Question 1

Which of the following is not an advantage of advertising?&#10;A) The message can be tailored for each customer.&#10;B) It reaches a large consumer audience at low cost per contact.&#10;C) It allows strong control of the message.&#10;D) The message can be modified to suit different audiences.

Accepted Answer

Advertising typically does not allow for messages to be tailored for each individual customer; it is more about reaching a broad audience with a general message. Personalization at an individual level is more characteristic of direct marketing or digital marketing strategies that use data analytics and customer profiles.

Question 2

What type of activity might involve hiring someone to wear a sandwich board with an advertisement for a particular product?&#10;A) guerrilla marketing&#10;B) personal selling&#10;C) institutional advertising&#10;D) persuasive marketing

Accepted Answer

Hiring someone to wear a sandwich board with an advertisement for a particular product is an example of guerrilla marketing, which refers to unconventional and low-cost marketing tactics that rely on creativity and originality rather than a big budget.

Question 3

What promotional strategy listed below is used to promote a specific brand?&#10;A) primary demand&#10;B) integrated marketing communications&#10;C) selective demand&#10;D) secondary demand.

Accepted Answer

Selective demand is the promotional strategy used to promote a specific brand. It focuses on promoting the benefits and unique features of a particular brand to create demand for that brand among consumers. Primary demand promotes a product category, while secondary demand promotes a product class. Integrated marketing communications is an approach that coordinates all promotional activities to ensure consistency in messaging and branding.

Question 4

Which one of the following statements concerning personal selling is incorrect?&#10;A) Businesses spend considerably more on personal selling than on advertising.&#10;B) Personal selling is used for products that are relatively inexpensive.&#10;C) Products sold through personal selling move through direct-distribution channels.&#10;D) Personal selling is used when customers are relatively few in number.

Accepted Answer

Personal selling is generally used for high-priced, complex, or customized products, and not for relatively inexpensive products. Option A is correct because businesses spend more on personal selling as it is a more personalized form of communication and allows for a better opportunity to build relationships with customers. Option C is correct because direct-distribution channels involve personal selling. Option D is correct because personal selling is more effective when dealing with a small number of customers.

Question 5

When a business prices a new product much lower than competing products when they enter new industries that have dozens of competing brands, this is referred to as _______________________.&#10;A) predatory pricing&#10;B) skimming pricing&#10;C) penetration pricing&#10;D) competitive pricing

Accepted Answer

Penetration pricing is the practice of setting a low price for a new product or service during its initial offering in order to attract customers and gain traction in a crowded market. It is often used by businesses entering new industries with multiple competitors as a way to quickly establish a customer base and gain market share. This differs from predatory pricing, which involves setting very low prices with the intention of driving competitors out of business, and skimming pricing, which involves setting high prices for a new product with the intention of targeting early adopters and maximizing profits. Competitive pricing is simply setting prices in line with or in response to the prices of competing products.

Question 6

When Tylenol mentions in its advertising that it doesn't upset the stomach like aspirin, what type of advertising is it using?&#10;A) informative&#10;B) comparative&#10;C) persuasive&#10;D) reminder-oriented

Accepted Answer

The advertising is using comparative advertising by comparing itself to aspirin and highlighting a benefit (not upsetting the stomach) that aspirin lacks.

Question 7

A type of advertising that tries to improve the competitive status of a product is persuasive advertising. This type of advertising is usually seen during which stage of the product lifecycle?&#10;A) growth and maturity&#10;B) introductory&#10;C) late maturity or decline&#10;D) decline

Accepted Answer

Persuasive advertising is usually seen during the growth and maturity stage of the product lifecycle when there are more competitors in the market and the goal is to improve the competitive status of the product.

Question 8

Nancy sells textbooks to college professors by visiting their offices. What type of activity is this?&#10;A) direct marketing&#10;B) personal selling&#10;C) face-to-face promotion&#10;D) promotional marketing

Accepted Answer

This type of activity is personal selling, where Nancy is directly selling the textbooks to college professors by visiting their offices.

Question 9

A company that offers the gift of useful merchandise carrying its name and logo is practising which type of advertising?&#10;A) trade promotion&#10;B) rebates&#10;C) advocacy advertising&#10;D) specialty advertising

Accepted Answer

Specialty advertising is a type of advertising where companies offer useful merchandise carrying its name and logo as a promotional item to engage potential customers. This strategy helps companies to create brand awareness and brand loyalty among their customers.

Question 10

When a firm bases its pricing decisions on market share, it is pursuing which category of pricing objectives?&#10;A) profitability&#10;B) volume&#10;C) meeting competition&#10;D) prestige

Accepted Answer

When a firm bases its pricing decisions on market share, it is pursuing a volume pricing objective, which seeks to achieve a large market share through low prices or high value for the price.

Question 11

When a firm determines pricing by calculating total costs per unit and then adding markups to cover overhead costs and generate profits, it is undertaking _____________.&#10;A) cost-based pricing&#10;B) skimming pricing&#10;C) penetration pricing&#10;D) discount pricing

Accepted Answer

The answer of When a firm determines pricing by calculating...

Question 12

Local advertising is currently dominated by _____________________________.&#10;A) the Internet&#10;B) radio&#10;C) word-of-mouth&#10;D) newspaper

Accepted Answer

The answer of Local advertising is currently dominated by _____________________________.&#10;A)...

Question 13

Which one of the following statements concerning the sales process is CORRECT?&#10;A) Salespeople identify potential customers at the approach stage.&#10;B) Promotional messages are communicated by salespeople at the closing stage.&#10;C) The closing stage is the critical point when the salesperson asks the prospect to buy.&#10;D) A demonstration is an optional step in the sales process.

Accepted Answer

The answer of Which one of the following statements concerning...

Question 14

Which one of the following statements concerning online advertising is correct?&#10;A) Widgets or gadgets are associated with print advertisement.&#10;B) Sales from online advertising and marketing are now greater than the sales from print media.&#10;C) Viral advertising never relies on word-of-mouth promotion.&#10;D) Buzz agents are professionals recruited for pay.

Accepted Answer

The answer of Which one of the following statements concerning...

Question 15

There are several common objectives of a promotional strategy. When a television commercial compares the performance of two leading laundry detergents, this attempts to meet the objective of ________________________________________.

A) providing information
B) highlight product value
C) differentiate product
D) stabilize sales

Accepted Answer

The answer of There are several common objectives of a...

Deck 13: Promotion and Pricing Strategies