Chap 012

Chapter 12 - Promotion, Advertising and Sales Promotion ...
Chapter 12
Promotion, Advertising and Sales Promotion ...

True / False Questions

1. (p. 379) The percent-of-sales method of budgeting for promotion is quite arbitrar and al!as
recogni"es that promotion efforts and results are related.
FALSE

Difficulty: Moderate

2. (p. 379) Competitive parit is a budgeting method for promotions that is guided b ho! much
competitors spend.
T!E

Difficulty: Easy

#. (p. 380) Since budget limits are a realit in most companies, the all ou can afford budgeting
method for promotion is not li$el to influence all budget decisions.
FALSE

Difficulty: Challenging

%. (p. 38) The fragmentation of man consumer mar$ets is driving significant amounts of
advertising spending from traditional mass media to more focused narro!cast media.
T!E


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&. (p. 38!) The increasing demands for integrated mar$eting communications strategies and the
development of comple' multi-media campaigns, !ill not require re-evaluating the traditional
client(agenc relationship.
FALSE


). (p. 387) *ost ad agencies operate on some tpe of commission arrangement, though the
arrangement ma involve a commission for media placement and a separate arrangement for
other services.
T!E


+. (p. 388) ,t is impossible to establish the criteria that !ill be used for measuring advertising
effectiveness before an advertising strateg is implemented.
FALSE

Difficulty: Easy

-. (p. 389) Sales promotion is some form of inducement .e.g., coupon, contest, rebate, etc./.
0nfortunatel, these effective activities can not target the various points of influence in the
value chain.
FALSE


1. (p. 39") ,ncentives and informational activities are the primar forms of promotion used to
assist and motivate compan salespeople.
T!E


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12-#
12. (p. 39") A mar$eting manager can target buers, value chain members and salespeople. The
sales response of the sales promotion activities can be measured to determine their
effectiveness.
T!E

Difficulty: Easy

"ultiple Choi#e Questions

11. (p. 373) 333333 consists of planning, implementing and controlling an organi"ation4s
communications to its customers and other target audiences.
A. Promotion
5. Personal selling
C. Sales promotion
6. Advertising

Difficulty: Easy

12. (p. 373) 33333 consists of an form of non-personal communication concerning an
organi"ation, product or idea that is paid for b a specific sponsor. The sponsor ma$es
pament for the communication via one or more forms of media .e.g., television, radio,
maga"ine, ne!spaper, online/.
A. Promotion
5. Personal selling
C. Sales promotion
$. Advertising

Difficulty: Easy

12-%
1#. (p. 373) 33333 consists of verbal communication bet!een a salesperson and one or more
prospective purchasers !ith the ob7ective of ma$ing or influencing a sale.
A. Promotion
%. Personal selling
C. Sales promotion
6. ,nteractive(internet mar$eting

Difficulty: Easy

1%. (p. 37#) 3333333 consists of activities such as, trade sho!s, contests, samples, point-of-
purchase displas, product placement in films and other occasions, trade incentives and
coupons.
A. Promotion
5. Advertising
C. Sales promotion

Difficulty: Easy

1&. (p. 37#) The distinguishing feature of 33333 is the opportunit for the mar$eter to gain direct
access to the buer.
A. Promotion
5. Advertising
C. Personal selling
$. 6irect mar$eting

Difficulty: Easy

12-&
1). (p. 37#) ,ncluded in the 333333 promotion component are the ,nternet, C6-89*, $ios$s and
interactive television. ,nteractive media enable buers and sellers to communicate !ith each
other.
A. Promotion
5. Advertising
C. Personal selling
$. ,nteractive mar$eting

Difficulty: Easy

1+. (p. 37#) Communications placed in the commercial media at no charge to the compan
receiving the publicit is 33333.
A. Public relations
5. Advertising
C. Personal selling

Difficulty: Easy

1-. (p. 37!) A communication ob7ective, !hich is important for ne!-product introductions, is
triggering 33333. This ob7ective is also important for e'isting products and services,
particularl !hen the buer can postpone purchasing or choose not to purchase.
A. :eed recognition
5. ;inding buers
C. 5rand building
6. <valuation of alternatives

Difficulty: Easy

12-)
11. (p. 377) Salespeople ma be given responsibilit for 333333. The use of toll-free numbers is
often helpful in identifing customers as !ell as issues and problems of interest to the callers.
A. :eed recognition
%. ;inding buers
C. 5rand building


22. (p. 377) An ob7ective of ne! product promotional activities is 33333 to help buers learn
about the product and to identif the product b name.
A. :eed recognition
5. ;inding buers
C. 5rand building


21. (p. 377) An ob7ective of promotion activities is influencing the buer4s 33333. Personal
selling is often effective in obtaining a commitment from the buers.
A. 8etention
5. :eed recognition
C. 6ecision to purchase

Difficulty: Easy

22. (p. 377) An ob7ective of promotion activities is communicating !ith buers after the
purchase a product to improve 333333.
A. Customer retention
5. :eed recognition
C. 6ecision to purchase


12-+
12--
2#. (p. 38!) According to the te't advertising agencies perform these functions for their clients.
A. 6eveloping creative designs and product pricing
5. *ar$eting research, sales promotion and brand selection
C. 6istribution of products and selecting media
$. *ar$eting planning, creative designs and mar$eting research


2%. (p. 388) 33333 identif.ies/ relationships bet!een advertising e'penditures and sales using
statistical techniques such as regression analsis.
A. Anal"ing historical data
5. 8ecall tests
C. =ongitudinal studies
6. Test mar$eting


2&. (p. 388) 33333 measure.s/ consumers4 a!areness of specific ads and campaigns b as$ing
questions to determine if a sample of people remembers an ad.
%. 8ecall tests
6. Test mar$eting


2). (p. 388) 33333 trac$.s/ advertising e'penditures and sales results before, during and after an
advertising campaign.
5. 8ecall tests
6. Test mar$eting


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2+. (p. 388) 33333 are methods of measuring advertising effectiveness that uses empirical data to
build a mathematical relationship bet!een sales and advertising effort.
5. 8ecall tests
$. <ffort(results models


2-. (p. 388) The search for better 33333 is driven b concerns about ho! !ell T> advertising
!or$s, pressures on costs and changing media technologies.
A. *easurements of effectiveness
5. 8ecall tests
6. Test mar$eting


21. (p. 39$) 33333 is a ma7or initiative b various companies and brands. Sales promotion results
from the association of the brand !ith the game.
A. Sponsoring of sports events
5. Sponsoring sports celebrities
C. Product placement
6. Trade sho!s

Difficulty: Easy

#2. (p. 39$) 33333 is a ma7or initiative b various companies and brands. Sales promotion results
from the association of the brand !ith the plaer in the sport.
A. Sponsoring of sports events
%. Sponsoring sports celebrities
C. Product placement
6. Trade sho!s

Difficulty: Easy

12-12
12-11

Essa& Questions

#1. (p. 373%37#) ,dentif the composition of a promotion strateg according to the te't.
The composition of a promotion strateg according to the te't includes advertising, personal
selling, sales promotion, interactive and internet mar$eting and public relations.

Difficulty: Easy

#2. (p. 37!%377) Communication ob7ectives help determine ho! the promotion strateg
components are used in the mar$eting program. ?hat are four areas of communication
ob7ectives included in the te't.
The areas of communication ob7ectives included in the te't are need recognition, finding
buers, brand building, evaluation of alternatives, influencing the decision to purchase and
customer retention.

Difficulty: Easy

##. (p. 379) 6efine and e'plain the benefits of the ob7ective and tas$ method of budgeting for
promotion.
This logical and cost-effective method is probabl the most !idel used budgeting approach.
*anagement sets the communication ob7ectives, determines the tas$s .activities/ necessar to
achieve the ob7ectives and adds up costs. This method also guides determining the role of the
promotion components b selecting !hich component.s/ is appropriate for attaining each
ob7ective. *ar$eting management must carefull evaluate ho! the promotion ob7ectives are
to be achieved and choose the most cost-effective promotion components. The effectiveness
of the ob7ective and tas$ method depends on the 7udgment and e'perience of the mar$eting
team.


12-12
#%. (p. "8#) <'plain the challenges according to the te't to the advertising creative process and
changing the design of creative strategies and media.
Challenges to the creative process include the ever-gro!ing comple'it of the !orld.
,ntegrated mar$eting communications .,*C/ can help clients build relationships !ith highl
fragmented target mar$ets. The !ide range of ne! technologies affecting advertising
.computer hard!are and soft!are, electronic net!or$ing, high-definition television and more/
need to be incorporated into the strateg. Advertising in emerging international mar$ets
occurs far more frequentl than in the past.


#&. (p. 38) <'plain the use of social net!or$ing !eb sites and viral mar$eting to reach a target
mar$et.
:e! tpes of ,nternet-based media are becoming ver significant to media scheduling
choices. Social net!or$ing !eb sites li$e * Space, ;ace boo$ and @ou Tube are becoming
important media for reaching audiences not easil accessed through conventional print and
T> approaches. As an e'ample, a publisher created a !eb page on * Space to promote a
novel to reach oung readers !ho are resistant to traditional advertising media.
Social net!or$ing sites provide options for branded viral mar$eting campaigns to be pasted
on personal pages and passed around !ithin the social net!or$ing communit. >iral
mar$eting is also $no!n as A!ord-of-mouthA or Abu""A mar$eting.


12-1#

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Chapter 12 - Promotion, Advertising and Sales Promotion ...

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