Deck 14: Global Marketing Communications Decisions Ii: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication

Question 1

It was found that Malaysians hesitate to use coupons due to the:

A) lower power distance.
B) higher uncertainty avoidance.
C) fear of public embarrassment.
D) impact of religion.
E) general dislike for coupons.

Answer 1

C

Question 2

Kashani and Quelch identify four factors that contribute to more involvement of company headquarters in the sales promotion effort, which include all of the following except:

A) cost.
B) complexity.
C) promotion.
D) global branding.
E) transnational trade.

Answer 2

C

Question 3

The success of the Stratos project helps Red Bull by:

A) having their logo on NASCAR cars.
B) using YouTube as an effective marketing tool.
C) standing out from a crowded field of competitors.
D) utilizing free-standing inserts.
E) personal selling.

Answer 3

C

Question 4

In a contest in 45 different languages covering 60 countries, marketers for Axe Apollo invited consumers to fill out an "astronaut profile." This is an example of:

A) promotion of different types for marketing.
B) promotion of interest in space exploration.
C) people in different countries prefer different topics.
D) astronaut profile varies from country to country.
E) sales promotion by global marketer.

Question 5

Coupons are not a favorite promotion tool for use in:

A) the United Kingdom.
B) Belgium.
C) the United States.
D) Italy.
E) Malaysia.

Question 6

A critical marketing tool for global companies such as Red Bull is:

A) sampling.
B) sweepstakes.
C) couponing.
D) event marketing.
E) personal selling.

Question 7

At concerts and other events, street teams pass out free samples while driving specially modified cars with giant Red Bull cans mounted on them. This is an example of regiocentric orientation.

Question 8

From the point of view of the marketer, sales promotion provides accountability.

Question 9

PepsiCo rolled out a "PepsiMoji" promotion in Canada, Russia, and Thailand. The rollout coincided with World Emoji Day; labels on the brand's soft-drink cans and bottles had special emoji's. However, the promotion was not successful.

Question 10

To fight counterfeiting, the "Disney Magical Journey" promotion was keyed to mail-in hologram stickers on genuine Disney products. Participants could win Disney DVDs, TV sets, and trips to Hong Kong Disneyland. This is an example of:

A) promotion of different types for marketing.
B) promotion of Disney Magical Journey.
C) people in many countries prefer mail-in hologram.
D) "Disney Magical Journey" is popular worldwide.
E) sales promotion by global marketer.

Question 11

Which of the following is not an advantage of using sales promotions?

A) provides a tangible incentive to buyers
B) provides accountability to marketing managers
C) enables company to build its database
D) builds long-term brand awareness
E) develops relationship with customers

Question 12

Promotions designed to increase product availability in distribution channels are known as:

A) sales promotions.
B) price promotions.
C) trade sales promotions.
D) consumer sales promotions.
E) nonprice promotions.

Question 13

Spoexa, a food-marketing company, was hired by the French Ministry of Agriculture to organize cocktail parties in 19 countries in order to:

A) promote French wines.
B) promote French cheese.
C) show that French cuisine is laid back.
D) show that French wines are superior.
E) show how to use French cuisine.

Question 14

Unilever hired a promotional marketing firm to pass out Lever 2000 hand wipes in food courts and petting zoos. This is an example of:

A) point-of-use sampling.
B) point-of-sale sampling.
C) point-of-dirt sampling.
D) point-of-event sampling.
E) point-of-work sampling.

Question 15

A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents when purchasing a Crest toothbrush. What type of sales promotion does this represent?

A) cross coupon
B) product placement coupon
C) trade promotion coupon
D) freestanding coupon
E) online coupon

Question 16

PepsiCo experienced great success in Latin America with its Numeromania contest, which lured consumers by promising big cash prizes. They used the same contest in Poland successfully. This shows that:

A) Numeromania can be used in different languages.
B) Numeromania can be used in cash starved countries.
C) leverage experience gained in one country can be used in another country.
D) economically squeezed consumers love Pepsi.
E) Numeromania helped in developing a taste for Pepsi in both countries.

Question 17

A marketer of fine French cognac offers fancy cigar ashtrays as prizes to consumers who correctly solve a crossword puzzle. Which of the following most accurately describes this offer?

A) price promotion
B) nonprice promotion
C) trade sales promotion
D) sweepstakes promotion
E) sampling

Question 18

Promotions that are designed to increase product availability in distribution channels are known as:

A) price promotion.
B) nonprice promotion.
C) trade sales promotion.
D) sweepstakes promotion.
E) sampling.

Question 19

Social couponing is one of the hottest sales promotion trends today. This refers to:

A) sampling.
B) Groupons.
C) sweepstakes.
D) freestanding inserts.
E) personal selling.

Question 20

Which promotional technique is best suited to a situation in which a company wants consumers to actually try its product or service at no cost?

A) sampling
B) sweepstakes
C) couponing
D) free-standing inserts
E) personal selling

Question 21

Starbucks dispatches "Chill Patrols" in the summertime to pass out samples of ice-cold Frappuccinos to overheated commuters during rush hour in busy metropolitan areas. This is an example of "point-of-dirt" sampling.

Question 22

Overall, sales promotion tools, such as coupons, are used less frequently as consumer products companies increase budget allocations for media advertising.

Question 23

Since market maturity can be different from country to country, consumer sampling and coupons are appropriate for mature markets.

Question 24

To fight counterfeiting, the "Disney Magical Journey" promotion was keyed to mail-in hologram stickers on imitation Disney products.

Question 25

Fifty years ago, Kikkoman brand soy sauce was unknown in the United States. The company used sampling and even today continues to make extensive use of shopper marketing as a communication tool.

Question 26

In countries with high levels of economic development, low incomes limit the range of promotional tools available. In such countries, free samples and demonstrations are more likely to be used than coupons or on-pack premiums.

Question 27

Unilever hired a promotional marketing firm to pass out Lever2000 hand wipes in food courts and petting zoos. This is referred to as "point-of-dirt" sampling.

Question 28

During the 2004 Super Bowl broadcast, PepsiCo launched a joint promotion with Apple's iTunes Music Store. Anyone purchasing a bottle of Pepsi had a one-in-three chance of being a winner. However, many people discovered that by tilting the bottles, they could tell whether the bottle was a winner.

Question 29

Acknowledging that some consumers are intimidated by France's culinary heritage, the Ministry sponsored a promotion to demonstrate that French cuisine can be relaxed and laid back.

Question 30

Social couponing is one of the hottest online sales promotion trends. It offers its followers deal-of-the-day coupons that are sponsored by local businesses.

Question 31

By the end of 2012, Groupon had more than 40 million users in 48 countries. More than half of Groupon's Web site visitors live in the United States.

Question 32

In a contest in 45 different languages covering 60 countries, marketers for Axe Apollo invited consumers to fill out an "astronaut profile."

Question 33

Cross coupons offer its users deal-of-the-day coupons that are sponsored by local businesses.

Question 34

A marketer of fine French cognac offers a fancy cigar ashtray to persons who correctly solve a crossword puzzle and mail it in. This is an example of a trade promotion.

Question 35

Although Asian consumers have a reputation for thriftiness, some are reluctant to use coupons, because doing so might bring shame upon them or their families.

Question 36

Why did the French Ministry of Agriculture launch a global promotion? Give examples in support of your answer.

Question 37

P&G distributed millions of free samples of its shampoo products; after the no-risk trial, many consumers became adopters.

Question 38

Sampling can be especially important if consumers are persuaded by claims made in advertising or other channels.

Question 39

Sales promotions are popular in Scandinavia because of restrictions on broadcast advertising, but promotions in the Nordic countries are subject to regulations.

Question 40

In China, consumers are reluctant to buy full-sized packages of unfamiliar imported products. In such a marketing environment, sampling is an appropriate promotional strategy.

Question 41

Compared with other forms of marketing communication, sampling is more likely to result in actual trials of the product. Explain this by giving examples of possible types of sampling.

Question 42

Relationship marketing, which stresses an approach on developing long-term relationships with customers, has been disliked by many U.S. companies.

Question 43

Giving examples, show how sampling can be an effective sales promotion technique.

Question 44

Few environmental issues and challenges often surface as a company completes the initial stages of implementing a personal selling strategy.

Question 45

What are the issues and problems related to sales promotion in different parts of the world?

Question 46

The final step in the 6-step sales presentation plan is closing the sale.

Question 47

The Strategic/Consultative Selling Model consists of five interdependent steps, each with three prescriptions that can serve as a checklist for sales personnel.

Question 48

Negotiation requires both customer and the salesperson:

A) to be persistent in their point of view.
B) to be subjected to arm-twisting.
C) to agree to disagree.
D) to come away as winners.
E) to come away as losers.

Question 49

Which of the following is not a step in the Strategic/Consultative Selling model?

A) develop a marketing mix
B) develop a personal selling philosophy
C) develop a product strategy
D) develop a relationship strategy
E) develop a presentation strategy

Question 50

Discuss what makes the use of sales promotion so effective and popular. Describe different types of sales promotions.

Question 51

Which of the following is not one of the steps in the Strategic/Consultative Selling model?

A) develop personal selling philosophy
B) develop relationship strategy
C) develop product strategy
D) develop ethnocentric policy
E) develop customer strategy

Question 52

When MCI Communications first entered Latin America, it utilized expatriate Americans to work for them despite the high cost of doing so.

Question 53

Coupons are a favorite promotion tool of consumer packaged goods companies such as Proctor & Gamble and Unilever. How does the couponing work, and what are the advantages for using different types of coupons?

Question 54

In the six-step presentation plan, the first and last steps are respectively:

A) presentation; demonstration.
B) approach; close.
C) presentation; negotiation.
D) approach; presentation.
E) approach; servicing the sale.

Question 55

Building a prospect base is typically part of which step of the Strategic/Consultative Selling model?

A) development of a customer strategy
B) development of a personal selling philosophy
C) development of a product strategy
D) development of a relationship strategy
E) development of a presentation strategy

Question 56

The U.S.-style "I'll do whatever it takes to get your business" has proven to be a successful selling approach throughout the world.

Question 57

Environmental issues and challenges faced by a company which is in the initial stages of implementing a personal selling strategy include all of the following except:

A) political risks.
B) regulatory hurdles.
C) product innovation.
D) currency fluctuations.
E) market unknowns.

Question 58

A number of factors must be taken into account when determining the extent to which promotion must be localized. List and describe those factors giving examples.

Question 59

The authors of one study noted that Nestlé and other large companies that once had a polycentric approach to consumer and trade sales promotions have redesigned their efforts. Based on a study by Kashani and Quelch, identify factors that contribute to more headquarters involvement in the sales promotions effort.

Question 60

It is easy to identify the highest-ranking individual based on observable behavior during group meetings.

Question 61

In companies where a polycentric management orientation prevails, host-country nationals will be used in most selling situations with the exception of high-tech products sold in developed countries.

Question 62

After much trial and error in creating sales forces, most companies today attempt to establish a:

A) hybrid sales force composed of expatriates and in-country nationals.
B) sales force composed of a majority of expatriates.
C) hybrid sales force composed of expatriates and third country nationals.
D) sales force composed of third country nationals.
E) sales force consisting of all in-country nationals.

Question 63

All of the following statements represent mass marketing except:

A) the marketer typically loses control as the product is turned over to distribution channel intermediaries.
B) repetition is used within the ad/offer.
C) the customer perceives less risk due to direct contact with the product. Recourse is viewed as less distant.
D) advertising is used for its cumulative effect over time to build image, awareness, loyalty, and benefit recall.
E) purchase action by the customer is deferred.

Question 64

Benefits for using sales agents include all of the following except:

A) agents work under contract rather than as full-time employees.
B) agents are less expensive than full-time, in-country national sales representatives.
C) agents possess the same market knowledge as in-country nationals.
D) agents can eventually replace manufacturer's sales agents.
E) agents possess the same cultural knowledge as in-country nationals.

Question 65

Which of the following is a disadvantage of using an expatriate sales force?

A) inferior product and company knowledge
B) capability to institute the acceptable practices
C) follow policies of the home office
D) enhanced promotion prospects
E) maintaining is very expensive

Question 66

Peppers and Rogers described different steps that are involved in one-to-one marketing. These steps include all of the following except:

A) identify.
B) differentiate.
C) interact.
D) evaluate.
E) customize.

Question 67

When a company must decide on the composition of its foreign sales force, which alternative is generally the most expensive?

A) expatriates
B) third-country nationals
C) host-country nationals
D) agents of any nationality
E) agents of host country

Question 68

Which type of salesperson is best suited to selling technologically sophisticated products in developed countries?

A) expatriates
B) third-country nationals
C) host-country nationals
D) agents of any nationality
E) none of the above

Question 69

Which of the following is not characteristic of mass marketing?

A) Product benefits do not typically include home delivery.
B) Advertising is used to generate an immediate inquiry or purchase.
C) Repetition of ads is the key to awareness and remembering.
D) The customer perceives relatively little risk.
E) Purchase action is deferred.

Question 70

A company with a polycentric orientation is likely to employ host-country nationals in all but which of the following selling situations?

A) selling high-tech products in developed countries
B) selling high-tech products in less-developed countries
C) selling low-tech products in developed countries
D) selling low-tech products in less-developed countries
E) none of the above

Question 71

Ethnocentric companies are likely to use an expatriate sales force in countries at all levels of economic development.

Question 72

Basic issues for companies that sell globally are the composition of the sales force in terms of nationality. List choices that are available to companies for selecting a sales force. Outline advantages and disadvantages of each choice.

Question 73

Which of the following is not characteristic of direct marketing?

A) A marketer relinquishes control of product when it is turned over to channel intermediaries.
B) Advertising serves to generate an immediate inquiry or purchase.
C) Repetition is used in individual advertisements.
D) The customer perceives high risk.
E) Direct response advertising is used.

Question 74

Which of the following environmental characteristics affects use of direct marketing in Europe?

A) the European Commission's concern about privacy
B) high postal rates in several European countries
C) industries in Europe are still developing complete mailing lists
D) linguistic, cultural, and regional diversity
E) all of the above

Question 75

A company with a regiocentric orientation is likely to utilize third-country nationals for its sales force in less developed countries.

Question 76

Other international personal selling approaches that fall somewhere between sales agents and full-time employee teams include all of the following except:

A) exclusive license arrangements.
B) contract manufacturing or production.
C) management-only agreements.
D) franchising.
E) joint ventures.

Question 77

A company in which an ethnocentric orientation prevails is likely to utilize primarily ________ in its sales force.

A) host-country nationals
B) third-country nationals
C) expatriates
D) agents of any nationality
E) agents of host country

Question 78

The Strategic/Consultative Selling Model has gained wide acceptance in the United States. Briefly describe what the model consists of and how it can serve as a checklist for sales personnel.

Question 79

Which of the following is not a useful guideline for U.S.-based direct marketers wishing to reach global customers?

A) Do not treat prospects as though they are Americans.
B) Do not automatically assume that a direct-mail campaign that works in one country will work in another country.
C) Do not assume that all Europeans are similar in their tastes and wants.
D) Customers should be able to return products to an address in their local country market.
E) Focus on all countries included in the European Union.

Question 80

Host-country nationals may possess work habits or selling styles that do not mesh with those of the parent company.