Question 1

If promotion is successful at stimulating demand, it will tend to increase prices.

Accepted Answer

Successful promotion increases demand, but it can also lead to increased production and competition, which can result in lower prices or stabilize them rather than increasing prices.

Question 2

Successful marketers that understand the significance of word-of-mouth communication seek out opinion leaders and try to encourage them to try their products in the hope they will spread favorable word about them.

Accepted Answer

This statement is true.

Question 3

Advertising is one element of the promotion mix that is too expensive for small business firms.

Accepted Answer

Many affordable advertising options exist for small businesses, including social media, online advertising, and local advertising, making it accessible for businesses of all sizes.

Question 4

If a company has very limited promotional resources, it is most likely to use mainly personal selling.

Accepted Answer

Personal selling is a cost-effective promotional tool for companies with limited resources as it involves direct interaction with potential customers and can result in a higher conversion rate compared to other forms of advertising.

Question 5

If an organization is large and has a large promotional budget, it should utilize all four promotional methods.

Accepted Answer

The decision to use all four promotional methods (advertising, sales promotion, public relations, and personal selling) should be based on the organization's specific marketing goals, target audience, and product characteristics, not just the size of the organization or its promotional budget.

Question 6

Viral marketing is an attempt to incite publicity and public excitement surrounding a product through a creative event.

Accepted Answer

The answer of Viral marketing is an attempt to incite...

Question 7

Word-of-mouth communication is not especially important when people are choosing restaurants and automotive, medical, and personal services such as hair care.

Accepted Answer

Word-of-mouth communication is especially important when people are choosing restaurants and automotive, medical, and personal services such as hair care. Recommendations from friends, family, and online reviews can heavily influence a person's decision in these areas.

Question 8

The geographic distribution of a firm's customers can affect the combination of promotional methods used.

Accepted Answer

The geographic location of a firm's customers can impact their access to different promotional methods. For example, customers in rural areas may not have access to the same types of promotions as customers in urban areas, and thus the firm may adjust their marketing strategy accordingly. Additionally, certain promotional methods may be more effective in specific regions or countries due to cultural differences or language barriers.

Question 9

Promotion fuels price competition which leads to a raise in prices.

Accepted Answer

Promotion typically leads to increased competition, which can result in lower prices as businesses try to attract more customers by offering better deals.

Question 10

The price of a product influences the promotion mix to be used by the producer.

Accepted Answer

If the price of a product is high, the producer may choose to use more personal selling or direct marketing to convince customers to purchase the product. If the price is low, the producer may rely more on mass advertising and sales promotion to attract customers. Therefore, the price of a product can influence the promotion mix used by the producer.

Question 11

The promotional method most commonly used for highly personal items is personal selling.

Accepted Answer

The answer of The promotional method most commonly used for...

Question 12

Deceptive promotional practices today are common because of a lack of regulation.

Accepted Answer

Deceptive promotional practices are actually illegal and regulated by various government agencies such as the Federal Trade Commission (FTC) in the United States. However, it is still possible for some companies to engage in deceptive practices despite regulations and enforcement efforts.

Question 13

If a pull policy is used in promoting a product, the producer promotes the product only to the next marketing institution down the channel.

Accepted Answer

If a pull policy is used, the producer promotes the product to the end consumer or user, rather than only to the next marketing institution down the channel. This is done through advertising, promotions, and other marketing efforts that generate demand and pull the product through the distribution channel.

Question 14

Product placement is a form of advertising that strategically locates products or product promotions within entertainment media to reach the product's target markets.

Accepted Answer

Product placement is a real advertising technique where products or promotions are placed within various forms of entertainment such as movies, TV shows, and video games to reach the desired audience or target market. This is a passive way of advertising because the audience doesn't always realize they are being marketed to since the products are integrated so seamlessly into the plot.

Question 15

A breakfast cereal maker most likely will not use personal selling to promote its product.

Accepted Answer

Personal selling is a face-to-face sales technique that involves a salesperson interacting with a prospective customer to promote a product. Breakfast cereals are typically sold in retail stores and marketed through advertising campaigns, point of purchase displays, and packaging design, among other marketing strategies. Personal selling is not as effective or practical for this type of consumer product.

Question 16

An organization's promotion mix is viewed as an unchanging part of the marketing mix.

Accepted Answer

An organization's promotion mix is not viewed as an unchanging part of the marketing mix. It is flexible and can be adjusted based on the company's goals, target audience, and market conditions.

Question 17

One reason that promotion suffers from widespread criticism is that promotional efforts are highly visible and affect our everyday lives.

Accepted Answer

Promotional efforts such as advertisements and marketing campaigns are often seen and experienced by people on a daily basis, which makes them highly visible and open to criticism.

Question 18

When a push policy is used in promotion of a particular product, the producer promotes the product only to the next channel member.

Accepted Answer

In a push policy, the producer focuses on promoting the product to wholesalers, retailers, or other intermediaries, rather than directly to consumers.

Question 19

While promotion does not create needs, it does capitalize on them.

Accepted Answer

Promotion aims to reach out to customers who already have needs, and convince them that the promoted product or service satisfies their needs better than other options. Therefore, promotion capitalizes on existing needs rather than creating them.

Question 20

When a push policy is used in promoting a particular product, the producer promotes the product directly to consumers.

Accepted Answer

When a push policy is used, the producer promotes the product to intermediaries, such as wholesalers or retailers, who then promote the product to consumers.

Quiz 15: Integrated Marketing Communications