Question 1

A firm dominating a market can effectively use primary demand promotion to increase awareness for the product category.

Accepted Answer

Primary demand promotion aims to create demand for a product category rather than a specific brand. When a firm dominates a market, it can benefit from increasing the overall market size through primary demand promotion, as it is likely to capture a significant portion of the new demand due to its dominant position.

Question 2

Selective demand ads are most often used by trade associations.

Accepted Answer

Selective demand ads are most often used by individual companies to promote their specific brands or products, not by trade associations which typically promote an entire industry or category of products.

Question 3

For promotion to be considered effective, it must result in a consumer purchase.

Accepted Answer

Promotion is considered effective if it successfully communicates the desired message to the target audience, increases brand awareness, or improves brand image, not solely if it results in a consumer purchase.

Question 4

The all-you-can-afford technique of promotional budgeting uses the marginal return concept.

Accepted Answer

The all-you-can-afford technique of promotional budgeting does not use the marginal return concept; instead, it simply allocates whatever funds are left over after all other expenses have been covered to the promotional budget.

Question 5

A company using the objective-and-task technique of promotional budgeting would vary its objectives and tasks over a product's life-cycle stages.

Accepted Answer

The objective-and-task method involves setting specific objectives and determining the tasks needed to achieve these objectives, which naturally vary over a product's life-cycle stages to adapt to changing market conditions, consumer needs, and competitive pressures.

Question 6

If the marginal return concept is applied to promotional budgeting, a firm would consider the wearout rate of its promotion efforts before deciding whether to continue using a particular slogan.

Accepted Answer

The marginal return concept involves evaluating the additional benefits of an investment. Considering the wearout rate helps determine if continued use of a slogan will yield diminishing returns.

Question 7

Large firms are more likely to utilize separate managers for advertising, personal selling, and sales promotion than smaller firms.

Accepted Answer

Larger firms typically have more resources and complex operations, allowing them to hire specialized managers for different marketing functions.

Question 8

Although full disclosure and substantiation seek to prevent false promotion before it occurs, such other government policies as cease-and-desist orders, corrective advertising, and fines seek to penalize offenders and thus prevent future infractions.

Accepted Answer

Cease-and-desist orders, corrective advertising, and fines are regulatory measures used to penalize companies for false advertising, aiming to deter future violations by imposing consequences for deceptive practices.

Question 9

In bait-and-switch advertising, a marketer has no intention of selling the promoted item.

Accepted Answer

Bait-and-switch advertising involves promoting an item at a low price to attract customers, but the seller has no intention of selling that item, instead trying to sell a more expensive product.

Question 10

Many locales have special laws that enable consumers to rethink purchases made by high-pressure or dishonest salespeople.

Accepted Answer

Many places have "cooling-off" laws that allow consumers to cancel certain sales contracts within a specified period, especially if the sale was made under high-pressure or deceptive circumstances.

Question 11

Describe the benefit of integrated marketing communications.

Accepted Answer

The answer of Describe the benefit of integrated marketing communications....

Question 12

a.	Distinguish among advertising, public relations, sales promotion, and personal selling.
b. Compare the above promotion tools in terms of their audience, message, flexibility, control, credibility, and best use.

Accepted Answer

The answer of a.	Distinguish among advertising, public relations, sales promotion,...

Question 13

Draw and explain a channel of communication. Illustrate how noise can occur in each stage.

Accepted Answer

The answer of Draw and explain a channel of communication....

Question 14

a.	Under what conditions should a firm utilize comparative messages?
b. When should a firm utilize primary demand promotion?

Accepted Answer

The answer of a.	Under what conditions should a firm utilize...

Question 15

a.	Under what conditions should a firm use massed promotion? ... distributed promotion?
b. How would the use of massed or distributed promotion affect the wearout rate?

Accepted Answer

The answer of a.	Under what conditions should a firm use...

Question 16

Develop a methodology to assess the wearout rate of an advertising campaign.

Accepted Answer

The answer of Develop a methodology to assess the wearout...

Question 17

Explain how a manufacturer of a new brand of ecologically-superior gasoline blend could apply the hierarchy-of-effects model. Include primary demand, selective demand, and marginal return in your discussion.

Accepted Answer

The answer of Explain how a manufacturer of a new...

Question 18

Explain why the objective-and-task technique for setting a total promotional budget is considered the best, but the most difficult, technique.

Accepted Answer

The answer of Explain why the objective-and-task technique for setting...

Question 19

Contrast the following four major enforcement tools used to protect consumers and competing firms from undesirable promotional practices: full disclosure, substantiation, cease-and-desist orders, and corrective advertising.

Accepted Answer

The answer of Contrast the following four major enforcement tools...

Question 20

State four major criticisms of promotion and their defenses.

Accepted Answer

The answer of State four major criticisms of promotion and...

Quiz 17: Integrated Marketing Communications