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

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

At concerts and other events,street teams pass out free samples while driving specially modified cars with giant Red Bull cans mounted on them.

Question 6

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 7

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 8

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

Question 9

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

Question 10

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

Question 11

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 12

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

Question 13

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 14

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 15

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

Question 16

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 17

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

Question 18

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

Question 19

Market maturity can also be different from country to country;consumer sampling and coupons are appropriate for mature markets.

Question 20

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

Question 21

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 22

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

Question 23

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 24

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

Question 25

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 26

Some advertisers acknowledge that,in Brazil,traditional outdoor advertising may not be the best communication channel.

Question 27

Critical marketing tool for global companies such as Red Bull is:

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

Question 28

Spoexa,a food-marketing company was hired by 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 29

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 30

Worldwide,the popularity of direct marketing has been steadily decreasing in recent years.

Question 31

PepsiCo experienced great success in Latin America with its Numeromania contest,which lured consumers by promise of 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 32

Red Bull has been involved in Music Academy which is a series of concerts,workshops,art installations,and other cultural events that rotate from year to year among different international cities.

Question 33

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 34

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

Question 35

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 36

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 37

The success of the Stratos project helps the Red Bull by:

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

Question 38

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 39

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

Question 40

At one time Shanghai was known as the "Paris of the Orient."

Question 41

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 42

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 43

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 44

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 45

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 46

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 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

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 49

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 50

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 51

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 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 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 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

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 56

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 57

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 58

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 59

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 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

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 62

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 63

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 64

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 65

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 66

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 67

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 68

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

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

Question 69

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 70

The term magalog is used to describe which communication medium?

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

Question 71

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 72

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 73

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 74

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 75

Traditional support media include:

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

Question 76

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 77

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 78

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 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

Dietrich Mateschitz,Red Bull's creator,stated "When we first started,we said that there is not an existing market for Red Bull." The reasons behind Red Bull's success include all of the following except:

A)a market was created for Red Bull.
B)a market segment was found with unmet needs.
C)the blue-and-silver color on cans helped in Red Bull's popularity.
D)orthodox advertising strategies were used with tactics.
E)The Red Bulletin magazine helped in Red Bull's popularity.