Question 1

Discuss sales promotion.

Accepted Answer

The answer of Discuss sales promotion....

Question 2

Discuss direct marketing.

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Question 3

Of the following actions, which is permitted in personal selling activities?

Accepted Answer

Offering incentives such as discounts based on the size of an order is a common and ethical practice in personal selling activities. Obtaining or using trade secrets, criticizing competitors with inaccurate information, and bribes are all unethical and illegal actions. Stretching the truth when describing product advantages is also unethical and can be considered a form of deception.

Question 4

Which of the following would be classified as bait-and-switch advertising?

Accepted Answer

Bait-and-switch advertising involves advertising a desirable item at a low price but then attempting to sell a different, more expensive item to the customer. In this case, advertising a cheaper brand but only making a more expensive one available is an example of bait-and-switch advertising.

Question 5

Refer to the scenario below to answer the following question(s).
John Mayes opened Sparkle Janitorial in 2005. John began his business by acquiring two contracts for office cleaning services from two local manufacturing facilities. For two years, John and his wife, Barb, performed the cleaning services alone. After acquiring three additional cleaning contracts in 2007, John hired two employees. "Up to that point, we had room to grow but we really had no advertising plan," John stated. "We were relying mostly on word-of-mouth."
By 2010, Barb hired another two full-time employees to begin Sparkle's new endeavor: carpet cleaning in homes and offices. "Competition was getting tough for both of our services at that point," Barb added. "We ran a local radio spot three times each week. Then we had an advertiser print coupons on placemats. That gave us a little more exposure."
John and Barb Mayes admit that they did not realize the value of a sound promotional plan earlier. "We wish we would have put together something catchy with a jingle long before now," they said.
-When starting their business, John and Barb would most likely have benefitted from understanding ________.

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Question 6

The affordable method of setting advertising budgets takes into consideration the effects of promotion on sales.

Accepted Answer

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Question 7

The FTC has adopted a three-day cooling-off rule to give special protection to ________.

Accepted Answer

The three-day cooling-off rule is meant to protect customers who were not seeking a product, giving them an opportunity to reconsider their purchase and cancel it without penalty within three days of the sale. It does not specifically address customers who fell victim to deceptive advertising or bait-and-switch tactics, nor does it apply to resellers.

Question 8

Describe the significance of public relations as a promotion tool.

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Question 9

Large-scale advertising conveys a positive message about the seller's size, popularity, and success.

Accepted Answer

Large-scale advertising often creates the perception that the seller is successful and widely recognized, which can result in an increased sense of trust and credibility from potential customers.

Question 10

Using a push strategy, the producer directs its marketing activities (primarily advertising and consumer promotion) toward final consumers to induce them to buy the product.

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Question 11

The affordable method of setting advertising budgets more frequently results in overspending, rather than in underspending.

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Question 12

Because personal selling involves developing relationships, it is acceptable for salespeople to stretch claims they make about a product's advantages.

Accepted Answer

Salespeople should not stretch claims they make about a product's advantages, as this can damage the trust and credibility of the relationship they are trying to build with the customer. It is important to be honest and transparent about the capabilities and limitations of a product to maintain a strong and sustainable customer relationship.

Question 13

Integrating the promotion mix starts with suppliers.

Accepted Answer

Integrating the promotion mix starts with understanding the target audience and setting promotional objectives, then selecting and coordinating the various promotional tools such as advertising, sales promotion, personal selling, direct marketing, and public relations. Suppliers are involved in the production and distribution of the product or service, but they do not typically play a direct role in the promotion mix strategy.

Question 14

When is it advisable to predominantly use sales promotions in a promotion mix?

Accepted Answer

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Question 15

Business-to-consumer companies are more likely to emphasize a ________ promotion strategy, while business-to-business companies are more likely to emphasize a ________ promotion strategy.

Accepted Answer

Business-to-consumer (B2C) companies are more likely to use a pull promotion strategy, which means they focus on drawing customers in through advertising, social media, and other promotional techniques. On the other hand, business-to-business (B2B) companies are more likely to use a push promotion strategy, which involves reaching out to potential clients with cold calls, email campaigns, trade shows, and other direct marketing techniques.

Question 16

If the pull strategy is effective, then consumers will demand the product from channel members, who will in turn demand it from producers.

Accepted Answer

This is the basic concept behind the pull strategy. By creating demand for a product among consumers, it can lead to a chain reaction where channel members are also demanding the product from producers to meet consumer demand.

Question 17

The affordable method involves setting promotion budgets to match competitors' outlays.

Accepted Answer

The affordable method involves setting promotion budgets based on what a company can afford, rather than what competitors are spending.

Question 18

The percentage-of-sales method wrongly views sales as the cause of promotion rather than as the result.

Accepted Answer

The percentage-of-sales method assumes that sales drive promotional spending, but in reality, it is often the other way around. Promotional activity can influence sales, making it a result rather than a cause.

Question 19

The percentage-of-sales budget is based on the availability of funds rather than on opportunities.

Accepted Answer

The percentage-of-sales budgeting method sets the budget based on a percentage of the company's sales revenue. This means that the amount of funds available for the budget is determined by the company's current sales, not necessarily by the opportunities for growth or investment.

Question 20

John Deere does very little promoting of its lawn mowers and garden tractors to final consumers. Instead, John Deere's sales force works with Lowe's, Home Depot, independent dealers, and other channel members, who in turn sell John Deere products to final consumers. According to this information, which of the following promotion mix strategies is being used by John Deere?

Accepted Answer

John Deere is using a push strategy, where they are pushing their products through their distribution channels instead of promoting directly to the final consumers. This is evident from the fact that their sales force works with various channel members like Lowe's, Home Depot, independent dealers, etc. who in turn sell their products to the final consumers.

Quiz 14: Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy