Deck 11: Additional Pricing Considerations

Question 1

Integrated marketing communication is the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear,________ and compelling message about the organisation and its products.

Answer 1

consistent

Question 2

The use of short-term incentives to encourage the purchase or sale of a product or service is called ________.

A)direct marketing
B)sales promotion
C)personal selling
D)public relations
E)publicity

Answer 2

B

Question 3

Companies are doing less ________ and more ________ as a result of an explosion of more focused media that better match today's targeting strategies.

A)marketing;media
B)media;sales
C)narrowcasting;broadcasting
D)broadcasting;narrowcasting
E)advertising;word-of-mouth

Answer 3

D

Question 4

Danks,a manufacturer of pumps and plumbing valves,employs regional salespeople to sell its products to wholesalers and cities.This is an example of ________.

A)sales promotion
B)personal selling
C)public relations
D)direct marketing
E)advertising

Question 5

Advertising,sales promotion,personal selling,public relations and direct marketing are all ________.

A)communications channels that should be integrated under the concept of integrated marketing communications
B)communications channels focused more on narrowcasting than broadcasting
C)promotional tools used for push strategies but not pull strategies
D)promotional tools used for pull strategies but not push strategies
E)promotional tools adapted for use in mass marketing

Question 6

Today's consumers do not need to rely on marketer-supplied information about products and services because they can use ________ to seek out a wealth of information.

A)public relations
B)direct marketing
C)the internet and other technologies
D)mass market media
E)informative advertising

Question 7

Any paid form of non-personal presentation and promotion of ideas,goods or services by an identified sponsor is called ________.

A)sales promotion
B)direct marketing
C)advertising
D)personal selling
E)public relations

Question 8

A company's total marketing communications mix consists of a special blend of advertising,sales promotion,public relations,personal selling and direct-marketing tools that the company uses to communicate customer value and build customer relationships.This is also called ________.

A)direct marketing
B)integrated marketing
C)the promotion mix
D)competitive marketing
E)target marketing

Question 9

To produce better communications consistency,a unified company image and greater sales impact,some companies employ a(n)________.

A)advertising agency
B)marketing communications director
C)public relations specialist
D)personal salesforce
E)media buyer

Question 10

Advertising has some shortcomings.What is NOT one of them?

A)It is impersonal.
B)It can be very costly.
C)It slowly reaches many people.
D)It carries on one-way communication with the audience.
E)It does not make audiences feel the need to respond.

Question 11

More companies are adopting the concept of ________,which carefully coordinates the company's many communication channels to deliver a clear,consistent and compelling message about the organisation and its brands.

A)integrated marketing communications
B)integrated personal selling
C)integrated competitive methods
D)non-personal communication channels
E)buzz marketing

Question 12

In the 'chaos scenario' predicted by some advertising industry experts,the old mass-media communications model will be abandoned in favour of ________.

A)public relations
B)direct marketing
C)push and pull strategies
D)new technologies
E)buzz marketing

Question 13

Which of the five major promotion tools is concerned with building up a positive corporate image and handling unfavourable rumours,stories and events?

A)sales promotion
B)personal selling
C)direct marketing
D)public relations
E)indirect marketing

Question 14

A company's marketing communications mix is also called its promotion mix.

Question 15

Which of the following is NOT an example of a specialised and highly-targeted media that an advertiser might use to reach smaller customer segments?

A)cable television channels
B)email
C)blogs
D)network television
E)online social networks

Question 16

Integrated marketing communications require a company's mass-market advertisements,website,email and personal selling communications to all have ________.

A)equal portions of the advertising budget
B)independent communications directors
C)separate marketing objectives
D)the same target audience
E)the same message,look and feel

Question 17

A marketing communications director's job is to ensure that each ________ will deliver a consistent and positive message about the company.

A)public relations message
B)brand contact
C)advertisement
D)logo
E)media vehicle

Question 18

Which of the following is NOT a major category in the promotion mix?

A)advertising
B)sales promotion
C)public relations
D)market positioning
E)direct marketing

Question 19

Any paid form of non-personal presentation and promotion of ideas,goods or services by an identified sponsor is known as ________.

Question 20

The promotion mix is the company's primary communication activity;the marketing mix must be coordinated for the greatest communication impact.What is NOT included in the entire marketing mix?

A)product
B)competition
C)price
D)place
E)promotion

Question 21

Mass marketers can expect consumers to distinguish between commercial message sources to maintain a clear image of a company and its brands.

Question 22

A large national producer of all-natural hair care and beauty products,is most likely to use which of the promotion mix strategies to gain increased shelf space in stores and to gain increased customer sales?

A)push only
B)pull only
C)push and pull
D)pulse
E)continuity

Question 23

'Buy it now' is the message of ________.

A)personal selling
B)advertising
C)a non-personal communication channel
D)sales promotion
E)publicity

Question 24

Which promotional mix strategy directs marketing efforts toward final consumers?

A)push
B)blitz
C)pull
D)buzz
E)pulse

Question 25

Business-to-consumer companies are more likely to emphasise a ________ promotion strategy,while business-to-business companies are more likely to emphasise a ________ promotion strategy.

A)pull;push
B)push;pull
C)pulse;pull
D)continuity;pulse
E)pulse;continuity

Question 26

Which promotional mix strategy directs marketing efforts toward market channel members?

A)push
B)blitz
C)pull
D)buzz
E)pulse

Question 27

Which promotional tool is most effective in building up buyers' preferences,convictions and,most importantly,actions?

A)mass-market advertising
B)segmented advertising
C)sales promotion
D)public relations
E)personal selling

Question 28

An email from Amazon.com offers free shipping on your next purchase of more than $35.This is an example of ________.

A)sales promotion
B)personal selling
C)public relations
D)an advertising objective
E)a push strategy

Question 29

A marketing manager for a manufacturer of children's toys is looking for ways to reach potential customers who typically avoid salespeople and advertisements.Which of the following would be the most economical promotional tool for the firm to use?

A)direct marketing
B)sales promotions
C)public relations
D)brand contacts
E)personal selling

Question 30

When shoppers enter a large department store such as David Jones or Myer,they are often greeted by sales assistants offering complementary sprays of selected fragrances.Sometimes,the fragrance is sprayed onto a card for the customer to retain and use as a scent inside her handbag.This activity is an example of ________.

A)public relations
B)product publicity
C)sales promotion
D)lobbying
E)advertising

Question 31

Integrated marketing communications encourages brand messages to be developed by different departments within an organisation.

Question 32

New communications technologies such as mobile phones and the internet give companies new media for interacting with targeted consumers,but these new technologies also give consumers more control of the advertising messages they receive.

Question 33

________ is the company's most expensive promotion tool.

A)Advertising
B)Personal selling
C)Mass media
D)Public relations
E)Publicity

Question 34

________ consists of short-term incentives to encourage the purchase or sale of a product or service.

A)A patronage reward
B)A segmented promotion
C)Advertising
D)Sales promotion
E)Publicity

Question 35

Which promotional tool is described as immediate,customised and interactive?

A)segmented advertising
B)sales promotions
C)public relations
D)brand contacts
E)direct marketing

Question 36

Sales promotion features a wide assortment of tools.Which is NOT one of these tools?

A)contests
B)premiums
C)catalogues
D)coupons
E)cents-off deals

Question 37

Because of advertising's public nature,consumers tend to think of large-scale advertised products as more legitimate.

Question 38

Developments in communications technology are speeding the movement toward segmented marketing.

Question 39

Large companies still routinely invest large chunks of their advertising budgets in mass-media outlets such as television and magazines.

Question 40

Mass markets have fragmented;thus,marketers are shifting away from mass marketing.

Question 41

A product in the maturity stage will often require ________ advertising.

A)informative
B)comparative
C)persuasive
D)reminder
E)cooperative

Question 42

A company decides on its promotion budget by using four common methods to set the total budget for advertising.What is NOT one of these methods?

A)the affordable method
B)the percentage-of-sales method
C)the integrated budgeting method
D)the competitive-parity method
E)the objective-and-task method

Question 43

A method of budgeting for advertising that views sales as the cause of promotion rather than as the result is known as ________.

A)affordable
B)competitive-parity
C)objective-and-task
D)percentage-of-sales
E)None of the above.

Question 44

All of the following are important decisions during the process of developing an advertising program EXCEPT which one?

A)setting advertising objectives
B)setting the advertising budget
C)developing advertising strategy
D)selecting a target market
E)evaluating advertising campaigns

Question 45

Using the ________ method for setting an advertising budget,the company starts with total revenues,deducts operating expenses and capital outlays,and then devotes some portion of the remaining funds to advertising.

A)percentage-of-sales
B)affordable
C)competitive-parity
D)objective-and-task
E)moving-average

Question 46

If the pull strategy is effective,consumers will then demand the product from channel members,who will in turn demand it from producers.

Question 47

________ becomes more important as competition increases.The company's objective is to build selective demand.

A)Persuasive advertising
B)Informative advertising
C)POP promotion advertising
D)Patronage advertising
E)Reminder-oriented advertising

Question 48

Coupons,contests,cents-off deals and premiums are all examples of ________ ________.

Question 49

Which of the following factors should a company consider when designing its promotional mix strategies?

A)type of product
B)the market
C)the stage of the product life-cycle
D)All of the above.
E)None of the above.

Question 50

Persuasive advertising becomes comparative advertising,also known as ________,when a company directly or indirectly compares its brand with one or more other brands.

A)informative advertising
B)reminder advertising
C)attack advertising
D)POP promotion advertising
E)institutional advertising

Question 51

After determining its advertising objectives,the company's next step in developing an advertising program is to ________.

A)set its advertising budget
B)evaluate ad campaigns
C)develop an ad strategy
D)make message decisions
E)make media decisions

Question 52

Advertising ________ can be classified by primary purpose-whether the aim is to inform,persuade or remind.

A)objectives
B)budgets
C)evaluations
D)campaigns
E)logos

Question 53

A consequence of the rise of new media is that many companies are now doing less broadcasting and more ________.

Question 54

Advertising ________ define the task that advertising must do with a specific target audience during a specific period of time.

A)objectives
B)budgets
C)strategies
D)campaigns
E)evaluations

Question 55

A television advertisement for Herron pain relief tablets claims that all common brands of analgesic are made from the same active ingredients but that Herron is the only brand that is Australian made and owned.In the background,viewers can see a collection of other brands,some of which are identifiable from the shape of their distinctive packaging.These other brands include Panadol.This is an example of ________ advertising.

A)informative
B)persuasive
C)lifestyle
D)comparative
E)instructive

Question 56

Advertisers should use comparative advertising appeals cautiously.Which of the following is NOT one of the dangers of comparative advertising?

A)It has the potential to invite negative or unwanted competitive responses.
B)It can upset competitors.
C)It can lead to litigation,especially when comparisons are unfounded or unfair.
D)It is not legal in Australia or New Zealand.
E)It has the potential to lead to an advertising war.

Question 57

Suave ran ads featuring a woman with beautiful hair questioning 'Suave or Matrix? Can You Tell?' This is an example of ________.

A)informative advertising
B)reminder advertising
C)comparative advertising
D)secondary advertising
E)buzz marketing

Question 58

The owner of an independent gift store is developing an advertising budget,and has totalled his company's revenues and deducted operating expenses and capital outlays.He intends to use a percentage of the remaining funds for advertising.Which budget setting method is he using?

A)affordable method
B)integrated method
C)percentage-of-sales method
D)competitive-parity method
E)objective-and-task method

Question 59

When Proctor & Gamble developed the Mr.Clean Magic Eraser,the company needed to explain how the product cleans grime from walls without removing paint.What type of campaign was most likely used by Proctor & Gamble for the Mr.Clean Magic Eraser to introduce the new product to the market?

A)informative advertising
B)persuasive advertising
C)reminder advertising
D)developmental advertising
E)comparative advertising

Question 60

________ is used heavily when introducing a new product category.The objective is to build primary demand.

A)Persuasive advertising
B)Informative advertising
C)Comparative advertising
D)Patronage advertising
E)Institutional advertising

Question 61

The goal of ________ is to make an advertisement so entertaining,or so useful,that people want to watch it.

A)branded entertainment
B)advertainment
C)audience engagement
D)fantasy execution
E)testimonial endorsement

Question 62

Soaring media costs,focused target marketing strategies and the growing array of new media have increased the importance of ________.

A)the affordable method of setting a promotion budget
B)the competitive-parity method of setting a promotion budget
C)using humour to capture audience attention and interest
D)implementing branded entertainment
E)media planning

Question 63

Developing an effective message strategy begins with identifying ________ that can be used as advertising appeals.

A)consumer trends
B)competitors' weaknesses
C)competitors' strengths
D)customer benefits
E)consumer emotions

Question 64

A term that has come to represent the merging of advertising and entertainment in an effort to create new avenues for reaching consumers with more engaging messages is ________.

A)advertainment
B)featured entertainment
C)virtual advertising
D)mediated advertising
E)buzz marketing

Question 65

In the process of developing the advertising strategy,decisions about ________ are likely to be more important than decisions about the creative elements of the campaign.

A)the right advertising media
B)sophisticated statistical models
C)setting advertising objectives
D)evaluation of the advertising campaign
E)the choice of advertising agency

Question 66

Which method of setting an advertising budget is based on analysing competitors' spending?

A)affordable method
B)percentage-of-sales method
C)competitive-parity method
D)objective-and-task method
E)integrated method

Question 67

________ is the first step in creating effective advertising messages-deciding what general message will be communicated to consumers.

A)Eliminating advertising clutter
B)Message strategy
C)Media opportunity
D)Rewarding consumers
E)Selecting the medium

Question 68

Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending,selling price and profit per unit,it wrongly views sales as the cause of promotion rather than the result.

A)percentage-of-sales
B)affordable
C)competitive-parity
D)objective-and-task
E)regression

Question 69

The most logical budget-setting method is the ________ method because it is based on spending necessary to accomplish specific promotion goals.

A)percentage-of-sales
B)affordable
C)competitive-parity
D)objective-and-task
E)exponential smoothing

Question 70

After creating message strategy statements,the advertiser must develop a(n)________ that will bring the message strategy to life in a distinctive and memorable way.

A)creative concept
B)customer strategy
C)customer benefit
D)execution style
E)media vehicle

Question 71

An ad for a new convection oven shows a busy professional woman serving dinner to her family.The convection oven is seen in the background and the headline reads,'The latest development in time travel'.This is an example of what type of execution style?

A)slice of life
B)testimonial evidence
C)fantasy
D)scientific evidence
E)mood or image

Question 72

Successful advertising messages are more likely to ________.

A)have a significant budget
B)be placed during prime time
C)use heavy frequency
D)interrupt or disrupt the audience
E)gain attention and interest

Question 73

In its advertisements,Timex promotes its affordable and sturdy watches.Fossil emphasises style and fashion in its advertisements,while Rolex stresses luxury and status.These are all examples of ________ appeals.

A)creative
B)meaningful
C)believable
D)entertainment
E)distinctive

Question 74

Which of the following is the most common form of branded entertainment?

A)product placement
B)virtual advertising
C)mediated advertising
D)buzz marketing
E)advertainment

Question 75

The process of making a brand an inseparable part of some other form of entertainment such as a feature film or TV program is known as ________.

A)advertainment
B)featured entertainment
C)virtual advertising
D)mediated advertising
E)branded entertainment

Question 76

Which of the following criteria should be evident in a successful advertising appeal?

A)meaningful,believable and distinctive
B)distinctive,objective and measurable
C)customer-focused and competitor-centred
D)emotional,entertaining and product-focused
E)simple,short and striking

Question 77

Product placement in television programs and movies is an example of ________.

A)branded entertainment
B)advertainment
C)lifestyle execution
D)mood execution
E)consumer generated content

Question 78

________ tend to be plain,straightforward outlines of benefits and positioning points that the advertiser wants to stress.

A)Execution styles
B)Message strategy statements
C)Creative concept strategies
D)Advertising appeals
E)Branded entertainment plans

Question 79

VOD (video on demand)and DVRs (digital video recorders)present which of the following problems for marketers?

A)Consumers are watching less television.
B)Consumers have difficulty attending to specific advertising messages due to advertising clutter.
C)Audiences are less interested in media consumption.
D)Consumers have more choices about what to watch or not watch.
E)Television advertising is becoming more expensive.

Question 80

The reality TV program,The Block,involves contestants renovating homes or apartments for prizes.Many scenes show contestants purchasing materials and equipment from the hardware store Mitre 10 or asking a helpful Mitre 10 staff member for tips and advice on specific projects.Prominent featuring of the Mitre 10 brand,store interior or staff uniforms is an example of ________.

A)branded entertainment
B)advertainment
C)lifestyle execution
D)mood execution
E)consumer generated content