +nteractive promotion allows marketers to go be,ond a monologue, where sellers tr, to persuade bu,ers to bu, things, to a dialogue in which bu,ers and sellers work together to create mutuall, beneficial exchange relationships. "arden.com)s answer is an interactive website through which customers ma, chat with each other and ask gardening -uestions.
11
#070'.
+t is important to design promotional efforts specificall, for individual countries since sometimes the brand is not appealing in the targeted countr,. or example, a Hapanese compan, tried to use Inglish words to name a popular drink and called it %ocari 8weat. Answer: *rue !": ($!!: ( %age: &'D
5ationale: 8ome experts think that promotions targeted at specific countries or regions ma, be much more successful than global promotions since each countr, or region has its own culture, language, and bu,ing habits.
Learning Goal .
+llustrate the steps of B(B and B(. selling processes.
16-64.
%ersonal selling involves the face7to7face presentation and promotion of goods and services. Answer: *rue !": '$!!: # %age: &'G
16-65.
%ersuading others to bu, ,our product represents the onl, goal of effective selling. Answer: alse !": '$!!: # %age: &'G A &'9
16-66.
Iffective selling involves helping others to satisf, their wants and needs. Answer: *rue !": '$!!: # %age: &'9
16-67.
According to the most recent 2.8. census, over &;J of the total labor force is emplo,ed in personal selling. Answer: alse !": '$!!: # %age: &'9
16-68.
%ersonal selling represents a relativel, inexpensive method of promoting a firm4s products. Answer: alse !": '$!!: # %age: &'9
16-69.
*he average cost of a single sales call to a potential B(B bu,er is approximatel, <&;;. Answer: *rue !": '$!!: # %age: &'9
16-70.
%ersonal selling involves more than presenting the product and closing the deal. Cther activities include the search for new prospects and follow7up services after the sale.
12
16-71.
Answer: *rue !": '$!!: # %age: &'G .losing the sale represents the final step in the selling process. Answer: alse !": '$!!: # %age: &&#
16-72.
>alidation refers to the process of determining whether a potential customer has the need for a product, the authorit, to bu,, and the willingness to listen to a sales message. Answer: alse !": '$!!: # %age: &'9
16-73.
A good salesperson re-uires product knowledge about their product and the product offered b, competitors. Answer: *rue !": '$!!: # %age: &'9
16-74.
*he first step in the selling process involves prospecting for potential customers and choosing those most likel, to bu,. Answer: *rue !": '$!!: # %age: &'9
16-75.
*he purpose of a trial close in the selling process is to learn as much as possible about customers and their wants and needs. Answer: alse !": '$!!: # %age: &&;
16-76.
*he B(B selling process ma, take a long time and gathering information before ,ou approach the customer is critical. Answer: *rue !": '$!!: # %age: &&;
16-77.
B(. salespeople spend more time prospecting than do B(B salespeople. Answer: alse !": '$!!: # %age: &&#
16-78.
After7sale follow7up is an important, but often neglected step in B(. sales. Answer: *rue !": '$!!: # %age: &&(
#07D9.
*he B(. selling process has fewer steps than the B(B selling process. Answer: *rue !": '$!!: # %age: &&(/ figure #0.0
#07G;.
8elling is an art. Answer: *rue !": '$!!: # %age: &&(
13
16-81.
%ersonal selling represents a form of individuali:ed advertising. Answer: alse !": '$!!: ( %age: &'G
5ationale: %ersonal selling is face7to7face presentation and promotion of goods and services. Advertising is nonpersonal communication through various media. %ersonal selling, therefore, is not advertising.
16-82.
*he hallmark of an effective salesperson is the abilit, to complete a sale as soon as the sales presentation is completed. Answer: alse !": '$!!: ( %age: &&;
5ationale: *he presentation stage of personal selling is usuall, followed b, an effort to answer -uestions and overcome ob1ections. An effective salesperson will reali:e that customers are likel, to have legitimate -uestions and concerns, and will look at -uestions and ob1ections as an opportunit, to improve relationships. Iven after ob1ections are answered, the close ma, take some time.
16-83.
Kuestions and ob1ections from customers following a sales presentation indicate a salesperson that was poorl, prepared. Answer: alse !": '$!!: ( %age: &&;
5ationale: .ustomers often will have -uestions and legitimate concerns about a product. *he sales person should not take these concerns and doubts as an indication that the customer is challenging the presentation. 5ather, customer -uestions and concerns should be viewed as an opportunit,. +n fact, b, helping customers resolve their doubts, salespeople can create a better relationship with the customer.
16-84.
Anita en1o,s her 1ob as a salesperson for a store that sells high -ualit, entertainment s,stems. As an effective salesperson, Anita is expected to help her customers resolve an, doubts the, might have before the sale, and follow up to ensure that the customer is satisfied after the sale. Answer: *rue !": '$!!: ( %age: &&; A &&#
5ationale: A salesperson should anticipate potential ob1ections and determine proper responses. .ustomers will have legitimate doubts, and salespeople are there to resolve those doubts. 3oreover, the sales process doesn4t end when the sale is made. 8alespeople are expected to follow up after a sale and continue to build a relationship with the customer.
14
16-85.
*o be successful, salespeople find that their 1ob responsibilities extend far be,ond the close of the sale. Answer: *rue !": '$!!: ( %age: &&#
5ationale: *he selling process often continues for ,ears as the salesperson responds to existing customer re-uests for new information.
16-86.
Iffective salespeople push hard to finali:e a sale as soon as the, finish their presentation. Ctherwise, the customer has time to come up with ob1ections that will make the sale more difficult to close. Answer: alse !": '$!!: ( %age: &&;
5ationale: 8alespeople cannot spend unlimited time with a single customer, so the, must find wa,s to close the sale. Lowever, this does not mean the salesperson must use high pressure tactics or tr, to rush the customer into a decision. 8alespeople must reali:e that customers can have legitimate -uestions and concerns, and the, should look at these ob1ections as an opportunit, to forge a stronger relationship with the customer.
16-87.
Bob is a salesperson for a firm that markets products in a B(B market. Lis wife, 8all,, is a salesperson for a retail store selling top -ualit, electronics goods. 6hile Bob is likel, to be successful using follow up after the sale, 8all, should avoid this approach. Answer: alse !": '$!!: ( %age: &&#
5ationale: As in the B(B market, salespeople in consumer markets are finding success following up after the sale.
16-88.
After her sales presentation. 6hitne, asks her customers which color the, prefer and if the, would like to pa, b, credit card. 8he hopes that these -uestions will help the sales process move be,ond the customer)s -uestions and ob1ections. 6ith limited time, 6hitne, is utili:ing a trial close to help finali:e the sale more -uickl,. Answer: *rue !": '$!!: ( %age: &&;
5ationale: 8alespeople can)t spend forever with one potential customer answering -uestions and ob1ections. B, assuming that the customer has made the purchase decision, 6hitne,)s -uestions help finali:e the sale.
16-89.
Hose is a salesperson for a firm that sells and leases heav, construction e-uipment. *his e-uipment is ver, expensive, and is highl, speciali:ed. Hose spends a great deal of time learning about potential customers) needs, then uses his knowledge of the +nternet to locate exact specifications of e-uipment offered b, all the ma1or producers in the industr,. Armed with this information, Hose is able to identif, the best e-uipment for each 1ob. Hose has completed the preapproach stage of the selling process. Answer: *rue !": '$!!: ( %age: &&;
5ationale: +n the preapproach stage the salesperson does further research b, learning as much as possible about customers and their wants and needs.
16-90.
As customers walk into %hat %at)s clothing store, the, are greeted b, a salesperson who asks, E3a, + help ,ouMF 8tudies indicate that this is an effective opening in the B(. sales process. Answer: alse !": '$!!: ( %age: &&#
5ationale: Actuall,, E3a, + help ,ouMF is not an effective opening because the answer too often is E?o.F A better approach is to ask, E6hat ma, + help ,ou withMF or ELow are ,ou toda,MF *he idea is to show the customer that ,ou are there to help and that ,ou are friendl, and knowledgeable. As a salesperson greeting a customer, ,our goal is to discover what the customer wants.
Learning Goal /
Describe the role of the public relations department, and how publicit, fits in that role.
16-91.
As one of the tools included in a firm)s promotion mix, public relations is intended to earn public understanding and acceptance. Answer: *rue !": &$!!: # %age: &&(
16-92.
%ublic relations involves the evaluation of public attitudes and execution of a program to earn public acceptance. Answer: *rue !": &$!!: # %age: &&(
16-93.
An effective public relations department regularl, listens to and communicates with the public. Answer: *rue !": &$!!: # %age: &&(
1!
16-94.
An effective public relations program informs the public that the firm is responsive to their needs. Answer: *rue !": &$!!: # %age: &&(
16-95.
*o be effective and maintain its independence, the public relations department should avoid establishing close relationships with the media, communit, leaders, and other corporate stakeholders. Answer: alse !": &$!!: # %age: &&(
16-96.
Iffective public relations demands a dialogue with customers so that information can be exchanged and trust can be developed. Answer: *rue !": &$!!: # %age: &&(
16-97.
8uccessful %5 departments find that listening to the public is not enough. *he, have to tell the public that the, are being responsive. Answer: *rue !": &$!!: # %age: &&(
16-98.
%ublic relations departments work closel, with media, avoiding the time consuming effort of interacting with individual customers. Answer: alse !": &$!!: # %age: &&(
16-99.
Iffective public relations re-uires listening to the public and developing policies that reflect the public)s interest. Answer: *rue !": &$!!: # %age: &&(
16-100. %5 firms find that their services are not effective with clients with +nternet business
operations. Answer: alse !": &$!!: # %age: &&(
16-101. %ublicit, is the talking arm of public relations.

Answer: *rue !": &$!!: # %age: &&'
16-102. 2nlike other promotional tools, publicit, is free.

Answer: *rue !": &$!!: # %age: &&'
16-103. .ompared to advertising, publicit, is less believable.

Answer: alse !": &$!!: # %age: &&'
1"
16-104. %ublicit, can be either positive or negative.

Answer: *rue !": &$!!: # %age: &&'
16-105. .ompared to advertising, publicit, offers a firm greater control over when and how
often the message is communicated. Answer: alse !": &$!!: # %age: &&'
#07#;0. %ublicit, works onl, if the media find the material interesting or newsworth,. Answer: *rue !": &$!!: # %age: &&'
16-107. *he first step in the public relations process is to ensure that ever,one in the
organi:ation understands the firm)s position on ke, issues. 6ith this information widel, available, efforts can be made to persuade the public of the firm)s virtues. Answer: alse !": &$!!: ( %age: &&(
5ationale: "ood public relations begins with listening to the public. %ublic relations is not about generating propaganda to convince customers that the, are alwa,s right. +nstead, firms that make effective use of public relations earn public trust and approval b, being willing to change their policies and procedures to make sure the, are in the public interest.
16-108. As a manager for a firm that produces a variet, of recreational e-uipment and
sporting goods, Kevin is convinced that his firm markets the safest, highest -ualit, e-uipment in the entire industr,. 5ecent studies from the .onsumer %roduct 8afet, .ommission support his position. Kevin feels that the best wa, to create an image of high -ualit,, safe products is to develop an extensive advertising campaign. Kevin reali:es that publicit, lacks the credibilit, that advertising can generate. Answer: alse !": &$!!: ( %age: &&'
5ationale: Aside from being free, the biggest advantage of publicit, is that it is more believable than advertising. *hus, if believabilit, is a concern, Kevin should first write a press release about the safet, statistics that grabs the attention of media. +f the news media report this information, Kevin will not onl, save advertising mone,, but he ma, also enhance the public4s belief in the information presented.
16-109. Businesses alwa,s welcome publicit, because it presents the name of the firm and
its products to the public for free. Answer: alse !": &$!!: ( %age: &&'
5ationale: ?ot all publicit, is good publicit,.
1#
16-110. 6hile the "reed, .orporation legall, harvests trees in national forests, this activit,
is particularl, unpopular with environmentalists and tourists. *he best strateg, to respond to this criticism is to ignore the complaints and design an aggressive ad campaign emphasi:ing the 1obs and economic benefits created b, their logging operations. Answer: alse !": &$!!: ( %age: &&(
5ationale: Iffective public relations starts with listening to the public. A firm won)t achieve public relations success b, ignoring the public)s concerns or b, bombarding the public with propaganda.
16-111. 3ar,land .hemical demands complete control over an, message communicated to
the public regarding their products. *he most efficient element of the promotion mix to achieve their desired control is publicit,. Answer: alse !": &$!!: ( %age: &&'
5ationale: A disadvantage of publicit, is that there is no guarantee the news media will use the information, and even if the, do, the timing ma, not be desirable or the media ma, modif, the stor,. *hus, the business has no control over how, when, or if the media gives it favorable publicit,.
Learning Goal 0
Ixplain the importance of various forms of sales promotion, including sampling.
16-112. 8ales promotion involves the long7term strategies firms use to enhance their image.
Answer: alse !": =$!!: # %age: &&'
16-113. 8ales promotion programs can be used to generate emplo,ee enthusiasm.

Answer: *rue !": =$!!: # %age: &&&
16-114. .oupons, contests, and sampling represent sales promotion activities.

Answer: *rue !": =$!!: # %age: &&&/ figure #0.G
16-115. +nternal sales promotion programs are targeted to reach the firm)s internal auditors.
Answer: alse !": =$!!: # %age: &&&
16-116. +nternal sales promotion efforts include training for salespeople.
1$
Answer: *rue
!": =$!!: #
%age: &&&
16-117. +nternal promotion efforts target salespeople and emplo,ees that handle customer
complaints. Answer: *rue !": =$!!: # %age: &&&
16-118. *he use of coupons and sales contests represent public relations activities.
Answer: alse !": =$!!: # %age: &&&/ figure #0.G
16-119. *he most effective sales promotion programs target customers, rather than
emplo,ees and marketing intermediaries. Answer: alse !": =$!!: # %age: &&&
16-120. *rade shows represent sales promotion programs designed to create product
enthusiasm in distributors and dealers. Answer: *rue !": =$!!: # %age: &&& A &&=
16-121. >irtual trade shows promote services rather than tangible products.
Answer: alse !": =$!!: # %age: &&& A &&=
16-122. +t)s 1ust as important to generate emplo,ee enthusiasm about a product as it is to

attract potential customers. Answer: *rue !": =$!!: # %age: &&&
16-123. 8ampling represents a -uick and effective wa, to demonstrate a product)s

superiorit, at the time when consumers are making a purchase decision. Answer: *rue !": =$!!: # %age: &&=
16-124. As a salesperson for an electrical contractor, "reg is included as part of the target
audience for sales promotion from his own compan,. Answer: *rue !": =$!!: ( %age: &&&
5ationale: +t4s 1ust as important to get emplo,ees enthusiastic about a sale as it is to attract potential customers. *he most important internal sales promotion efforts are directed at salespeople and other customer7contact people.
2%
16-125. Because customers eventuall, lose interest, businesses achieve the best results
when the, use sales promotion activities on a limited and irregular basis. Answer: alse !": =$!!: ( %age: &&=
5ationale: 8ales promotion activities are short term but are carried out on an ongoing basis to maintain enthusiasm. Different promotional techni-ues and strategies can be used over time to keep the ideas fresh.
16-126. Iffective sales promotion efforts focus exclusivel, on external audiences such as
dealers and consumers, since the, ultimatel, decide the fate of a product. Answer: alse !": =$!!: ( %age: &&&
5ationale: Cften the most important sales promotion efforts are directed internall, at salespeople and other customer7contact persons such as complaint handlers and clerks.
16-127. 8ales promotion efforts aimed at distributors and dealers are intended to generate
their enthusiasm for a firm)s products. Answer: *rue !": =$!!: ( %age: &&&
5ationale: 6hen dealers and distributors are excited about a manufacturer4s product, the, can be an integral part of the total promotional effort. #07#(G. 6hen %epsi introduced its ruit6orks product line during spring break in %anama .it,, lorida and 8outh %adre +sland, *exas it gave out free samples and provided free rides on %epsi trucks. %epsi was practicing event marketing. Answer: *rue !": =$!!: ( %age: &&=
5ationale: %epsi introduced its ruit6orks product line with a combination of sampling, event marketing, and a new website. Ivent marketing means sponsoring events such as rock concerts or being at various events to promote ,our products. +n the case of ruit6orks, %epsi first sent samples to lorida and *exas for spring break and was there to provide free rides on %epsi trucks.
Learning Goal 6
"ive examples of word of mouth, viral marketing, blogging, and podcasting.
16-129. An,thing that encourages people to talk favorabl, about an organi:ation ma, be
effective word7of7mouth promotion.
21
Answer: *rue
!": 0$!!: #
%age: &&=
22
16-130. A number of businesses utili:e a strateg, that pa,s people to generate favorable
word7of7mouth promotion. Answer: *rue !": 0$!!: # %age: &&0
16-131. >iral marketing describes ever,thing from pa,ing people to sa, positive things on
the +nternet to schemes where consumers get commissions for directing friends to specific websites. Answer: *rue promotion. Answer: alse !": 0$!!: # %age: &&0 !": 0$!!: # %age: &&0
16-132. *he popularit, of the +nternet has reduced the importance of word7of7mouth
16-133. 3ultilevel selling schemes that reward consumers for directing other consumers to
specific websites represent an example of viral marketing. Answer: *rue !": 0$!!: # %age: &&0
16-134. A testimonial represents communication from a customer that praises a firm4s

products. Answer: *rue !": 0$!!: # %age: &&0
16-135. 6hile testimonials effectivel, promote products to new customers, the, are not
effective in reaching existing customers. Answer: alse !": 0$!!: # %age: &&0
16-136. Cnline chat rooms and bulletin boards offer opportunities for positive and negative
word7of7mouth promotion. Answer: *rue !": 0$!!: # %age: &&0
16-137. An, word7of7mouth promotion that puts a compan,)s product in the public)s attention
is good promotion. Answer: alse !": 0$!!: # %age: &&0
16-138. A blog is an online diar, that looks like a 6eb page but is easier to create.
Answer: *rue !": 0$!!: # %age: &&0
#07#'9. *here are over 9 million blogs on the +nternet toda, and &;,;;; new ones are being added each da,.
23
Answer: *rue
!": 0$!!: #
%age: &&0
24
16-140. %odcasting is a means of distributing audio and video programs but these programs
can onl, be seen and heard using an Apple i%od. Answer: alse Eradio shows.F Answer: *rue !": 0$!!: # %age: &&D !": 0$!!: # %age: &&D
16-141. %odcasting enables independent producers to create self7published, s,ndicated
16-142. *he popularit, of the +nternet enables companies to decrease their emphasis on
traditional promotional tools such as *> advertising. Answer: *rue !": 0$!!: # %age: &&D
16-143. ?ew and faster +nternet technolog, provides more power to consumers in the
exchange activit, between bu,ers and sellers. Answer: *rue !": 0$!!: # %age: &&D
16-144. +nternet technolog, enables firms to utili:e more interactive sales promotion
programs. Answer: *rue !": 0$!!: # %age: &&D
#07#&=. According to the "S1o%lig&% on S2all ),-ine--' box in .hapter #0, small businesses find that publicit, in the wedding planning business is not important. Answer: alse !": 0$!!: # %age: &&G/ S1o%lig&% on S2all ),-ine-- box
16-146. Iach target group re-uires a separate promotion mix.

Answer: *rue !": 0$!!: # %age: &&G
16-147. %ersonal selling provides the most efficient element of the promotion mix for a firm
attempting to reach a large, homogeneous group of consumers. Answer: alse !": 0$!!: # %age: &&G
16-148. !arge organi:ations are best reached through personal selling.

Answer: *rue !": 0$!!: # %age: &&G
16-149. 8ales promotion efforts are used to motivate people to bu, now rather than later.
Answer: *rue !": 0$!!: # %age: &&G
16-150. A pull strateg, utili:es consumer demand for a product to motivate retailers and
wholesalers to activel, market the product.
Nickels, McHugh & McHugh, Understanding Business, Eighth Edition 2
Answer: *rue
!": 0$!!: #
%age: &&G A &&9
16-151. %ush strategies target consumers with sales promotion designed to create a strong
demand for the product. Answer: alse !": 0$!!: # %age: &&G
16-152. *he ob1ective of a push promotional strateg, is to move a product through a

distribution channel b, offering incentives to wholesalers and retailers to stock and sell the merchandise. Answer: *rue !": 0$!!: # %age: &&G
16-153. 6hile the +nternet provides an effective medium for word7of7mouth promotion, it has
been ineffective for firms utili:ing a pull or push promotion strateg,. Answer: alse !": 0$!!: # %age: &&9
16-154. *he total s,stems approach to marketing attempts to develop a value package that
appeals to retailers, manufacturers, distributors, and consumers. Answer: *rue !": 0$!!: # %age: &&9
16-155. 6hile word of mouth represents an effective promotional tool, the need for face7to7
face communication limits its usefulness. Answer: alse !": 0$!!: ( %age: &&=
5ationale: 6ord of mouth encourages people to tell others about products the, have tried and liked. *his does not re-uire people to meet face7to7face. +n fact, a great deal of word7of7mouth promotion these da,s takes place over the +nternet.
16-156. 3otivated b, the disrespectful treatment he received at a department store, Karnell

shared his bad experience on an +nternet chat room. Le encouraged others to follow his lead and not patroni:e that store. Karnell4s statements represent word7of7 mouth promotion. Answer: *rue !": 0$!!: ( %age: &&=
5ationale: 6ord of mouth can occur over the +nternet. +n fact, the popularit, of the +nternet has made word of mouth more important and effective than ever. Cbviousl,, firms tr, to generate favorable word of mouth, but word of mouth can also be negative.
2!
16-157. Best %ick, a home electronics superstore, knows the value of reassuring their
current customers that the, made the right choice when the, decided to give Best %ick their business. *estimonials would be an effective promotional activit, to confirm the purchase decisions of Best %ick)s customers. Answer: *rue !": 0$!!: ( %age: &&0
5ationale: *estimonials are normall, used to attract new customers, but the, can also be ver, effective in confirming current customers4 beliefs that the, chose the right compan,.
16-158. %a,ola %romotions has offered to give !isa free tickets to a concert it is promoting in
return for !isa4s agreement to share her positive experience with others on +nternet chat rooms. *he concert tickets !isa receives represent swag. Answer: *rue !": 0$!!: ( %age: &&0
5ationale: 8wag refers to the inducements people receive to h,pe products. 8wag t,picall, takes the form of free tickets, *7shirts, backstage passes, and other forms of merchandise.
16-159. 6ood,)s >itamins utili:es the +nternet to market their products. .urrentl,, the, offer
existing customers a commission if the, successfull, direct a friend to bu, from the 6ood,)s website. *his program represents an example of underground relationship promotions. Answer: alse !": 0$!!: ( %age: &&0
5ationale: 6ood,)s commission program represents one t,pe of viral marketing.
16-160. A recent stud, reveals that regardless of the product or target market, a basic
promotion mix works most efficientl,. Answer: alse !": 0$!!: ( %age: &&G
5ationale: Iach target group calls for a separate promotional mix of advertising, coupons, discounts, publicit,, and word of mouth.
16-161. 3uscleup has designed a pull strateg, that promotes its li-uid protein drink directl,
to consumers through television ads and newspaper coupons. Answer: *rue !": 0$!!: ( %age: &&G A &&9
5ationale: +n a pull strateg,, advertising and sales promotion efforts are directed toward consumers to motivate them to re-uest the products from their local retailers.
2"
16-162. ?ordic *rack utili:es newspaper and *> ads designed to motivate potential bu,ers.
*his represents a push promotional strateg,. Answer: alse !": 0$!!: ( %age: &&G A &&9
5ationale: A pull strateg, utili:es heav, advertising and sales promotion efforts directed toward consumers. A push strateg, is directed to wholesalers and retailers in an effort to get them to stock and sell the product.
16-163. *o have an effective promotional strateg,, firms are re-uired to choose between a
push strateg, and a pull strateg,. Answer: alse !": 0$!!: ( %age: &&9
5ationale: A firm could use both a push and pull strateg, at the same time in a ma1or promotional effort. A push strateg, is aimed at wholesalers and retailers, while a pull strateg, is aimed at consumers.
16-164. Advertising the newest Mission (mpossi+le movie during a 'aturda, Night -ive
episode on *> represents a pull strateg,. Answer: *rue !": 0$!!: ( %age: &&9
5ationale: A pull strateg, utili:es heav, advertising and sales promotion efforts directed toward consumers. A push strateg, is directed to wholesalers and retailers in an effort to get them to stock and sell the product.
16-165. *he total s,stems approach to marketing combines a firm)s promotional efforts for
the exclusive satisfaction of consumers. Answer: alse !": 0$!!: ( %age: &&9
5ationale: *he intent of the total s,stems approach to marketing is to develop a value package that would appeal not 1ust to consumers, but also to ever,one in the suppl, chain: manufacturers, distributors, and retailers as well as consumers.
2#
MULTIPLE CHOICE
Learning Goal 1
Define promotion and list the four traditional tools that make up the promotion mix.
16-166. *he goal of NNNNNNNNNN is to inform and remind people in a target market about
specific products, eventuall, persuading them to participate in an exchange. A) promotion B) market research C) market segmentation D) marketing lo,alt, Answer: A !": #$!!: # %age: &'(
16-167. *he combination of advertising, personal selling, public relations, and sales
promotion activities traditionall, used b, an organi:ation represents its: A) marketing communications s,stem. B) marketing mix. C) public relations package. D) promotion mix. Answer: D !": #$!!: # %age: &'(
16-168. NNNNNNNN combines all the promotional tools emplo,ed b, a firm into one
comprehensive and unified promotional strateg,. A) A market unification plan B) +ntegrated marketing communication C) A push promotional program D) A target coordination program Answer: B !": #$!!: # %age: &'(
#07#09. A promotional campaign begins b,: A) identif,ing a target market. B) defining the ob1ectives for each element of the promotion mix. .) determining a promotional budget. D) developing a unif,ing message. Answer: A !": #$!!: # %age: &'(/ figure #0.(
2$
16-170. *he traditional promotion mix for a firm consists of the: A) strategic mix of price, product, place and advertising. B) various t,pes of advertising media the firm selects to reach each specific C) D)
target market. marketing intermediaries emplo,ed b, the firm to create a suppl, value chain. advertising, personal selling, public relations, and sales promotion used to reach a target market. !": #$!!: ( %age: &'(
Answer: D
5ationale: A promotion mix consists of the combination of all the promotional tools a firm uses to promote its products and services. *raditionall,, this has included not onl, advertising, but also personal selling, public relations, and sales promotion. #07#D#. .reating a positive brand image b, using all the promotional tools in a comprehensive, unified promotional strateg, is called: A) brand awareness. B) brand publicit,. .) integrated promotional communication. D) integrated marketing communication. Answer: D !": #$!!: ( %age: &'(
5ationale: +ntegrated marketing communication combines all the promotional tools into one comprehensive, unified promotional strateg,. *he idea is to use all the promotional tools and compan, resources to create a positive brand image and to meet the strategic marketing and promotional goals of the firm. Level o Learning . (Applies principles)
16-172. ?ightbrite)s NNNNNNNN relies heavil, on advertising, personal selling, and a limited
use of sampling. A) marketing mix B) promotion mix C) communication network D) transfer marketing Answer: B !": #$!!: ' %age: &'(
5ationale: A compan,4s promotion mix is some combination of promotional tools such as advertising, personal selling, word of mouth, sales promotion, sampling, public relations, and publicit,.
3%
16-173. 3assachusetts 3anufacturing has redesigned its promotional strateg,. *he

compan, now utili:es a s,stem that combines all the elements of their promotion mix to create a more responsive organi:ation providing a consistent message. 3assachusetts 3anufacturing has adopted a(n): A) internal marketing program. B) integrated marketing communication s,stem. C) multilevel coordination plan. D) stakeholder response s,stem. Answer: B !": #$!!: ' %age: &'(
5ationale: *he purpose of integrated marketing communication is to combine all the promotional tools into one comprehensive, unified promotional strateg,. *he idea is to use all the promotional tools and compan, resources to create a positive brand image and to meet the strategic marketing and promotional goals of the firm.
16-174. *he management of "ames%eople designed a comprehensive strateg, that unifies

advertising, personal selling, public relations and sales promotion activities creating a consistent message. *his effort to promote a positive brand image represents a(n) NNNNNNNN program. A) global marketing B) interactive promotion C) integrated marketing communication D) unified segmentation Answer: . !": #$!!: ' %age: &'(
5ationale: +ntegrated marketing communication combines all elements of the promotion mix into one comprehensive and unified promotion strateg, with the aim of building a positive brand image.
Learning Goal !
Define advertising and describe the advantages and disadvantages of various advertising media, including the +nternet.
16-175. NNNNNNNNN refers to an, paid, nonpersonal communication through various media
b, organi:ations and individuals who are in some wa, identified in the message. A) %ublicit, B) %romotion C) %ublic relations D) Advertising Answer: D !": ($!!: # %age: &''
31
16-176. *he total annual expenditures on advertising in the 2nited 8tates: A) peaked last ,ear at approximatel, <D; billion. B) have declined significantl, as firms utili:e the promotional opportunities of the C) D)
+nternet. now exceed <(&= billion. provide the funds to pa, unemplo,ment benefits. !": ($!!: # %age: &''
Answer: .
16-177. Advertising to wholesalers and retailers b, manufacturers to encourage them to

carr, their products is called: A) retail advertising. B) trade advertising. C) business7to7business advertising. D) institutional advertising. Answer: B !": ($!!: # %age: &''/ figure #0.'
#07#DG. 6hen an organi:ation uses advertising to create an attractive image for itself, this t,pe of advertising is called: A) retail advertising. B) trade advertising. .) comparison advertising. D) institutional advertising. Answer: D !": ($!!: # %age: &''/ figure #0.'
16-179. NNNNNNNN advertising encourages wholesalers and retailers to carr, the products of
a specific manufacturer. A) Advocac, B) B(B comparison C) *rade D) +nstitutional Answer: . !": ($!!: # %age: &''/ figure #0.'
16-180. NNNNNNNN advertising supports a particular view or position on an issue. A) Advocac, B) +nstitutional C) .omparison D) *rade
Answer: A !": ($!!: # %age: &''/ figure #0.'
16-181. *he medium that accounts for the largest share of total advertising expenditures is: A) cable and broadcast television. B) the +nternet. C) radio.
32
D)
newspapers. !": ($!!: # %age: &'&/ figure #0.&
Answer: A
16-182. +n terms of total dollars spent, the number one and two advertising media are: A) broadcast and cable television along with direct mail. B) the +nternet and television. C) television and newspapers. D) newspapers and radio.
Answer: A !": ($!!: # %age: &'&/ figure #0.&
16-183. Cne advantage of maga:ine advertising is that: A) the ad must conform to post office regulations. B) the exposure time is short. C) the ad is available at the point of purchase. D) the ad can target specific audiences.
Answer: D !": ($!!: # %age: &'&/ figure #0.=
16-184. *he best advertising medium to reach a specific target market is: A) radio. B) newspapers. C) television. D) direct mail.
Answer: D !": ($!!: # %age: &'&/ figure #0.=
16-185. *he effectiveness of direct mail advertising suffers from: A) its inflexibilit,. B) the limited length of the message. C) the consumer perception that it is 1unk mail. D) its inabilit, to target specific markets.
Answer: . !": ($!!: # %age: &'&/ figure #0.=
16-186. *he effectiveness of maga:ine advertising is reduced b, its: A) inflexibilit,. B) inabilit, to target specific markets. C) brief life span. D) higher total cost, relative to television advertising.
Answer: A !": ($!!: # %age: &'&/ figure #0.=
16-187. 6hich of the following is a ma1or strength of direct mail advertisingM A) low cost B) widespread acceptance b, consumers C) sub1ect to few restrictions or regulations
33
D)
abilit, to accuratel, target specific markets !": ($!!: # %age: &'&/ figure #0.=
Answer: D
34
16-188. 6hich of the following refers to the practice of pa,ing to have a product appear
favorabl, in a *> show or movieM A) interactive promotion B) product placement C) brand association D) market recognition Answer: B !": ($!!: # %age: &'=
16-189. +nfomercials provide the opportunit, for: A) the product to sell itself. B) product placement to occur. C) the use of outdoor advertising. D) the promotional mix to be avoided.
Answer: A !": ($!!: # %age: &'=
16-190. *> programs devoted exclusivel, to promoting goods and services are called: A) testimonials. B) infomercials. C) interactive *>. D) online computer advertising.
Answer: B !": ($!!: # %age: &'=
16-191. NNNNNNNNNN changes the relationship between bu,ers and sellers from a
monologue to a dialogue in which information is shared to create mutuall, beneficial exchanges. A) Advertising B) A push strateg, C) +nteractive promotion D) %ublic relations Answer: . !": ($!!: # %age: &'D
16-192. "ardening.com is an online retailer of garden products. B, allowing communication

between gardeners and experts via its website "ardening.com is using: A) interactive promotion. B) a linked marketing contact s,stem. C) a flexible response strateg,. D) an as,nchronous relationship. Answer: A !": ($!!: # %age: &'D
16-193. Advertisers like online advertising because: A) the, are able to see how man, people have read or watched some part of a B) C) D)
commercial. it is eas, to create. it is inexpensive. few advertisers are using the +nternet so their message will stand out. !": ($!!: # %age: &'D
Answer: A
16-194. 6hich of the following offers the greatest potential for meaningful interaction
between bu,ers and sellersM A) testimonials B) infomercials C) .D75C3 advertising D) +nternet Answer: D !": ($!!: # %age: &'D
16-195. .ompanies can implement global marketing b, developing a product and

promotional strateg, that: A) is tailored to each individual market. B) can be implemented worldwide. C) re-uires low7cost production through outsourcing. D) motivates intermediaries (i.e. wholesalers and retailers) to activel, stock and sell the firm)s goods and services. Answer: B !": ($!!: # %age: &'D
16-196. *he evidence supports the position that promotional efforts specificall, designed for
individual countries produce: A) less sales and profits than a global promotional strateg,. B) better results than a global promotional strateg,. C) higher overall costs than a global promotional strateg,. D) superior results onl, when the product is also produced in each countr,. Answer: B !": ($!!: # %age: &'D
16-197.
uture promotional efforts will likel, be: A) custom7designed to reach smaller audiences. B) targeted at larger audiences. C) less interactive and more persuasive. D) similar to promotional efforts toda,. Answer: A !": ($!!: # %age: &'G
3!
16-198. +n their advertisements, !uther %harmaceuticals asks consumers to 1udge their

product, Ache7 ree, against a well known competitor)s product to see that Ache7 ree provides superior pain relief. *his represents: A) advocac, advertising. B) comparison advertising. C) trade advertising. D) interpretive advertising. Answer: B !": ($!!: ( %age: &''/ figure #0.'
5ationale: .omparison advertising encourages consumers to 1udge between two or more products.
16-199. 6hich of the following is an advantage of maga:ine advertisingM A) short exposure time B) abilit, to -uickl, change message C) superior color D) relativel, short life
Answer: . !": ($!!: ( %age: &'&/ figure #0.=
5ationale: 3aga:ine ads offer good use of color.
16-200. 6hich of the following media enables firms to -uickl, change their advertising
messageM A) @ellow %ages B) maga:ines C) newspapers D) television Answer: . !": ($!!: ( %age: &'&/ figure #0.=
5ationale: An advantage of newspapers is that the, normall, come out dail, and allow firms to place revised ads -uickl,.
16-201. 6hich of the following represents a disadvantage of outdoor advertisingM A) low selectivit, of audience B) poor coverage of local markets C) low visibilit, of message D) high cost
Answer: A !": ($!!: ( %age: &'&/ figure #0.=
5ationale: Cutdoor advertising is a low cost method that has good local coverage and offers repeated exposure to the message. Lowever, it does not target a specific market ver, effectivel,.
3"
3#
16-202.
irms with a limited advertising budget would lea-% likel, use NNNNNNNN advertising. A) +nternet B) radio C) outdoor D) television Answer: D !": ($!!: ( %age: &'&/ figure #0.=
5ationale: A ma1or disadvantage of television is its high cost.
16-203. 6hich of the following helps explain the popularit, of infomercialsM A) the interactive nature of the presentation B) the abilit, to demonstrate the product)s benefits C) the use of an inexperienced salesperson D) little impact of testimonials on potential bu,ers
Answer: B !": ($!!: ( %age: &'=
5ationale: +nfomercials use product demonstrations that clearl, show the product)s benefits.
16-204. 6hich of the following statements is the most accurateM A) 8tudies indicate that effective promotion focuses on the pricing elements of B) C) D)
the marketing mix. *he +nternet changes the focus of promotion from Eworking withF to Epromoting toF customers. ?ew promotional efforts create a more interactive approach, developing a dialogue between the firm and its customers. 8uccessful promotion utili:es each element of the promotion mix independentl,, creating a well diversified message. !": ($!!: ( %age: &'D
Answer: .
5ationale: !argel, due to the development of the +nternet, promotion is becoming more interactive. *he goal of this interactive promotion is to create a dialogue between a firm and its customers.
3$
Level o Learning . (Applies principles)
16-205. .arolina +nsurance wants to create a more interactive approach to advertising in

order to build strong relationships with their customers. 6hich of the following represents the preferred advertising medium to achieve their goalM A) the +nternet B) radio C) newspapers D) trade shows Answer: A !": ($!!: ' %age: &'D
5ationale: *he +nternet allows the compan, to interact with its customers. .ustomer relationship software and other speciali:ed software make it possible for firms to track customer purchases online and answer customer -uestions. Cf course, trade shows are also OinteractiveO but the, are not an advertising medium.
16-206. +ndiana %rocessing promotes its services through Mechanical Engineers .oda,, a
trade maga:ine that charges +ndiana %rocessing and other companies <=;;; per page to help offset the maga:ine)s publishing costs. *his promotional activit, is an example of: A) publicit,. B) advertising. C) public relations. D) trade shows. Answer: B !": ($!!: ' %age: &''
5ationale: Advertising is a paid, nonpersonal communication made through various media b, organi:ations and individuals who are in some wa, identified in the advertising message.
16-207. 6hich of the following statements is the most accurateM A) Advertising helps pa, for production costs of newspapers and maga:ines. B) 6ord of mouth is the most effective form of advertising. C) Advertising does not provide information to consumers/ it merel, advertises D)
products. .onsumers don)t remember good advertisements. !": ($!!: ' %age: &''
Answer: A
5ationale: Cne of the benefits of advertising is that the mone, from advertisers helps pa, for the production costs of newspapers and maga:ines.
4%
16-208. 6hich of the following statements about global advertising is most correctM A) irms should avoid advertising in foreign markets and rel, instead on other B) C) D)
elements of their promotion mix, such as personal selling and public relations. *elevision is the best advertising medium for 2.8. firms tr,ing to promote their products in foreign countries. "lobal advertising involves developing a single promotional strateg, that can be implemented worldwide. "iven the lower incomes of consumers in man, foreign countries, the best wa, to promote American goods is utili:ing a low price strateg,. !": ($!!: ' %age: &'D
Answer: .
5ationale: "lobal advertising calls for the development of a single product and promotional strateg, that can be implemented worldwide.
16-209. Ixperience indicates that the best promotional strateg, for firms operating globall,
is:
A) B) C) D)
a Eone mix fits allF strateg,. to uni-uel, design a strateg, for each countr,. based on total operating costs. designed b, foreign intermediaries. !": ($!!: ' %age: &'D
Answer: B
5ationale: Ividence supports the theor, that promotional efforts specificall, designed for individual countries work best.
16-210. +nteractive promotion: A) attempts to create a dialogue between bu,ers and sellers. B) transforms the approach from Eworking withF to Epromoting toF customers. C) fails to build long term relationships with customers. D) is an increasingl, important element of the personal selling mix.
Answer: A !": ($!!: ' %age: &'D
5ationale: +nteractive promotion changes the promotion process from a monologue where sellers tr, to persuade bu,ers to purchase their goods, to a dialogue where bu,ers and sellers can work together to create mutuall, beneficial exchanges. *his approach re-uires firms to listen to what consumers want, track their purchases, provide them with better service and give them more access to information.
41
16-211. 6hich of the following is re-uired to build meaningful relationships with customersM A) giving consumers access to less information B) tracking customer purchases C) Epromoting toF rather than Eworking withF customers D) offering full7service purchases over the +nternet
Answer: B !": ($!!: ' %age: &'D
5ationale: +nteractive promotion and the +nternet change the promotion process from a Epromoting toF approach to a Eworking withF relationship. *his re-uires firms to listen to what consumers want, track their purchases, provide them with better service and give them more access to information.
16-212. According to the material in the "Rea(&ing )e*on+ O,r )or+er-' box for .hapter
#0, promoting products in the large .hinese market: A) is eas, and profitable. B) can be accomplished using a global approach since consumers are more alike than most people think. *hus the best approach to marketing a good in .hina is usuall, the same approach that works well in the domestic market. C) is best done b, using personal selling. D) calls for caution since man, goods produced in .hina are counterfeit. Answer: D box !": ($!!: ' %age: &'G/ Rea(&ing )e*on+ O,r )or+er-
5ationale: Despite the fact that the .hinese market has over # billion people, promoting products in .hina calls for caution because .hinese manufacturers often produce counterfeit versions of name brand products.
16-213. *he Lispanic and Asian populations in the 2.8. are growing rapidl,. *o effectivel,
reach these groups marketers should: A) maintain a consistent approach for all consumers regardless of differences in national origin. B) use advertising as a wa, of integrating immigrants into the 2.8. culture. C) develop custom7designed promotions for all viable market opportunities. D) avoid using newspapers and radio advertising and concentrate instead on television and the +nternet. Answer: . !": ($!!: ' %age: &'G
5ationale: Ithnic groups that have sufficient market potential should be considered for customi:ed promotional messages.
42
Learning Goal .
+llustrate the steps of the B(B and B(. selling processes.
16-214. NNNNNNNN refers to the face7to7face presentation and promotion of goods and
services. *his also includes searching for prospects and providing follow7up services. A) 6ord7of7mouth promotion B) %ersonal selling C) %ublic relations D) +nternal marketing Answer: B !": '$!!: # %age: &'G
16-215. *he average cost of a single sales call to a potential B(B bu,er in the 2.8. is about: A) <&;. B) <&;;. C) <#&;;. D) <&,&;;.
Answer: B !": '$!!: # %age: &'9
16-216. %eople with an unmet need, the authorit, to bu,, and the willingness to listen to a
sales message represent a firm)s: A) prospects. B) intermediaries. C) bu,ers. D) cohorts. Answer: A !": '$!!: # %age: &'9
16-217. +n the seven step B(B selling process, the selection of potential customers is known
as:
A) B) C) D)
prospecting. s,nchroni:ing. articulating. -ualif,ing. !": '$!!: # %age: &'9
Answer: D
16-218. After prospects have been identified and -ualified, the next step in the selling
process is NNNNNNNNNN. *his step re-uires the salesperson to learn as much as possible about the potential customers wants and needs. A) customer specification B) the preapproach
Nickels, McHugh & McHugh, Understanding Business, Eighth Edition 43
C) D)
consumer trait anal,sis customer -uantification
Answer: B !": '$!!: # %age: &&; 16-219. *he approach step of the selling process attempts to: A) -ualif, potential customers who are willing and able to bu,. B) build credibilit, and establish rapport. C) close the sale. D) learn about potential customers and their wants and needs. Answer: B !": '$!!: # %age: &&;
16-220. *he last step of the selling process is: A) follow up. B) closing. C) posting. D) trial closing.
Answer: A !": '$!!: # %age: &&#
16-221. *he purpose of a NNNNNNNNNN is to -uickl, finali:e a sale. A) follow up B) closing C) trial closing D) commission
Answer: . !": '$!!: # %age: &&;
16-222. +n B(. sales the salesperson does not have to do much: A) follow up. B) closing. C) -ualif,ing. D) approach.
Answer: . !": '$!!: # %age: &&#
16-223. A review of the personal selling process indicates that selling is: A) a matter of establishing relationships. B) getting a name on a contract. C) about 9; percent luck and #; percent skill. D) giving wa, to computers in responding to consumer needs.
Answer: A !": '$!!: ( %age: &&#
5ationale: *he selling relationship often continues for ,ears as the salesperson
44
responds to new re-uests for information. 8elling is a matter of establishing relationships, not 1ust selling goods or services.
16-224. O@ou never get a second chance to make a good first impression,O captures the
importance of the NNNNNNNNNN step in the selling process. A) prospecting B) introduction C) -ualif,ing D) approach Answer: D !": '$!!: ( %age: &&;
5ationale: *he approach is the step in selling where the salesperson calls on the customer for the first time. *he ob1ective of this step is to give an impression of professionalism, create a rapport, build credibilit,, and start a relationship.
16-225. Bethan, 1ust finished making a sales presentation to a ma1or prospect. +n the next
step of the selling process, Bethan, will likel, be: A) processing the customer4s order. B) closing the sale, b, asking the customer to make a commitment. C) answering customer -uestions and dealing with ob1ections. D) setting an appointment for the customer to meet with her boss. Answer: . !": '$!!: ( %age: &&;
5ationale: Iven if a salesperson makes an excellent presentation, customers are likel, to have -uestions the, want answered and concerns that the, want resolved before the, are willing to make a purchase. 8alespeople should not view these ob1ections in a negative wa,. +nstead, the, should look at them as an opportunit, to work with the customer to deal with their concerns and forge a stronger relationship. Level o Learning . (Applies principles)
16-226. As a new salesperson for a textbook publisher, K,lie is creating a list of professors
that decide what texts their schools use. 8he plans to email these schools to determine what texts the, are currentl, using and if the, plan to adopt a new text. +dentif,ing those decision makers that are willing to consider one of her texts is called: A) personal development. B) sales identification. C) preliminar, sales anal,sis. D) prospecting and -ualif,ing. Answer: D !": '$!!: ' %age: &&;
5ationale: %rospecting involves researching potential bu,ers and choosing the ones most likel, to bu,. *he selection process is called -ualif,ing.
4!
16-227. After completing his sales presentation, Herald)s client expressed her concerns and
-uestioned some of the details of the sales proposal. An effective salesperson would: A) downpla, these ob1ections and push to close the sale as -uickl, as possible to avoid the endless -uestions that some customers ask. B) address her concerns and develop a better relationship. C) consider revising the presentation so that next time customer concerns and ob1ections can be avoided. D) bring in the top executives of the compan, to close the sale. Answer: B !": '$!!: ' %age: &&;
5ationale: After the presentation, the next step in the selling process is to answer customer ob1ections. Kuestions and concerns b, the customer should be viewed as an opportunit, to create a stronger relationship.
16-228. 6hich of the following statements is the most accurateM A) .losing is the final and most important step in the selling process. B) Cnce a sales presentation is completed, the salesperson should attempt to C) D)
close as -uickl, as possible before the customer expresses an, doubts and concerns. .losing ma, involve getting the customer to agree to a trial close. +f the sales person has done a good 1ob of -ualif,ing prospects and has developed a strong presentation, then closing is the easiest step in the selling process. !": '$!!: ' %age: &&;
Answer: .
5ationale: .losing is an important step in the selling process, but it is not the final step. Iven after the sale is closed, the salesperson should follow up to make sure the customer is satisfied. .losing the sale ma, involve a trial close consisting of a -uestion or statement that moves the selling process toward the actual close.
16-229. As a salesperson in the B(B market, %att, regularl, calls on clients to sta, informed
of their needs or problems. Ler ob1ective is to develop solutions to meet their needs and resolve their problems. *he +nternet allows %att, to track products in the suppl, chain and to learn about pricing and promotions that would be of interest to her clients. 6hen %att, works with her existing clients there is no need for the NNNNNNNNNN step of the B(B selling process. A) prospect and -ualif, B) approach C) answer ob1ections D) close sale Answer: A !": '$!!: ' %age: &&;
5ationale: *he prospecting step involves researching potential bu,ers and choosing those most likel, to bu,. 8ince %att, is working with e/isting clients there is no need for this step.
Nickels, McHugh & McHugh, Understanding Business, Eighth Edition 4"
4#
Learning Goal /
Describe the role of the public relations department, and tell how publicit, fits in that role.
16-230. *he activit, that evaluates public attitudes, changes policies and procedures in
response to the public)s re-uests, and executes a program of action and information to earn public understanding and acceptance is called: A) marketing research. B) public relations. C) marketing communication. D) advertising. Answer: B !": &$!!: # %age: &&(
16-231. NNNNNNNNNN refers to an, information about a product or an organi:ation that is

communicated to the public through the media and is not paid for or controlled b, the sponsor. A) A market presentation B) %romotion C) %ublic relations D) %ublicit, Answer: D !": &$!!: # %age: &&'
16-232. .ompared to advertising, publicit, offers the advantage of greater: A) flexibilit,. B) personal appeal. C) believabilit,. D) message repetition.
Answer: . !": &$!!: # %age: &&'
16-233. A ma1or responsibilit, of the public relations department is to: A) decide on the appropriate mix of advertising media. B) maintain close ties with the media, communit, leaders, government officials C) D)
and other stakeholders. identif, appropriate markets for the firm4s products, and then select the most likel, customers in each market. train salespeople to interact better with their compan,4s customers. !": &$!!: # %age: &&(
Answer: B
4$
16-234. .ompared to other promotional tools, publicit,: A) costs more. B) offers the firm little control over the message. C) prevents a response from competitive firms. D) is the easiest to manage.
Answer: B !": &$!!: # %age: &&'
#07('=. Cne wa, to see that publicit, is handled well b, the media is to: A) pa, for it. B) establish a friendl, relationship with media representatives. .) write good press releases. D) ask for the best location or time in the medium under consideration. Answer: B !": &$!!: # %age: &&'
16-236. !enora 1ust finished writing a news release regarding a new product developed b,
her firm. 8he intends to email the message to local radio stations and newspapers in hopes that the, will find the information newsworth, and run a stor, about the product. !enora4s efforts represent the firm)s: A) public relations. B) institutional advertising. C) secondar, advertising. D) interactive marketing. Answer: A !": &$!!: ( %age: &&( A &&'
5ationale: A ma1or element of public relations is publicit,. irms often generate publicit, b, sending news releases to the media that the, hope the media will use in stories about the firm and its products.
16-237. *oda,)s public relations departments: A) focus more on advertising and less on publicit,. B) are downsi:ing as firms emphasi:e personal selling to promote their products. C) are more activel, listening to customers and helping to solve their problems. D) avoid relationships with the media and government officials.
Answer: . !": &$!!: ( %age: &&(
5ationale: A good public relations program begins with listening to the public. %ublic relations starts with good marketing research when the firm evaluates public attitudes.
16-238. A good public relations program recogni:es that the: A) compan, is alwa,s right. B) firm must be willing to make changes in its policies and procedures. C) firm must be independent of production and service activities. D) media profits b, selling bad news.
Answer: B !": &$!!: ( %age: &&(
5ationale: *he second step in a good public relations program is to change policies and procedures that are not in the public interest. Level o Learning . (Applies principles)
16-239. .onsumer research indicates that the public is ver, concerned about underage
drinking. +n response, *exas Brewing .ompan, has created a website providing parents with information to help avoid underage drinking in their families. *he firm also provides materials to retailers to help train their emplo,ees to avoid sales to minors. %ublici:ing these efforts: A) will likel, backfire, since few people will believe a beer compan, would seriousl, support a program that would reduce their sales. B) represents a ke, step in a good public relations program. C) illustrates a push strateg, applied to public relations. D) would distract the firm from its primar, mission of selling beer to adults. Answer: B !": &$!!: ' %age: &&(
5ationale: %ublic relations evaluates public attitudes and identifies and supports programs in the public interest. +t then informs people that the firm is being responsive to their needs.
16-240. Bonnie faces the challenge of developing the promotion mix for a new business.
"iven the uni-ueness of the new products and a ver, limited budget, Bonnie confronts a creditabilit, problem. 8he reali:es that the promotional messages of an unknown firm ma, be met with skepticism. Bonnie should consider: A) publicit, to help create a positive image for her firm and its products. B) the extensive use of persuasive advertising. C) emphasi:ing personal selling rather than public relations. D) changing 1obs because this situation is hopeless. Answer: A !": &$!!: ' %age: &&'
5ationale: %ublicit, has two advantages that are likel, to appeal to Bonnie. Cne is the media will publish stories for free if the stories are interesting and newsworth,. "iven the firm)s limited budget, this would make publicit, an attractive option. %erhaps even more important for Bonnie, a second advantage of publicit, is its believabilit,.
Learning Goal 0
Ixplain the importance of various forms of sales promotion, including sampling.
16-241. *he promotional tool that stimulates consumer purchasing and dealer interest b,
means of short7term activities, such as trade shows, event sponsorships, and contests, is known as: A) publicit,. B) public relations. C) ever, da, low prices. D) sales promotion. Answer: D !": =$!!: # %age: &&'
16-242. Iffective sales promotion activities target: A) emplo,ees onl,. B) customers onl,. C) emplo,ees, dealers and customers. D) dealers onl,.
Answer: . !": =$!!: # %age: &&&
16-243. A NNNNNNNNNN allows B(B bu,ers to see products on the +nternet (& hours a da,,
'0= da,s a ,ear without having to leave their office. A) virtual trade show B) direct marketing show C) shopping network D) c,ber market Answer: A !": =$!!: # %age: &&& A &&=
16-244. *he most important internal sales promotion efforts are directed toward: A) customers. B) salespeople. C) top management. D) accountants.
Answer: B !": =$!!: # %age: &&&
16-245. 6hich of the following is a consumer sales promotion activit,M A) contests B) advertising C) vending sales D) direct mail
Answer: A !": =$!!: ( %age: &&&/ figure #0.G
5ationale: 8ales promotion attempts to stimulate sales through short7term activities such as contests.
16-246. 6hich of the following is a B(B sales promotion activit,M A) contests B) advertising C) vending sales D) conventions
Answer: D !": =$!!: ( %age: &&'/ figure #0.D
5ationale: 8ales promotion attempts to stimulate sales through short7term activities such as conventions. .ontests are consumer sales promotions.
16-247. *o generate enthusiasm about a good or service, sales promotion: A) targets groups internall, and externall,. B) directs stockholders to sell their stock when prices increase. C) is ineffective in reaching the B(B market. D) has declined in importance because of time and cost limitations.
Answer: A !": =$!!: ( %age: &&&
5ationale: +t is 1ust as important to get emplo,ees enthusiastic about a sale as it is to attract potential customers, and sales promotion can be used to achieve this enthusiasm.
16-248. At a recent sporting event, a local beer distributor gave free beverage mugs to all
adults with a paid admission. *his is an example of: A) market segmentation. B) sampling. C) publicit,. D) sales promotion. Answer: D !": =$!!: ( %age: &&' A &&&/ figure #0.G
5ationale: 8ales promotion is a promotional tool that stimulates consumer purchasing and dealer interest b, the use of speciall, designed incentives to promote a business or a product.
16-249. .hip Cff *he Cld Block is a new chocolate chip cookie created b, the Ari:ona
.ookie .ompan,. *o generate interest for this new product, the compan, sent a free package of six cookies to selected homes along with a =;7cent coupon. Ari:ona .ookie)s activities represent: A) trade advertising. B) consumer publicit,. C) sales promotion. D) public relations. Answer: . !": =$!!: ' %age: &&&/ figure #0.G
5ationale: ree samples and cents7off coupons are examples of sales promotion activities conducted b, businesses to stimulate consumer purchasing.
16-250. 6hich of the following statements is most accurateM A) 8ales promotions are targeted both internall, and externall,. B) 8ales promotion efforts are directed at nonprofit organi:ations. C) Dealers are inappropriate targets of sales promotion activities. D) *he goal of sales promotion activities is to create consumer awareness.
Answer: A !": =$!!: ' %age: &&&
5ationale: 8ales promotion attempts to stimulate consumer, salesperson, distributor and dealer interest in a good or service.
Learning Goal 6
"ive examples of word of mouth, viral marketing, blogging, and podcasting.
16-251. NNNNNNNNNNN encourages people to tell other people about goods or services the,
have en1o,ed. A) %ersonal selling B) %ublicit, C) A trade show D) 6ord7of7mouth promotion Answer: D !": 0$!!: # %age: &&=
16-252. *he free tickets, backstage passes and merchandise firms give to people who agree
to h,pe products through +nternet chat rooms are called: A) virtual sweeteners. B) swag. C) chat cache. D) cookies. Answer: B !": 0$!!: # %age: &&0
16-253. NNNNNNNNNN refers to such tactics as pa,ing people to sa, good things about a
product on the +nternet or setting up multilevel selling schemes that reward people for directing their friends to a compan,4s website. A) >irtual inducement B) .,ber offers C) >iral marketing D) %seudo7marketing Answer: . !": 0$!!: # %age: &&0
16-254. A NNNNNNNNN is a letter from a customer praising a firm4s product. A) testimonial B) news release C) swag document D) virtual endorsement
Answer: A !": 0$!!: # %age: &&0
16-255. An online diar, that looks like a 6eb page but is easier to create and update is
called a(n): A) e7diar,. B) web diar,. C) blog. D) wog. Answer: . !": 0$!!: # %age: &&0
#07(=0. *he distribution method for audio and video programs via the +nternet that lets users subscribe to a number of files or feeds is called a: A) webcast. B) podcast. .) blog. D) filecast. Answer: B !": 0$!!: # %age: &&D
16-257. 8uccessful firms reali:e that each target group re-uires: A) a separate promotion mix. B) online computer advertising. C) infomercial testimonials. D) customi:ed legislation and training.
Answer: A !": 0$!!: # %age: &&G
16-258. *he strateg, of directing advertising and sales promotion toward consumers to
stimulate them to re-uest the products from their local retailers is called a: A) pull strateg,. B) segmentation strateg,. C) push strateg,. D) product placement strateg,. Answer: A !": 0$!!: # %age: &&G A &&9
16-259. *he use of promotional tools to persuade wholesalers and retailers to stock and sell
merchandise represents a: A) pull strateg,. B) segmentation strateg,. C) push strateg,. D) product placement strateg,. Answer: . !": 0$!!: # %age: &&G
16-260. 3iss Kitt,4s .hocolate .orral is located in an out7of7the7wa, small shopping center.
Lowever, the compan, en1o,s outstanding business because satisfied customers share their delightful experiences at 3iss Kitt,4s with their friends and relatives. 3iss Kitt,4s apparentl, benefits from positive: A) trade advertising. B) word of mouth. C) sales promotion. D) public relations. Answer: B !": 0$!!: ( %age: &&=
5ationale: 6ord7of7mouth promotion encourages people to tell other people about products the, have en1o,ed. +t can be ver, effective in generating referral business.
"
16-261. 6oodson %roductions gives ,oung adults free tickets to concerts it promotes if the,
agree to go into an +nternet chat room and share their positive experience. *he free tickets 6oodson provides represent: A) a push strateg,. B) market teasers. C) a pull strateg,. D) swag. Answer: D !": 0$!!: ( %age: &&0
5ationale: ree tickets, backstage passes and merchandise given to people in exchange for their agreement to h,pe a good over the +nternet are called swag.
16-262. +ndependent producers can create self7published s,ndicated Eradio showsF using: A) webcasting. B) email. C) podcasting. D) electronic production.
Answer: . !": 0$!!: ( %age: &&D
5ationale: %odcasting allows ,ou to become ,our own newscaster, since it enables independent producers to create self7published, s,ndicated Eradio shows.F
16-263. .ompanies that adopt a pull strateg, target their promotional efforts toward: A) consumers. B) retailers. C) wholesalers. D) manufacturers.
Answer: A !": 0$!!: ( %age: &&G 7 &&9
5ationale: +n a pull strateg,, heav, advertising and sales promotion efforts are directed toward consumers so that the, will re-uest the products from retailers.
16-264. *he primar, purpose of a pull strateg, is to: A) offer rebates and discounts to retailers and wholesalers. B) stimulate consumers to ask for a product, which then encourages retailers to C) D)
stock it. pull the distribution network together to minimi:e costs and maximi:e profits. stimulate retailers to stock each product offered b, a particular manufacturer. !": 0$!!: ( %age: &&G A &&9
Answer: B
5ationale: +f a pull strateg, works, consumers will re-uest the product at their local retail store. *his, in turn, will stimulate the retailer to re-uest the product from the manufacturer or distributor.
16-265. *he primar, purpose of a push strateg, is to: A) push products on consumers and convince them that the, need the products. B) rush the production schedule for products and beat competitors to the market. C) push the product down the distribution channel to retail stores. D) push products awa, from traditional channels of distribution to save costs.
Answer: . !": 0$!!: ( %age: &&G
5ationale: +n a push strateg,, the producer uses promotional tools to convince wholesalers and retailers to stock and sell merchandise.
16-266.
irms utili:ing a total s,stems approach to marketing design their promotional mix to meet the needs of: A) final customers. B) all members of the suppl, chain. C) salespeople and dealers. D) the general public. Answer: B !": 0$!!: ( %age: &&9
5ationale: +n a total s,stems approach, promotion is part of suppl,7chain management. *he promotional plan would be developed for the entire s,stem.
16-267. *he total s,stems approach to marketing emphasi:es communication with which of
the following groupsM A) foreign agencies B) distributors C) government agencies D) competitors Answer: B !": 0$!!: ( %age: &&9
5ationale: *he total s,stems approach to marketing stresses the importance of good relations with all members of the suppl, chain. Distributors are part of the suppl, chain.
16-268. 3ovie producers advertising their new films on *> or the newspaper are utili:ing a:
NNNNNNNN strateg,. A) push B) pull C) product placement D) word7of7mouth Answer: B !": 0$!!: ( %age: &&G A &&9
5ationale: *he goal of this pull strateg, is to stimulate consumers to re-uest movie theater operators to offer a showing of a particular film.
16-269. %rofessor Beenthere shared with his students the wonderful experience he had at a
local Asian restaurant. Le described the location in relation to campus and encouraged his students to give it a tr,. *he professor)s comments represent: A) word7of7mouth promotion. B) public relations. C) sampling. D) viral promotion. Answer: A !": 0$!!: ' %age: &&=
5ationale: 6ord7of7mouth promotion encourages people to tell others about products the, have en1o,ed.
16-270. 5egistration in %rofessor 3c?ick4s classes reaches maximum enrollment -uickl,.

8tudents register immediatel, online 1ust to insure their seat in her class. Cne student summed it up, OIver,one4s heard she is the best teacher on campus.O %rofessor 3c?ick)s classes benefit from: A) viral publicit,. B) positive public relations. C) free advertising. D) word7of7mouth promotion. Answer: D !": 0$!!: ' %age: &&=
5ationale: 6ord7of7mouth promotion occurs when people tell other people about products or services the, have en1o,ed.
16-271. After receiving poor service from her car insurance compan,, 6end, made her
complaints public b, placing them on the +nternet. *his illustrates: A) negative advertising. B) institutional sales promotion. C) public relations. D) word7of7mouth promotion. Answer: D !": 0$!!: ' %age: &&= A &&0
5ationale: 6ord of mouth can be positive or negative. ?egative word7of7mouth can be -uite destructive to a firm. 2pset customers are getting on the +nternet publishing their complaints and encouraging others to share their negative experiences.
!%
16-272. 3o4s 3ovies markets D>D movies via the +nternet. *he compan, recentl, adopted a
new program that offers their current customers free D>Ds if the, encourage their friends to visit 3oe4s 3ovies website. *his promotional program represents: A) second stage advertising. B) viral marketing. C) interlinked promotion. D) virtual inducement. Answer: B !": 0$!!: ' %age: &&0
5ationale: >iral marketing is the term now used to describe ever,thing from pa,ing people to sa, positive things on the +nternet to setting up multilevel selling schemes whereb, consumers get commissions for directing friends to specific websites.
16-273. Budliter has a new ad campaign for its product. +n an effort to determine whether
consumers like the ad and characters it created, Budliter is monitoring NNNNNNNNNN, or online diaries for mention of their campaign. A) podcasts B) viral websites C) blogs D) ?eilsen reports Answer: . !": 0$!!: ' %age: &&0
5ationale: Blogs are online diaries that look like 6eb pages but are easier to create and update b, posting text, photos or links to other sites.
16-274. *he 3ar,land Department of *ravel and *ourism promotes tourism in the state b,
sending travel agents and bus tour companies information about the state)s man, attractions. *he hope is that b, stimulating interest in tour and travel agents, the, will in turn encourage their customers to visit 3ar,land. *his example represents a NNNNNNNN promotional strateg,. A) push B) pull C) sampling D) product placement Answer: A !": 0$!!: ' %age: &&G
5ationale: +n a push promotional strateg,, distributors are encouraged to sell the good or service to their customers.
!1
16-275. .ar"o uses its 6eb page to target car parts stores and car owners and tell them of
the benefits of using their long lasting spark plugs. .ar"o apparentl, uses the +nternet: A) for its push strateg,. B) for its pull strateg,. C) for both its push and pull strategies. D) for its product placement strateg,. Answer: . !": 0$!!: ' %age: &&G A &&9
5ationale: *he latest in pull and push strategies are being conducted on the +nternet, with companies sending messages to both consumers and businesses.
16-276. 6ee Be +rish produces authentic +rish gifts and clothing. 6ee Be +rish uses a good
deal of television advertising and sales promotion activities to attract consumers to retail shops in search of its brand. 6ee Be +rish utili:es a NNNNNNNN strateg,: A) s,stems B) placement C) push D) pull Answer: D !": 0$!!: ' %age: &&G A &&9
5ationale: +n a pull strateg,, heav, advertising and sales promotion are directed toward the consumer so that the, will re-uest the products from retailers.
16-277. *he total s,stems approach to marketing suggests that: A) there are no problems, onl, opportunities. B) the goal of the firm should alwa,s be to meet the customer4s needs. C) each element of the promotional mix should be designed to appeal to a D)
different target market. promotional efforts should be developed to appeal to the entire suppl,7chain. !": 0$!!: ' %age: &&9
Answer: D
5ationale: *he total s,stems approach to marketing views promotion as a function that should encompass the entire suppl,7chain. *hus, a promotional strateg, should be developed for the entire s,stem in order to develop a value package that appeals to ever,one: manufacturers, distributors, retailers, and customers.
ESSA3
16-278. +dentif, the advantages and disadvantages of newspaper and *> as media to carr,
,our firm)s promotional message. 6hich of the two receives the most advertising revenuesM
!2
Answer: *he largest share of advertising expenditures goes to cable and broadcast television (<0;.D& million), followed b, direct mail (<&G.'D million). +n the number three position, newspapers represent <&&.G& million of total advertising expenditures. *elevision4s advantages are: uses sight, sound, and motion. reaches all audiences. high attention with no competition from other material. *elevision4s disadvantages are: high cost. short exposure time. takes time to prepare ads. digital video recorders skip over ads. ?ewspapers advantages are: good coverage of local markets. ads can be placed -uickl,. high consumer acceptance. ads can be clipped and saved. ?ewspapers4 disadvantages are: ads compete with other features in the paper. poor color in ads. ads get thrown awa, with paper (short life span).
16-279. Ixplain how publicit, differs from advertising. 6hat are the advantages and
disadvantages of publicit, in a firm4s promotion strateg,M Answer: %ublicit, is an, information about an individual, a product, or an organi:ation that is distributed to the public through the media, and that is not paid for, or controlled b, the seller. Advertising is paid, nonpersonal communication through various media b, organi:ations and individuals who are in some wa, identified in the message. A ma1or value students should identif, is that publicit, is provided free in various media if a stor, is interesting or newsworth,. Another advantage is that publicit, can reach people who would not read an advertisement. %ublicit, often gets ver, good placement in various media. %erhaps the ma1or advantage of publicit, is its believabilit,. +f a stor, is carried b, a newspaper or in some other medium, the receiver often treats the information as news. ?ews is considered more believable than advertising. Cf course, publicit, also has some disadvantages. *here is no guarantee that the media will use news releases or other information a firm provides in its attempts to
!3
generate publicit,. Also, the media ma, omit some of the message or modif, the message in a wa, that makes it less positive. inall,, once media have run a stor,, the, are unlikel, to repeat it.
!4
16-280. Ixplain the steps in the personal selling process. Low does B(B personal selling
differ from B(. personal sellingM Answer: %ersonal selling is the face7to7face presentation and promotion of goods and services. +t also involves the search for new prospects (in B(B selling) and follow7 up service after the sale. *he B(B selling process has D steps: #. &rospect and 0uali1,. %rospecting involves researching potential bu,ers and choosing those most likel, to bu,. *hat selection is called -ualif,ing. *o -ualif, people means to make sure that the, have a need for the product, the authorit, to bu,, and the willingness to listen to a sales message. (. &reapproach2 +n the preapproach phase the salesperson must learn as much as possible about customers and their wants and needs. "athering this information before the customer is approached is critical. '. 3pproach2 6hen a salesperson calls on a customer for the first time, the opening comments are important. *he idea is to give an impression of friendl, professionalism, to create rapport, to build credibilit,, and to start a relationship. &. Make presentation2 +n the actual presentation of a good, the idea is to match the benefits of the value package to the client)s needs. During the presentation is a great time to use testimonials to show potential bu,ers that the, are 1oining leaders in other firms. =. 3ns4er o+5ections2 .ustomers ma, have legitimate doubts, and the salesperson is there to resolve those doubts. 5elationships are based on trust, and trust comes from successfull, and honestl, working with others. 0. 6lose sale2 .losing the sale ma, include a trial close, a -uestion or statement that moves the selling process toward the actual close, and asking for the order. D. *ollo4 up2 *he sales relationship ma, continue for ,ears as the salesperson responds to new re-uests for information. 8elling is often described as a process of establishing relationships, not 1ust a matter of selling goods or services. *he follow7up step includes handling customer complaints, making sure that the customer)s -uestions are answered, and -uickl, suppl,ing what the customer wants. *he B(. selling process has = steps: #. 3pproach. *he idea is to show the customer that the salesperson is there to help and that the, are friendl, and knowledgeable. 2. 3sk 0uestions. Also the salesperson needs to discover what the customer wants. '. Make presentation2 8how customers how the products ,ou have meet their needs. Answer -uestions that help them choose the products that are right for them. &. 6lose sale2 2sing a trial close like E6ill ,ou be pa,ing for that with ,our store credit cardMF is important. A store salesperson walks a fine line between being helpful and being push,. =. *ollo47up2 ollow7up is an important but often neglected step in B(. sales. *his ma, include deliver, and installation procedures.
3ost sales to consumers take place in retail stores, where the role of the salesperson differs somewhat from that in B(B selling. +n both cases, knowing the product comes first. Lowever, in business7to7consumer (B(.) sales the salesperson does not have to do much prospecting or -ualif,ing. +n sales processes involving expensive products such as automobiles and furniture, salespeople ma, have to ask a few -uestions to -ualif, prospective customers.
16-281. @our compan, has developed a new kind of nutritious snack food and ,ou are part
of a team created to develop the promotion mix for the new product. @our specific task on this team is to determine the sales promotion activities of the promotion mix. +dentif, and describe several possible sales promotion activities the firm could use to promote the new snack food. Answer: 8ales promotion is the promotional tool that stimulates consumer purchasing and dealer interest b, means of short7term activities. *he idea is to create enthusiasm for the overall promotion program. 8ales promotion can include a variet, of techni-ues, so student answers ma, var, as to specifics. Lowever, since man, customers are reluctant to bu, a product that the, have not tried, a techni-ue that is likel, to be important for the new snack food is the use of samples. Another techni-ue that might be ver, useful is to set up special in7store displa,s to attract attention. Cther t,pical promotional techni-ues include coupons and contests. inall,, man, firms are using event marketing, which means the, sponsor sporting, cultural or entertainment events to build goodwill and to draw attention to the product. 8ales promotion is not 1ust directed toward consumers. +t also can be used to build interest and enthusiasm among the firm4s own salespeople and distributors of the firm4s products. *hus, sales promotions can also include videos for the compan,4s salespeople, or participation in trade shows.
16-282. @ou are assigned the responsibilit, to prepare a promotional campaign for a new
allerg, relief drug produced b, the ?ew Ingland %harmaceutical .orporation. Cutline the highlights of both (a) a pull strateg, and (b) a push strateg,. Answer: +n a pull promotional strateg,, heav, advertising and sales promotions are directed toward the consumer so that the, will re-uest the product. An, and all of the promotional media could be used to inform the consumer of the product4s benefits and encourage them to ask their pharmac, to carr, the drug. A push strateg, is directed towards wholesalers and retailers. *he goal is to motivate these distributors to carr, and sell the product. *his can be done through discounts, premiums, and other promotional tools along with personal selling. Another approach would be to stimulate doctors to recommend this drug as treatment for their patients. Drug companies have offered doctors OfreebiesO if the, enthusiasticall, recommend the firm4s products.
16-283. Ixplain the difference between viral marketing, blogging and podcasting.
!!
Answer: >iral marketing is the term now used to describe ever,thing from pa,ing people to sa, positive things on the +nternet to setting up multilevel selling schemes whereb, consumers get commissions for direction friends to specific websites. A blogPshort for 6eb logPis an online diar, that looks like a 6eb page but is easier to create and update b, posting text, photos or links to other sites. %odcasting is a means of distributing audio and video programs via the +nternet that lets users subscribe to a number of files, also known as feeds, and then hear or view the material at the time the, choose. Mini4Ca-e Kuestions (G& through (GG refer to the following situation.
*he Qer76ise .orporation manufactures and markets high -ualit, home exercise e-uipment. *he firm has 1ust developed a new piece of e-uipment that top executives believe will be a big seller if promoted correctl,. *he new product uses a s,stem of ad1ustable weights that can be arranged in various wa,s to allow the user to perform exercises that tone all ma1or muscle groups. Additionall,, unlike other strength building machines, this e-uipment also incorporates a recumbent bic,cle to provide a complete aerobic workout. *he entire piece of e-uipment is eas, to assemble, and when not in use it can be folded into a compact unit that is eas, to store. A group of fitness experts have tested the e-uipment and have provided rave reviews. .ompan, executives believe that this product, called the 3uscle3aster, will appeal to bus, ,oung adults living in relativel, small apartments. *om *r,m and 3elod, itt have been assigned the responsibilit, of developing a promotion mix for this product. *he team of itt and *r,m is convinced that the, can develop a successful promotion mix for this outstanding product.
16-284. Before the, look at specific promotional tools, 3elod, and *om agree that the, want
a promotion mix that is both comprehensive and unified. *he, want to use all of the promotional tools at their disposal to create a consistent message that promotes a favorable product image. 3elod, and *om want to implement a(n): A) internal marketing program. B) integrated marketing communication program. C) multilevel market coordination plan. D) stakeholder response communication s,stem. Answer: B !": #$!!: ' %age: &'(
5ationale: +ntegrated marketing communication combines all elements of the promotion mix into one comprehensive and unified strateg,. *he idea is to use all promotional tools and resources to create a positive brand image.
16-285. Due to the uni-ue nature of this product, *om and 3elod, have decided to develop
a half7hour *> program to demonstrate the benefits of the 3uscle3aster. +t is hoped that this NNNNNNNNNN will provide a great start in the market. A) interactive *> ad B) online *> ad C) infomercial
!"
D)
publicit, commercial !": ($!!: ' %age: &'=
Answer: .
5ationale: +nfomercials are programs on *> that are devoted exclusivel, to promoting a particular good or service.
16-286. *om and 3elod, are considering the extensive use of ads in fitness maga:ines and
a direct mail campaign targeted at people who have bought other products made b, Qer76ise. 8ince these messages are geared to customers, it is clear that *om and 3elod, want to implement a NNNNNNNNN strateg,. A) push B) pull C) placement D) stretch Answer: B !": 0$!!: ' %age: &GG A &G9
5ationale: *he pull strateg, directs sales promotion efforts towards consumers so that the, will re-uest the products from retailers.
16-287. *om and 3elod, have decided to work together to write a news release that
describes the benefits of 3uscle3aster and cites the rave reviews of the fitness experts who have alread, tried the e-uipment. *he, intend to send the release to a list of columnists who write in fitness maga:ines or have health and fitness columns in newspapers, hoping that some of these writers will include information about the 3uscle3aster in their articles. *om and 3elod, hope to utili:e: A) publicit,. B) a push strateg,. C) viral marketing. D) swag promotion. Answer: A !": &$!!: ' %age: &&'
5ationale: %ublicit, is an, information about an individual, product, or organi:ation that is distributed through the media and that is not paid for or controlled b, the seller. irms often seek to obtain publicit, b, writing and sending news releases to various media. Cf course, one drawback of this approach is that there is no guarantee that the media will use the information to generate favorable publicit,.
16-288. Qer76ise markets and promotes its products to consumers over the +nternet.
3elod, and *om are considering a more aggressive approach to generate enthusiasm for the 3uscle3aster over the +nternet. *he, have discussed offering ,oung adults free *7shirts and special discounts on Qer76ise e-uipment if the, will agree to h,pe the benefits of the 3uscle3aster in +nternet chat rooms. *he, are even considering setting up a program in which customers get commissions for directing friends to the Qer76ise website. +f the, adopt these strategies, *om and 3elod, would be utili:ing: A) secondar, marketing.
!#
B) C) D)
viral marketing. unified marketing. extended reach marketing. !": 0$!!: ' %age: &&0
Answer: B
5ationale: >iral marketing is the term now used to describe ever,thing from pa,ing people to sa, positive things on the +nternet to setting up multilevel selling schemes whereb, consumers get commissions for directing friends to specific websites.
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8eCHAPTER 16 USING EFFECTIVE PROMOTIONAL TECHNIQUES Chap016D1

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CHAPTER 16 USING EFFECTIVE PROMOTIONAL TECHNIQUES

Level o Learning 1 (Knows basic terms and facts)

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Level o Learning ! (2nderstands concepts and principles)

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Level o Learning 1 (Knows basic terms and facts)

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

%age: &'0/ #ealing $i%& C&ange box

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Level o Learning ! (2nderstands concepts and principles)

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

+llustrate the steps of B(B and B(. selling processes.

Level o Learning 1 (Knows basic terms and facts)

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

8elling is an art. Answer: *rue !": '$!!: # %age: &&(

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Level o Learning ! (2nderstands concepts and principles)

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Level o Learning 1 (Knows basic terms and facts)

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

16-101. %ublicit, is the talking arm of public relations.

16-102. 2nlike other promotional tools, publicit, is free.

16-103. .ompared to advertising, publicit, is less believable.

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

16-104. %ublicit, can be either positive or negative.

Level o Learning ! (2nderstands concepts and principles)

5ationale: ?ot all publicit, is good publicit,.

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Ixplain the importance of various forms of sales promotion, including sampling.

Level o Learning 1 (Knows basic terms and facts)

16-113. 8ales promotion programs can be used to generate emplo,ee enthusiasm.

16-114. .oupons, contests, and sampling represent sales promotion activities.

16-116. +nternal sales promotion efforts include training for salespeople.

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

16-122. +t)s 1ust as important to generate emplo,ee enthusiasm about a product as it is to

16-123. 8ampling represents a -uick and effective wa, to demonstrate a product)s

Level o Learning ! (2nderstands concepts and principles)

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

"ive examples of word of mouth, viral marketing, blogging, and podcasting.

Level o Learning 1 (Knows basic terms and facts)

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

16-134. A testimonial represents communication from a customer that praises a firm4s

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

16-141. %odcasting enables independent producers to create self7published, s,ndicated

16-146. Iach target group re-uires a separate promotion mix.

16-148. !arge organi:ations are best reached through personal selling.

%age: &&G A &&9

16-152. *he ob1ective of a push promotional strateg, is to move a product through a

Level o Learning ! (2nderstands concepts and principles)

16-156. 3otivated b, the disrespectful treatment he received at a department store, Karnell

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

5ationale: 6ood,)s commission program represents one t,pe of viral marketing.

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition

Nickels, McHugh & McHugh, Understanding Business, Eighth Edition