Deck 12: Promotion, advertising, and Sales Promotion Strategies

Question 1

The fragmentation of many consumer markets is driving significant amounts of advertising spending from traditional mass media to more focused narrowcast media.

Answer 1

True

Question 2

An advantage of personal selling over advertising is its flexibility in responding to the buyer's objections and questions at the time the decision to purchase is being made.

Answer 2

True

Question 3

 _____ consists of planning,implementing,and controlling an organization's communications to its customers and other target audiences. 

A) Promotion strategy
B) Distribution program
C) Benchmarking
D) Planned obsolescence

Answer 3

 Promotion strategy

Question 4

Longitudinal studies use empirical data to build a mathematical relationship between sales and advertising effort.

Question 5

 _____ consists of verbal communication between a salesperson and one or more prospective purchasers with the objective of making or influencing a sale. 

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

Question 6

 _____ refers to communications placed in the commercial media at no charge to the company receiving the publicity.

A) Advertising
B) Public relations
C) Personal selling
D) Interactive marketing

Question 7

 Promotion expenditures for the competitive parity method are guided by comparing which component(s) is/are appropriate for attaining each objective.

Question 8

Recall tests measure consumers' awareness of specific ads and campaigns by asking questions to determine if a sample of people remembers an ad.

Question 9

Coupons are extensively used as a promotional activity to target value chain members.

Question 10

 _____ consists of activities such as,trade shows,contests,samples,point-of-purchase displays,product placement in films and other occasions,trade incentives,and coupons.

A) Sales promotion
B) Advertising
C) Personal selling
D) Interactive marketing

Question 11

Which of the following is true about advertising?

A) It has high cost per exposure.
B) It provides low control over exposure.
C) It does not allow direct interactions with buyer.
D) It does not allow for creative message designs.

Question 12

An advertising-driven promotion strategy is used when:

A) the numbers of buyers are small.
B) the size and importance of purchase is large.
C) product complexity is high.
D) no post purchase contact is required.

Question 13

The percent-of-sales method of budgeting for promotion is arbitrary and does not recognize that promotion efforts and results are related.

Question 14

Which of the following promotion strategies is most appropriate when buyers' information needs are high?

A) Advertising-driven
B) Sales promotion-driven
C) Personal selling-driven
D) Generic

Question 15

Sales promotions are primarily used to bring awareness of a particular product.

Question 16

 Determining the sales and profit impact of advertising is more difficult to measure than the exposure and awareness it creates.

Question 17

Which of the following is a disadvantage of advertising?

A) It has high cost per exposure.
B) It has fixed messages for the duration of an exposure.
C) It does not allow much creativity in message design.
D) It provides low control of message content.

Question 18

The final step in developing an advertising strategy involves evaluating its effectiveness.

Question 19

Which of the following advertising objectives is used more often because of the ease of measurement?

A) Exposure objectives
B) Attitude change objectives
C) Sales objectives
D) Profit objectives

Question 20

Which of the following is a disadvantage of the percent of sales method of setting promotional budgets?

A) It heavily relies on the experience and judgment of the marketing team.
B) It can result in too much spending on promotion when sales are high and not enough when sales are low.
C) Its budgeting method is directly guided by how much competitors spend.
D) It does not base its budgeting on past expenditure patterns.

Question 21

 _____ use empirical data to build a mathematical relationship between sales and advertising effort. 

A) Controlled tests
B) Recall tests
C) Effort/results models
D) Longitudinal studies

Question 22

 _____ track(s) advertising expenditures and sales results before,during,and after an advertising campaign. 

A) Effort/result models
B) Longitudinal studies
C) Recall tests
D) Test marketing

Question 23

Which of the following is a promotional pricing form of sales promotion activity?

A) Selling aids
B) Trade shows
C) Prizes
D) Coupons

Question 24

Explain the challenges impacting the creative process in advertising and changing the design of creative strategies and media.

Question 25

List the activities involved in designing an organization's promotion strategy.

Question 26

Define and explain the benefits of the objective and task method of promotion budget.

Question 27

Which of the following is a disadvantage of sales promotions?

A) The sales response of the sales promotion activities cannot be measured to determine their effectiveness.
B) The incentive and price promotion techniques trigger the purchase of other products.
C) It allows value-added resellers to build inventories on products that receive manufacturers' trade discounts.
D) It has the flexibility to contribute to various marketing objectives.

Question 28

Which of the following informational activities is targeted at both channel members and the salesforce?

A) Demonstrations
B) Trade shows
C) Displays
D) Selling aids

Question 29

Distributing promotional video clips across the Internet is referred to as _____.

A)personal selling
B) viral marketing
C) sales promotion
D) direct distribution

Question 30

Which of the following is the first step in developing a sales promotion strategy?

A) Setting specific promotion objectives
B) Defining the communications task(s) to be accomplished
C) Evaluating the relative cost-effectiveness of various methods
D) Coordinating the content and the timing with other activities

Question 31

 Identify the advantages and disadvantages of advertising.

Question 32

 _____ measure(s) consumers' awareness of specific ads and campaigns by asking questions to determine if a sample of people remembers an ad. 

A) Recall tests
B) Effort/result models
C) Longitudinal studies
D) Test marketing

Question 33

Give an account of the different promotional activities targeted at a firm's salesforce.

Question 34

_____ identifies relationships between advertising expenditures and sales using statistical techniques such as regression analysis. 

A) Test marketing
B) Recall test
C) Longitudinal study
D) Evaluating historical data

Question 35

Which of the following sales promotion activity is targeted at industrial buyers?

A) Coupons
B) Bonuses
C) Rebates
D) Advertising support