Deck 13: Promotion and Pricing Strategies

Question 1

Manufacturers of B2B products typically spend more on personal selling than on advertising.

Answer 1

True

Question 2

Advertising is the most visible form of nonpersonal promotion.

Answer 2

True

Question 3

One advantage of advertising in magazines is that they allow targeted messages.

Answer 3

True

Question 4

One advantage of television advertising is its low cost.

Question 5

A major portion of advertising is information oriented.

Question 6

Television ads by State Farm warning drivers against texting while driving are a type of institutional advertisement.

Question 7

Many marketers pay placement fees to promote their products in television shows or movies.

Question 8

Guerrilla marketing involves innovative, low‐cost marketing efforts designed to get consumers' attention in unusual ways.

Question 9

Positioning is an attempt by marketers to establish unique places for their products in the minds of consumers.

Question 10

When a hotel offers special weekend packages, it is attempting to stabilize sales.

Question 11

The process through which markets try to ingrain their products in the minds of customers is known as product positioning.

Question 12

The fundamental purpose of promotion is to inform customers about the benefits of products.

Question 13

Advertising is a global activity.

Question 14

An integrated marketing communications strategy focuses on customer needs to create a diverse promotional message.

Question 15

An ad claiming that Brand A works better than Brand B is an example of reminder-oriented advertising.

Question 16

To gain a competitive advantage, marketers that utilize integrated marketing communications need a broad view of promotion.

Question 17

Advertising is a form of nonpersonal selling.

Question 18

The promotional mix consists of two major components, personal selling and nonpersonal selling.

Question 19

A television ad promoting new stain-fighting power of Tide laundry detergent is an example of differentiating a product.

Question 20

Persuasive advertising is often used during a product's growth state to improve the competitive status of the product.

Question 21

A company is selling condominiums in Aspen. It is likely to rely more on advertising in its promotional mix than personal selling.

Question 22

A sales representative who calls people at home is practising inbound telemarketing.

Question 23

Missionary selling is used for selling goods whose benefits are NOT readily apparent.

Question 24

Jamal, the service manager for a local Ford dealer, makes a point of sending out letters to all customers asking whether or NOT they are satisfied with their purchase. Jamal is conducting a follow-up.

Question 25

Samples, coupons, contests, displays, and trade shows are examples of sales promotion.

Question 26

Public relations refers to an organization's nonpaid communications.

Question 27

A recent newspaper article reported that the CEO of Brown & Smith Corporation has been accused for accounting fraud. This article is an example of publicity.

Question 28

The first step in the sales process is to identify the potential customer.

Question 29

Creative selling involves a persuasive type of promotional presentation.

Question 30

Research indicates that the use of Internet coupons is on the decline.

Question 31

Viral advertising creates a novel or entertaining message that consumers forward to others, spreading it like a virus.

Question 32

In-store displays are an example of trade promotion.

Question 33

Public relations is more important for not-for-profit organizations than for general corporations.

Question 34

Employee volunteers clean up a neighbourhood playground. In the process, employees hand out free product samples from the company. This is an example of a publicity campaign.

Question 35

McDonald's including a toy in each Happy Meal purchase is an example of a premium.

Question 36

Paid nonpersonal communication usually targeted at large numbers of potential buyers is referred to as marketing.

Question 37

Infomercials are typically 30-minute marketing programs that resemble regular television programs, but they are devoted to selling goods or services.

Question 38

Personal care marketers make up 25 percent of global ad spending in recent years.

Question 39

Personal selling is often used for products that are technically complex.

Question 40

Order processing involves identifying customer needs, pointing them out to customers, and completing orders.

Question 41

Cooperative advertising are allowances that marketers provide to share with channel partners the cost of local advertising of their firm's product or product line.

Question 42

In the bid to maintain increased profitability, companies can increase the size of their package and reduce selling price.

Question 43

Fixed costs are the costs to produce one unit, regardless of output.

Question 44

Profitability objectives are among the most common goals that are stated in most firm's strategic plans.

Question 45

Breakeven analysis calculates the level of sales required to cover all of the company's fixed and variable costs.

Question 46

Penetration pricing is often used when there are no close competitors and none are expected to enter the market for some time.

Question 47

Profitability objectives are perhaps the most common objectives included in the strategic plans of most firms.

Question 48

Most marketing situations require combinations of pushing and pulling strategies.

Question 49

A skimming pricing strategy involves setting the price of a product relatively high and then gradually lowering it.

Question 50

A pushing strategy is designed to motivate wholesalers and retailers.

Question 51

A pulling strategy relies less on advertising than does a pushing strategy.

Question 52

Creative selling promotes a good or service whose benefits are NOT readily seen.

Question 53

Limited availability can create product prestige.

Question 54

If a product sells for $20 and the variable costs are $14, then the per-unit contribution to fixed costs is $6.

Question 55

The breakeven point determines at which point to halt production because sales beyond the breakeven point result in losses to the firm.

Question 56

When a cereal company keeps the package size the same but fills it with more air than previously included, the manufacturer is trying to increase profits through volume objectives.

Question 57

Penetration pricing assumes that a low price will attract new buyers.

Question 58

Marketers often emphasize a pulling strategy for consumer products and a pushing strategy for business products.

Question 59

Good public relations help to publicize firms' products and also maintain a positive image of the company.

Question 60

Marketers rarely try to combine pushing and pulling strategies in the same promotional campaign.

Question 61

The buyer-seller communication in ______ occurs during a face-to-face meeting or via telephone, videoconference, or interactive computer link.

A) integrated marketing communications
B) personal selling
C) nonpersonal selling
D) promotional strategy

Question 62

Odd pricing is used because retailers believe that consumers favour prices such as $3.99 or $249,999.

Question 63

When a firm tries to differentiate its products, it often applies a concept known as ______.

A) positioning
B) the marketing mix
C) personal selling
D) product valuation

Question 64

A penetration strategy is a strategy whereby a business sets an intentionally high price relative to the prices of competing products.

Question 65

Integrated marketing communications would include all of the following EXCEPT ______.

A) direct mail
B) sales promotions
C) public relations
D) distribution

Question 66

In the movie, The Social Network, the actor portraying Mark Zuckerberg is featured wearing products by Gap and the North Face. This form of promotion is known as ______.

A) trade promotion
B) institutional advertising
C) creative selling
D) product placement

Question 67

A major portion of advertising is designed to ______.

A) accentuate product value
B) differentiate the product
C) stimulate demand
D) provide information

Question 68

Which of the following manufacturers and products would likely spend more on personal selling than on nonpersonal selling?

A) Johnson & Johnson, Band-Aids
B) General Mills, Cheerios
C) Boeing, 737 jetliners
D) Toshiba, DVD players

Question 69

A company includes an "instant coupon" as part of a product's package, giving the buyer a reduction off the retail price. What is the company attempting to do?

A) Increase sales.
B) Provide information.
C) Stabilize sales.
D) Differentiate the product.

Question 70

Advertising, sales promotion, direct marketing, and public relations are examples of ______.

A) order processing
B) personal selling
C) nonpersonal selling
D) creative selling

Question 71

It is NOT uncommon that consumers correlate prestige, quality, and high price.

Question 72

Nike uses sports stars to increase sales by enhancing the public's ______ demand for their brand.

A) secondary
B) selective
C) primary
D) marketplace

Question 73

Most marketing managers believe that the price-quality relationship holds for a wide variety of prices.

Question 74

Many retailers use odd pricing because they believe that consumers prefer uneven amounts or amounts that sound less than they really are.

Question 75

In an effort to boost the entire pork industry, the National Pork Board sponsors an advertisement stating, "Pork. The Other White Meat." This type of promotion is called ______.

A) name recognition
B) media dominance
C) primary demand
D) media exposure

Question 76

Total cost is the sum of total variable costs and total fixed costs.

Question 77

Ford is running ads emphasizing that it offers longer warranties than other automobile companies. This is an example of which promotional strategy objective?

A) Differentiate the product.
B) Stabilize sales.
C) Provide information.
D) Accentuate the product's value.

Question 78

It is generally perceived by consumers that the lower the quality of a product, the higher the price.

Question 79

A company following a competitive pricing strategy relies heavily on price as a competitive weapon.

Question 80

Jiffy Lube puts a sticker on your windshield to remind you when you are due for your next oil change. This is an example of which promotional strategy objective?

A) Accentuate the product's value.
B) Provide information.
C) Stabilize sales.
D) Differentiate the product.