TRUE/FALSE1128Nickels, McHugh & McHugh, Understanding Business, Eighth EditionNickels, McHugh & McHugh, Understanding Business, Eighth Edition1127CHAPTER 16USING EFFECTIVE PROMOTIONAL TECHNIQUESNickels, McHugh & McHugh, Understanding Business, Eighth Edition1071True/FalseLearning Goal 1Define promotion and list the four traditional tools that make up the promotion mix.Level of Learning 1(Knows basic terms and facts)As a component of the promotion mix, advertising includes each of the activities marketers use to inform people about products and persuade them to participate in an exchange. Answer: FalseLG: 1/LL: 1Page: 432 A firms promotion mix refers to the combination of different promotional tools used to persuade consumers to participate in an exchange. Answer: TrueLG: 1/LL: 1Page: 432 Integrated marketing communication simplifies the marketing process by replacing personal selling with extensive use of advertising to create a positive brand image.Answer: FalseLG: 1/LL: 1Page: 432 Integrated marketing communication combines all the promotional tools into one comprehensive, unified promotional strategy.Answer: TrueLG: 1/LL: 1Page: 432 Integrated marketing communication combines each element of the promotional effort to create a unique message for a product sold in different markets.Answer: FalseLG: 1/LL: 1Page: 432 Creating a unified positive image of a company in the publics mind is the end result of effective integrated marketing communication. Answer: TrueLG: 1/LL: 1Page: 432 Combining a firms promotional tools and resources to create a positive brand image is the goal of integrated marketing communication. Answer: TrueLG: 1/LL: 1Page: 432 The promotional budget will clarify how much can be spent on advertising and personal selling.Answer: TrueLG: 1/LL: 1Page: 432; figure 16.2 The first step in creating a promotional campaign is to define the objectives for each element of the marketing mix. Answer: FalseLG: 1/LL: 1Page: 432; figure 16.2 The last step in creating a promotional campaign is to evaluate the effectiveness of each element of the promotional mix. Answer: TrueLG: 1/LL: 1Page: 432; figure 16.2 The development of a unified promotional strategy that uses each element of the promotion mix to create a favorable brand image is the goal of a primary promotional process. Answer: FalseLG: 1/LL: 1Page: 432 Level of Learning 2(Understands concepts and principles)Phils activities as a salesperson for Marquette Publishing are part of Marquette's promotion mix. Answer: TrueLG: 1/LL: 2Page: 432 Rationale: Advertising, personal selling, public relations, publicity, and sales promotion are all part of a firm's promotion mix.A firms promotion mix consists of its pricing and distribution strategies. Answer: FalseLG: 1/LL: 2Page: 432 Rationale: A promotionl mix includes advertising, personal selling, public relations and sales promotion.After adopting integrated marketing communication, Madison Furniture puts less emphasis on public relations, sales promotion, and personal selling, and concentrates on advertising designed to provide a uniform message to all markets.Answer: FalseLG: 1/LL: 2Page: 432 Rationale: The goal of integrated marketing communication is to create a unified image of the company, but it does not downplay the role of public relations, sales promotion and personal selling to achieve this goal. Instead, it focuses on uniting and coordinating all of the elements of the promotion mix.When developing the promotional campaign for a new product, the first step for a firm is to identify their target market. Answer: TrueLG: 1/LL: 2Page: 432; figure 16.2 Rationale: Figure 16.2 identifies the 6 steps in a promotional campaign. The first step involves the identification of the target market.Marla has developed a new advertising message for one of her firms new products. She has sent copies of the ad to all of the salespeople in the firm and asked them to stress the benefits mentioned in the ad when they call on their customers. Finally, the ad includes a free sample coupon to encourage people to try this new product. She is attempting to create one positive, unified brand image for the new product. Marla is practicing brand communication.Answer: FalseLG: 1/LL: 2Page: 432Rationale: Marla is practicing integrated marketing communication because she is combining the promotional tools of advertising, personal selling, and sales promotion to achieve a positive, unified brand image for the new product.Learning Goal 2Define advertising and describe the advantages and disadvantages of various advertising media, including the Internet.Level of Learning 1(Knows basic terms and facts)Depending upon the promotional campaign, advertising may include paid and non-paid forms of nonpersonal communication. Answer: FalseLG: 2/LL: 1Page: 433 Trade advertising is advertising to consumers by manufacturers to encourage them to try their products.Answer: FalseLG: 2/LL: 1Page: 433; figure 16.3 Institutional advertising creates an attractive image for an organization rather than for a product.Answer: TrueLG: 2/LL: 1Page: 433; figure 16.3 Advocacy advertising is advertising that supports a particular view of an issue such as gun control.Answer: TrueLG: 2/LL: 1Page: 433; figure 16.3 When a manufacturer advertises to wholesalers and retailers in an attempt to encourage them to carry its products, it is engaging in institutional advertising.Answer: FalseLG: 2/LL: 1Page: 433; figure 16.3 The purpose of institutional advertising is to create an attractive image for an organization. Answer: TrueLG: 2/LL: 1Page: 433; figure 16.3 Total ad volume exceeds $245 billion yearly.Answer: TrueLG: 2/LL: 1Page: 433 Advertising provides the public with free TV and radio programs.Answer: TrueLG: 2/LL: 1Page: 433 Newspapers, radio, and the Yellow Pages are especially attractive to local advertisers.Answer: TrueLG: 2/LL: 1Page: 433 Advertising helps to cover the production costs of newspapers and magazines. Answer: TrueLG: 2/LL: 1Page: 433 The major complaint with advertising is that it provides no real benefits to the public. Answer: FalseLG: 2/LL: 1Page: 433 Free TV and radio broadcasting is made possible by advertising. Answer: TrueLG: 2/LL: 1Page: 433 Advertising on the Internet now ranks ahead of newspapers, based on total advertising expenditures. Answer: FalseLG: 2/LL: 1Page: 434; figure 16.4 Television (broadcast and cable) and direct mail are the top two advertising media when ranked by total expenditures. Answer: TrueLG: 2/LL: 1Page: 433 434; figure 16.4 Internet advertising ranks third in terms of total advertising expenditures. Answer: FalseLG: 2/LL: 1Page: 433 434; figure 16.4 Broadcast and cable television along with newspaper advertising are the top two advertising media when ranked by total expenditures. Answer: FalseLG: 2/LL: 1Page: 433 434; figure 16.4 The number one advertising medium in terms of total dollar expenditures is newspapers. Answer: FalseLG: 2/LL: 1Page: 433 434; figure 16.4 Because TV advertising is so expensive, it is less popular than in the past and now ranks sixth in total advertising expenditures. Answer: FalseLG: 2/LL: 1Page: 433 434; figure 16.4 Direct mail is usually the best advertising medium to reach specific target markets. Answer: TrueLG: 2/LL: 1Page: 434; figure 16.5 A recent 30 second Super Bowl commercial costs about $2.5 million. Answer: TrueLG: 2/LL: 1Page: 434 Magazine ads have high visibility, repeat exposures, and are low cost.Answer: FalseLG: 2/LL: 1Page: 434; figure 16.5 One problem with newspaper advertisements is that they have a short life span.Answer: TrueLG: 2/LL: 1Page: 434; figure 16.5 Radio advertising offers businesses an opportunity to reach a specific target market.Answer: TrueLG: 2/LL: 1Page: 434; figure 16.5 A TV program devoted exclusively to promoting goods and services is called an infomercial. Answer: TrueLG: 2/LL: 1Page: 435 The popularity of infomercials has declined in recent years. Answer: FalseLG: 2/LL: 1Page: 435 According to the Dealing with Change box in Chapter 16, some marketers have found traditional forms of advertising too expensive for the responses they were getting.Answer: TrueLG: 2/LL: 1Page: 436; Dealing with Change box When marketers advertise on a big online property, such as Yahoo, they can reach the people they most want to reach. Answer: TrueLG: 2/LL: 1Page: 436 One of the benefits of advertising on the Internet is that it provides a way to link firms and customers so that they can learn more about each other. Answer: TrueLG: 2/LL: 1Page: 436 Interactive promotion allows customers and companies to work together to create mutually beneficial exchange relationships in an ongoing dialogue. Answer: TrueLG: 2/LL: 1Page: 437 Online advertising allows advertisers to see how many people have clicked on a advertisement and how much of it the potential customer has read or watched.Answer: TrueLG: 2/LL: 1Page: 437 The Internet has changed the emphasis of promotion from promoting to customers to working with customers. Answer: TrueLG: 2/LL: 1Page: 437 The Internet allows firms to listen to customers wants, track their purchases, provide them with better service, and more access to information. Answer: TrueLG: 2/LL: 1Page: 437 The purpose of interactive promotion is to create a monologue that convinces customers to act quickly. Answer: FalseLG: 2/LL: 1Page: 437 When it comes to reaching global markets, evidence supports the conclusion that the one size fits all approach to promotional mix design is best. Answer: FalseLG: 2/LL: 1Page: 438 Global advertising saves companies money in research and ad design.Answer: TrueLG: 2/LL: 1Page: 437 Advertising today is moving from regionalism to globalism.Answer: FalseLG: 2/LL: 1Page: 438 According to the Reaching Beyond Our Borders box in Chapter 16, it is important to learn the rules and regulations of each country you advertise in, because all countries regulate what you can say and where and how you say it.Answer: TrueLG: 2/LL: 1Page: 438; Reaching Beyond Our Borders box Level of Learning 2(Understands concepts and principles)Green Space is an organization concerned about preserving forests and wilderness areas. They hope to raise the publics awareness regarding this issue. Green Space can communicate their concern by utilizing advocacy advertising. Answer: TrueLG: 2/LL: 2Page: 433; figure 16.3 Rationale: Advocacy advertising, also known as cause advertising, supports a particular view of an issue. Gun control and anti-smoking ads represent examples of advocacy advertising.Advertising reaches a national audience more effectively than it communicates with a local market. Answer: FalseLG: 2/LL: 2Page: 434 Rationale: Newspapers, radio, and the Yellow Pages are all advertising media that do an excellent job of covering a local market.Pat's Pie Pantry generates significant word-of-mouth advertising by delighting their customers with delicious pies. Word of mouth represents the use of advertising. Answer: FalseLG: 2/LL: 2Page: 433 Rationale: Word of mouth does not meet several of the criteria that characterize advertising. Advertising is paid nonpersonal communication through various media. Word of mouth is unpaid personal communication that does not go through a medium.Mailing ads to nearby residents helps grocery stores reach their target market with information of special sales. This represents direct mail advertising. Answer: TrueLG: 2/LL: 2Page: 433 Rationale: Advertising refers to paid, nonpersonal communication through various media. Since direct mail is a paid, nonpersonal communication through the mail, it should be considered advertising.Magazines such as People, Sports Illustrated, and Business Week pay for much of the cost of producing their publications by selling advertising space in the magazines. Answer: TrueLG: 2/LL: 2Page: 433 Rationale: Advertising covers the major costs of producing newspapers and magazines.Informing consumers about goods and services represents advertising's only benefit to society. Answer: FalseLG: 2/LL: 2Page: 433 Rationale: Advertising most importantly informs us about products. It also provides us with free TV and radio programs because business advertisers pay for advertising time.The use of infomercials represents an effective use of advertising dollars. Answer: TrueLG: 2/LL: 2Page: 435 Rationale: One of the faster-growing forms of advertising is the use of infomercials. What makes them so successful is that they present the product in great detail.Businesses pay to have their products prominently displayed in a TV episode of Friends or a feature movie. Answer: TrueLG: 2/LL: 2Page: 435 Rationale: Product placement refers to advertising dollars spent to put products into TV shows and movies where they will be widely seen.Garden.com uses interactive promotion by allowing customers to chat with each other online about gardening.Answer: TrueLG: 2/LL: 2Page: 437 Rationale: Interactive promotion allows marketers to go beyond a monologue, where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships. Garden.coms answer is an interactive website through which customers may chat with each other and ask gardening questions.It is important to design promotional efforts specifically for individual countries since sometimes the brand is not appealing in the targeted country. For example, a Japanese company tried to use English words to name a popular drink and called it Pocari Sweat.Answer: TrueLG: 2/LL: 2Page: 437 Rationale: Some experts think that promotions targeted at specific countries or regions may be much more successful than global promotions since each country or region has its own culture, language, and buying habits.Learning Goal 3Illustrate the steps of B2B and B2C selling processes.Level of Learning 1(Knows basic terms and facts)Personal selling involves the face-to-face presentation and promotion of goods and services. Answer: TrueLG: 3/LL: 1Page: 438 Persuading others to buy your product represents the only goal of effective selling. Answer: FalseLG: 3/LL: 1Page: 438 439 Effective selling involves helping others to satisfy their wants and needs. Answer: TrueLG: 3/LL: 1Page: 439 According to the most recent U.S. census, over 40% of the total labor force is employed in personal selling. Answer: FalseLG: 3/LL: 1Page: 439 Personal selling represents a relatively inexpensive method of promoting a firm's products. Answer: FalseLG: 3/LL: 1Page: 439 The average cost of a single sales call to a potential B2B buyer is approximately $400. Answer: TrueLG: 3/LL: 1Page: 439 Personal selling involves more than presenting the product and closing the deal. Other activities include the search for new prospects and follow-up services after the sale. Answer: TrueLG: 3/LL: 1Page: 438 Closing the sale represents the final step in the selling process. Answer: FalseLG: 3/LL: 1Page: 441 Validation refers to the process of determining whether a potential customer has the need for a product, the authority to buy, and the willingness to listen to a sales message.Answer: FalseLG: 3/LL: 1Page: 439 A good salesperson requires product knowledge about their product and the product offered by competitors. Answer: TrueLG: 3/LL: 1Page: 439 The first step in the selling process involves prospecting for potential customers and choosing those most likely to buy. Answer: TrueLG: 3/LL: 1Page: 439 The purpose of a trial close in the selling process is to learn as much as possible about customers and their wants and needs. Answer: FalseLG: 3/LL: 1Page: 440 The B2B selling process may take a long time and gathering information before you approach the customer is critical.Answer: TrueLG: 3/LL: 1Page: 440 B2C salespeople spend more time prospecting than do B2B salespeople. Answer: FalseLG: 3/LL: 1Page: 441 After-sale follow-up is an important, but often neglected step in B2C sales. Answer: TrueLG: 3/LL: 1Page: 442 The B2C selling process has fewer steps than the B2B selling process.Answer: TrueLG: 3/LL: 1Page: 442; figure 16.6 Selling is an art.Answer: TrueLG: 3/LL: 1Page: 442 Level of Learning 2(Understands concepts and principles)Personal selling represents a form of individualized advertising. Answer: FalseLG: 3/LL: 2Page: 438 Rationale: Personal selling is face-to-face presentation and promotion of goods and services. Advertising is nonpersonal communication through various media. Personal selling, therefore, is not advertising.The hallmark of an effective salesperson is the ability to complete a sale as soon as the sales presentation is completed. Answer: FalseLG: 3/LL: 2Page: 440 Rationale: The presentation stage of personal selling is usually followed by an effort to answer questions and overcome objections. An effective salesperson will realize that customers are likely to have legitimate questions and concerns, and will look at questions and objections as an opportunity to improve relationships. Even after objections are answered, the close may take some time. Questions and objections from customers following a sales presentation indicate a salesperson that was poorly prepared. Answer: FalseLG: 3/LL: 2Page: 440 Rationale: Customers often will have questions and legitimate concerns about a product. The sales person should not take these concerns and doubts as an indication that the customer is challenging the presentation. Rather, customer questions and concerns should be viewed as an opportunity. In fact, by helping customers resolve their doubts, salespeople can create a better relationship with the customer.Anita enjoys her job as a salesperson for a store that sells high quality entertainment systems. As an effective salesperson, Anita is expected to help her customers resolve any doubts they might have before the sale, and follow up to ensure that the customer is satisfied after the sale. Answer: TrueLG: 3/LL: 2Page: 440 441 Rationale: A salesperson should anticipate potential objections and determine proper responses. Customers will have legitimate doubts, and salespeople are there to resolve those doubts. Moreover, the sales process doesn't end when the sale is made. Salespeople are expected to follow up after a sale and continue to build a relationship with the customer.To be successful, salespeople find that their job responsibilities extend far beyond the close of the sale. Answer: TrueLG: 3/LL: 2Page: 441 Rationale: The selling process often continues for years as the salesperson responds to existing customer requests for new information.Effective salespeople push hard to finalize a sale as soon as they finish their presentation. Otherwise, the customer has time to come up with objections that will make the sale more difficult to close. Answer: FalseLG: 3/LL: 2Page: 440 Rationale: Salespeople cannot spend unlimited time with a single customer, so they must find ways to close the sale. However, this does not mean the salesperson must use high pressure tactics or try to rush the customer into a decision. Salespeople must realize that customers can have legitimate questions and concerns, and they should look at these objections as an opportunity to forge a stronger relationship with the customer.Bob is a salesperson for a firm that markets products in a B2B market. His wife, Sally, is a salesperson for a retail store selling top quality electronics goods. While Bob is likely to be successful using follow up after the sale, Sally should avoid this approach. Answer: FalseLG: 3/LL: 2Page: 441 Rationale: As in the B2B market, salespeople in consumer markets are finding success following up after the sale.After her sales presentation. Whitney asks her customers which color they prefer and if they would like to pay by credit card. She hopes that these questions will help the sales process move beyond the customers questions and objections. With limited time, Whitney is utilizing a trial close to help finalize the sale more quickly. Answer: TrueLG: 3/LL: 2Page: 440 Rationale: Salespeople cant spend forever with one potential customer answering questions and objections. By assuming that the customer has made the purchase decision, Whitneys questions help finalize the sale.Jose is a salesperson for a firm that sells and leases heavy construction equipment. This equipment is very expensive, and is highly specialized. Jose spends a great deal of time learning about potential customers needs, then uses his knowledge of the Internet to locate exact specifications of equipment offered by all the major producers in the industry. Armed with this information, Jose is able to identify the best equipment for each job. Jose has completed the preapproach stage of the selling process.Answer: TrueLG: 3/LL: 2Page: 440 Rationale: In the preapproach stage the salesperson does further research by learning as much as possible about customers and their wants and needs. As customers walk into Phat Pats clothing store, they are greeted by a salesperson who asks, May I help you? Studies indicate that this is an effective opening in the B2C sales process. Answer: FalseLG: 3/LL: 2Page: 441 Rationale: Actually, May I help you? is not an effective opening because the answer too often is No. A better approach is to ask, What may I help you with? or How are you today? The idea is to show the customer that you are there to help and that you are friendly and knowledgeable. As a salesperson greeting a customer, your goal is to discover what the customer wants.Learning Goal 4Describe the role of the public relations department, and how publicity fits in that role.Level of Learning 1(Knows basic terms and facts)As one of the tools included in a firms promotion mix, public relations is intended to earn public understanding and acceptance. Answer: TrueLG: 4/LL: 1Page: 442 Public relations involves the evaluation of public attitudes and execution of a program to earn public acceptance. Answer: TrueLG: 4/LL: 1Page: 442 An effective public relations department regularly listens to and communicates with the public. Answer: TrueLG: 4/LL: 1Page: 442 An effective public relations program informs the public that the firm is responsive to their needs. Answer: TrueLG: 4/LL: 1Page: 442 To be effective and maintain its independence, the public relations department should avoid establishing close relationships with the media, community leaders, and other corporate stakeholders. Answer: FalseLG: 4/LL: 1Page: 442 Effective public relations demands a dialogue with customers so that information can be exchanged and trust can be developed. Answer: TrueLG: 4/LL: 1Page: 442 Successful PR departments find that listening to the public is not enough. They have to tell the public that they are being responsive. Answer: TrueLG: 4/LL: 1Page: 442 Public relations departments work closely with media, avoiding the time consuming effort of interacting with individual customers. Answer: FalseLG: 4/LL: 1Page: 442 Effective public relations requires listening to the public and developing policies that reflect the publics interest. Answer: TrueLG: 4/LL: 1Page: 442 PR firms find that their services are not effective with clients with Internet business operations. Answer: FalseLG: 4/LL: 1Page: 442 Publicity is the talking arm of public relations. Answer: TrueLG: 4/LL: 1Page: 443 Unlike other promotional tools, publicity is free. Answer: TrueLG: 4/LL: 1Page: 443 Compared to advertising, publicity is less believable. Answer: FalseLG: 4/LL: 1Page: 443 Publicity can be either positive or negative. Answer: TrueLG: 4/LL: 1Page: 443 Compared to advertising, publicity offers a firm greater control over when and how often the message is communicated. Answer: FalseLG: 4/LL: 1Page: 443 Publicity works only if the media find the material interesting or newsworthy.Answer: TrueLG: 4/LL: 1Page: 443Level of Learning 2(Understands concepts and principles)The first step in the public relations process is to ensure that everyone in the organization understands the firms position on key issues. With this information widely available, efforts can be made to persuade the public of the firms virtues. Answer: FalseLG: 4/LL: 2Page: 442 Rationale: Good public relations begins with listening to the public. Public relations is not about generating propaganda to convince customers that they are always right. Instead, firms that make effective use of public relations earn public trust and approval by being willing to change their policies and procedures to make sure they are in the public interest.As a manager for a firm that produces a variety of recreational equipment and sporting goods, Kevin is convinced that his firm markets the safest, highest quality equipment in the entire industry. Recent studies from the Consumer Product Safety Commission support his position. Kevin feels that the best way to create an image of high quality, safe products is to develop an extensive advertising campaign. Kevin realizes that publicity lacks the credibility that advertising can generate. Answer: FalseLG: 4/LL: 2Page: 443 Rationale: Aside from being free, the biggest advantage of publicity is that it is more believable than advertising. Thus, if believability is a concern, Kevin should first write a press release about the safety statistics that grabs the attention of media. If the news media report this information, Kevin will not only save advertising money, but he may also enhance the public's belief in the information presented.Businesses always welcome publicity because it presents the name of the firm and its products to the public for free. Answer: FalseLG: 4/LL: 2Page: 443 Rationale: Not all publicity is good publicity.While the Greedy Corporation legally harvests trees in national forests, this activity is particularly unpopular with environmentalists and tourists. The best strategy to respond to this criticism is to ignore the complaints and design an aggressive ad campaign emphasizing the jobs and economic benefits created by their logging operations. Answer: FalseLG: 4/LL: 2Page: 442 Rationale: Effective public relations starts with listening to the public. A firm wont achieve public relations success by ignoring the publics concerns or by bombarding the public with propaganda. Maryland Chemical demands complete control over any message communicated to the public regarding their products. The most efficient element of the promotion mix to achieve their desired control is publicity. Answer: FalseLG: 4/LL: 2Page: 443 Rationale: A disadvantage of publicity is that there is no guarantee the news media will use the information, and even if they do, the timing may not be desirable or the media may modify the story. Thus, the business has no control over how, when, or if the media gives it favorable publicity.Learning Goal 5Explain the importance of various forms of sales promotion, including sampling. Level of Learning 1(Knows basic terms and facts)Sales promotion involves the long-term strategies firms use to enhance their image. Answer: FalseLG: 5/LL: 1Page: 443 Sales promotion programs can be used to generate employee enthusiasm. Answer: TrueLG: 5/LL: 1Page: 444 Coupons, contests, and sampling represent sales promotion activities. Answer: TrueLG: 5/LL: 1Page: 444; figure 16.8 Internal sales promotion programs are targeted to reach the firms internal auditors.Answer: FalseLG: 5/LL: 1Page: 444 Internal sales promotion efforts include training for salespeople. Answer: TrueLG: 5/LL: 1Page: 444 Internal promotion efforts target salespeople and employees that handle customer complaints. Answer: TrueLG: 5/LL: 1Page: 444 The use of coupons and sales contests represent public relations activities. Answer: FalseLG: 5/LL: 1Page: 444; figure 16.8 The most effective sales promotion programs target customers, rather than employees and marketing intermediaries. Answer: FalseLG: 5/LL: 1Page: 444 Trade shows represent sales promotion programs designed to create product enthusiasm in distributors and dealers. Answer: TrueLG: 5/LL: 1Page: 444 445 Virtual trade shows promote services rather than tangible products. Answer: FalseLG: 5/LL: 1Page: 444 445 Its just as important to generate employee enthusiasm about a product as it is to attract potential customers.Answer: TrueLG: 5/LL: 1Page: 444 Sampling represents a quick and effective way to demonstrate a products superiority at the time when consumers are making a purchase decision. Answer: TrueLG: 5/LL: 1Page: 445 Level of Learning 2(Understands concepts and principles)As a salesperson for an electrical contractor, Greg is included as part of the target audience for sales promotion from his own company. Answer: TrueLG: 5/LL: 2Page: 444 Rationale: It's just as important to get employees enthusiastic about a sale as it is to attract potential customers. The most important internal sales promotion efforts are directed at salespeople and other customer-contact people.Because customers eventually lose interest, businesses achieve the best results when they use sales promotion activities on a limited and irregular basis. Answer: FalseLG: 5/LL: 2Page: 445 Rationale: Sales promotion activities are short term but are carried out on an ongoing basis to maintain enthusiasm. Different promotional techniques and strategies can be used over time to keep the ideas fresh.Effective sales promotion efforts focus exclusively on external audiences such as dealers and consumers, since they ultimately decide the fate of a product. Answer: FalseLG: 5/LL: 2Page: 444 Rationale: Often the most important sales promotion efforts are directed internally at salespeople and other customer-contact persons such as complaint handlers and clerks.Sales promotion efforts aimed at distributors and dealers are intended to generate their enthusiasm for a firms products. Answer: TrueLG: 5/LL: 2Page: 444 Rationale: When dealers and distributors are excited about a manufacturer's product, they can be an integral part of the total promotional effort.When Pepsi introduced its FruitWorks product line during spring break in Panama City, Florida and South Padre Island, Texas it gave out free samples and provided free rides on Pepsi trucks. Pepsi was practicing event marketing.Answer: TrueLG: 5/LL: 2Page: 445Rationale: Pepsi introduced its FruitWorks product line with a combination of sampling, event marketing, and a new website. Event marketing means sponsoring events such as rock concerts or being at various events to promote your products. In the case of FruitWorks, Pepsi first sent samples to Florida and Texas for spring break and was there to provide free rides on Pepsi trucks.Learning Goal 6Give examples of word of mouth, viral marketing, blogging, and podcasting.Level of Learning 1(Knows basic terms and facts)Anything that encourages people to talk favorably about an organization may be effective word-of-mouth promotion. Answer: TrueLG: 6/LL: 1Page: 445 A number of businesses utilize a strategy that pays people to generate favorable word-of-mouth promotion. Answer: TrueLG: 6/LL: 1Page: 446 Viral marketing describes everything from paying people to say positive things on the Internet to schemes where consumers get commissions for directing friends to specific websites. Answer: TrueLG: 6/LL: 1Page: 446 The popularity of the Internet has reduced the importance of word-of-mouth promotion. Answer: FalseLG: 6/LL: 1Page: 446 Multilevel selling schemes that reward consumers for directing other consumers to specific websites represent an example of viral marketing. Answer: TrueLG: 6/LL: 1Page: 446 A testimonial represents communication from a customer that praises a firm's products. Answer: TrueLG: 6/LL: 1Page: 446 While testimonials effectively promote products to new customers, they are not effective in reaching existing customers. Answer: FalseLG: 6/LL: 1Page: 446 Online chat rooms and bulletin boards offer opportunities for positive and negative word-of-mouth promotion. Answer: TrueLG: 6/LL: 1Page: 446 Any word-of-mouth promotion that puts a companys product in the publics attention is good promotion. Answer: FalseLG: 6/LL: 1Page: 446 A blog is an online diary that looks like a Web page but is easier to create.Answer: TrueLG: 6/LL: 1Page: 446 There are over 9 million blogs on the Internet today and 40,000 new ones are being added each day.Answer: TrueLG: 6/LL: 1Page: 446 Podcasting is a means of distributing audio and video programs but these programs can only be seen and heard using an Apple iPod.Answer: FalseLG: 6/LL: 1Page: 447 Podcasting enables independent producers to create self-published, syndicated radio shows.Answer: TrueLG: 6/LL: 1Page: 447 The popularity of the Internet enables companies to decrease their emphasis on traditional promotional tools such as TV advertising. Answer: TrueLG: 6/LL: 1Page: 447 New and faster Internet technology provides more power to consumers in the exchange activity between buyers and sellers. Answer: TrueLG: 6/LL: 1Page: 447 Internet technology enables firms to utilize more interactive sales promotion programs. Answer: TrueLG: 6/LL: 1Page: 447 According to the Spotlight on Small Business box in Chapter 16, small businesses find that publicity in the wedding planning business is not important.Answer: FalseLG: 6/LL: 1Page: 448; Spotlight on Small Business boxEach target group requires a separate promotion mix. Answer: TrueLG: 6/LL: 1Page: 448 Personal selling provides the most efficient element of the promotion mix for a firm attempting to reach a large, homogeneous group of consumers. Answer: FalseLG: 6/LL: 1Page: 448 Large organizations are best reached through personal selling.Answer: TrueLG: 6/LL: 1Page: 448 Sales promotion efforts are used to motivate people to buy now rather than later.Answer: TrueLG: 6/LL: 1Page: 448 A pull strategy utilizes consumer demand for a product to motivate retailers and wholesalers to actively market the product. Answer: TrueLG: 6/LL: 1Page: 448 449 Push strategies target consumers with sales promotion designed to create a strong demand for the product. Answer: FalseLG: 6/LL: 1Page: 448 The objective of a push promotional strategy is to move a product through a distribution channel by offering incentives to wholesalers and retailers to stock and sell the merchandise. Answer: TrueLG: 6/LL: 1Page: 448 While the Internet provides an effective medium for word-of-mouth promotion, it has been ineffective for firms utilizing a pull or push promotion strategy. Answer: FalseLG: 6/LL: 1Page: 449 The total systems approach to marketing attempts to develop a value package that appeals to retailers, manufacturers, distributors, and consumers. Answer: TrueLG: 6/LL: 1Page: 449 Level of Learning 2(Understands concepts and principles)While word of mouth represents an effective promotional tool, the need for face-to-face communication limits its usefulness. Answer: FalseLG: 6/LL: 2Page: 445 Rationale: Word of mouth encourages people to tell others about products they have tried and liked. This does not require people to meet face-to-face. In fact, a great deal of word-of-mouth promotion these days takes place over the Internet.Motivated by the disrespectful treatment he received at a department store, Karnell shared his bad experience on an Internet chat room. He encouraged others to follow his lead and not patronize that store. Karnell's statements represent word-of-mouth promotion. Answer: TrueLG: 6/LL: 2Page: 445 Rationale: Word of mouth can occur over the Internet. In fact, the popularity of the Internet has made word of mouth more important and effective than ever. Obviously, firms try to generate favorable word of mouth, but word of mouth can also be negative.Best Pick, a home electronics superstore, knows the value of reassuring their current customers that they made the right choice when they decided to give Best Pick their business. Testimonials would be an effective promotional activity to confirm the purchase decisions of Best Picks customers. Answer: TrueLG: 6/LL: 2Page: 446 Rationale: Testimonials are normally used to attract new customers, but they can also be very effective in confirming current customers' beliefs that they chose the right company.Payola Promotions has offered to give Lisa free tickets to a concert it is promoting in return for Lisa's agreement to share her positive experience with others on Internet chat rooms. The concert tickets Lisa receives represent swag. Answer: TrueLG: 6/LL: 2Page: 446 Rationale: Swag refers to the inducements people receive to hype products. Swag typically takes the form of free tickets, T-shirts, backstage passes, and other forms of merchandise.Woodys Vitamins utilizes the Internet to market their products. Currently, they offer existing customers a commission if they successfully direct a friend to buy from the Woodys website. This program represents an example of underground relationship promotions. Answer: FalseLG: 6/LL: 2Page: 446 Rationale: Woodys commission program represents one type of viral marketing.A recent study reveals that regardless of the product or target market, a basic promotion mix works most efficiently. Answer: FalseLG: 6/LL: 2Page: 448 Rationale: Each target group calls for a separate promotional mix of advertising, coupons, discounts, publicity, and word of mouth.Muscleup has designed a pull strategy that promotes its liquid protein drink directly to consumers through television ads and newspaper coupons. Answer: TrueLG: 6/LL: 2Page: 448 449 Rationale: In a pull strategy, advertising and sales promotion efforts are directed toward consumers to motivate them to request the products from their local retailers.Nordic Track utilizes newspaper and TV ads designed to motivate potential buyers. This represents a push promotional strategy. Answer: FalseLG: 6/LL: 2Page: 448 449 Rationale: A pull strategy utilizes heavy advertising and sales promotion efforts directed toward consumers. A push strategy is directed to wholesalers and retailers in an effort to get them to stock and sell the product.To have an effective promotional strategy, firms are required to choose between a push strategy and a pull strategy. Answer: FalseLG: 6/LL: 2Page: 449 Rationale: A firm could use both a push and pull strategy at the same time in a major promotional effort. A push strategy is aimed at wholesalers and retailers, while a pull strategy is aimed at consumers.Advertising the newest Mission Impossible movie during a Saturday Night Live episode on TV represents a pull strategy. Answer: TrueLG: 6/LL: 2Page: 449 Rationale: A pull strategy utilizes heavy advertising and sales promotion efforts directed toward consumers. A push strategy is directed to wholesalers and retailers in an effort to get them to stock and sell the product.The total systems approach to marketing combines a firms promotional efforts for the exclusive satisfaction of consumers. Answer: FalseLG: 6/LL: 2Page: 449 Rationale: The intent of the total systems approach to marketing is to develop a value package that would appeal not just to consumers, but also to everyone in the supply chain: manufacturers, distributors, and retailers as well as consumers.Multiple ChoiceLearning Goal 1Define promotion and list the four traditional tools that make up the promotion mix.Level of Learning 1(Knows basic terms and facts)The goal of __________ is to inform and remind people in a target market about specific products, eventually persuading them to participate in an exchange.promotion market research market segmentation marketing loyalty Answer: ALG: 1/LL: 1Page: 432 The combination of advertising, personal selling, public relations, and sales promotion activities traditionally used by an organization represents its: marketing communications system. marketing mix. public relations package. promotion mix. Answer: DLG: 1/LL: 1Page: 432 ________ combines all the promotional tools employed by a firm into one comprehensive and unified promotional strategy. A market unification plan Integrated marketing communication A push promotional program A target coordination program Answer: BLG: 1/LL: 1Page: 432 A promotional campaign begins by:identifying a target market.defining the objectives for each element of the promotion mix.determining a promotional budget.developing a unifying message.Answer: ALG: 1/LL: 1Page: 432; figure 16.2Level of Learning 2(Understands concepts and principles)The traditional promotion mix for a firm consists of the: strategic mix of price, product, place and advertising. various types of advertising media the firm selects to reach each specific target market. marketing intermediaries employed by the firm to create a supply value chain.advertising, personal selling, public relations, and sales promotion used to reach a target market. Answer: DLG: 1/LL: 2Page: 432 Rationale: A promotion mix consists of the combination of all the promotional tools a firm uses to promote its products and services. Traditionally, this has included not only advertising, but also personal selling, public relations, and sales promotion.Creating a positive brand image by using all the promotional tools in a comprehensive, unified promotional strategy is called:brand awareness.brand publicity.integrated promotional communication.integrated marketing communication.Answer: DLG: 1/LL: 2Page: 432Rationale: Integrated marketing communication combines all the promotional tools into one comprehensive, unified promotional strategy. The idea is to use all the promotional tools and company resources to create a positive brand image and to meet the strategic marketing and promotional goals of the firm.Level of Learning 3(Applies principles)Nightbrites ________ relies heavily on advertising, personal selling, and a limited use of sampling. marketing mix promotion mix communication network transfer marketing Answer: BLG: 1/LL: 3Page: 432 Rationale: A company's promotion mix is some combination of promotional tools such as advertising, personal selling, word of mouth, sales promotion, sampling, public relations, and publicity.Massachusetts Manufacturing has redesigned its promotional strategy. The company now utilizes a system that combines all the elements of their promotion mix to create a more responsive organization providing a consistent message. Massachusetts Manufacturing has adopted a(n): internal marketing program. integrated marketing communication system. multilevel coordination plan. stakeholder response system. Answer: BLG: 1/LL: 3Page: 432 Rationale: The purpose of integrated marketing communication is to combine all the promotional tools into one comprehensive, unified promotional strategy. The idea is to use all the promotional tools and company resources to create a positive brand image and to meet the strategic marketing and promotional goals of the firm.The management of GamesPeople designed a comprehensive strategy that unifies advertising, personal selling, public relations and sales promotion activities creating a consistent message. This effort to promote a positive brand image represents a(n) ________ program. global marketing interactive promotion integrated marketing communication unified segmentation Answer: CLG: 1/LL: 3Page: 432 Rationale: Integrated marketing communication combines all elements of the promotion mix into one comprehensive and unified promotion strategy with the aim of building a positive brand image.Learning Goal 2Define advertising and describe the advantages and disadvantages of various advertising media, including the Internet.Level of Learning 1(Knows basic terms and facts)_________ refers to any paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message. PublicityPromotionPublic relationsAdvertisingAnswer: DLG: 2/LL: 1Page: 433 The total annual expenditures on advertising in the United States: peaked last year at approximately $70 billion. have declined significantly as firms utilize the promotional opportunities of the Internet. now exceed $245 billion. provide the funds to pay unemployment benefits. Answer: CLG: 2/LL: 1Page: 433 Advertising to wholesalers and retailers by manufacturers to encourage them to carry their products is called:retail advertising.trade advertising.business-to-business advertising.institutional advertising.Answer: BLG: 2/LL: 1Page: 433; figure 16.3 When an organization uses advertising to create an attractive image for itself, this type of advertising is called:retail advertising.trade advertising.comparison advertising.institutional advertising.Answer: DLG: 2/LL: 1Page: 433; figure 16.3 ________ advertising encourages wholesalers and retailers to carry the products of a specific manufacturer. Advocacy B2B comparison TradeInstitutional Answer: CLG: 2/LL: 1Page: 433; figure 16.3 ________ advertising supports a particular view or position on an issue. AdvocacyInstitutional Comparison Trade Answer: ALG: 2/LL: 1Page: 433; figure 16.3 The medium that accounts for the largest share of total advertising expenditures is: cable and broadcast television. the Internet. radio. newspapers. Answer: ALG: 2/LL: 1Page: 434; figure 16.4 In terms of total dollars spent, the number one and two advertising media are: broadcast and cable television along with direct mail. the Internet and television. television and newspapers. newspapers and radio. Answer: ALG: 2/LL: 1Page: 434; figure 16.4 One advantage of magazine advertising is that:the ad must conform to post office regulations.the exposure time is short.the ad is available at the point of purchase.the ad can target specific audiences.Answer: DLG: 2/LL: 1Page: 434; figure 16.5The best advertising medium to reach a specific target market is: radio. newspapers. television. direct mail. Answer: DLG: 2/LL: 1Page: 434; figure 16.5 The effectiveness of direct mail advertising suffers from: its inflexibility. the limited length of the message. the consumer perception that it is junk mail. its inability to target specific markets. Answer: CLG: 2/LL: 1Page: 434; figure 16.5 The effectiveness of magazine advertising is reduced by its:inflexibility. inability to target specific markets. brief life span. higher total cost, relative to television advertising. Answer: ALG: 2/LL: 1Page: 434; figure 16.5 Which of the following is a major strength of direct mail advertising? low cost widespread acceptance by consumers subject to few restrictions or regulations ability to accurately target specific markets Answer: DLG: 2/LL: 1Page: 434; figure 16.5 Which of the following refers to the practice of paying to have a product appear favorably in a TV show or movie? interactive promotion product placement brand association market recognition Answer: BLG: 2/LL: 1Page: 435 Infomercials provide the opportunity for:the product to sell itself.product placement to occur.the use of outdoor advertising.the promotional mix to be avoided.Answer: ALG: 2/LL: 1Page: 435 TV programs devoted exclusively to promoting goods and services are called: testimonials.infomercials.interactive TV.online computer advertising.Answer: BLG: 2/LL: 1Page: 435 __________ changes the relationship between buyers and sellers from a monologue to a dialogue in which information is shared to create mutually beneficial exchanges. Advertising A push strategyInteractive promotion Public relations Answer: CLG: 2/LL: 1Page: 437 Gardening.com is an online retailer of garden products. By allowing communication between gardeners and experts via its website Gardening.com is using: interactive promotion. a linked marketing contact system. a flexible response strategy. an asynchronous relationship. Answer: ALG: 2/LL: 1Page: 437 Advertisers like online advertising because:they are able to see how many people have read or watched some part of a commercial. it is easy to create. it is inexpensive. few advertisers are using the Internet so their message will stand out. Answer: ALG: 2/LL: 1Page: 437 Which of the following offers the greatest potential for meaningful interaction between buyers and sellers? testimonials infomercials CD-ROM advertising Internet Answer: DLG: 2/LL: 1Page: 437 Companies can implement global marketing by developing a product and promotional strategy that: is tailored to each individual market. can be implemented worldwide. requires low-cost production through outsourcing. motivates intermediaries (i.e. wholesalers and retailers) to actively stock and sell the firms goods and services. Answer: BLG: 2/LL: 1Page: 437 The evidence supports the position that promotional efforts specifically designed for individual countries produce: less sales and profits than a global promotional strategy. better results than a global promotional strategy. higher overall costs than a global promotional strategy. superior results only when the product is also produced in each country. Answer: BLG: 2/LL: 1Page: 437 Future promotional efforts will likely be: custom-designed to reach smaller audiences. targeted at larger audiences. less interactive and more persuasive. similar to promotional efforts today. Answer: ALG: 2/LL: 1Page: 438 Level of Learning 2(Understands concepts and principles)In their advertisements, Luther Pharmaceuticals asks consumers to judge their product, Ache-Free, against a well known competitors product to see that Ache-Free provides superior pain relief. This represents: advocacy advertising. comparison advertising. trade advertising.interpretive advertising. Answer: BLG: 2/LL: 2Page: 433; figure 16.3 Rationale: Comparison advertising encourages consumers to judge between two or more products. Which of the following is an advantage of magazine advertising?short exposure timeability to quickly change message superior color relatively short life Answer: CLG: 2/LL: 2Page: 434; figure 16.5 Rationale: Magazine ads offer good use of color.Which of the following media enables firms to quickly change their advertising message? Yellow Pages magazines newspapers television Answer: CLG: 2/LL: 2Page: 434; figure 16.5 Rationale: An advantage of newspapers is that they normally come out daily and allow firms to place revised ads quickly.Which of the following represents a disadvantage of outdoor advertising? low selectivity of audiencepoor coverage of local markets low visibility of message high cost Answer: ALG: 2/LL: 2Page: 434; figure 16.5 Rationale: Outdoor advertising is a low cost method that has good local coverage and offers repeated exposure to the message. However, it does not target a specific market very effectively.Firms with a limited advertising budget would least likely use ________ advertising. Internet radio outdoor television Answer: DLG: 2/LL: 2Page: 434; figure 16.5 Rationale: A major disadvantage of television is its high cost.Which of the following helps explain the popularity of infomercials?the interactive nature of the presentation the ability to demonstrate the products benefits the use of an inexperienced salesperson little impact of testimonials on potential buyers Answer: BLG: 2/LL: 2Page: 435 Rationale: Infomercials use product demonstrations that clearly show the products benefits.Which of the following statements is the most accurate? Studies indicate that effective promotion focuses on the pricing elements of the marketing mix. The Internet changes the focus of promotion from working with to promoting to customers. New promotional efforts create a more interactive approach, developing a dialogue between the firm and its customers. Successful promotion utilizes each element of the promotion mix independently, creating a well diversified message. Answer: CLG: 2/LL: 2Page: 437 Rationale: Largely due to the development of the Internet, promotion is becoming more interactive. The goal of this interactive promotion is to create a dialogue between a firm and its customers.Level of Learning 3(Applies principles)Carolina Insurance wants to create a more interactive approach to advertising in order to build strong relationships with their customers. Which of the following represents the preferred advertising medium to achieve their goal? the Internet radio newspapers trade shows Answer: ALG: 2/LL: 3Page: 437 Rationale: The Internet allows the company to interact with its customers. Customer relationship software and other specialized software make it possible for firms to track customer purchases online and answer customer questions. Of course, trade shows are also "interactive" but they are not an advertising medium.Indiana Processing promotes its services through Mechanical Engineers Today, a trade magazine that charges Indiana Processing and other companies $5000 per page to help offset the magazines publishing costs. This promotional activity is an example of:publicity.advertising.public relations.trade shows.Answer: BLG: 2/LL: 3Page: 433 Rationale: Advertising is a paid, nonpersonal communication made through various media by organizations and individuals who are in some way identified in the advertising message.Which of the following statements is the most accurate? Advertising helps pay for production costs of newspapers and magazines. Word of mouth is the most effective form of advertising. Advertising does not provide information to consumers; it merely advertises products. Consumers dont remember good advertisements. Answer: ALG: 2/LL: 3Page: 433 Rationale: One of the benefits of advertising is that the money from advertisers helps pay for the production costs of newspapers and magazines.Which of the following statements about global advertising is most correct? Firms should avoid advertising in foreign markets and rely instead on other elements of their promotion mix, such as personal selling and public relations. Television is the best advertising medium for U.S. firms trying to promote their products in foreign countries. Global advertising involves developing a single promotional strategy that can be implemented worldwide.Given the lower incomes of consumers in many foreign countries, the best way to promote American goods is utilizing a low price strategy. Answer: CLG: 2/LL: 3Page: 437 Rationale: Global advertising calls for the development of a single product and promotional strategy that can be implemented worldwide.Experience indicates that the best promotional strategy for firms operating globally is: a one mix fits all strategy. to uniquely design a strategy for each country. based on total operating costs. designed by foreign intermediaries. Answer: BLG: 2/LL: 3Page: 437 Rationale: Evidence supports the theory that promotional efforts specifically designed for individual countries work best.Interactive promotion: attempts to create a dialogue between buyers and sellers. transforms the approach from working with to promoting to customers. fails to build long term relationships with customers. is an increasingly important element of the personal selling mix. Answer: ALG: 2/LL: 3Page: 437 Rationale: Interactive promotion changes the promotion process from a monologue where sellers try to persuade buyers to purchase their goods, to a dialogue where buyers and sellers can work together to create mutually beneficial exchanges. This approach requires firms to listen to what consumers want, track their purchases, provide them with better service and give them more access to information.Which of the following is required to build meaningful relationships with customers? giving consumers access to less information tracking customer purchases promoting to rather than working with customers offering full-service purchases over the InternetAnswer: BLG: 2/LL: 3Page: 437 Rationale: Interactive promotion and the Internet change the promotion process from a promoting to approach to a working with relationship. This requires firms to listen to what consumers want, track their purchases, provide them with better service and give them more access to information. According to the material in the Reaching Beyond Our Borders box for Chapter 16, promoting products in the large Chinese market: is easy and profitable. can be accomplished using a global approach since consumers are more alike than most people think. Thus the best approach to marketing a good in China is usually the same approach that works well in the domestic market. is best done by using personal selling. calls for caution since many goods produced in China are counterfeit.Answer: DLG: 2/LL: 3Page: 438; Reaching Beyond Our Borders box Rationale: Despite the fact that the Chinese market has over 1 billion people, promoting products in China calls for caution because Chinese manufacturers often produce counterfeit versions of name brand products.The Hispanic and Asian populations in the U.S. are growing rapidly. To effectively reach these groups marketers should: maintain a consistent approach for all consumers regardless of differences in national origin. use advertising as a way of integrating immigrants into the U.S. culture. develop custom-designed promotions for all viable market opportunities. avoid using newspapers and radio advertising and concentrate instead on television and the Internet. Answer: CLG: 2/LL: 3Page: 438 Rationale: Ethnic groups that have sufficient market potential should be considered for customized promotional messages.Learning Goal 3Illustrate the steps of the B2B and B2C selling processes.Level of Learning 1(Knows basic terms and facts)________ refers to the face-to-face presentation and promotion of goods and services. This also includes searching for prospects and providing follow-up services. Word-of-mouth promotion Personal selling Public relations Internal marketing Answer: BLG: 3/LL: 1Page: 438 The average cost of a single sales call to a potential B2B buyer in the U.S. is about: $40. $400. $1400. $4,400. Answer: BLG: 3/LL: 1Page: 439 People with an unmet need, the authority to buy, and the willingness to listen to a sales message represent a firms: prospects. intermediaries. buyers. cohorts. Answer: ALG: 3/LL: 1Page: 439 In the seven step B2B selling process, the selection of potential customers is known as: prospecting. synchronizing. articulating. qualifying. Answer: DLG: 3/LL: 1Page: 439 After prospects have been identified and qualified, the next step in the selling process is __________. This step requires the salesperson to learn as much as possible about the potential customers wants and needs. customer specification the preapproach consumer trait analysis customer quantification Answer: BLG: 3/LL: 1Page: 440 The approach step of the selling process attempts to: qualify potential customers who are willing and able to buy. build credibility and establish rapport. close the sale. learn about potential customers and their wants and needs. Answer: BLG: 3/LL: 1Page: 440 The last step of the selling process is: follow up. closing. posting. trial closing. Answer: ALG: 3/LL: 1Page: 441 The purpose of a __________ is to quickly finalize a sale. follow up closing trial closing commission Answer: CLG: 3/LL: 1Page: 440 In B2C sales the salesperson does not have to do much:follow up.closing.qualifying.approach.Answer: CLG: 3/LL: 1Page: 441 Level of Learning 2(Understands concepts and principles)A review of the personal selling process indicates that selling is: a matter of establishing relationships. getting a name on a contract. about 90 percent luck and 10 percent skill. giving way to computers in responding to consumer needs. Answer: ALG: 3/LL: 2Page: 441 Rationale: The selling relationship often continues for years as the salesperson responds to new requests for information. Selling is a matter of establishing relationships, not just selling goods or services."You never get a second chance to make a good first impression," captures the importance of the __________ step in the selling process. prospecting introduction qualifying approach Answer: DLG: 3/LL: 2Page: 440 Rationale: The approach is the step in selling where the salesperson calls on the customer for the first time. The objective of this step is to give an impression of professionalism, create a rapport, build credibility, and start a relationship.Bethany just finished making a sales presentation to a major prospect. In the next step of the selling process, Bethany will likely be: processing the customer's order. closing the sale, by asking the customer to make a commitment. answering customer questions and dealing with objections. setting an appointment for the customer to meet with her boss. Answer: CLG: 3/LL: 2Page: 440 Rationale: Even if a salesperson makes an excellent presentation, customers are likely to have questions they want answered and concerns that they want resolved before they are willing to make a purchase. Salespeople should not view these objections in a negative way. Instead, they should look at them as an opportunity to work with the customer to deal with their concerns and forge a stronger relationship.Level of Learning 3(Applies principles)As a new salesperson for a textbook publisher, Kylie is creating a list of professors that decide what texts their schools use. She plans to email these schools to determine what texts they are currently using and if they plan to adopt a new text. Identifying those decision makers that are willing to consider one of her texts is called: personal development. sales identification. preliminary sales analysis. prospecting and qualifying. Answer: DLG: 3/LL: 3Page: 440 Rationale: Prospecting involves researching potential buyers and choosing the ones most likely to buy. The selection process is called qualifying.After completing his sales presentation, Jeralds client expressed her concerns and questioned some of the details of the sales proposal. An effective salesperson would: downplay these objections and push to close the sale as quickly as possible to avoid the endless questions that some customers ask. address her concerns and develop a better relationship. consider revising the presentation so that next time customer concerns and objections can be avoided. bring in the top executives of the company to close the sale. Answer: BLG: 3/LL: 3Page: 440 Rationale: After the presentation, the next step in the selling process is to answer customer objections. Questions and concerns by the customer should be viewed as an opportunity to create a stronger relationship.Which of the following statements is the most accurate? Closing is the final and most important step in the selling process. Once a sales presentation is completed, the salesperson should attempt to close as quickly as possible before the customer expresses any doubts and concerns. Closing may involve getting the customer to agree to a trial close.If the sales person has done a good job of qualifying prospects and has developed a strong presentation, then closing is the easiest step in the selling process. Answer: CLG: 3/LL: 3Page: 440 Rationale: Closing is an important step in the selling process, but it is not the final step. Even after the sale is closed, the salesperson should follow up to make sure the customer is satisfied. Closing the sale may involve a trial close consisting of a question or statement that moves the selling process toward the actual close.As a salesperson in the B2B market, Patty regularly calls on clients to stay informed of their needs or problems. Her objective is to develop solutions to meet their needs and resolve their problems. The Internet allows Patty to track products in the supply chain and to learn about pricing and promotions that would be of interest to her clients. When Patty works with her existing clients there is no need for the __________ step of the B2B selling process.prospect and qualifyapproachanswer objectionsclose saleAnswer: ALG: 3/LL: 3Page: 440Rationale: The prospecting step involves researching potential buyers and choosing those most likely to buy. Since Patty is working with existing clients there is no need for this step.Learning Goal 4Describe the role of the public relations department, and tell how publicity fits in that role.Level of Learning 1(Knows basic terms and facts)The activity that evaluates public attitudes, changes policies and procedures in response to the publics requests, and executes a program of action and information to earn public understanding and acceptance is called: marketing research. public relations. marketing communication. advertising. Answer: BLG: 4/LL: 1Page: 442 __________ refers to any information about a product or an organization that is communicated to the public through the media and is not paid for or controlled by the sponsor. A market presentation Promotion Public relations Publicity Answer: DLG: 4/LL: 1Page: 443 Compared to advertising, publicity offers the advantage of greater: flexibility. personal appeal. believability. message repetition. Answer: CLG: 4/LL: 1Page: 443 A major responsibility of the public relations department is to: decide on the appropriate mix of advertising media. maintain close ties with the media, community leaders, government officials and other stakeholders. identify appropriate markets for the firm's products, and then select the most likely customers in each market. train salespeople to interact better with their company's customers. Answer: BLG: 4/LL: 1Page: 442 Compared to other promotional tools, publicity: costs more. offers the firm little control over the message. prevents a response from competitive firms. is the easiest to manage. Answer: BLG: 4/LL: 1Page: 443 One way to see that publicity is handled well by the media is to:pay for it.establish a friendly relationship with media representatives.write good press releases.ask for the best location or time in the medium under consideration.Answer: BLG: 4/LL: 1Page: 443 Level of Learning 2(Understands concepts and principles)Lenora just finished writing a news release regarding a new product developed by her firm. She intends to email the message to local radio stations and newspapers in hopes that they will find the information newsworthy and run a story about the product. Lenora's efforts represent the firms: public relations. institutional advertising. secondary advertising. interactive marketing. Answer: ALG: 4/LL: 2Page: 442 443 Rationale: A major element of public relations is publicity. Firms often generate publicity by sending news releases to the media that they hope the media will use in stories about the firm and its products.Todays public relations departments:focus more on advertising and less on publicity. are downsizing as firms emphasize personal selling to promote their products. are more actively listening to customers and helping to solve their problems. avoid relationships with the media and government officials. Answer: CLG: 4/LL: 2Page: 442 Rationale: A good public relations program begins with listening to the public. Public relations starts with good marketing research when the firm evaluates public attitudes.A good public relations program recognizes that the: company is always right. firm must be willing to make changes in its policies and procedures. firm must be independent of production and service activities. media profits by selling bad news. Answer: BLG: 4/LL: 2Page: 442 Rationale: The second step in a good public relations program is to change policies and procedures that are not in the public interest.Level of Learning 3(Applies principles)Consumer research indicates that the public is very concerned about underage drinking. In response, Texas Brewing Company has created a website providing parents with information to help avoid underage drinking in their families. The firm also provides materials to retailers to help train their employees to avoid sales to minors. Publicizing these efforts: will likely backfire, since few people will believe a beer company would seriously support a program that would reduce their sales. represents a key step in a good public relations program. illustrates a push strategy applied to public relations. would distract the firm from its primary mission of selling beer to adults. Answer: BLG: 4/LL: 3Page: 442 Rationale: Public relations evaluates public attitudes and identifies and supports programs in the public interest. It then informs people that the firm is being responsive to their needs.Bonnie faces the challenge of developing the promotion mix for a new business. Given the uniqueness of the new products and a very limited budget, Bonnie confronts a creditability problem. She realizes that the promotional messages of an unknown firm may be met with skepticism. Bonnie should consider: publicity to help create a positive image for her firm and its products. the extensive use of persuasive advertising. emphasizing personal selling rather than public relations. changing jobs because this situation is hopeless. Answer: ALG: 4/LL: 3Page: 443 Rationale: Publicity has two advantages that are likely to appeal to Bonnie. One is the media will publish stories for free if the stories are interesting and newsworthy. Given the firms limited budget, this would make publicity an attractive option. Perhaps even more important for Bonnie, a second advantage of publicity is its believability. Learning Goal 5Explain the importance of various forms of sales promotion, including sampling.Level of Learning 1(Knows basic terms and facts)The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities, such as trade shows, event sponsorships, and contests, is known as: publicity. public relations. every day low prices. sales promotion. Answer: DLG: 5/LL: 1Page: 443 Effective sales promotion activities target: employees only. customers only. employees, dealers and customers. dealers only. Answer: CLG: 5/LL: 1Page: 444 A __________ allows B2B buyers to see products on the Internet 24 hours a day, 365 days a year without having to leave their office. virtual trade show direct marketing show shopping network cyber market Answer: ALG: 5/LL: 1Page: 444 445 The most important internal sales promotion efforts are directed toward: customers. salespeople. top management. accountants. Answer: BLG: 5/LL: 1Page: 444 Level of Learning 2(Understands concepts and principles)Which of the following is a consumer sales promotion activity?contests advertising vending salesdirect mail Answer: ALG: 5/LL: 2Page: 444; figure 16.8 Rationale: Sales promotion attempts to stimulate sales through short-term activities such as contests.Which of the following is a B2B sales promotion activity?contests advertising vending salesconventions Answer: DLG: 5/LL: 2Page: 443; figure 16.7 Rationale: Sales promotion attempts to stimulate sales through short-term activities such as conventions. Contests are consumer sales promotions.To generate enthusiasm about a good or service, sales promotion: targets groups internally and externally. directs stockholders to sell their stock when prices increase. is ineffective in reaching the B2B market. has declined in importance because of time and cost limitations. Answer: ALG: 5/LL: 2Page: 444 Rationale: It is just as important to get employees enthusiastic about a sale as it is to attract potential customers, and sales promotion can be used to achieve this enthusiasm.At a recent sporting event, a local beer distributor gave free beverage mugs to all adults with a paid admission. This is an example of: market segmentation. sampling. publicity. sales promotion. Answer: DLG: 5/LL: 2Page: 443 444; figure 16.8 Rationale: Sales promotion is a promotional tool that stimulates consumer purchasing and dealer interest by the use of specially designed incentives to promote a business or a product. Level of Learning 3(Applies principles)Chip Off The Old Block is a new chocolate chip cookie created by the Arizona Cookie Company. To generate interest for this new product, the company sent a free package of six cookies to selected homes along with a 50-cent coupon. Arizona Cookies activities represent: trade advertising. consumer publicity. sales promotion. public relations. Answer: CLG: 5/LL: 3Page: 444; figure 16.8 Rationale: Free samples and cents-off coupons are examples of sales promotion activities conducted by businesses to stimulate consumer purchasing.Which of the following statements is most accurate? Sales promotions are targeted both internally and externally. Sales promotion efforts are directed at nonprofit organizations. Dealers are inappropriate targets of sales promotion activities.The goal of sales promotion activities is to create consumer awareness. Answer: ALG: 5/LL: 3Page: 444 Rationale: Sales promotion attempts to stimulate consumer, salesperson, distributor and dealer interest in a good or service.Learning Goal 6Give examples of word of mouth, viral marketing, blogging, and podcasting.Level of Learning 1(Knows basic terms and facts)___________ encourages people to tell other people about goods or services they have enjoyed.Personal selling Publicity A trade show Word-of-mouth promotion Answer: DLG: 6/LL: 1Page: 445 The free tickets, backstage passes and merchandise firms give to people who agree to hype products through Internet chat rooms are called: virtual sweeteners. swag. chat cache. cookies. Answer: BLG: 6/LL: 1Page: 446 __________ refers to such tactics as paying people to say good things about a product on the Internet or setting up multilevel selling schemes that reward people for directing their friends to a company's website. Virtual inducement Cyber offers Viral marketing Pseudo-marketing Answer: CLG: 6/LL: 1Page: 446 A _________ is a letter from a customer praising a firm's product. testimonial news release swag document virtual endorsement Answer: ALG: 6/LL: 1Page: 446 An online diary that looks like a Web page but is easier to create and update is called a(n):e-diary.web diary.blog.wog.Answer: CLG: 6/LL: 1Page: 446 The distribution method for audio and video programs via the Internet that lets users subscribe to a number of files or feeds is called a:webcast.podcast.blog.filecast.Answer: BLG: 6/LL: 1Page: 447 Successful firms realize that each target group requires: a separate promotion mix. online computer advertising. infomercial testimonials. customized legislation and training. Answer: ALG: 6/LL: 1Page: 448 The strategy of directing advertising and sales promotion toward consumers to stimulate them to request the products from their local retailers is called a: pull strategy. segmentation strategy. push strategy. product placement strategy. Answer: ALG: 6/LL: 1Page: 448 449 The use of promotional tools to persuade wholesalers and retailers to stock and sell merchandise represents a: pull strategy. segmentation strategy. push strategy. product placement strategy. Answer: CLG: 6/LL: 1Page: 448 Level of Learning 2(Understands concepts and principles)Miss Kitty's Chocolate Corral is located in an out-of-the-way small shopping center. However, the company enjoys outstanding business because satisfied customers share their delightful experiences at Miss Kitty's with their friends and relatives. Miss Kitty's apparently benefits from positive: trade advertising. word of mouth. sales promotion. public relations. Answer: BLG: 6/LL: 2Page: 445 Rationale: Word-of-mouth promotion encourages people to tell other people about products they have enjoyed. It can be very effective in generating referral business.Woodson Productions gives young adults free tickets to concerts it promotes if they agree to go into an Internet chat room and share their positive experience. The free tickets Woodson provides represent: a push strategy. market teasers. a pull strategy. swag. Answer: DLG: 6/LL: 2Page: 446 Rationale: Free tickets, backstage passes and merchandise given to people in exchange for their agreement to hype a good over the Internet are called swag.Independent producers can create self-published syndicated radio shows using:webcasting.email.podcasting.electronic production.Answer: CLG: 6/LL: 2Page: 447Rationale: Podcasting allows you to become your own newscaster, since it enables independent producers to create self-published, syndicated radio shows. Companies that adopt a pull strategy target their promotional efforts toward: consumers. retailers. wholesalers. manufacturers. Answer: ALG: 6/LL: 2Page: 448 - 449 Rationale: In a pull strategy, heavy advertising and sales promotion efforts are directed toward consumers so that they will request the products from retailers.The primary purpose of a pull strategy is to: offer rebates and discounts to retailers and wholesalers. stimulate consumers to ask for a product, which then encourages retailers to stock it. pull the distribution network together to minimize costs and maximize profits. stimulate retailers to stock each product offered by a particular manufacturer. Answer: BLG: 6/LL: 2Page: 448 449 Rationale: If a pull strategy works, consumers will request the product at their local retail store. This, in turn, will stimulate the retailer to request the product from the manufacturer or distributor.The primary purpose of a push strategy is to: push products on consumers and convince them that they need the products. rush the production schedule for products and beat competitors to the market. push the product down the distribution channel to retail stores. push products away from traditional channels of distribution to save costs. Answer: CLG: 6/LL: 2Page: 448 Rationale: In a push strategy, the producer uses promotional tools to convince wholesalers and retailers to stock and sell merchandise.Firms utilizing a total systems approach to marketing design their promotional mix to meet the needs of: final customers. all members of the supply chain. salespeople and dealers. the general public. Answer: BLG: 6/LL: 2Page: 449 Rationale: In a total systems approach, promotion is part of supply-chain management. The promotional plan would be developed for the entire system.The total systems approach to marketing emphasizes communication with which of the following groups?foreign agenciesdistributors government agenciescompetitors Answer: BLG: 6/LL: 2Page: 449 Rationale: The total systems approach to marketing stresses the importance of good relations with all members of the supply chain. Distributors are part of the supply chain. Movie producers advertising their new films on TV or the newspaper are utilizing a: ________ strategy. push pull product placement word-of-mouth Answer: BLG: 6/LL: 2Page: 448 449 Rationale: The goal of this pull strategy is to stimulate consumers to request movie theater operators to offer a showing of a particular film.Level of Learning 3(Applies principles)Professor Beenthere shared with his students the wonderful experience he had at a local Asian restaurant. He described the location in relation to campus and encouraged his students to give it a try. The professors comments represent: word-of-mouth promotion. public relations. sampling. viral promotion. Answer: ALG: 6/LL: 3Page: 445 Rationale: Word-of-mouth promotion encourages people to tell others about products they have enjoyed.Registration in Professor McNick's classes reaches maximum enrollment quickly. Students register immediately online just to insure their seat in her class. One student summed it up, "Everyone's heard she is the best teacher on campus." Professor McNicks classes benefit from: viral publicity. positive public relations. free advertising. word-of-mouth promotion. Answer: DLG: 6/LL: 3Page: 445 Rationale: Word-of-mouth promotion occurs when people tell other people about products or services they have enjoyed.After receiving poor service from her car insurance company, Wendy made her complaints public by placing them on the Internet. This illustrates: negative advertising. institutional sales promotion. public relations. word-of-mouth promotion. Answer: DLG: 6/LL: 3Page: 445 446 Rationale: Word of mouth can be positive or negative. Negative word-of-mouth can be quite destructive to a firm. Upset customers are getting on the Internet publishing their complaints and encouraging others to share their negative experiences.Mo's Movies markets DVD movies via the Internet. The company recently adopted a new program that offers their current customers free DVDs if they encourage their friends to visit Moe's Movies website. This promotional program represents: second stage advertising. viral marketing. interlinked promotion. virtual inducement. Answer: BLG: 6/LL: 3Page: 446 Rationale: Viral marketing is the term now used to describe everything from paying people to say positive things on the Internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific websites.Budliter has a new ad campaign for its product. In an effort to determine whether consumers like the ad and characters it created, Budliter is monitoring __________, or online diaries for mention of their campaign.podcastsviral websitesblogsNeilsen reportsAnswer: CLG: 6/LL: 3Page: 446 Rationale: Blogs are online diaries that look like Web pages but are easier to create and update by posting text, photos or links to other sites.The Maryland Department of Travel and Tourism promotes tourism in the state by sending travel agents and bus tour companies information about the states many attractions. The hope is that by stimulating interest in tour and travel agents, they will in turn encourage their customers to visit Maryland. This example represents a ________ promotional strategy. push pull sampling product placementAnswer: ALG: 6/LL: 3Page: 448 Rationale: In a push promotional strategy, distributors are encouraged to sell the good or service to their customers.CarGo uses its Web page to target car parts stores and car owners and tell them of the benefits of using their long lasting spark plugs. CarGo apparently uses the Internet: for its push strategy. for its pull strategy. for both its push and pull strategies. for its product placement strategy. Answer: CLG: 6/LL: 3Page: 448 449 Rationale: The latest in pull and push strategies are being conducted on the Internet, with companies sending messages to both consumers and businesses.Wee Be Irish produces authentic Irish gifts and clothing. Wee Be Irish uses a good deal of television advertising and sales promotion activities to attract consumers to retail shops in search of its brand. Wee Be Irish utilizes a ________ strategy: systems placement push pull Answer: DLG: 6/LL: 3Page: 448 449 Rationale: In a pull strategy, heavy advertising and sales promotion are directed toward the consumer so that they will request the products from retailers.The total systems approach to marketing suggests that: there are no problems, only opportunities. the goal of the firm should always be to meet the customer's needs. each element of the promotional mix should be designed to appeal to a different target market. promotional efforts should be developed to appeal to the entire supply-chain. Answer: DLG: 6/LL: 3Page: 449 Rationale: The total systems approach to marketing views promotion as a function that should encompass the entire supply-chain. Thus, a promotional strategy should be developed for the entire system in order to develop a value package that appeals to everyone: manufacturers, distributors, retailers, and customers.EssayIdentify the advantages and disadvantages of newspaper and TV as media to carry your firms promotional message. Which of the two receives the most advertising revenues? Answer: The largest share of advertising expenditures goes to cable and broadcast television ($60.74 million), followed by direct mail ($48.37 million). In the number three position, newspapers represent $44.84 million of total advertising expenditures. Television's advantages are:uses sight, sound, and motion.reaches all audiences.high attention with no competition from other material.Television's disadvantages are:high cost.short exposure time.takes time to prepare ads.digital video recorders skip over ads.Newspapers advantages are:good coverage of local markets.ads can be placed quickly.high consumer acceptance.ads can be clipped and saved.Newspapers' disadvantages are:ads compete with other features in the paper.poor color in ads.ads get thrown away with paper (short life span). Explain how publicity differs from advertising. What are the advantages and disadvantages of publicity in a firm's promotion strategy?Answer: Publicity is any information about an individual, a product, or an organization that is distributed to the public through the media, and that is not paid for, or controlled by the seller. Advertising is paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message.A major value students should identify is that publicity is provided free in various media if a story is interesting or newsworthy. Another advantage is that publicity can reach people who would not read an advertisement. Publicity often gets very good placement in various media. Perhaps the major advantage of publicity is its believability. If a story is carried by a newspaper or in some other medium, the receiver often treats the information as news. News is considered more believable than advertising.Of course, publicity also has some disadvantages. There is no guarantee that the media will use news releases or other information a firm provides in its attempts to generate publicity. Also, the media may omit some of the message or modify the message in a way that makes it less positive. Finally, once media have run a story, they are unlikely to repeat it. Explain the steps in the personal selling process. How does B2B personal selling differ from B2C personal selling?Answer:Personal selling is the face-to-face presentation and promotion of goods and services. It also involves the search for new prospects (in B2B selling) and follow-up service after the sale.The B2B selling process has 7 steps:1.Prospect and qualify. Prospecting involves researching potential buyers and choosing those most likely to buy. That selection is called qualifying. To qualify people means to make sure that they have a need for the product, the authority to buy, and the willingness to listen to a sales message.2.Preapproach. In the preapproach phase the salesperson must learn as much as possible about customers and their wants and needs. Gathering this information before the customer is approached is critical.3.Approach. When a salesperson calls on a customer for the first time, the opening comments are important. The idea is to give an impression of friendly professionalism, to create rapport, to build credibility, and to start a relationship.4.Make presentation. In the actual presentation of a good, the idea is to match the benefits of the value package to the clients needs. During the presentation is a great time to use testimonials to show potential buyers that they are joining leaders in other firms.5.Answer objections. Customers may have legitimate doubts, and the salesperson is there to resolve those doubts. Relationships are based on trust, and trust comes from successfully and honestly working with others.6.Close sale. Closing the sale may include a trial close, a question or statement that moves the selling process toward the actual close, and asking for the order.7.Follow up. The sales relationship may continue for years as the salesperson responds to new requests for information. Selling is often described as a process of establishing relationships, not just a matter of selling goods or services. The follow-up step includes handling customer complaints, making sure that the customers questions are answered, and quickly supplying what the customer wants.The B2C selling process has 5 steps:1.Approach. The idea is to show the customer that the salesperson is there to help and that they are friendly and knowledgeable. 2.Ask questions. Also the salesperson needs to discover what the customer wants.3.Make presentation. Show customers how the products you have meet their needs. Answer questions that help them choose the products that are right for them.4.Close sale. Using a trial close like Will you be paying for that with your store credit card? is important. A store salesperson walks a fine line between being helpful and being pushy. 5.Follow-up. Follow-up is an important but often neglected step in B2C sales. This may include delivery and installation procedures.Most sales to consumers take place in retail stores, where the role of the salesperson differs somewhat from that in B2B selling. In both cases, knowing the product comes first. However, in business-to-consumer (B2C) sales the salesperson does not have to do much prospecting or qualifying. In sales processes involving expensive products such as automobiles and furniture, salespeople may have to ask a few questions to qualify prospective customers. Your company has developed a new kind of nutritious snack food and you are part of a team created to develop the promotion mix for the new product. Y