Question 1

What stage of the product life cycle is a period when little money is spent in the promotional mix?

Accepted Answer

The answer of What stage of the product life cycle...

Question 2

When a manufacturer directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product, it is using a(n) __________ channel strategy.

Accepted Answer

The manufacturer is using a push strategy, which is designed to push the product through the channel by encouraging channel members to order and stock the product. This is typically done through a combination of advertising, personal selling, sales promotion, and other marketing communications that are directed at channel members rather than end consumers.

Question 3

The promotional objective of the decline stage of the product life cycle is to __________.

Accepted Answer

In the decline stage, the focus is on phasing out the product as sales decrease and it becomes less profitable.

Question 4

-The promotion decision process is divided into three phases. In Figure 14-5 above, B refers to the __________ phase.

Accepted Answer

The answer of

-The promotion decision process is divided into...

Question 5

-Channel A in Figure 14-4 above represents which type of promotional channel strategy?

Accepted Answer

The answer of 
-Channel A in Figure 14-4 above represents...

Question 6

Which stage of the product life cycle is usually a period of phase-out for the product, when little money is spent in the promotional mix?

Accepted Answer

The decline stage of the product life cycle is characterized by a decrease in sales and profits, as the product becomes outdated or faces competition from newer products. During this stage, little money is usually spent on the promotional mix as the product is being phased out.

Question 7

When employing a push strategy, a manufacturer

Accepted Answer

A push strategy is when the manufacturer focuses their promotional efforts on the intermediaries (wholesalers, retailers) to convince them to stock and promote their products. This often involves a strong emphasis on personal selling and trade promotions to gain the intermediaries' cooperation in ordering and stocking the product. Ultimately, this push through the channel is expected to generate demand from the end consumer.

Question 8

Chrysler Corporation provides support and incentives for its Chrysler, Dodge, and Jeep dealers. Through a multi-level program, Chrysler provides incentives to reward dealers for meeting sales goals. Dealers receive an incentive when they are near a goal, another when they reach a goal, and a larger incentive if they exceed sales projections. All of these actions are intended to encourage Chrysler dealers to __________ the Chrysler products through the channel to consumers.

Accepted Answer

The terms "push" and "pull" are often used in marketing and distribution channels, with "push" referring to efforts made by manufacturers or suppliers to push their products through the distribution chain to reach consumers, and "pull" referring to efforts made by the end customer or consumer to pull the product from the distribution chain. In this context, Chrysler's incentive program is designed to encourage their dealers to "push" Chrysler products through the distribution chain, by providing incentives for meeting and exceeding sales goals.

Question 9

-The promotion decision process is divided into three phases. In Figure 14-5 above, C refers to the __________ phase.

Accepted Answer

The answer of

-The promotion decision process is divided into...

Question 10

-Channel B in Figure 14-4 above represents which type of promotional channel strategy?

Accepted Answer

The answer of 
-Channel B in Figure 14-4 above represents...

Question 11

Directing the promotional mix at ultimate consumers to encourage them to ask retailers for the product is referred to as a __________.

Accepted Answer

A pull strategy is when the promotional mix is aimed at the end consumer in order to create demand and encourage them to request the product from retailers. This is in contrast to a push strategy, where the promotional mix is aimed at retailers or wholesalers to push the product out to the consumers. The other answer choices (intense, inertia, exclusivity) do not accurately describe this marketing strategy.

Question 12

At which stage in the product life cycle are discounts and coupons offered to both consumers and intermediaries to maintain loyal buyers?

Accepted Answer

Discounts and coupons are usually offered in the maturity stage of the product life cycle to maintain loyal buyers and encourage repurchase. In the introduction stage, discounts may be offered to encourage trial and adoption, while in the growth stage, prices tend to stabilize and promotional efforts focus more on building brand loyalty rather than attracting new customers. In the decline stage, discounts may be offered to clear inventory before discontinuing the product, but this is not a sustainable strategy for maintaining loyal buyers.

Question 13

Pharmaceutical companies now spend more than $3.4 billion annually on __________ prescription drug advertising to complement traditional personal selling and free samples directed only at doctors.

Accepted Answer

The phrase "direct-to-consumer" matches the description in the sentence, as it refers to advertising that is aimed at consumers rather than just doctors.

Question 14

When employing a pull strategy, a manufacturer

Accepted Answer

In a pull strategy, the focus is on generating demand from the end consumer which then pulls the product through the supply chain. This is done by directing the promotional mix (advertising, personal selling, etc.) towards the ultimate consumers to encourage them to ask retailers for the product. This creates a pull effect on the supply chain and helps to increase sales for the manufacturer.

Question 15

-The promotion decision process is divided into three phases. In Figure 14-5 above, Box A refers to the __________ phase.

Accepted Answer

Box A refers to the planning phase.

Question 16

The actions a firm takes during the promotion decision process include __________, executing, and assessing the promotion program.

Accepted Answer

The answer of The actions a firm takes during the...

Question 17

Pharmaceutical manufacturers encourage patients to learn more about their drugs and ask for them by name from the doctor. The manufacturers of these drugs are using a(n) __________ promotional channel strategy.

Accepted Answer

A pull strategy is aimed at consumers to generate demand and pull the product through intermediaries (like doctors) to the end consumer. In this case, pharmaceutical manufacturers are encouraging patients (consumers) to learn more about their drugs and ask for them by name from the doctor, which creates demand and pulls the product through the doctor to the end consumer.

Question 18

Many prescription drugs such as Lipitor have national TV advertising campaigns to encourage patients to learn more about the drugs and ask for them by name from their doctors. The manufacturers of these drugs are using a(n) __________ promotional channel strategy.

Accepted Answer

The TV advertising campaigns are aimed at pulling or attracting customers to ask for the drug by name from their doctors, which signifies a pull promotional channel strategy.

Question 19

An unsatisfied customer who switches brands is hard to replace. Which stage of the product life cycle is focused on maintaining loyal buyers so that customers will not switch brands?

Accepted Answer

The maturity stage of the product life cycle is focused on maintaining loyal buyers and retaining market share. It is important to prevent customers from switching to competitors during this stage, as it becomes more difficult and costly to acquire new customers. Therefore, the focus is on building strong relationships with existing customers through customer service, loyalty programs, and other incentives to keep them coming back.

Question 20

The first step in developing the promotion program is to __________.

Accepted Answer

Identifying the target audience is the first step in developing any marketing or promotion program as it helps in determining the appropriate message, media, and strategy to reach and influence the desired target audience.

Quiz 14: Integrated Marketing Communications and Direct Marketing