Chapter 12 - Practice problems PDF

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Marketing: An Introduction, 14e (Armstrong/Kotler) Chapter 12 Engaging Consumers and Communicating Customer Value: Advertising and Public Relations 1) ________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing Answer: C Diff: 1 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Application of knowledge 2) Greentech is launching a line of miniature solar chargers for laptops, cellphones, and other electronic devices. The chargers are compact and affordable, and the green energy technology is a value-added benefit for both the company and consumers. Which of the following would qualify as an advertisement for Greentech's new solar chargers? A) a front-page notice of the release of Greentech's solar chargers in all leading newspapers B) a press conference to discuss the various benefits, including environmental features C) the use of dedicated sales personnel to explain the qualities of the new solar chargers to retailers D) an endorsement by a national environmental organization to tout the benefits of the new solar chargers E) an online lottery where interested buyers have a chance to win a prize Answer: A Diff: 2 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Analytical thinking 3) In a marketing communications mix, ________ refers to any short-term incentive that encourages the purchase or sale of a product or service. A) advertising B) sales promotion C) personal selling D) crowdsourcing E) public relations Answer: B Diff: 1 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Application of knowledge

4) Power Pro, a leading manufacturer of lawn and garden equipment, releases a new line of cordless, lightweight, electric weed trimmers. To boost sales, Power Pro issues a 50 percent off coupon to the first 100 buyers at all Home Depot stores in the Northeast. Which element of the promotion mix has Power Pro used in this scenario? A) public relations B) crowdsourcing C) advertising D) sales promotion E) personal selling Answer: D Diff: 2 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Analytical thinking 5) In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events. A) personal selling B) sales promotion C) direct marketing D) advertising E) public relations Answer: E Diff: 1 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Application of knowledge 6) ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding highergrade filters and purifiers. Which of the following actions by ColaBlue would constitute a publicrelations effort to address the effects of the lawsuit and the consequent damage to its brand image? A) having well-trained personnel at retail outlets to explain the different ranges of products the company provides B) tying in with local restaurants to promote exclusive sales of ColaBlue soft drinks C) lowering prices of ColaBlue's products in the short term D) holding a press conference to explain the remedial steps that ColaBlue has taken E) making new advertisements for ColaBlue products and sponsoring shows on television Answer: D Diff: 2 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Ethical understanding and reasoning

7) In a promotion mix, ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships. A) advertising B) public relations C) crowdsourcing D) merchandising E) personal selling Answer: E Diff: 1 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Application of knowledge 8) Window Concepts has introduced a new line of windows that offer the same benefits as solar panels in reducing heating and cooling costs in homes. The state-of-the-art windows will also contribute to the slowing of global warming while providing energy reliability. The company sends a team of representatives to the National Doors and Windows Trade Show to promote the new line of windows. Which promotion mix tool has Window Concepts used in this scenario? A) crowdsourcing B) public relations C) advertising D) personal selling E) crowdcasting Answer: D Diff: 2 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Ethical understanding and reasoning 9) Studio 19 is a dance studio geared to adults who want to learn ballroom and Latin dance. When individuals call the studio, they're encouraged to access the website to receive a $25 ecoupon entitling them to a free half hour of dance instruction. Once they become patrons, text messages are sent to share news about featured dance instructors and upcoming special events. Which of the following promotion mix tools does Studio 19 employ to reach target customers? A) public relations B) personal selling C) direct marketing D) crowdsourcing E) retailing Answer: C Diff: 2 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Information technology

10) In a promotion mix, ________ involve(s) personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. A) direct marketing B) advertising C) public relations D) predictive analyticals E) indirect procurement Answer: A Diff: 1 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Application of knowledge 11) A firm that sends e-mail updates to customers about new products is engaging in personal selling. Answer: FALSE Diff: 2 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Information technology 12) What is a promotion mix? Define the major tools used in a promotion mix. Answer: The specific blend of promotion tools that a company uses to persuasively communicate customer value and build customer relationships is known as promotion mix. A company's total promotion mix—also called its marketing communications mix—consists of the following promotion tools: Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Sales promotion: Short-term incentives to encourage the purchase or sale of a product or service. Personal selling: Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships. Public relations: Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Direct, digital, and social media marketing: Engaging in direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Diff: 2 LO: 12-1: Define the five promotion mix tools for communicating customer value. AACSB: Written and oral communication

13) Which of the following is true of consumers in the new marketing communications model? A) They are more reliant on traditional methods of marketing for product information. B) They are less informed than before about companies and product marketing techniques. C) They are more reliant on mass-media marketing methods for product information. D) They are less powerful than before in affecting the way a company markets its products. E) They are better equipped to find product and brand information on their own. Answer: E Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication 14) Which of the following is an effect of the advancement of technology on marketing? A) Fragmented markets have assimilated into a few mass markets. B) Marketers go through more intermediaries to connect with consumers. C) Consumers rely less on marketer-supplied information than in the past. D) Marketers have increasingly moved toward mass-marketing techniques. E) Marketers tend to supply less information to consumers than in the past. Answer: C Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Information technology 15) Rather than just creating and placing "TV ads" or "print ads" or "Snapchat branded stories," many marketers now view themselves more broadly as ________ managers. A) social media marketing B) content marketing C) integrated marketing communication D) direct marketing E) multi-media marketing Answer: B Diff: 3 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication

16) Lush Lawns, a new landscaping company, uses the same logo and shade of green in all forms of communication including its online ads, truck signage, website, and business cards. Which technique is being used by Lush Lawns to promote its business? A) logistics information management B) inventory control segmentation C) niche market penetration D) integrated marketing communications E) global marketing management Answer: D Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Analytical thinking 17) Which of the following is true of marketing strategies that are being developed in the new marketing communications model? A) They are more targeted, social, and engaging. B) They target much larger customer segments. C) They rely more on mass-media marketing techniques. D) They use very little alternative media. E) They include a greater number of print media ads. Answer: A Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication 18) Which of the following is true of advertising in the new marketing communications model? A) Advertisers are increasingly shifting toward digital media. B) Advertisers are spending more on broadcast advertising. C) Advertisers are finding traditional media less expensive. D) Advertisers are using less targeted media to reach customers. E) Advertisers have replaced print catalogues with digital versions. Answer: A Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication

19) Which of the following is a function of an integrated marketing communications system? A) designing products using environmentally friendly techniques B) allowing suppliers or vendors to manage the inventory of products C) controlling production levels by feedback received from customers D) delivering a clear, consistent, and compelling message on the product to each brand contact E) sharing company forecasting details with shareholders Answer: D Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication 20) ________ tends to legitimize products, is very expressive, allows brand or company dramatization, and can build up a long-term image for a product. A) Direct mailing B) Telephone marketing C) Door-to-door selling D) Television advertising E) Printed-catalog marketing Answer: D Diff: 1 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication 21) Which of the following is a disadvantage of advertising? A) It does not allow dramatization of the brand or company. B) It only provides one-way communication with customers. C) It can be too customized and only attracts small, niche markets. D) It reaches targeted customers too slowly in most cases. E) It is the most costly promotion tool for companies. Answer: B Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication

22) Which of the following types of promotion tools requires a considerable degree of personal interaction with a customer? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising Answer: B Diff: 1 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication 23) Karen Dodd is employed by Dell and responsible for calling on primary schools in her home state of Maine to promote the company's offerings. She demonstrates the Dell line of products including desktop computers, laptops, and tablets and fields questions from teachers and administrators alike. This is an example of which promotion tool? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising Answer: B Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Analytical thinking 24) Which of the following is true of personal selling? A) It is the most effective promotional tool for geographically dispersed buyers. B) It allows firms to dramatize product offers through arts and visuals. C) It is the most expensive promotional tool for companies to utilize. D) It is an ineffective method for building long-term customer relationships. E) It presents a firm's message as news rather than as a sales-directed communication. Answer: C Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication

25) Surf's Up, a family-owned business, offers a free surf lesson with the purchase of any surfboard over $200 during the month of May. This is an example of which promotion mix element? A) direct and digital marketing B) public relations C) advertising D) personal selling E) sales promotion Answer: E Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Analytical thinking 26) Which of the following is most likely a difference between advertising and sales promotion? A) Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. B) Advertising can be used to build up a long-term image for a product while sales promotion effects can be short lived. C) Advertising can be used to dramatize product offers, but sales promotion cannot be used for this purpose. D) Advertising can trigger quick sales, while sales promotions cannot. E) Advertising is not as effective in building long-term brand preferences as sales promotions. Answer: B Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Analytical thinking 27) When a company issues a press release to announce a sizable donation to a national charity, it is using ________ to generate goodwill and maintain a positive corporate image. A) personal selling B) sales promotion C) public relations D) direct and digital marketing E) advertising Answer: C Diff: 1 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Analytical thinking

28) Which of the following is true of public relations? A) It provides quick incentives to make product purchases. B) It emphasizes news and events rather than sales. C) It involves training a dedicated sales force to meet customers. D) It cannot be used to dramatize a product or company. E) It is the most widely used promotional tool. Answer: B Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication 29) Which of the following is an example of a combination of sales promotions and direct marketing? A) a company giving discounts on their product prices in order to gain a brand image B) a company releasing a nationwide television ad about every buyer having a chance to win a lottery prize C) a company holding a press conference to talk about their new product D) a company's sales representatives meeting customers directly to present customized offerings E) a company sending an e-mail to a customer about a discount on a product during a holiday season Answer: E Diff: 3 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Analytical thinking 30) Which of the following is true of direct and digital marketing? A) Its marketing message is fixed and does not change according to the customer's requirements. B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships. C) It is presented as company news rather than as a sales-directed communication. D) It does not involve any interaction between the company and its customers. E) It is an impersonal promotion tool that hinders two-way communication. Answer: B Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Information technology

31) A company that uses telephone marketing to sell its products to customers is most likely using the promotion tool of ________. A) advertising B) public relations C) direct and digital marketing D) retailing E) merchandising Answer: C Diff: 1 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Information technology 32) Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn promote the product to customers? A) direct marketing B) a push strategy C) the publish-subscribe method D) a pull strategy E) vertical integration Answer: B Diff: 1 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Application of knowledge 33) A pharmaceutical manufacturer offers monetary incentives to its sales representatives to promote a new drug to the medical professionals in their respective geographic territories. This is an example of a ________ strategy. A) push B) direct marketing C) vertical integration D) pull E) publish-subscribe Answer: D Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Analytical thinking

34) Chic Eyewear, a producer of designer eyeglass frames, promotes their new line in national fashion magazines. Chic Eyewear lists the select optical retailers that carry their line at the bottom of their ads. This is an example of a ________ strategy. A) push B) vertical integration C) pull D) publish-subscribe E) direct marketing Answer: C Diff: 2 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Analytical thinking 35) In a pull strategy, the producer promotes the product to channel members who in turn promote it to final consumers. Answer: FALSE Diff: 1 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Application of knowledge 36) Content marketing managers create, inspire, share, and curate marketing content–both their own content and that created by consumers and others. Answer: TRUE Diff: 1 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication 37) Despite the shift toward digital media, traditional mass media still capture a sizable share of the promotion budgets of most major marketing firms. Answer: TRUE Diff: 1 LO: 12-2: Discuss the changing communications landscape and the need for integrated marketing communications. AACSB: Written and oral communication 38) Mass marketing is the optimal prom...