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Mkting Final Exam

Many companies create a branded presence such as a fan page within virtual communities such as Facebook or MySpace in order to
generate word-of-mouth advertising.
Promotion represents the fourth element in the marketing mix. The promotional element consists of communication tools, including sales promotion, public relations, personal selling, direct marketing, and _________.
advertising
The promotional element consists of communication tools, including advertising, public relations, sales promotion, direct marketing, and personal selling. A combination of one or more of these communication tools is called the _________.
promotional mix
The promotional mix refers to
the combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product.
The promotional mix can be used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) _________.
emind them later about the benefits they enjoyed by using the product
The concept of designing marketing communications programs that coordinates all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences is referred to as _________.
integrated marketing communications (IMC)
Allegra is an antihistamine and to create brand awareness it is offering people who request information about the product a cushion to use at their favorite sporting event. Its television ad shows a woman half-heartedly watching some sporting event. The voiceover asks if she is bored or congested. Next scene, the person is having a great time and is uncongested after taking Allegra. This use of the same promotional theme throughout a company’s promotion is an example of how marketers use _________.
integrated marketing communications (IMC)
The process of conveying a message to others that requires six elements—a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding is referred to as _________.
communication
Procter & Gamble created an advertisement for its High Endurance men’s antiperspirant. In terms of the communication process, the _________ for the information in the High Endurance men’s antiperspirant advertisement is Procter & Gamble, its manufacturer.
Source
Source refers to
a company or person who has information to convey during the communications process.
Procter & Gamble Co. created an advertisement for its Old Spice Red Zone antiperspirant. In terms of the communication process, the ___________ in the ad for Old Spice Red Zone antiperspirant informed prospective customers that the antiperspirant offered more protection than the Old Spice High Endurance brand.
message
A message is conveyed by means of an_____such as a salesperson, advertising media, or public relations tools.
channel of communication
The offer of one free pizza with the purchase of two pizzas at the regular price might appeal to you. This type of incentive offer is an example of __________.
consumer-oriented sales promotion
A mutually shared understanding and knowledge that the sender and receiver apply to the message so that it can be communicated effectively during the communication process is referred to as _________.
Field of experience
In the feedback loop, feedback refers to
the sender’s interpretation of the response which indicates whether the message was decoded and understood as intended.
In the communication process, noise refers to
extraneous factors that can work against effective communication by distorting a message
or the feedback received during the communication process intrusion.
Advertising, personal selling, public relations, sales promotion, and direct marketing are marketing communications alternatives that make up a firm’s _________.
promotional elements
Which of the following types of promotion uses customized interaction?
personal selling
Advertising refers to
any paid form of nonpersonal communication about an organization, product, service, or
idea by an identified sponsor.
New Balance recently spent $13 million for time on television and space in selected magazines to promote its athletic shoes. What form of marketing communication did it use?
advertising
Which of the following is an inherent strength of advertising?
Correct -efficient means for reaching large numbers of people
Which promotional mix alternative has the advantage of allowing the seller to see and/or hear the potential buyer’s reaction to the message?
personal selling
Which of the following in an inherent weakness of personal selling?
messages may differ between salespeople
Public relations refers to:
a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services
A nonpersonal, indirectly paid presentation of an organization, product, or service that can take the form of a news story, editorial, or product announcement is referred to as _________.
Publicity
A restaurant review published in the local newspaper is an example of _________.
publicity
Coupons, rebates, samples, and sweepstakes are best described as examples of _________.
Sales promotions
If used continuously, which of the following promotional elements will most likely lose its effectiveness?
sales promotion
A promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet is referred to as _________.
direct marketing
Which of the following is an inherent strength of direct marketing?
can be adapted quickly to facilitate relationships with customers
Which of the following is an inherent weakness of direct marketing?
declining customer response
Marketers can communicate best with Generation Y consumers by
integrating new media into their campaigns.
The promotional objective of the introduction stage of the product life cycle is to __________ consumers in order to increase their level of awareness of the product offering.
inform
The promotional objective of the growth stage of the product life cycle is to _______ consumers.
persuade
The promotional objective of the maturity stage of the product life cycle is to _______.
remind
An unsatisfied customer who switches brands is hard to replace. Which stage of the product life cycle is focused on maintaining loyal buyers so that customers will not switch brands?
maturity
The promotional objective of the decline stage of the product life cycle is to _________.
Correct
What stage of the product life cycle is a period where little money is spent in the promotional mix?
Decline
A push strategy refers to
directing the promotional mix to channel members to gain their cooperation in ordering
and stocking the product.
41. Chrysler Corporation provides support and incentives for 2,390 Chrysler and Jeep dealers. Through a multi-level program, Chrysler provides incentives to reward dealers for meeting sales goals. Dealers receive an incentive when they are near a goal, another when they reach a goal, and a larger incentive if they exceed sales projections. All of these actions are intended to encourage Chrysler dealers to __________ the Chrysler products through the channel to consumers.
push
Directing the promotional mix at ultimate consumers to encourage them to ask retailers for the product, is referred to as a(n) _________.
pull strategy
Pharmaceutical companies now spend more than $5 billion annually on __________ prescription drug advertising, to complement traditional personal selling and free samples directed only at doctors.
direct-to-consumer
Many prescription drugs such as Lipitor and Zocor now have their own websites to encourage patients to learn more about the drugs and ask for them by name from the doctor. The manufacturers of these drugs are using a(n) __________ promotional strategy.
pull
The first decision in developing the promotion program is to _________. The first decision in developing the promotion program is to _________.
identify the target audience
The _________, is defined as the group of prospective buyers toward which a promotion program is directed.
Target audience
During the planning stage of an IMC program a firm will identify the target audience, _________, set the budget, select the right promotional tools, and design the promotion.
specify the advertising objectives
During the planning stage of an IMC program a firm will identify the target audience, specify the advertising objectives, set the budget, _________, and design the promotion.
select the right promotional tools
During the planning stage of an IMC program a firm will identify the target audience, specify the advertising objectives, set the budget, select the right promotional tools, and _________.
design the promotion
Hierarchy of effects refers to
he sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action (either trial or adoption of the product). The stages include awareness, interest, evaluation, trial, and adoption.
n the hierarchy of effects, awareness is defined as
the consumer’s ability to recognize and remember the product or brand name.
Ann’s young son suffers from allergies and complains about his watery eyes and drowsiness. Ann feels bad because she thought there was nothing she could do to help him. When Ann saw the ad for a new drug that counters these symptoms in Martha Stewart Living magazine, she vowed to ask his doctor about this product on his next visit. At which stage in the hierarchy of effects is Ann?
She has moved quickly from the awareness stage to the interest stage
n the hierarchy of effects, evaluation refers to
the consumer’s appraisal of the product or brand
on important attributes
The fourth stage in the hierarchy of effects is __________ stage.
trial
In the hierarchy of effects, the consumer’s actual first purchase and use of the product or brand is referred to as the _________ stage.
trial
The fifth stage in the hierarchy of effects is _________.
adoption
No matter what the specific objective might be, from building awareness to increasing repeat purchases, promotion objectives should possess three important qualities. They should be designed for a well-defined target audience, cover a specified time period, and must be
measurable.
Promotion objectives should possess three important qualities. They should be designed for a well- defined target audience, be measurable, and
cover a specified time period.
Percentage of sales budgeting refers to
allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold.
60. The budgeting method which allocates funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold is referred to as _________.
percentage of sales
Amazon.com, a successful online retailer, manages an extensive database, which includes customers’ names and their tastes in books and music. This information is used to determine which products are suggested to each customer. This is an example of how Amazon.com uses
direct marketing
Direct marketing offers many benefits to consumers: they don’t have to go to a store, buying direct saves time and money, they avoid hassles with salespeople, it’s fun and entertaining, and
There is more privacy than in store shopping.
Direct orders refer to
the result of offers that contain all the information necessary for a prospective buyer to
make a decision to purchase and complete the transaction.
The two general approaches to managing unsolicited e-mail are _________.
opt-in and opt-out
The result of an offer designed to generate interest in a product or service, and a request for additional information is referred to as _________.
lead generation
A paid advertisement for the Texas Department of Economic Development, Tourism Division invited readers of a magazine to mail in a postage-paid reply card that was included with the ad, visit the state’s website, or use a toll-free number to request more information about vacation destinations in Texas. The primary purpose of this ad was as a(n) _________.
lead generator
Traffic generation is
the outcome of a direct marketing offer designed to motivate people to visit a business
Pauline received a postcard from a local antique mall. The card invited her to attend an invitation-only open house at the mall and receive a 10 percent discount on her first purchase that day. The antique mall was using the postcard for _________.
Traffic generation
The result of organizations’ efforts to create profiles of customers so that direct marketing tools, such as e-mail and catalogs, can be directed at specific customers are referred to as
databases
Direct marketing faces several challenges and opportunities in global markets. Several countries such as Italy and Denmark, for example, have requirements for mandatory “opt-in”-that is
potential customers must give permission to include their name on a list for direct marketing solicitations.
Consumers are often concerned that some marketing efforts are invading their privacy. While this is a legitimate concern to consumers, the explanation by many marketers is
the collection of data from businesses where customers have shopped allows the marketer to satisfy their customer’s needs more effectively by customizing programs specifically for that consumer.
The objective of __________advertising is to persuade the target market to select the firm’s brand rather than that of a competitor.
competitive
Institutional advertisements are
advertisements that build goodwill or an image for an organization rather than promote a specific product or service.
To eliminate possible bias that might result from subjective judgments about some population segments, the Federal Communications Commission suggests that
advertising program decisions be based on market research about the target audience.
Which of the following statements describes a potential problem when using humorous appeals in advertising?
humor wears out quickly, losing the interest of consumers.
A reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency, is referred to as
gross rating points (GRPs)
One of the advantages associated with radio as an advertising medium is that it
has a relatively low cost
Billboard advertising provides _________________ for well-known products.
reinforcement
Continuous scheduling would most likely be used when advertising __________.
bathroom cleaner
Portfolio tests refer to
placing a test ad in a portfolio of other ads and stories, asking consumers to read through the portfolio, and then asking subjects for their impressions of the ads.
Young and Rubicam, Inc. developed the “Softer Side of Sears” campaign for Sears to target middle-income women. This agency provided marketing research, media selection, copy development, artwork, and production services for Sears. Young and Rubicam is an example of a(n)
full-service advertising agency
There are five common approaches to posttests: (1) aided recall, (2) unaided recall, (3) attitude tests, (4) inquiry tests, and (5) __________.
sales tests
Which of the following statements about attitude tests is most accurate?
in an attitude test, respondents are asked questions to measure changes in their attitudes after an advertising campaign, such as whether they had a more favorable attitude toward the product advertised.
The offer of one free pizza with the purchase of two pizzas at the regular price might appeal to you. This type of incentive offer is an example of __________.
a consumer-oriented sales promotion
Research indicates that _________of consumers use coupons.
89 percent
For marketers, the primary objective of a premium is to
encourage customers to return frequently or to use more of the product
The key difference between a contest and a sweepstakes is
contests require some element of skill rather than random chance in a sweepstakes.
. When a rerun of Seinfeld shows a Pepsi on a desktop, a Lexus parked on the street, or a box of Tide on the countertop, __________is being used
product placement
TransWave International is a small company that has developed a system that uses the Web and patented electronic sensors as an early-warning device for pipeline leaks. Pipeline safety is becoming a big issue in the U.S. as more natural gas lines are being laid near populated areas. The timing is right for this company to be extremely successful, but it must make itself known to oil companies. TransWave benefitted from an article about the company in a popular business magazine. This article described the company, what its product could do, and why the product was needed. The article was an example of __________.
publicity
. National sales meetings sponsored by the manufacturer and field visits to a reseller’s location to inform and motivate salespeople to sell the products are considered forms of
salesforce training
Much of Google’s success is based on the ten guidelines of its corporate philosophy. Guideline 4 states, “__________on the Web works.”
Democracy
Which of the following statements is an example of personal selling?
A Tupperware dealer demonstrates the company’s products to you and your friends in the comfort of your own home.
The tasks involved in managing personal selling include: setting objectives; __________; recruiting, selecting, training, and compensating salespeople; and evaluating the performance of individual salespeople.
ORGANIZING THE SALESFORCE
To better understand customer needs salespeople at Medtronic, Inc., the world leader in the heart pacemaker market, are in the operating room for more than 90 percent of the procedures performed with their product and are on call, wearing pagers, 24 hours a day. Medtronic sales people practice
relationship selling
A(n) __________is a salesperson who processes routine orders or reorders for products that were already sold by the company
order taker
A salesperson who sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on a customer’s use of a product or service is referred to as a(n) __________.
order getter
The personal selling process encompasses __________distinct selling stages.
six
During the prospecting stage of the personal selling process, salespeople will deal with
leads, prospects, and qualified prospects.
In the personal selling process, a telemarketer who calls and asks the head of the household, “Are you happy with your current cell phone service provider?” is engaged in __________.
prospecting
For business product companies, identifying the buying role of the prospect would be typically done at the __________stage of the personal selling process.
preapproach
Three major presentation formats exist: (1) __________, (2) formula selling format, and (3) need-satisfaction format.
stimulus-response format
Which type of personal selling presentation is the most consistent with the marketing concept?
need-satisfaction presentation
There are six commonly used techniques to deal with objections: (1) acknowledge and convert the objection, (2) postpone, (3) agree and neutralize, (4) accept the objection, (5) __________, and (6) ignore the objections.
denial
Which of the following statements should the salesperson use if she wished to acknowledge and convert an objection (such as “the price is too high”)?
“Yes, the price is high because we use the finest…”
Three closing techniques are used when a salesperson believes a buyer is about ready to make a purchase. They are __________closes.
trial, assumptive, and urgency
Asking the prospect to make choices concerning delivery, warranty, or financing terms, is referred to as a(n) __________close.
assumptive
Sales management consists of three interrelated functions: (1) sales plan formulation, (2) sales plan implementation, and (3) __________.
SALESFORCE EVALUATION
Formulating the sales plan involves three tasks: (1) setting objectives, (2) organizing the salesforce, and (3) __________.
developing account management policies
The best organizational structure to use when different buying organizations have different needs is a __________sales organization
customer
A study of a particular sales position, including how the job is to be performed and the tasks that make up the job is referred to as a(n) __________.
job analysis
A disadvantage of the straight salary compensation plan is
it provides little incentive to expand sales volume.
When buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities (stores and offices), and mostly tangible objects, they are in __________.
the traditional marketplace
Airline, car rental, and lodging electronic reservation systems such as Orbitz allow comparison shopping for the lowest fares, rents, and rates and almost immediate access to and confirmation of travel arrangements and accommodations. This demonstrates how marketspace contributes to customer value through the creation of
possession utility.
Yahoo! allows users to create personalized MyYahoo pages. Users can add or delete a variety of types of information from their personal pages, including stock quotes, weather conditions, and local TV schedules. This is an example of a high degree of __________.
personalization
Marketers produce a customer experience through seven Web site design elements: (1) context, (2) content, (3) community, (4) customization, (5) __________, (6) connection, and 7) commerce.
communication
A(n) __________oriented Web site focuses largely on the company’s offering, be it products, services, or information.
functionally
GolfWeb.com, is a-popular Web site for golfing enthusiasts. Its members pay an annual fee of $39.95 to get discounts on merchandise and to trade tips and stories about the best courses and the toughest holes in its chat rooms. This is a description of a Web site with a strong __________ design element.
community
The subsegment of all Internet users who employ this technology to research products and services and make purchases is referred to as __________.
online consumers
Which of the following profiles would most likely describe an online consumer?
a twenty-eight year old chemical engineer living in the suburbs with her husband and two children
. Six general product and service categories dominate online consumer buying today and in the foreseeable future. One of the categories includes items such as computers and consumer electronics, for which product information is an important part of the purchase decision, but
prepurchase trial is not necessarily critical
Bots contribute to the convenience of online shopping because they
allow customers to make online comparisons of prices and product features.
Which of the following marketing tools best contributes to the convenience of online shopping?
bots
Customerization refers to
the practice of personalizing the marketing and overall shopping and buying interaction for each customer.
Internet-enabled technologies provide communication capabilities that take three forms: (1) marketer-to-consumer e-mail notification, (2) consumer-to-marketer buying and service requests, and (3)__________.
consumer-to-consumer chat rooms, instant messaging, and social networking Web sites.
Which of the following statements regarding spam is most accurate?
Online services in some states can legally prevent spammers from spamming their subscribers.
To which element of the marketing mix is viral marketing most closely related?
promotion
Dynamic pricing refers to
the practice of changing prices for products in real time in response to supply and demand conditions.
Which of the following statements regarding cross-channel shoppers is most accurate?
Research shows that 51 percent of U.S. online consumers are cross-channel shoppers.
The primary purpose of transactional Web sites is to
convert an online browser into an online, catalog, or in-store buyer.
Hyundai Motor America reported 80 percent of the people visiting a Hyundai store first visited the brand’s __________Web site.
promotional
Pizza Hut’s Web site uses __________to collect data on customer purchases so patrons can use Express Checkout when they order.
cookies
promotional mix
is the combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product; (2) persuade them to try it; and (3) remind them later about the benefits they enjoyed by using the product.
Integrated marketing communications (IMC)
is the concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences.
Communication
is the process of conveying a message to others and requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding.
Advertising
is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor.
Personal selling
consists of the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
Public relations
is a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.
Publicity
is a nonpersonal, indirectly paid presentation of an organization, product, or service.
Sales promotion
is a short-term inducement of value offered to arouse interest in buying a product or service.
Direct marketing
is a promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.
push strategy
involves directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
pull strategy
involves directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product.
hierarchy of effects
is the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action (either trial or adoption of the product). The stages include awareness, interest, evaluation, trial, and adoption.
Direct orders
are the result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.
Lead generation
is the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information.
Traffic generation
is the outcome of a direct marketing offer designed to motivate people to visit a business
Advertising
is any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.
Product advertisements
are advertisements that focus on selling a product or service and which take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder.
Institutional advertisements
are advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service.
Infomercials
are program-length (30-minute) advertisements that take an educational approach to communication with potential customers.
Pretests
are tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement.
Posttests
are tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose.
Consumer-oriented sales promotion
consists of sales tools used to support a company’s advertising and personal selling efforts directed to ultimate consumers. Also called consumer promotions.
Product placements
are a consumer sales promotion tool that uses a brand-name product in a movie, television show, video game, or a commercial for another product.
Trade-oriented sales promotions
are sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions.
Cooperative advertising
consists of advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.
Publicity tools
are methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements.
Personal selling
is the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
Sales management
consists of planning the selling program and implementing and evaluating the personal selling effort of the firm.
Relationship selling
is the practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time.
order taker
is a salesperson who processes routine orders or reorders for products that were already sold by the company.
order getter
is a salesperson who sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service.
personal selling process
consists of sales activities occurring before, during, and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up).
Adaptive selling
is a need-satisfaction presentation style that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information.
Consultative selling
is a need-satisfaction presentation style that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution.
sales plan
is a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed.
Major account management
is the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships. Also called key account management.
Account management policies
specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out.
A sales quota
consists of specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period.
Salesforce automation (SFA)
is the use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient.
A cross-channel shopper
is an online consumer who researches offerings online and then purchases them at retail stores.
Cookies
are computer files that a marketer can download onto the computer or mobile phone of an online shopper who visits the marketer’s Web site.
Dynamic pricing
is the practice of changing prices for products and services in real time in response to supply and demand conditions.
Viral marketing
is an Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking Web sites, and blogs
Spam
consists of communications that take the form of electronic junk mail or unsolicited e-mail.
blog
is a Web page that serves as a publicly accessible personal journal for an individual or organization.
Web communities
are Web sites that allow people to congregate online and exchange views on topics of common interest.
Bots
are electronic shopping agents or robots that comb Web sites to compare prices and product or service features.
Permission marketing
is the solicitation of a consumer’s consent (called “opt-in”) to receive e-mail and advertising based on personal data supplied by the consumer.
Personalization
is the consumer-initiated practice of generating content on a marketer’s Web site that is custom tailored to an individual’s specific needs and preferences.
Collaborative filtering
is a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases.
choiceboard
is an interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options.
Interactive marketing
is the two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.

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