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

Question 1

The Coca-Cola Company recently offered each McDonald's UK franchisee several hundreds of gallons of free soft drink syrup if they agreed to serve only Coca-Cola beverages.This action is an example of a trade promotion.

Answer 1

True

Question 2

When designing sales promotion programs, marketers should keep in mind that the most fundamental thing consumers want to do is try before they buy.

Answer 2

True

Question 3

Japanese consumers are avid users of yen-off coupons.

Answer 3

False

Question 4

Kashani and Quelch note that mergers and acquisitions have resulted in increased concentration in the retailing industry.One implication of this trend is increased reliance on centralized control of promotional program formulation.

Question 5

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 6

Groupon offers deal-of-the day to its loyal users and stimulates product trial by nonusers.

Question 7

A commitment to the marketing concept and a desire to serve as a problem solver when helping customers is part of a sales representative's personal selling philosophy.

Question 8

In a low-income country, free samples are likely to be a more effective promotional tool than coupons or on-pack premiums.

Question 9

"Point of use" product sampling is gaining in popularity among marketers.

Question 10

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

Question 11

Expo 2010 in Shanghai, China was the biggest expo in the world, which was mounted at an expense of $55 billion.

Question 12

As a sales promotion technique, couponing is equally popular in Malaysia and the United States.

Question 13

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 14

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

Question 15

Expo 2010 in Shanghai, China was a critical marketing tool for global companies such as General Motors and Coca-Cola.

Question 16

Compared with other marketing promotion techniques, sampling is more likely to result in actual product trial.

Question 17

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 18

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 19

Sales promotion programs can be designed to target consumers as well as distributors and retailers.

Question 20

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

Question 21

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

Question 22

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

Question 23

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 24

Industry observers expect the popularity of home shopping to decrease during next few years as interactive television technology is introduced into more households.

Question 25

As Coca-Cola company's participation in World Cup soccer demonstrates, sponsorship can be an effective component of an IMC program.

Question 26

Generally speaking, consumers view direct marketing as entailing a higher level of risk than traditional mass marketing.

Question 27

Building rapport and trust with customers is part of a sales representative's relationship strategy.

Question 28

In the case of product placement, the viewers are being marketed to subliminally without their consent.

Question 29

France is leading in the rankings showing expenditures for outdoor advertising as percentage of total ad spending.

Question 30

"High cost" and "high turnover" are two disadvantages to using an expatriate sales force.

Question 31

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 32

Outdoor advertising is experiencing explosive growth in China.

Question 33

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

Question 34

In Hong Kong and Singapore, efficient postal services, highly educated populations, wide use of credit cards, and high per capita income are attracting the attention of catalog marketers.

Question 35

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

Question 36

Direct marketing does not work well as a global marketing tool because it is not well suited to the task of addressing cultural differences among consumers.

Question 37

Sales agents are more expensive than full-time, in-country national sales representatives.

Question 38

Following the economic crisis in Asia, many companies in that region have turned to direct mail in order to save costs.

Question 39

In personal selling, the goal of negotiation should be to ensure that both the customer and the salesperson come away from the presentation as winners.

Question 40

On a per capita basis, German consumers are world-leader mail-order shoppers.

Question 41

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 42

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 43

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 44

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 45

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 46

Masterfoods USA, a unit of Mars, Inc., invited consumers in 200 countries to their Global Color vote promotion.Participants were asked to vote whether a new M&M candy should be purple, aqua, or pink.Purple won.This is an example of:

A)promotion of different colors for marketing.
B)lack of interesting colors in current M& M candy.
C)people in different countries prefer different colors.
D)purple color is the most popular color worldwide.
E)sales promotion by global marketer.

Question 47

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 48

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 49

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 50

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 51

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 52

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 53

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 54

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 55

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

A)superior 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 56

Benefits for using sales agents includes 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 57

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 58

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

Question 59

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 60

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 61

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

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

Question 62

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.

Question 63

Interactive television (ITV)allows viewers to see the ad in its entirety by pressing a remote button; to order products from home-shopping channels; or choose different camera angles, such as in sports 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 64

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 65

Worldwide spending on outdoor advertising amounts to about ________ of total ad spending.

A)1%
B)2%
C)4%
D)6%
E)10%

Question 66

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)limited number of private telephones.
C)low penetration of credit cards.
D)delivery logistics in Beijing.
E)delivery logistics in Shanghai.

Question 67

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

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

Question 68

The effective integration of products and brands with entertainment can be seen on the TV hit American Idol.This type of trend is referred to as:

A)advertising age.
B)traditional advertising.
C)global advertising.
D)branded entertainment.
E)image entertainment.

Question 69

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 70

Chinese authorities ratified the WHO's Framework Convention on Tobacco Controls; which means:

A)Chinese TV can show tobacco ads only after midnight.
B)tobacco companies cannot show ads on TV but can sponsor sports events.
C)all forms of tobacco promotion and sponsorships will be phased out by the year 2010.
D)tobacco companies can use sponsorships of health and sporting events.
E)tobacco companies can sponsor China's national soccer tournament after the year 2010.

Question 71

Product placement has reached the world of live theater and opera.The difference between product placement and other forms of promotion is:

A)ethical concerns are not taken into account.
B)viewers are being marketed to subliminally without their consent.
C)products are focused showing different angles.
D)prominent personalities add a message about the product.
E)sponsors are recognized for their contribution.

Question 72

Traditional support media include:

A)indoor posters.
B)billboards.
C)newspapers.
D)magazines.
E)catalogs.

Question 73

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 experiences high perceived risk.
E)Direct response advertising is used.

Question 74

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 75

Celeste Atkinson is a lifestyle and entertainment manager for Audi, and her job is to create buzz by ensuring that vehicles such as the Audi A8L and the S8 sports sedan figure in paparazzi photos.This is referred to as:

A)lifestyle placement.
B)blockbuster placement.
C)promotion placement.
D)product placement.
E)photo placement.

Question 76

The management of a large manufacturer located in Mexico decided to improve productivity by investing a large sum of money.Vendors from different countries showed interest in getting involved.One such international manager of an American company reached Mexico without knowing who to contact.Finally, he contacted the Commercial Attaché at the American embassy.Realizing that the international manager had not done his homework, he advised him about business in Latin America.His advice included all of the following except:

A)business cannot be done in Mexico as in the States.
B)several contacts are important before talking business.
C)price is only one of the many things that is taken into consideration.
D)people are very proud of their Spanish blood as well as liberation from Spain.
E)talk about their history and Spanish origin.

Question 77

A ban on billboards in Brazil meant they have to come down, and in addition, transit ads on buses and taxis were not allowed.Denied access to traditional outdoor advertising, companies devised a number of alternative ways to communicate with prospective customers.These ways included all of the following except:

A)Citibank used the color blue in much of its advertising.
B)ads were placed indoors in elevators.
C)ads were placed in rest rooms and other indoor traffic areas.
D)ads were placed on buses.
E)ads were placed using social media or online channels.

Question 78

In fall 2002, a new Broadway production of Puccini's La Boheme was set in Paris circa 1957.The stage set included billboards for luxury pen maker Montblanc and Piper-Heidsieck champagne.This is an example of:

A)consumer sales promotion
B)sampling
C)product placement
D)trade sales promotion
E)global awareness

Question 79

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 80

The term magalog is used to describe which communication medium?

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