Question 1

Albert Corporate Searchware is a type of search engine that companies use at their websites to handle customer questions.The company is trying to determine what promotional strategy should be employed with its flagship product.It has determined that search engine software is in the growth stage.Which of the following options should it employ?

Accepted Answer

The answer of Albert Corporate Searchware is a type of...

Question 2

With regard to a product for which a promotional mix is being developed,complexity:

Accepted Answer

Complexity refers to the technical sophistication of the product and hence the amount of understanding required to use it. This can impact the choice of promotional tactics and communication channels to be used to effectively reach and engage the target market.

Question 3

The Olympus Eye Trek is a device which provides "a high-quality personal TV experience." It resembles a pair of glasses and when worn makes the user think he or she is watching a 52-inch television.An ad for the device contains both a telephone number that can be called and a website that can be visited for further information on how the gadget works.This gadget is most likely high in:

Accepted Answer

The answer of The Olympus Eye Trek is a device...

Question 4

The promotional objective of the decline stage of the product life cycle as shown in Figure 16-3 is to __________.

Accepted Answer

Firms traditionally do not promote a product during its decline stage because it is no longer profitable to invest in advertising and promotional activities for a product that has already reached the end of its life cycle. Instead, companies tend to focus on reducing costs and liquidating inventory during this stage.

Question 5

Albert Corporate Searchware is a type of search engine that companies use at their websites to handle customer questions.When promoting the product,Albert must be aware of how each of the following affect(s)which promotional elements should be used EXCEPT:

Accepted Answer

The promotional budget may affect how much promotion can be done, but it does not affect which promotional elements should be used. The complexity of the product, ancillary services needed, and financial risks associated with the purchase all play a role in determining which promotional elements should be used.

Question 6

At which stage of the product life cycle is the least amount of money spent on the promotional mix?

Accepted Answer

During the decline stage, companies typically reduce spending on promotion as the product is phased out or replaced.

Question 7

At which stage in the product life cycle are discounts and coupons offered to both consumers and intermediaries to maintain loyal buyers?

Accepted Answer

Discounts and coupons are often used during the maturity stage of the product life cycle to maintain loyal customers as the market becomes saturated and competition increases. During this stage, companies focus on retaining their customer base rather than acquiring new customers, and incentives such as discounts and coupons can help to encourage repeat business. In the introduction stage, companies are focused on generating awareness and interest in the new product, while in the growth stage, they are focused on expanding their customer base and increasing market share. Incubation is not a recognized stage in the product life cycle.

Question 8

Figure: 16-4 
-In Figure 16-4,line "A" shows that __________,an element of the promotion mix,is highest in importance in the purchase stage of the buying decision.

Accepted Answer

Personal selling involves face-to-face interaction between the salesperson and the customer, which can be particularly effective in the purchase stage of the buying decision. Advertising, public relations and sales promotion may also be important in the promotion mix but are not necessarily highest in importance in the purchase stage.

Question 9

A new start-up needs to solidify their distribution channels for a new product.Considering they are in the growth stage of the product life cycle,which promotional element would they most likely use?

Accepted Answer

In the growth stage of the product life cycle, the company needs to build a strong distribution network for their product. Personal selling is the most effective promotional element at this stage as it allows the company to build relationships with potential customers and persuade them to buy the product. Personal selling also helps in addressing customer queries and concerns, leading to better customer satisfaction and brand loyalty. Therefore, the new start-up should focus on personal selling to strengthen its distribution channels and promote its brand.

Question 10

Figure: 16-3 
-Reminding buyers of the product's existence is the promotional objective during which stage of the product life cycle as shown in Figure 16-3?

Accepted Answer

The stage of the product life cycle shown in the figure is the maturity stage. During this stage, the promotional objective is to remind buyers of the product's existence and to differentiate it from competitors.

Question 11

Figure: 16-3 
-Persuading the consumer to buy the product rather than substitutes is the promotional objective during which stage of the product life cycle as shown in Figure 16-3?

Accepted Answer

During the growth stage of the product life cycle, the focus of promotion is to persuade the consumer to choose the product over its substitutes, and to build brand loyalty. In the introduction stage, the primary objective is to create awareness and generate interest in the product. In the maturity stage, the focus is on maintaining brand loyalty and defending market share. In the Decline stage, efforts may shift towards promoting the product's remaining benefits or phasing it out.

Question 12

The product characteristic that provides the greatest contrast between a Gulfstream private jet and a bottle of water is:

Accepted Answer

The characteristic that provides the greatest contrast between a Gulfstream private jet and a bottle of water is complexity. A Gulfstream jet is a highly complex and sophisticated piece of machinery, designed to transport passengers at high speeds and altitudes over large distances. On the other hand, a bottle of water is a simple and straightforward product, designed to provide hydration to the consumer. The level of complexity of these two products is vastly different, which is why complexity is the characteristic that provides the greatest contrast between them.

Question 13

Personal selling would most likely be used to sell:

Accepted Answer

Personal selling is a face-to-face interaction between a salesperson and a potential customer. Selling retail website design requires personal interaction to explain the features and benefits of the product and to address any concerns or questions the customer may have. In contrast, selling dog dandruff shampoo or a bottle of soda can be done through advertising and promotions, while fresh produce is typically sold through retail channels.

Question 14

Cake mix is in the maturity stage of its product life cycle.A manufacturer selling cake mixes would most likely use advertising to:

Accepted Answer

Since cake mix is in the maturity stage, it is likely that most consumers are already aware of its existence and know what it is. Therefore, the primary goal of advertising would be to remind buyers of the product's existence and keep it top of mind when making purchasing decisions.

Question 15

There's a new prescription drug on the market that helps reduce common allergy symptoms.Ads for the medicine in magazines and in medical journals would be primarily used to:

Accepted Answer

Ads for a new prescription drug in magazines and medical journals would primarily be used to increase awareness of the product among potential customers. This would help to drive demand for the drug, as more people become aware of its benefits and are likely to ask their doctor about it or request a prescription. While reminding customers that the product exists and differentiating it from other medications are also potential goals of advertising, these are typically secondary to the primary goal of increasing customer awareness. A product penetration distribution strategy may involve advertising, but this would be more focused on promoting the availability and accessibility of the product rather than its benefits or features.

Question 16

Which promotional element would you most likely use during the growth stage of the product life cycle to solidify channels of distribution?

Accepted Answer

During the growth stage of the product life cycle, the focus is on building consumer demand and increasing sales volume. Personal selling can be effective in solidifying channels of distribution by establishing relationships with channel partners and communicating the benefits of carrying the product. This can lead to increased shelf space and better positioning in stores, ultimately boosting sales. Advertising and sales promotion may also be useful during this stage, but they generally focus more on generating consumer demand rather than strengthening distribution channels. Publicity is not typically used to solidify channels of distribution.

Question 17

Figure: 16-4 
-In Figure 16-4,the element of the promotion mix that is highest in importance in the purchase stage of the buying decision,is labelled 'B.' This refers to:

Accepted Answer

The element labelled 'B' in Figure 16-4 refers to sales promotion, which offers incentives to customers in order to encourage them to complete the purchase. This is the promotion mix element that is highest in importance during the purchase stage of the buying decision, as it directly influences the customer's decision to make a purchase. Advertising, public relations, and communication are also important elements of the promotion mix, but they are typically more focused on building awareness and interest in a product or brand, rather than directly driving purchase behavior.

Question 18

With respect to promotional element decisions,a product's ancillary services pertain to:

Accepted Answer

Ancillary services refer to the degree of service or support required after the sale. These may include installation, repair, servicing, and training services. Therefore, option D is the correct choice. Options A, B, and C do not accurately describe ancillary services.

Question 19

Purina Dog Chow runs several television advertisements that focuses on 'them' versus 'us' which compares their competitor products to the latest Purina product.This type of advertising would be most effective during which stage?

Accepted Answer

The 'them' versus 'us' advertising approach is most effective during the growth stage of a product's life cycle. During this stage, consumers are becoming more aware of the product and making purchasing decisions. Engaging in comparative advertising can help convince consumers that Purina's product is superior to its competitors, potentially leading to increased market share and sales.

Question 20

A product characteristic known as _____ is relevant to promotional mix decisions and has financial,social,and physical components.

Accepted Answer

Risk refers to the potential for loss or harm to a customer as a result of using a product. This characteristic is important for promotional mix decisions because it affects how the product is marketed and communicated to potential customers. Financial, social, and physical components of risk can all influence the type of messaging and tactics used in the promotional mix, and may impact the overall success of the product.

Quiz 16: Integrated Marketing Communications and Direct Marketing