Deck 14: Global Marketing Communications Decisions 2: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication

Question 1

At concerts and other events, street teams pass out free samples while driving specially modified cars with giant Red Bull cans mounted on them. This is an example of regiocentric orientation.

Answer 1

False

Question 2

Which of the following is not an advantage of using sales promotions?

A)provides a tangible incentive to buyers
B)provides accountability to marketing managers
C)enables company to build its database
D)builds long-term brand awareness
E)develops relationship with customers

Answer 2

C

Question 3

The success of the Stratos project helps Red Bull by:

A)having their logo on NASCAR cars.
B)using YouTube as an effective marketing tool.
C)standing out from a crowded field of competitors.
D)utilizing free-standing inserts.
E)personal selling.

Answer 3

C

Question 4

A critical marketing tool for global companies such as Red Bull is:

A)sampling.
B)sweepstakes.
C)couponing.
D)event marketing.
E)personal selling.

Question 5

Spoexa, a food-marketing company was hired by the French Ministry of Agriculture to organize cocktail parties in 19 countries in order to:

A)promote French wines.
B)promote French cheese.
C)show that French cuisine is laid back.
D)show that French wines are superior.
E)show how to use French cuisine.

Question 6

PepsiCo experienced great success in Latin America with its Numeromania contest, which lured consumers by promising big cash prizes. They used the same contest in Poland successfully. This shows that:

A)Numeromania can be used in different languages.
B)Numeromania can be used in cash starved countries.
C)leverage experience gained in one country can be used in another country.
D)economically squeezed consumers love Pepsi.
E)Numeromania helped in developing a taste for Pepsi in both countries.

Question 7

A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents when purchasing a Crest toothbrush. What type of sales promotion does this represent?

A)cross coupon
B)product placement coupon
C)trade promotion coupon
D)freestanding coupon
E)online coupon

Question 8

In a contest of 45 different languages covering 60 countries, marketers for Axe Apollo invited consumers to fill out an "astronaut profile." This is an example of:

A)promotion of different types for marketing.
B)promotion of interest in space exploration.
C)people in different countries prefer different topics.
D)astronaut profile varies from country to country.
E)sales promotion by global marketer.

Question 9

Which promotional technique is best suited to a situation in which a company wants consumers to actually try its product or service at no cost?

A)sampling
B)sweepstakes
C)couponing
D)free-standing inserts
E)personal selling

Question 10

It was found that Malaysians hesitate to use coupons due to the:

A)lower power distance.
B)higher uncertainty avoidance.
C)fear of public embarrassment.
D)impact of religion.
E)general dislike for coupons.

Question 11

To fight counterfeiting, the "Disney Magical Journey" promotion was keyed to mail-in hologram stickers on genuine Disney products. Participants could win Disney DVDs, TV sets, and trips to Hong Kong Disneyland. This is an example of:

A)promotion of different types for marketing.
B)promotion of Disney Magical Journey.
C)people in many countries prefer mail-in hologram.
D)"Disney Magical Journey" is popular worldwide.
E)sales promotion by global marketer.

Question 12

Overall, sales promotion tools, such as coupons, are used less frequently as consumer products companies increase budget allocations for media advertising.

Question 13

Promotions designed to increase product availability in distribution channels are known as:

A)sales promotions.
B)price promotions.
C)trade sales promotions.
D)consumer sales promotions.
E)nonprice promotions.

Question 14

A marketer of fine French cognac offers fancy cigar ashtrays as prizes to consumers who correctly solve a crossword puzzle. Which of the following most accurately describes this offer?

A)price promotion
B)non-price promotion
C)trade sales promotion
D)sweepstakes promotion
E)sampling

Question 15

Social couponing is one of the hottest sales promotion trends today. This refers to:

A)sampling.
B)Groupons.
C)sweepstakes.
D)freestanding inserts.
E)personal selling.

Question 16

Promotions that are designed to increase product availability in distribution channels are known as:

A)price promotion.
B)non-price promotion.
C)trade sales promotion.
D)sweepstakes promotion.
E)sampling.

Question 17

Coupons are not a favorite promotion tool for use in:

A)the United Kingdom.
B)Belgium.
C)the United States.
D)Italy.
E)Malaysia.

Question 18

From the point of view of the marketer, sales promotion provides accountability.

Question 19

A marketer of fine French cognac offers a fancy cigar ashtray to persons who correctly solve a crossword puzzle and mail it in. This is an example of a trade promotion.

Question 20

Unilever hired a promotional marketing firm to pass out Lever 2000 hand wipes in food courts and petting zoos. This is an example of:

A)point-of-use sampling.
B)point-of-sale sampling.
C)point-of-dirt sampling.
D)point-of-event sampling.
E)point-of-work sampling.

Question 21

In China, consumers are reluctant to buy full-sized packages of unfamiliar imported products. In such a marketing environment, sampling is an appropriate promotional strategy.

Question 22

A number of factors must be taken into account when determining the extent to which promotion must be localized. List and describe those factors giving examples.

Question 23

Cross coupons offer its users deal-of-the-day that are sponsored by local businesses.

Question 24

Unilever hired a promotional marketing firm to pass out Lever2000 hand wipes in food courts and petting zoos. This is referred to as "point-of-dirt" sampling.

Question 25

In countries with high levels of economic development, low incomes limit the range of
promotional tools available. In such countries, free samples and demonstrations are more likely to be used than coupons or on-pack premiums.

Question 26

By the end of 2012, Groupon had more than 40 million users in 48 countries. More than half of Groupon's Web site visitors live in the United States.

Question 27

Although Asian consumers have a reputation for thriftiness, some are reluctant to use coupons, because doing so might bring shame upon them or their families.

Question 28

Giving examples, show how sampling can be an effective sales promotion technique.

Question 29

During the 2004 Super Bowl broadcast, PepsiCo launched a joint promotion with Apple's iTunes Music Store. Anyone purchasing a bottle of Pepsi had a one-in-three chance of being a winner. However, many people discovered that by tilting the bottles, they could tell whether the bottle was a winner.

Question 30

Fifty years ago, Kikkoman brand soy sauce was unknown in the United States. The company used sampling and even today continues to make extensive use of shopper marketing as a communication tool.

Question 31

In a contest in 45 different languages covering 60 countries, marketers for Axe Apollo invited consumers to fill out an "astronaut profile."

Question 32

Starbucks dispatches "Chill Patrols" in the summertime to pass out samples of ice-cold Frappuccinos to overheated commuters during rush hour in busy metropolitan areas. This is an example of "point-of-dirt" sampling.

Question 33

The authors of one study noted that Nestlé and other large companies that once had a polycentric approach to consumer and trade sales promotions have redesigned their efforts. Based on a study by Kashani and Quelch, identify factors that contribute to more headquarters involvement in the sales promotions effort.

Question 34

Social couponing is one of the hottest online sales promotion trends. It offers its followers deal-of-the-day coupons that are sponsored by local businesses.

Question 35

Discuss what makes the use of sales promotion so effective and popular. Describe different types of sales promotions.

Question 36

To fight counterfeiting, the "Disney Magical Journey" promotion was keyed to mail-in hologram stickers on imitation Disney products.

Question 37

Acknowledging that some consumers are intimidated by France's culinary heritage, the Ministry sponsored a promotion to demonstrate that French cuisine can be relaxed and laid back.

Question 38

Sampling can be especially important if consumers are persuaded by claims made in advertising or other channels.

Question 39

Since market maturity can be different from country to country, consumer sampling and coupons are appropriate for mature markets.

Question 40

Compared with other forms of marketing communication, sampling is more likely to result in actual trials of the product. Explain this by giving examples of possible types of sampling.

Question 41

Which type of sales person is best suited to selling technologically-sophisticated products in developed countries?

A)expatriates
B)third-country nationals
C)host-country nationals
D)agents of any nationality
E)none of the above

Question 42

Which of the following is not one of the steps in the Strategic/Consultative Selling model?

A)develop personal selling philosophy
B)develop relationship strategy
C)develop product strategy
D)develop ethnocentric policy
E)develop customer strategy

Question 43

In the six-step presentation plan, the first and last steps are respectively:

A)presentation; demonstration.
B)approach; close.
C)presentation; negotiation.
D)approach; presentation.
E)approach; servicing the sale.

Question 44

Coupons are a favorite promotion tool of consumer packaged goods companies such as Proctor & Gamble and Unilever. How does the couponing work, and what are the advantages for using different types of coupons?

Question 45

Building a prospect base is typically part of which step of the Strategic/Consultative Selling model?

A)development of a customer strategy
B)development of a personal selling philosophy
C)development of a product strategy
D)development of a relationship strategy
E)development of a presentation strategy

Question 46

Other international personal selling approaches that fall somewhere between sales agents and full-time employee teams include all of the following except:

A)exclusive license arrangements.
B)contract manufacturing or production.
C)management-only agreements.
D)franchising.
E)joint ventures.

Question 47

When MCI Communications first entered Latin America, it utilized expatriate Americans to work for them despite the high cost of doing so.

Question 48

Environmental issues and challenges faced by a company which is in the initial stages of implementing a personal selling strategy include all of the following except:

A)political risks.
B)regulatory hurdles.
C)product innovation.
D)currency fluctuations.
E)market unknowns.

Question 49

What are the issues and problems related to sales promotion in different parts of the world?

Question 50

Which of the following is a disadvantage of using an expatriate sales force?

A)inferior product and company knowledge
B)capability to institute the acceptable practices
C)follow policies of the home office
D)enhanced promotion prospects
E)maintaining is very expensive

Question 51

The U.S.-style "I'll do whatever it takes to get your business" has proven to be a successful selling approach throughout the world.

Question 52

Negotiation requires both customer and the salesperson:

A)to be persistent in their point of view.
B)to be subjected to arm-twisting.
C)to agree to disagree.
D)come away as winners.
E)come away as losers.

Question 53

Relationship marketing, which stresses an approach on developing long-term relationships with customers, has been disliked by many U.S. companies.

Question 54

After much trial and error in creating sales forces, most companies today attempt to establish a:

A)hybrid sales force composed of expatriates and in-country nationals.
B)sales force composed of a majority of expatriates.
C)hybrid sales force composed of expatriates and third country nationals.
D)sales force composed of third country nationals.
E)sales force consisting of all in-country nationals.

Question 55

When a company must decide on the composition of its foreign sales force, which alternative is generally the most expensive?

A)expatriates
B)third-country nationals
C)host-country nationals
D)agents of any nationality
E)agents of host country

Question 56

Which of the following is not a step in the Strategic/Consultative Selling model?

A)develop a marketing mix
B)develop a personal selling philosophy
C)develop a product strategy
D)develop a relationship strategy
E)develop a presentation strategy

Question 57

The final step in the 6-step sales presentation plan is closing the sale.

Question 58

The Strategic/Consultative Selling Model consists of five interdependent steps, each with three prescriptions that can serve as a checklist for sales personnel.

Question 59

A company with a polycentric orientation is likely to employ host-country nationals in all but which of the following selling situations?

A)selling high-tech products in developed countries
B)selling high-tech products in less-developed countries
C)selling low-tech products in developed countries
D)selling low-tech products in less-developed countries
E)none of the above

Question 60

A company in which an ethnocentric orientation prevails is likely to utilize primarily ________ in its sales force.

A)host-country nationals
B)third-country nationals
C)expatriates
D)agents of any nationality
E)agents of host country

Question 61

Industry observers expect the popularity of home shopping to increase during the next few years due to the:

A)formation of European Union.
B)economic development in India.
C)introduction of interactive television.
D)introduction of iPhone.
E)introduction of TV shops.

Question 62

The term magalog is used to describe which communication medium?

A)direct mail
B)Groupons
C)coupons
D)catalogs
E)infomercials

Question 63

________ is a form of paid television programming in which a particular product is demonstrated, explained, and offered for sale to viewers who call a toll-free number shown on the screen.

A)Teleshopping
B)Infomercials
C)Interactive television
D)Magalog
E)Groupon

Question 64

Host-country nationals may possess work habits or selling styles that do not mesh with those of the parent company.

Question 65

A company with a regiocentric orientation is likely to utilize third-country nationals for its sales force in less developed countries.

Question 66

Benefits for using sales agents include all of the following except:

A)agents work under contract rather than as full-time employees.
B)agents are less expensive than full-time, in-country national sales representatives.
C)agents possess the same market knowledge as in-country nationals.
D)agents can eventually replace manufacturer's sales agents.
E)agents possess the same cultural knowledge as in-country nationals.

Question 67

Chinese direct-response television has learned that there are many obstacles that still need to be overcome, which include all of the following except:

A)consumers' savings rate is very low.
B)a limited number of private telephones.
C)low penetration of credit cards.
D)delivery logistics in Beijing.
E)delivery logistics in Shanghai.

Question 68

Which of the following is not characteristic of direct marketing?

A)A marketer relinquishes control of product when it is turned over to channel intermediaries.
B)Advertising serves to generate an immediate inquiry or purchase.
C)Repetition is used in individual advertisements.
D)The customer perceives high risk.
E)Direct response advertising is used.

Question 69

Which of the following is not a useful guideline for U.S.-based direct marketers wishing to reach global customers?

A)Do not treat prospects as though they are Americans.
B)Do not automatically assume that a direct-mail campaign that works in one country will work in another country.
C)Do not assume that all Europeans are similar in their tastes and wants.
D)Customers should be able to return products to an address in their local country market.
E)Focus on all countries included in the European Union.

Question 70

Interactive television (ITV)allows viewers to see an ad in its entirety by pressing a remote button; to order products from home-shopping channels; or choose different camera angles, such as for sporting events. Comments by James Pennefather, brand manager for Smirnoff, UK, based on comparison of traditional TV ads to ITV features included all of the following except:

A)"it allows viewers to interact with programming."
B)"it is a lot more unproven.
C)"it needs further testing."
D)"it is a calculated risk."
E)"it may or may not succeed."

Question 71

Ethnocentric companies are likely to use an expatriate sales force in countries at all levels of economic development.

Question 72

Which of the following is not characteristic of mass marketing?

A)Product benefits do not typically include home delivery.
B)Advertising is used to generate an immediate inquiry or purchase.
C)Repetition of ads is the key to awareness and remembering.
D)The customer perceives relatively little risk.
E)Purchase action is deferred.

Question 73

Basic issues for companies that sell globally are the composition of the sales force in terms of nationality. List choices that are available to companies for selecting a sales force. Outline advantages and disadvantages of each choice.

Question 74

In companies where a polycentric management orientation prevails, host-country nationals will be used in most selling situations with the exception of high-tech products sold in developed countries.

Question 75

In Hong Kong and Singapore, Western catalogers are finding it easy to market because of all of the following reasons except:

A)efficient postal services.
B)highly educated populations.
C)wide use of credit cards.
D)few mail-order companies.
E)high per capita income.

Question 76

Thomas Burke, an executive at Saatchi & Saatchi, is quoted as saying ________ are "the most powerful form of advertising ever created."

A)corporate advocacy ads
B)infomercials
C)banner ads on the Internet
D)direct mail campaigns
E)catalog sales

Question 77

The Strategic/Consultative Selling Model has gained wide acceptance in the United States. Briefly describe what the model consists of and how it can serve as a checklist for sales personnel.

Question 78

Which of the following environmental characteristics affects use of direct marketing in Europe?

A)the European Commission's concern about privacy
B)high postal rates in several European countries
C)industries in Europe are still developing complete mailing lists
D)linguistic, cultural, and regional diversity
E)all of the above

Question 79

Which country or region offers direct marketers the advantage of a well-developed mailing list industry?

A)the United States
B)Japan
C)Western Europe
D)Latin America
E)South Korea

Question 80

Peppers and Rogers described different steps that are involved in one-to-one marketing. These steps include all of the following except:

A)identify.
B)differentiate.
C)interact.
D)evaluate.
E)customize.