Question 1

Sales personnel employed by companies,such as IBM and Microsoft,who offer technical assistance through consulting in order to promote goodwill for their employers are primarily involved in

Accepted Answer

Missionary selling involves sales personnel offering technical assistance or consulting to promote goodwill, rather than directly closing sales. This approach is common in companies like IBM and Microsoft, where the complexity of products requires a consultative selling approach to inform and support potential customers.

Question 2

Bike Well,a leading manufacturer of exercise bicycles ran a full-page advertisement in a health magazine differentiating the price of its bicycle with that of a leading competitor.The manufacturer is using

Accepted Answer

Comparative advertising is when a company directly or indirectly compares its product to another in the market, which is what Bike Well is doing by differentiating its exercise bicycle's price from that of a leading competitor.

Question 3

The goal of_____ advertising is to maintain awareness of the usefulness of a product.

Accepted Answer

Reminder-oriented advertising aims to keep the product in the minds of consumers, maintaining awareness of its usefulness even after they are familiar with it.

Question 4

Compserve Inc.a computer manufacturer,is offering $150 cash back on the purchase of a computer.This is an example of

Accepted Answer

A rebate is a partial refund to someone who has paid too much for tax, rent, or a utility. In the context of marketing, it refers to the return of a portion of the purchase price by the seller to the buyer, which is exactly what Compserve Inc. is doing by offering $150 cash back on the purchase of a computer.

Question 5

All County Community College purchases golf balls engraved with the words "All County Community College," which are distributed at various college fairs in which it participates.These engraved golf balls are considered

Accepted Answer

The engraved golf balls distributed at college fairs are considered specialty advertising because they are promotional items branded with a logo or slogan and distributed at little or no cost to promote a brand, corporate identity, or event.

Question 6

Caf-All,a coffee shop,uses _____ advertising when it tells people that "hard-working" people prefer its coffee over the coffee sold by its competitor,Moon-Cafe.

Accepted Answer

Comparative advertising directly compares the advertiser's product against the competitors' products, highlighting the advantages. In this case, Caf-All is comparing its coffee to Moon-Cafe's, suggesting it is the preferred choice for "hard-working" people.

Question 7

Sales of intangible products or services such as insurance often rely heavily on

Accepted Answer

Creative selling is crucial for intangible products or services like insurance because it involves persuasive communication and the ability to convey the benefits of something that cannot be seen or touched.

Question 8

Television is an attractive advertising medium because it

Accepted Answer

Television offers mass coverage and flexibility, making it an attractive advertising medium. It can reach a wide audience simultaneously and allows for creative and flexible ad presentations.

Question 9

Businesses often spend _____ as much on personal selling as on advertising.

Accepted Answer

Businesses often spend five to ten times as much on personal selling as on advertising, reflecting the high costs associated with personal selling activities compared to mass advertising.

Question 10

Alberto,a public relations manager of GBS bank,creates an advertisement that explains how ATX bank has positively influenced the economy of his country.Alberto has used _____ advertising.

Accepted Answer

Institutional advertising is used to promote an organization's image, reputation, or ideas rather than a specific product or service. Alberto's advertisement focuses on the positive influence of ATX bank on the economy, which aligns with institutional advertising.

Question 11

Companies typically prefer sweepstakes to games or contests because

Accepted Answer

Sweepstakes allow companies to predict the number of winners because they often set the number of prizes in advance, unlike games or contests where the outcome can be more variable.

Question 12

Trade promotion is

Accepted Answer

Trade promotion is specifically aimed at marketing intermediaries, such as wholesalers and retailers, to encourage them to stock and promote a manufacturer's products.

Question 13

Informative advertising is most apt to be used in which stage of the product life cycle?

Accepted Answer

Informative advertising is typically used in the introductory stage of the product life cycle to build awareness and educate the market about a new product or service.

Question 14

Crabs & Fish,a seafood restaurant,provides free drinks with each meal.Crabs & Fish is using _____ to promote its sales.

Accepted Answer

Premiums are items offered for free or at a reduced price as an incentive to purchase a product, which in this case is a meal at Crabs & Fish.

Question 15

A disadvantage of using _____ as an advertising medium is their short lifespan.

Accepted Answer

Newspapers have a short lifespan because they are often read once and then discarded, making any advertisement within them short-lived compared to other mediums.

Question 16

Companies that provide _____ for NASCAR teams are eager to spend millions in exchange for a direct association with the biggest spectator sport in the United States.

Accepted Answer

Sponsorships are the correct answer because companies pay to be directly associated with NASCAR teams, gaining visibility and association with the sport through logos, team endorsements, and other promotional activities.

Question 17

Which advertising is also called advocacy advertising?

Accepted Answer

Cause advertising is also known as advocacy advertising because it is used to promote a particular cause or social issue, rather than focusing on selling a product or service. This type of advertising aims to influence public opinion and raise awareness about important social, environmental, or political issues.

Question 18

________ advertising involves messages that promote concepts,ideas,philosophies,or goodwill for industries,companies,organizations,or government entities.

Accepted Answer

Institutional advertising focuses on promoting the organization's image, ideas, or concepts rather than selling specific products or services. It aims to build goodwill and public trust for the company or entity.

Question 19

Which advertising is used to promote a specific viewpoint on a public issue as a way to influence public opinion and the legislative process about issues such as literacy,hunger and poverty,and alternative energy sources?

Accepted Answer

Cause advertising is specifically designed to promote a particular cause or viewpoint on public issues, aiming to influence public opinion and legislative processes on matters such as literacy, hunger, poverty, and alternative energy sources.

Question 20

The Community Credit Union,through its direct-mail promotion,encourages its members to write letters to members of Congress asking them to pass legislation favorable to credit unions.Such promotion is a form of _____ advertising.

Accepted Answer

Advocacy advertising is used when an organization seeks to influence public opinion on issues or policies that are central to its interests, such as encouraging members to support legislation favorable to its operations. In this case, the Community Credit Union is advocating for legislation beneficial to credit unions.

Quiz 13: Promotion and Pricing Strategies