Deck 12: Communicating Customer Value

Question 1

Tilt Axiom Entertainment (TAE),a game developer,has developed a new game,World Below,incorporating 3D imaging.In order to get wider distribution,TAE took part in the Gaming Entertainment Expo,hoping to sell the game to a distributor.The Expo was attended by both traders and consumers.TAE sent a team of representatives for game presentation and negotiation; and a team of professional and company gamers to showcase World Below at the Expo.The company also sent a team to sell its previous game titles to consumers at the Expo.What kind of promotion mix tool did TAE adopt by taking these games to the Expo?

A)crowdsourcing
B)public relations
C)advertising
D)personal selling
E)crowdcasting

Answer 1

D

Question 2

Which of the following is true of advertising in the new marketing communications model?

A)Advertisers are trying to boost print media advertising to counter the rise of digital media.
B)Advertisers are spending more money on mass-media marketing techniques like network television.
C)Advertisers are using highly targeted media to reach smaller customer segments with personalized, interactive messages.
D)Advertisers are use more broadcasting techniques to reach target customers.
E)Advertisers have stopped using narrowcasting techniques to reach target customers.

Answer 2

C

Question 3

The Remington Car Company is planning a release of new line of hybrid electric vehicles called the Electron.The car promises superior mileage and speed,while not harming the environment.If Remington decides to use advertising as the promotional tool during the car's launch,which of the following would constitute an advertisement for the Electron?

A)a front-page notice of the release of the Electron in all leading newspapers with a caption - "Green Speed"
B)a press conference to discuss the various safety issues, actual mileage, and environmental features of the Electron
C)dedicated sales personnel at dealer showrooms explaining the qualities of the Electron to potential customers
D)having the Electron released only to select places and businesses that are concerned with environmental-friendly causes
E)a buyers-only lottery where an Electron buyer has a chance of winning a second Electron on a selected date

Answer 3

A

Question 4

Which of the following would be an example of narrowcasting using advertisements?

A)running an ad for a new line of cars on cable TV
B)showing ads for diapers to would-be mothers in hospitals
C)handing out promotional leaflets for a new restaurant to passers-by
D)showing video game ads at a video game Expo
E)putting up a movie ads on online streaming sites like YouTube

Question 5

________ is any paid form of nonpersonal presentation and promotion of ideas,goods,or services by an identified sponsor.

A)Sales promotion
B)Personal selling
C)Advertising
D)Public relations
E)Direct marketing

Question 6

Which of the following is true of mass-media communications techniques in the new marketing communications model?

A)Ad spends on major TV channels are steadily rising.
B)Digital media are undercutting spending on mass-media.
C)The costs of advertising on traditional media are decreasing as marketers shift online.
D)Audience levels exposed to mass-media are increasing.
E)Television advertising has lost its dominance as an advertising medium.

Question 7

Gustaves Electronics are a leading brand in kitchen appliances.Recently,the company released a new line of blenders called Amalgee.But the sales of Amalgee did not meet the expected figures.To boost sales,Gustaves decided to give scratch-and-win coupons to all buyers,with a chance to win a three-day trip to the Carribean for the lucky buyer.Which of the following elements of the promotion mix did Gustaves utilize to boost Amalgee's sales?

A)public relations
B)crowdsourcing
C)advertising
D)sales promotion
E)personal selling

Question 8

Which of the following is an effect of the advancement of technology on the new marketing communications model?

A)Fragmented markets have assimilated into a few mass markets.
B)Marketers have to go through more intermediaries to connect with consumers.
C)Consumers rely less on marketer-supplied information than before.
D)Marketers have increasingly moved towards mass-marketing techniques.
E)Marketers tend to supply less information to consumers than before.

Question 9

In Da Houz is a bar which mostly plays trance music,and has a dedicated day every week for local bands to perform.In Da Houz tries to build strong customer relations and patronage by gathering feedback from customers and asking the customers to provide their mobile numbers.Knowing the target customers,In Da Houz sends text messages to potential customers,telling them about happy hours,introducing a new drink,bands that are playing that week,dedicated genre nights,and other activities at the bar.Which of the following promotion mix tools does In Da Houz employ to reach target customers?

A)public relations
B)personal selling
C)direct marketing
D)crowdcasting
E)retailing

Question 10

Which of the following has been a major change in market structures in recent times?

A)the shift towards using less technology in micromarketing
B)the formation of a global mass market
C)the fragmentation of mass markets
D)the rise of print media as a major marketing channel
E)the increased use of mass-media communications techniques in marketing

Question 11

Which of the following is true of consumers in the new marketing communications model?

A)They are more reliant on traditional methods of marketing for product information.
B)They are less informed than before about company and product marketing techniques.
C)They are more reliant on mass media marketing methods for product information.
D)They are less powerful than before in having direct effects on the way a company markets its products.
E)They are better equipped to find product and brand information on their own.

Question 12

In the promotion mix,________ performs the functions of building a good rapport with entities outside the company,building up a good corporate image,and handling or heading off unfavorable rumors,stories,and events.

A)personal selling
B)sales promotion
C)crowdsourcing
D)advertising
E)public relations

Question 13

How have marketing strategies changed in the digital age?

A)Marketers have increasingly moved towards mass-marketing techniques.
B)Marketers are moving away from targeted customers and using more generalized styles of marketing.
C)Marketers are using more print media formats for marketing.
D)Marketers have to go through more intermediaries to connect with consumers.
E)Marketers are targeting customers in more narrowly defined micromarkets.

Question 14

Which of the following is true of marketing channels in the new marketing communications model?

A)There is a decrease in the use of digital information to reach micromarkets.
B)There is a rise in print media as a major channel for marketing.
C)There is an increase in broadcasting techniques of marketing.
D)There is a steady rise in mass-media communications model of marketing.
E)There is an increase in the use of narrowcasting methods of marketing.

Question 15

CoLanCo Inc.,a soft drink manufacturer,is being sued by an environmental group for not meeting safety standards of waste disposal at one of the company's plants.Fearing a backlash from consumers and business partners,CoLanCo quickly remedied the issue by adding higher-grade filters and purifiers.Which of the following acts by CoLanCo would constitute a public relations effort regarding the lawsuit against them?

A)having well-trained personal at retail outlets explaining the different range of products the company provides
B)tying up with a local burger joint to ensure exclusive sales of CoLanCo soft drinks at the burger outlets
C)lowering the prices of the company's products in the short term
D)holding a press conference declaring the remedial steps they have taken and inviting inspections of the purifiers
E)filming a new advertisement for their products and sponsoring shows on television

Question 16

Which of the following is true of marketing strategies developing in the new marketing communications model?

A)a shift towards micromarketing
B)a shift away from mass marketing
C)an increase in mass-media marketing techniques
D)a decrease in the use of technology in marketing
E)an increase in ad spending on print media

Question 17

In a promotion mix,________ refers to any short-term incentives to encourage the purchase or sale of a product or service.

A)advertising
B)sales promotion
C)personal selling
D)crowdsourcing
E)public relations

Question 18

In a promotion mix,________ occurs when firm's sales force make individual presentations to consumers for the purpose of making sales and building customer relationships.

A)advertising
B)public relations
C)crowdsourcing
D)branding
E)personal selling

Question 19

Which of the following techniques do companies use to deliver a unified and consistent image about their organizations and brands to consumers?

A)logistics information management
B)inventory control system
C)market segmentation
D)integrated marketing communications
E)warehouse management system

Question 20

In a promotion mix,________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

A)direct marketing
B)advertising
C)public relations
D)predictive analytics
E)indirect procurement

Question 21

Which of the following is a difference between advertising and sales promotions?

A)Advertising is used as a sales-directed form of communication, while sales promotions are endorsed as company news.
B)Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy the product immediately.
C)Advertising can be used to dramatize the product, while sales promotion cannot be used for dramatizing the product.
D)Advertising cannot trigger quick sales, while sales promotions cannot.
E)Advertising does not help in building long-term brand preferences, while sales promotions are ideal for it.

Question 22

Which of the following is true of public relations in the U.S.?

A)It is used to provide quick incentives to customers to buy the company's product.
B)It is not a sales-directed form of communication.
C)It involves a dedicated sales force selling products by directly meeting the customers.
D)It cannot be used to dramatize the product or company.
E)It is the most widely used form of promotional tool.

Question 23

A company using a press release to explain the resignation of its former CEO who was involved in a scandal is an example of a company using ________ to maintain its company image.

A)personal selling
B)sales promotion
C)public relations
D)direct marketing
E)advertising

Question 24

Which of the following is true of personal selling in the U.S.?

A)It is the most effective promotional tool for geographically dispersed buyers.
B)It allows for dramatization of the brand through arts and visuals.
C)It is the most expensive promotional tool for companies.
D)It is least effective in building long-term customer relationships.
E)It brings the company's message as a form of news rather than as a sales-directed communication.

Question 25

Which of the following promotion tools would best suit to reach a mass audience that is geographically dispersed in a short period of time?

A)direct mailing
B)telephone marketing
C)door-to-door selling
D)television advertisements
E)discount promotions

Question 26

Which of the following is a function of an integrated marketing communications system?

A)designing products using environmentally-friendly techniques
B)allowing suppliers or vendors to manage the inventory of products
C)controlling production levels by feedback received from customers
D)delivering a consistent message on the product to each brand contact
E)sharing company forecasting details with shareholders

Question 27

Pearl Sands Resort and Spa is a popular summer attraction located in hilly town of Rockten.They usually attract customers in the summer.During the pre-summer period,Pearl Sands Resort began sponsoring shows on TV,and putting up billboards around Rockten and the surrounding towns advertising the resort.The ads hinted at the coming summer,and how the resort has always been the place to go for a welcome break from everyday life.Which of the following approaches has Pearl Sands Resort used?

A)vertical integration
B)push strategy
C)pull strategy
D)publish-subscribe method
E)direct marketing

Question 28

Which of the following is a similarity between personal selling and direct marketing?

A)Both are not sales-directed forms of communication.
B)Both are used to meet a mass audiences simultaneously.
C)Both are only used in cases of product promotions.
D)Both are involved in personal interactions with customers.
E)Both are impersonal and lack direct persuasiveness of company salespeople.

Question 29

Which of the following types of promotion tools requires the most interaction with a customer?

A)advertising
B)personal selling
C)sales promotion
D)public relations
E)direct marketing

Question 30

Which of the following issues faced by a company can be solved by an integrated marketing communications system?

A)miscommunications between shareholders
B)mismanagement in inventory stocking by vendors
C)errors by engineers in the production chain
D)blurred brand perceptions of consumers
E)delayed delivery of materials by suppliers

Question 31

A company that uses telephone marketing to sell its products to customers is said to be using the promotion tool of ________.

A)advertising
B)public relations
C)direct marketing
D)retailing
E)merchandising

Question 32

A company that allows consumers to use monthly installment plans for buyers to pay for products is using the promotional tool of ________.

A)direct marketing
B)public relations
C)advertising
D)personal selling
E)sales promotion

Question 33

Which of the following is a shortcoming of advertising?

A)It does not allow dramatization of brand or company.
B)It only provides one-way communication with customers.
C)It is too customized and only attracts niche markets.
D)It can only be used to attract target or specific customers.
E)It is the most expensive promotion tool for companies.

Question 34

Which of the following is an example of a combination of sales promotions and direct marketing?

A)a company giving discounts on their product prices in order to gain a brand image
B)a company releasing a nationwide television ad with every buyer having a chance to win a lottery price
C)a company holding a press conference to talk about their new product
D)a company's sales force meeting customers directly and providing customized messages that suit that particular customer
E)a company e-mailing a customer about a discount on a product during a festival season

Question 35

Which of the following is true of direct marketing?

A)Its marketing message is fixed and does not change according to the customer's requirements.
B)It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.
C)It is brought out it in the form of company news rather than as a sales-directed communication.
D)It does not involve any direct interaction between the company and its customers.
E)It meets the needs of mass buyers who are geographically spread out simultaneously.

Question 36

Which of the following is the first step in developing an advertising program?

A)setting the advertising budget
B)developing an advertising strategy
C)developing a brand message
D)setting the advertising objectives
E)evaluating advertising campaigns

Question 37

A ________ marketing strategy involves a company spending a lot of money on consumer advertising and promotion to induce final consumers into buying the product by creating a demand vacuum.

A)push
B)direct
C)vertical integration
D)pull
E)publish-subscribe

Question 38

Which of the following promotion mix approaches involves the producer promoting the product to different channel members who in turn promote the product to customers?

A)direct marketing
B)push strategy
C)publish-subscribe method
D)pull strategy
E)vertical integration

Question 39

Which of the following is true of an integrated marketing communications system?

A)It dictates all communications between shareholders and board of directors of a company.
B)It facilitates designing a product based on different feedback received from customers and production engineers.
C)It involves helping suppliers in identifying the right raw materials for a specific product.
D)It helps in integrating all company resources to create accurate forecasting information.
E)It ties together all of the company's messages and images of the product.

Question 40

Which of the following is true as a difference between digital media advertising and TV advertising in the United States?

A)Less advertising money is spent on digital media than on TV advertising.
B)TV advertising is more interactive than digital media techniques.
C)More of the promotion budget is spent on digital advertising than on TV advertising.
D)Digital media force-feeds mass messages to customers, while TV advertising targets more defined micromarkets.
E)Digital media advertising reaches mass audiences whereas TV advertising reaches only limited audiences.

Question 41

Which of the following is a disadvantage of using the Internet as an advertising medium?

A)The cost is high.
B)Audience selectivity is low.
C)The audience controls ad exposure.
D)The interactive capabilities of the medium are low.
E)There is a long publishing time.

Question 42

The Trainstar Company is a sportswear equipment manufacturer that is planning to release a new line of energy drinks called Revitalizer.In the ad for the energy drink the company showed different people going for a morning jog,working out in a gym,jazzercising,and doing aerobics.At the end of the ad,there are clips of these people stopping their activity,drinking Revitalizer,becoming visibly re-energized after drinking,and then continuing their exercises.Which of the following kind of advertising styles did the Trainstar Company use for the Revitalizer ad?

A)scientific advertising
B)technical expertise
C)personality symbol
D)testimonial evidence
E)lifestyle

Question 43

Which of the following best describes the use of the personality symbol style of advertising?

A)using ordinary people and how the product affects them in their daily lives
B)using scientific evidence to support claims about its product in the advertisement
C)using an animated character or mascot that represents the product in the advertisement
D)using a technical expert of the product in the advertisement
E)using a celebrity to endorse the product in the advertisement

Question 44

Pearl Sands Resort and Spa is a popular summer attraction located in hilly town of Rockten.The spa usually attracts customers in the summer.During the pre-summer period,Pearl Sands Resort began sponsoring shows on TV,and putting up billboards around Rockten and surrounding towns advertising the resort.The ads hinted at the coming summer,and how the resort has always been the place to go for a welcome break from everyday life.Which of the following types of advertising did Pearl Sands Resort use?

A)comparative advertising
B)persuasive advertising
C)personalized advertising
D)reminder advertising
E)classified advertising

Question 45

Which of the following types of advertising budgets is directly set based on company profits?

A)the adaptive control method
B)the objective-and-task method
C)the competitive-parity method
D)the affordable method
E)the percentage-of-sales method

Question 46

Advertainment is an example of a ________ advertising technique.

A)surrogate
B)public service
C)covert
D)Madison & Vine
E)social

Question 47

An ad that shows how well a product works by showing real-life examples of people whose lives have changed due to the product is an example of ________ style of advertising.

A)scientific evidence
B)testimonial evidence
C)technical expertise
D)mood or image
E)fantasy

Question 48

The Zavyr Corporation,a manufacturer of electronics products,is planning to release a new product into the market.They are hoping to tap into a new market of commercial tracking devices.The product to be released,FindIt,is unlike previous tracking devices in that it is virtually unnoticeable and cheap.But FindIt will primarily only help to find objects lost within a living space,as it has a low frequency detection range.Which of the following kinds of techniques would suit the Zavyr Corporation for advertising FindIt?

A)informative advertising
B)reminder advertising
C)classified advertising
D)comparative advertising
E)personalized advertising

Question 49

Lizar Telecommunications are manufactures of cell phones and related accessories.Michael Starr,a movie director,contacted Lizar to help fund his new movie.Lizar agreed to provide funding on the condition that Lizar cell phones be used in the movie,and that the brand be prominent in its scenes.What kind of advertising technique has Lizar adopted here?

A)geofencing
B)advertainment
C)product placement
D)vertical integration
E)subliminal advertising

Question 50

How is spending on advertising calculated in the affordable method of setting an advertising budget?

A)based on the company's objectives set for accomplishment
B)based on an amount remaining after operating expenses and capital outlays are deducted from total revenues
C)based on a certain percentage of current or forecasted sales
D)based on a percentage of the unit sales price
E)based on matching a competitors advertising outlays

Question 51

Which of the following provides the best qualitative value for receiving quick consumer responses or inputs for company design or features while advertising?

A)a sales promotion
B)a television advert
C)advertising though print media
D)direct mailing
E)an interactive Web site

Question 52

Which of the following is an example of branded entertainment?

A)a company placing its product in a movie scene
B)a company hiring a celebrity in its advertisement
C)a company connecting a popular theme or movie scene to its product in its advertisement
D)a company commissioning an acclaimed movie director to shoot its advertisement
E)a company airing its advertisement during a special even like the Super Bowl

Question 53

Which of the following is true of the affordable method of setting an advertising budget?

A)It undervalues the importance of promotion in sales.
B)It always results in overspending on advertising.
C)It is ideal for long-range market planning.
D)It leads to a certain, and planned annual promotion budget.
E)It is optimal for companies that wish to avoid underspending on advertising.

Question 54

The aim of ________ is to make ads themselves so entertaining,or so useful,that people want to watch them.

A)branded entertainment
B)advertainment
C)social advertising
D)subliminal advertising
E)infotainment advertising

Question 55

A company advertising discounts on a product is using ________ advertising.

A)reminder
B)classified
C)personal
D)informative
E)persuasive

Question 56

Which of the following is the quickest medium through which a company can advertise or send a message to its customers?

A)magazines
B)radio
C)television
D)the Internet
E)direct mailing

Question 57

Which of the following is an advantage of using television as an advertising medium?

A)low cost per exposure
B)high audience selectivity
C)low absolute cost
D)low ad clutter
E)prominent exposure

Question 58

The ________ style of advertising shows ordinary people clearly using a product in a normal setting.

A)personality symbol
B)slice of life
C)mood or image
D)testimonial evidence
E)technical expertise

Question 59

Inglast Food Processors,producers of fruit juice and chocolate products,was faced with a class action suit following a customer finding worms in their chocolate products.Inglast settled the case,and released an advertisement communicating the new seal-proof wrapping that their products will carry from now on.The ad explained how the chocolate processing plant made the products,the new seal system implemented and how safe it is,and showed happy customers eating Inglast products.Which of the following kinds of advertisement did Inglast release to counter the lawsuit?

A)a classified advertisement
B)an informative advertisement
C)a comparative advertisement
D)a personalized advertisement
E)a reminder advertisement

Question 60

Which of the following is true of the competitive-parity method of setting an advertising budget?

A)The budget is set based on a percentage of future sales.
B)The budget is set based on the total revenues that a company makes.
C)The budget is set based on the amount spent by competitors in the same industry.
D)The budget is set based on objectives set by the company and the cost required to accomplish it.
E)The budget is based on a percentage of current sales.

Question 61

The new marketing communications model consists of promotional mixes that are designed to make traditional mass-media obsolete.

Question 62

Traditional mass media still capture a lion's share of the promotion budgets of most major marketing firms.

Question 63

Advertising using the affordable method of budget setting depends on the total revenues of the company.

Question 64

A firm that personally sends a customer details of product release is said to be engaging in personal selling.

Question 65

Sales promotion is the best promotion tool to build personal and long-lasting relationships with customers.

Question 66

PR marketing is the most widely-used form of product advertising by U.S.firms.

Question 67

Television advertising has high overall cost but low cost per exposure.

Question 68

The push strategy of marketing cannot be used by firms that only practice direct marketing.

Question 69

Integrated marketing communications involves carefully coordinating the company's many communications channels to deliver a clear,consistent,and compelling message about the organization and its products.

Question 70

Which of the following is an example of a firm utilizing public relations?

A)a firm using its personal sales force at an expo to sell its products
B)a firm mailing its catalogue directly to its customers
C)a firm informing its customers of special discounts on its Web site
D)a firm declaring a product recall on its Web site
E)a firm publishing a new ad exclusively online

Question 71

An advertisement offering a discount if a product is ordered in the next 24 hours is an example of reminder advertising.

Question 72

The principle of the percentage-of-sales method of budget setting is viewing sales as the result of advertising.

Question 73

Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.

Question 74

Which of the following is a disadvantage of using magazines as an advertising medium?

A)low pass-along readership
B)high cost per exposure
C)low geographic and demographic selectivity
D)low credibility and prestige
E)low-quality reproduction

Question 75

Product placement is an example of brand integration style of advertising.

Question 76

A consumer demanding a product after watching its ad on television has responded to pull advertising.

Question 77

In a push marketing strategy,the producer promotes the product to channel members who in turn promote it to final consumers.

Question 78

Comparative advertisement is an example of persuasive advertisement.

Question 79

Using a character that represents the product in the advertisement is an example of an endorsement.

Question 80

Reminder advertising is ideal for maintaining customer relationships for mature products.