Question 1

A lawsuit charged a mortgage lender with racism because it allegedly charged African-American borrowers higher rates than other borrowers. News of the lawsuit was reported by the wire service, and it appeared in several newspapers. This is an example of:

Accepted Answer

This news of the lawsuit is an example of negative publicity because it sheds a negative light on the mortgage lender and may damage its reputation.

Question 2

A review of a movie in a local magazine or on a popular daily television show is an example of:

Accepted Answer

A review of a movie in a local magazine or on a popular daily television show is an example of publicity, as it is an unpaid form of communication that promotes a product or service by generating news or media coverage. Personal selling, direct marketing, public relations, and sales promotion involve different forms of communication and marketing strategies.

Question 3

Which of the following is true of public relations?

Accepted Answer

Public relations includes a variety of activities like fund-raising, sponsorship of special events, and special publications. It is not synonymous with sales promotions (A), and is broader in perspective than publicity (B). PR may use advertising as a tool to enhance an organization's image (D) and refers to both personal and mass communication (E), but C is the most comprehensive answer.

Question 4

Which of the following promotional tools best suit a business-to-business marketer who sells expensive, risky, and often complex products?

Accepted Answer

Personal selling is the best promotional tool for a business-to-business marketer selling expensive, risky, and complex products. Personal selling allows for direct communication and customization to potential customers, which is crucial for selling complex and expensive products. The salesperson can provide a detailed explanation of the product and address any concerns or questions the customer may have. Personal selling also allows for relationship building, which is important in the B2B market where long-term relationships are often established.

Question 5

DG Loans, a mortgage lender, was charged with a racism lawsuit. It alleged that the company was offering loans at higher rates of interest to African-American consumers. In response to these allegations, DG Loans sent out e-mail queries to its African-American customers to report on their experiences with the firm's lending offices. These reports were subsequently collected and released to the news media. This is an example of:

Accepted Answer

This is an example of public relations because DG Loans is trying to manage their reputation and address the racism allegations by seeking feedback from their African-American customers and releasing the collected reports to the news media.

Question 6

One of the primary advantages inherent in the use of publicity is its:

Accepted Answer

Publicity is often seen as more credible than traditional advertising because it is generated by third-party sources (i.e. media outlets) rather than the company or organization itself. This lends it a level of credibility that can be difficult to achieve through advertising, where the audience knows that the message is coming directly from the company or organization and may be biased.

Question 7

According to Tom Duncan's basic categories of contact or touch points, which of the following best describes planned marketing communication messages created by an organization such as advertisements, websites, news/press releases, packaging, brochures, and sales promotion?

Accepted Answer

The planned marketing communication messages created by an organization such as advertisements, websites, news/press releases, packaging, brochures, and sales promotion are referred to as company created touch points according to Tom Duncan's basic categories of contact or touch points.

Question 8

What is the major advantage of personal selling over advertising as a communication method?

Accepted Answer

Personal selling involves direct contact between the buyer and seller, which allows for more personalized communication and the ability to address specific needs and concerns of the buyer. Advertising, on the other hand, involves indirect contact and is typically less personalized. This direct contact is the major advantage of personal selling over advertising.

Question 9

Which of the following is a primary difference between publicity and advertising?

Accepted Answer

The primary difference between publicity and advertising is that advertising is paid for by the sponsoring organization, whereas publicity is not. Publicity involves the dissemination of information or news about a company or product through mass media channels, with the aim of generating interest and attention without paying for the exposure. In contrast, advertising is a paid form of communication that aims to promote a product or service by using mass media channels to reach a wider audience.

Question 10

Which of the following is a similarity between publicity and advertising?

Accepted Answer

Both publicity and advertising involve nonpersonal communication to a mass audience. Publicity involves getting media coverage through news stories, while advertising involves paying for space or time to promote a product or service. While both may be associated with a sponsor, advertising typically identifies the sponsor, while publicity may not. Both may provide an opportunity for feedback, but this is not a defining characteristic of either.

Question 11

_____ is a promotional mix element that allows for direct contact between a buyer and seller and allows a message to be modified according to the needs or reactions of the customer.

Accepted Answer

Personal selling is the promotional mix element that allows for direct contact between a buyer and seller and allows a message to be modified according to the needs or reactions of the customer. It involves a face-to-face interaction where the salesperson can answer questions, address concerns and persuade the customer to make a purchase.

Question 12

When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is engaging in a function known as:

Accepted Answer

Public relations involves the planned and strategic communication efforts of an organization to control and manage its image and reputation in the eyes of the public. It includes activities such as media relations, community outreach, crisis management, and employee communication.  The other options listed are not a systematic planning and distribution of information to manage an organization's image, but rather tactics used for marketing or propaganda purposes.

Question 13

A local newspaper published an article about Pluto Inc.'s latest line of shoes. The shoes were made with used clothing sourced from households across the country. The article also included select photographs and offered consumers a "sneak peak" into the manufacturing process. This form of nonpersonal marketing communication is known as:

Accepted Answer

The form of nonpersonal marketing communication described in the article is known as publicity. This is because the newspaper is not paid to publish the article, and it is not directly promoting or selling the shoes. Instead, it is providing information about the product in a way that may generate interest and attention from potential customers.

Question 14

Which of the following statements accurately describes how advertising differs from personal selling?

Accepted Answer

Advertising messages are typically standardized and not easily adapted to individual receivers, whereas personal selling allows for tailored communication.

Question 15

Which of the following statements describes a disadvantage of publicity?

Accepted Answer

Publicity is not always under the control of an organization and can sometimes result in negative stories, which can be damaging. This lack of control is a significant disadvantage of publicity.

Question 16

_____ is a form of one-on-one communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company's product or service or to act on an idea.

Accepted Answer

Personal selling is a form of one-on-one communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company's product or service or to act on an idea. Personal selling involves direct interaction between the seller and the buyer, and may take place in person, over the phone, or through online communication tools like video conferencing. The primary goal of personal selling is to build relationships with customers, identify their needs and preferences, and provide tailored solutions to meet those needs.

Question 17

The promotional mix element that allows for the most immediate and precise feedback from the customer is:

Accepted Answer

Personal selling allows for the most immediate and precise feedback from the customer because it involves face-to-face communication and interaction with the customer. The salesperson can ask questions, gauge the customer's reactions and responses, and make adjustments or recommendations based on the feedback received. Advertising, sales promotion, public relations, and publicity do not allow for the same level of direct interaction and feedback from customers.

Question 18

Because of the perceived objectivity of the source, which element of the promotional mix is usually regarded as most credible?

Accepted Answer

Publicity is usually regarded as the most credible element of the promotional mix as it comes from a third-party source, such as the news media, and is not directly paid for by the company. This perceived objectivity makes it more trustworthy to consumers.

Question 19

A(n) _____ refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it.

Accepted Answer

A touch point refers to every interaction that a customer has with a company, including advertising, customer service, product packaging, website, and more. Each touch point has the potential to influence the customer's perception of the brand and their overall experience with the company.

Question 20

Which of the following statements about publicity is true?

Accepted Answer

Publicity typically involves getting news stories or editorials about an organization or its products in the media. It is not directly run under an identified sponsorship (A), nor is it the only tool used in public relations efforts (B). Publicity may have a longer term purpose than some other forms of communication, but it is not necessarily more ongoing than public relations (D). Personal communications about an organization and its products would not typically be considered publicity, as it generally involves reaching a wider audience through the media (E).

Quiz 1: An Introduction to Integrated Marketing Communications