Question 1

The advent of satellite radio has proven to be an advantage for radio advertising.

Accepted Answer

Satellite radio has a limited audience compared to traditional radio, making it less effective for advertising.

Question 2

Relationship selling is increasingly important since very few firms can survive on the profits generated from one-time transactional sales.

Accepted Answer

Relationship selling focuses on building long-term relationships with customers rather than just focusing on individual sales. This approach is important because repeat business and customer loyalty are crucial for sustainable profitability and growth, as it is generally more costly to acquire a new customer than to retain an existing one.

Question 3

Rebates work most effectively when offered in conjunction with a high-involvement purchase in which the perceived value of the rebate is magnified.

Accepted Answer

Rebates are more effective in high-involvement purchases because consumers are more likely to perceive the rebate as adding significant value to their purchase, making the effort to redeem the rebate seem worthwhile.

Question 4

Two advantages of outdoor advertising are its flexibility and reduced costs.

Accepted Answer

Outdoor advertising is flexible because it can be placed in a variety of locations and can be tailored to specific audiences. It is also relatively inexpensive compared to other forms of advertising.

Question 5

Reminder advertising is most common in the growth stage of the product life cycle.

Accepted Answer

Reminder advertising is most commonly used in the maturity stage of the product life cycle, where the goal is to maintain market share and keep the product's name in the minds of consumers.

Question 6

A trade promotion that typically involve paying retailers for financial losses associated with consumer sales promotions or reimbursing a retailer for an in-store or local expense to promote a specific product are known as allowances.

Accepted Answer

Trade promotions involving allowances are designed to compensate retailers for the costs associated with promoting a specific product, including financial losses from consumer sales promotions or covering expenses for in-store promotions.

Question 7

A premium is a promotional item that is given as an incentive for performing a particular act, typically buying a product.

Accepted Answer

A premium is indeed a promotional item given as an incentive, often for purchasing a product, signing up for a service, or performing another specific action that benefits the issuer of the premium.

Question 8

An advantage of Internet advertising is the use of banner ads on websites which allow consumers to click on the banner and immediately be able to view the advertisement.

Accepted Answer

The answer of An advantage of Internet advertising is the...

Question 9

Sales promotion activities account for the bulk of most firms' promotional budgets.

Accepted Answer

Sales promotion activities often require significant financial resources, such as discounts, coupons, and special offers, which can make up a large portion of a firm's promotional budget compared to other marketing activities like advertising or public relations.

Question 10

Annual reports, sponsorships, and company blogs and brochures are all forms of publicity.

Accepted Answer

Annual reports, sponsorships, and company blogs and brochures are forms of public relations or marketing communications, not publicity, which is typically unpaid media coverage.

Question 11

Placing an advertisement on only the three major television networks (ABC, CBS, and NBC)is called narrowcasting.

Accepted Answer

Narrowcasting refers to targeting a specific or niche audience, typically through specialized channels or media, rather than broadcasting to a broad, general audience as would be the case with major television networks like ABC, CBS, and NBC.

Question 12

When professional sports players are allowed to wear an advertisement on their jerseys, this is an example of product placement.

Accepted Answer

Product placement refers to the inclusion of a product or brand within another medium, such as a sports jersey, for promotional purposes. When athletes wear jerseys featuring advertisements, it is a form of product placement, as it integrates the brand into the sports event being watched by the audience.

Question 13

Radio advertising is usually the most expensive medium available to a company.

Accepted Answer

Television advertising typically costs more than radio advertising, making TV the more expensive medium for companies to use for their advertising campaigns.

Question 14

A firm that coordinates the use of advertising, sales promotion, personal selling, and public relations to deliver a clear and consistent message about its products is engaged in direct marketing.

Accepted Answer

The firm is engaged in integrated marketing communications (IMC), not direct marketing. IMC involves coordinating various promotional tools to provide a clear, consistent, and compelling message about the organization and its products. Direct marketing, on the other hand, involves engaging directly with targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships.

Question 15

A local bakery sends coupons in the mail to homeowners that have ordered from the bakery in the past. This is a form of direct marketing.

Accepted Answer

Direct marketing involves reaching out directly to individual customers or prospects through mail, email, or other means, rather than through a third-party medium. Sending coupons in the mail to past customers is a direct way to communicate and promote to them.

Question 16

A disadvantage of outdoor advertising is its short exposure time.

Accepted Answer

Outdoor advertising typically involves brief exposure as people pass by quickly, limiting the time they have to absorb the message.

Question 17

Advertising is a nonpaid form of personal communication about goods, services, or ideas.

Accepted Answer

Advertising is a paid form of non-personal communication about goods, services, or ideas by an identified sponsor.

Question 18

At a home and garden expo, a remodeling company offers one lucky winner the chance to win a kitchen remodel at no cost. No purchase is necessary and contestants can enter either by filling out a card at the expo or on the company's website. This is an example of a contest.

Accepted Answer

This is an example of a sweepstakes, not a contest, because winners are chosen by chance rather than skill or merit.

Question 19

Newspapers are an effective way for small businesses to advertise their goods or services to the local community.

Accepted Answer

Newspapers often have a dedicated local readership, providing small businesses with a targeted audience interested in local goods and services, making it an effective advertising medium.

Question 20

The promotion mix is all the activities that communicate the value of a product and persuade customers to buy it.

Accepted Answer

The answer of The promotion mix is all the activities...

Quiz 8: Promotional Strategies