Deck 13: Integrated Promotion Decisions

Question 1

In the competitive-parity method the most important rule is to spend one and a half times the share objective at the end of the first or second year.

Answer 1

True

Question 2

Direct marketing has very low cost per exposure and high response rate.

Answer 2

False

Question 3

The principal tools from which a marketer can choose in developing an IMC plan are advertising,personal selling,sales promotion,and public relations.

Answer 3

True

Question 4

Radio is more involving and economical than television.

Question 5

The first step in developing a promotion mix should be setting a promotional objective.

Question 6

Banner ads can consist of text,graphics,audio,or video,and some are even interactive.

Question 7

Promotional objectives serve as the basis for evaluating an advertising program once it is completed.

Question 8

Portal deals involve marketers paying web portals for prime or exclusive positions on the portals' websites.

Question 9

Smaller consumer goods marketers who have low budgets typically use pull strategies.

Question 10

Sales promotion is a process of helping and persuading one or more prospects at a time to purchase a good or service or to act on any idea through the use of an oral presentation.

Question 11

It is possible to measure the proportion of potential customers who are at each stage in the hierarchy when using communication hierarchy as the basis for setting advertising objectives.

Question 12

The first step in designing the promotion mix is choosing the specific activities within each promotion component.

Question 13

Gross rating points are calculated by multiplying reach by average frequency.

Question 14

Sales presentations,sales meetings,and sales training and incentive programs are examples of personal selling.

Question 15

In practice,sales promotion always plays a dominant role in the promotion mix.

Question 16

The percentage-of-sales method sets the relative promotional spending equal to the brand's market share,or larger if an attempt is being made to increase share.

Question 17

Television is not effective to reach the emerging middle class in the developing world.

Question 18

A statement of how some specific aspect(s)of the audience's perceptions,attitudes,or behavior should change should be included in good promotional objectives.

Question 19

The objective-and-task method has the advantage of forcing firms to set specific promotional objectives through careful analysis of the specific situation.

Question 20

A rate card specifies the nature and size of the audience that a medium reaches and the costs of advertising in that medium.

Question 21

Which of the following is true of a company's promotion mix?

A)The first step in designing the promotion mix involves choosing the specific activities to be pursued within a promotion component.
B)The elements of the promotion mix are not independent of each other.
C)The product's stage in the product life cycle has no bearing upon specific decisions regarding promotion mix elements.
D)Sales promotion and publicity always play a dominant role in the promotion mix.

Question 22

Publicity can be used to accomplish different objectives among different groups.

Question 23

Which of the following is the first step in the five-step process of developing a product promotional plan?

A)Setting the promotional objectives
B)Setting the promotion budget
C)Defining the audience to be targeted
D)Designing the promotion mix

Question 24

After tests measure the effectiveness of the total advertising effort.

Question 25

Porsche outlines the following to promote its new models:
1)Target the businessmen between the ages of 35-55,with incomes of $60,000 or more
2)Make at least 20 percent of the target audience aware of the uniqueness of Porsche's engine
3)Make the audience feel the necessity to own the new Porsche model so as to experience the unique speed and style it offers
Which of the following key elements that should ideally be included in a good promotional objective is missing in this outline?

A)A statement of how the audience should change
B)Definition of target market
C)A statement as to the degree of change desired
D)A statement of how fast a change should occur

Question 26

Any paid form of non-personal presentation and promotion of ideas,goods,or services by an identified sponsor is called:

A)sales promotion.
B)direct selling.
C)labeling.
D)advertising.

Question 27

The _____ method is the most common and the procedure consists of setting a year's budget as a proportion of the year's anticipated sales.

A)objective-and-task
B)percentage of sales method
C)competitive parity method
D)return on sales method

Question 28

Recognition tests are a common type of pretest used by commercial research firms to measure the effects of commercials.

Question 29

Cost analysis refers to the process of monitoring sales and gross margin for each salesperson.

Question 30

Contests and sweepstakes are used by manufacturers mainly to stimulate resellers to improve their performance.

Question 31

Cost per acquisition is a useful measure for web advertising that results directly in actual customer purchases.

Question 32

Blogging refers to the technology that provides a way for consumers to receive audio via the internet.

Question 33

Firms selling complex,high-tech products such as computers and pharmaceuticals are significantly more likely to rely solely on external salespeople.

Question 34

The sales cycle refers to the duration that it will take to meet with the various decision makers and convince them to try the product.

Question 35

Recall tests measure the effects of TV commercials through the use of consumer panels located in a number of small cities.

Question 36

The Wall Street Journal (WSJ)publishes a front-page article that announces the introduction of a firm's highly innovative new product.The firm has not paid the publisher for the article although it would help the firm's promotional activities.This article is an example of _____.

A)sales promotion
B)public relations
C)advertising
D)barter arrangement

Question 37

The _____ method sets the relative promotional spending equal to the brand's market share,or larger if an attempt is being made to increase share.

A)objective-and-task
B)percentage of sales
C)competitive parity
D)return on sales

Question 38

_____ refer to incentives designed to stimulate the purchase or sale of a product,usually in the short term.

A)Sales promotions
B)Compensations
C)Selling tools
D)Public relations

Question 39

All of the following are examples of the promotion mix components EXCEPT:

A)manufacturing.
B)personal selling.
C)sales promotion.
D)public relations.

Question 40

Which of the following is an example of a sales promotion activity?

A)Use of billboards to popularize a brand
B)A newspaper article about a new product
C)Distribution of free samples of a new product
D)Press release of a software product's new version

Question 41

All of the following are examples of outdoor media EXCEPT:

A)transit shelters.
B)electronic signs.
C)streetcars.
D)yellow pages.

Question 42

Advertising is more important than personal selling when:

A)number and dispersion of customers is large.
B)the product is highly complex.
C)buyers' information needs are high.
D)much postpurchase service is requireD.

Question 43

_____ is a measure of the number of times on average a person or household receives an advertising measure.

A)Duplication
B)Frequency
C)Reach
D)Subscription rate

Question 44

The advantage of personal selling over other components of the promotional mix comes about primarily because of the:

A)one-to-one communication with the customer that allows for a lot of product information to be given.
B)low cost of maintaining a sales force and selling products through them.
C)ability to most efficiently reach large numbers of individuals in a target market and provide them with a wide range of products to choose from.
D)ability to reach the masses at a comparatively lesser time.

Question 45

A major advantage of Internet advertising is that:

A)it is accessed equally by all classes of target population.
B)its conversion ratio is more than ten percent.
C)the targeting in Internet advertising is flawless.
D)the performance of internet ads is measurable.

Question 46

How many gross rating points (GRPs)would be there in a media schedule,if an advertisement broadcasted through the schedule has a reach of 60% and the average frequency is 15?

A)600
B)15
C)900
D)9

Question 47

A rate card specifies the:

A)the economic status of a media company's customers.
B)the costs of advertising in a particular medium.
C)the purchase parity of the target audience.
D)economic status of a particular medium's audience.

Question 48

Rainbow,a confectionery company,puts up an ad of its new product,Pineapple Fruity Bar,on television.The company's target market is comprised of 80,000 households in Atlanta with children below five years of age.The company estimates that the media schedule could reach 50,000 of these households.The reach of this ad is:

A)50 percent.
B)80 percent.
C)62.5 percent.
D)160 percent.

Question 49

Advertising is likely to be more important than personal selling when the pricing policy is _____ and a _____ distribution strategy is used.

A)negotiated;push
B)negotiated;pull
C)preset;push
D)preset,pull

Question 50

Which of the following is the best medium for enhancing the likelihood that a company website will be the first that customers find on the Web?

A)E-mails
B)Banner ads
C)Portal deals
D)Text links

Question 51

Personal selling is likely to be more important than advertising when there are _____ resources available for promotion,and the pricing policy is _____.

A)many;negotiated
B)few;negotiated
C)many;preset
D)few;preset

Question 52

Which of the following is a media that allows the target individuals to select what advertising they want to examine and spend as much time as they wish on the selected advertisements?

A)Print
B)Radio
C)Television
D)Movies

Question 53

When advertising dominates,the idea is to:

A)sell products at a high price by creating a focused and limited demand.
B)encourage the customer to pull the product through the distribution channel.
C)reduce the importance of pull strategies in increasing a product's sale.
D)provide incentives and bonuses to salespeople to increase sales of a product.

Question 54

Which of the following elements of marketing mix supports both pull and push strategies?

A)Advertising
B)Personal selling
C)Consumer promotion
D)Public relations

Question 55

Compared to television,radio is _____ involving and _____ expensive:

A)less;less
B)less;more
C)more;less
D)more;more

Question 56

Which of the following elements in the promotional mix gives virtually no information about the product?

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

Question 57

_____ is a technology that provides a way for consumers to receive audio via the Internet.

A)Portal management
B)Podcasting
C)Blogging
D)Banner advertising

Question 58

The advertising manager of Anthony and Co. ,a U.S.based company,wants to market its new range of detergents in such a way that it reaches the entire country within the shortest time possible.The manager is further looking for a media type that will allow the product to be displayed and shown in use.Which media type would be the most appropriate for Anthony and Co?

A)Radio
B)Local newspapers
C)National network television
D)Direct mail

Question 59

Reach is defined as the:

A)total number of individuals or households exposed to at least one ad during a given period.
B)conversion rate of an average individual after being exposed to a marketing message.
C)number of times an average individual is exposed to a mass media program in a day.
D)number of times an average individual is exposed to a message within a given time perioD.

Question 60

Personal selling is likely to be more important than advertising when buyers have _____ information needs and the product is _____.

A)high;complex
B)high;simple
C)low;complex
D)low;simple

Question 61

Which of the following tests measures the effects of TV commercials by using consumer panel data from families that are located in several cities?

A)Sales tests
B)Recall tests
C)Recognition tests
D)Repetition tests

Question 62

What are the decisions involved in planning a sales program?

Question 63

The American Marketing Association has defined _____ as the marketing activities,other than personal selling,advertising,and publicity,that stimulate consumer purchasing and dealer effectiveness.

A)cooperative advertising
B)sales promotion
C)public relations
D)brand extension

Question 64

Define reach and frequency.

Question 65

Explain the two types of after tests used to measure advertising?

Question 66

List the key elements that good promotional objectives should include.

Question 67

Activities such as training a distributor's salesforce,cooperative advertising,and providing promotional allowances including in store promotions are examples of:

A)sponsorship.
B)sampling.
C)personal selling.
D)trade promotion.

Question 68

List the decision sequence for developing a promotion mix.

Question 69

Describe the three step process uses to design the promotion mix.

Question 70

_____ distribute prizes on the basis of pure chance and in many countries cannot require proof of purchase as a condition of entry.

A)Samples
B)Contests
C)Sweepstakes
D)Sponsorship programs

Question 71

General Foods sends out discount coupons with the Sunday newspaper supplements.Customers can avail discounts by producing the coupons at company retail outlets.This is an example of using the _____ element in the promotion mix.

A)packaging
B)personal selling
C)sales promotion
D)public relations

Question 72

A major disadvantage of sales promotion is that:

A)it does not allow the promoter to concentrate on a particular target audience.
B)customers tend to wait for the next promotion,rather than buying a product at full price.
C)it fails to add interest to the sale of ordinary products.
D)there is no scope for stimulating resellers to improve their performance.

Question 73

_____ are the most popular postexposure testing method for print media and advertisers design these tests to measure the extent to which advertising copy is noted and read.

A)Sales tests
B)Recall tests
C)Recognition tests
D)Repetition tests

Question 74

Roger,the CEO of Alfresco Solutions,strives to maintain good relationships with media personnel.He gives interviews and press releases to support his company's products.These activities are part of:

A)cooperative advertising.
B)sponsorship programs.
C)public relations.
D)trade extensions.

Question 75

Discuss the three approaches sales managers use to evaluate and control sales performance.

Question 76

Discuss out-of-home,exhibition,and supplementary media.

Question 77

A major disadvantage of public relations over other elements of the promotional mix is:

A)its inability to create awareness about products.
B)the high cost of developing and maintaining a PR department.
C)the lack of credibility associated with such publicity.
D)the lack of company control over such publicity.

Question 78

Discuss three types of new media used for advertisement.

Question 79

Briefly explain the four elements of the promotion mix.

Question 80

Which of the following is an example of a source of the marketing message?

A)a company spokesperson
B)a call for action
C)a target buyer
D)an emotional appeal