Q&A Hero

Q: Compared with other forms of marketing communication, sampling is more likely to result in actual trials of the product. Explain this by giving examples of possible types of sampling.

Q: Giving examples, show how sampling can be an effective sales promotion technique.

Q: A ________ company possesses a critical marketing advantage with respect to marketing communications. A) domestic B) local C) global D) glocal E) multinational

Q: If demand is elastic, will sellers consider lowering their prices? Explain your answer.

Q: A number of factors must be taken into account when determining the extent to which promotion must be localized. List and describe those factors giving examples.

Q: Advertising, public relations, and other forms of communication are critical tools in the marketing program and reflect the ________ P of the marketing mix. A) Product B) Promotion C) Price D) Place E) Process

Q: Explain the difference between elastic demand and inelastic demand.

Q: When setting prices, the company must consider its external pricing environment. Describe three components of the pricing environment and how they affect businesses.

Q: The authors of one study noted that Nestl and other large companies that once had a polycentric approach to consumer and trade sales promotions have redesigned their efforts. Based on a study by Kashani and Quelch, identify factors that contribute to more headquarters involvement in the sales promotions effort.

Q: As companies recognize and embrace new concepts such as the globalization of coffee culture, the potential for effective global advertising: A) decreases. B) increases. C) remains the same. D) becomes evident. E) is ignored.

Q: Describe what a demand curve is and explain how it helps marketers make decisions.

Q: A company that is ethnocentric in its approach to PR will not extend home-country PR activities into host countries.

Q: Discuss what makes the use of sales promotion so effective and popular. Describe different types of sales promotions.

Q: Variable costs for producing textbooks include the price of paper.

Q: Any company that is increasing its activities outside the home country can utilize PR personnel as boundary spanners between the company and employees, unions, stockholders, customers, the media, financial analysts, governments, or suppliers.

Q: During the 2004 Super Bowl broadcast, PepsiCo launched a joint promotion with Apple's iTunes Music Store. Anyone purchasing a bottle of Pepsi had a one-in-three chance of being a winner. However, many people discovered that by tilting the bottles, they could tell whether the bottle was a winner.

Q: Businesses within a purely competitive market have few opportunities to raise or lower their prices.

Q: Fires caused by faulty lithium-ion batteries on the new 787 Dreamliner resulted in all aircraft being grounded until the problem could be resolved. This is an example of negative publicity affecting global marketers.

Q: By the end of 2012, Groupon had more than 40 million users in 48 countries. More than half of Groupon's Web site visitors live in the United States.

Q: A company in an industry characterized by monopolistic competition is most likely to adopt status quo pricing objectives.

Q: Fires and collapsed buildings at garment factories in Bangladesh revived concerns about the global supply chain and the human cost of low-priced goods. This created negative publicity for Walmart.

Q: Social couponing is one of the hottest online sales promotion trends. It offers its followers deal-of-the-day coupons that are sponsored by local businesses.

Q: Advocacy advertising enhances the public's perception of a company, creates goodwill, or announces a major change.

Q: Inflation may cause marketers to decide to either raise or decrease their prices.

Q: Although Asian consumers have a reputation for thriftiness, some are reluctant to use coupons, because doing so might bring shame upon them or their families.

Q: A break-even analysis helps marketers understand the relationship between price and demand.

Q: In China, consumers are reluctant to buy full-sized packages of unfamiliar imported products. In such a marketing environment, sampling is an appropriate promotional strategy.

Q: Image advertising is used by global companies to present themselves as good corporate citizens in foreign countries.

Q: Cross coupons offer its users deal-of-the-day that are sponsored by local businesses.

Q: A demand curve never appears on a graph as a straight line.

Q: Publicity is similar to advertising in that companies pay the media for placement of stories and news items.

Q: Benetton's striking print and outdoor advantage campaigns keyed to the "United Colors of Benetton" generated both controversy and widespread media attention.

Q: As a manufacturer increases price, the ________ drops. A) target B) break-even point C) marginal revenue D) total cost E) variable cost

Q: Sampling can be especially important if consumers are persuaded by claims made in advertising or other channels.

Q: Many companies utilize corporate advertising which, despite the name, is generally considered part of the PR function.

Q: Unilever hired a promotional marketing firm to pass out Lever2000 hand wipes in food courts and petting zoos. This is referred to as "point-of-dirt" sampling.

Q: For a company that manufactures plastic signs, the printing press to make the signs, the manager's salary, and the utilities are all examples of ________. A) fixed costs B) average fixed costs C) variable costs D) marginal costs E) everyday costs

Q: Ads based on a rational appeal depend on logic and speak to the audience's intellect.

Q: Starbucks dispatches "Chill Patrols" in the summertime to pass out samples of ice-cold Frappuccinos to overheated commuters during rush hour in busy metropolitan areas. This is an example of "point-of-dirt" sampling.

Q: Which of the following is an example of a variable cost for an amusement park? A) salary of the park manager B) food cart supplies C) liability insurance D) interest on the property's mortgage E) property taxes

Q: Sellers should know that the less elastic the demand for their product, the more advantageous it is for them to ________. A) drop the price B) raise the price C) maintain the price D) discontinue the item E) bundle the item with another product

Q: Food is the product category most likely to elicit cultural sensitivity.

Q: Fifty years ago, Kikkoman brand soy sauce was unknown in the United States. The company used sampling and even today continues to make extensive use of shopper marketing as a communication tool.

Q: When Joe's Coffee Nook raised the price of a latte, Joe noticed a substantial change in his daily latte sales. A price reduction caused his sales to increase. From this information, you can assume the demand for lattes is ________. A) static B) supply-driven C) asymmetrical D) elastic E) inelastic

Q: In countries with high levels of economic development, low incomes limit the range of promotional tools available. In such countries, free samples and demonstrations are more likely to be used than coupons or on-pack premiums.

Q: Partial nudity and same-sex couples are frequently seen in ads in Latin America and Europe.

Q: When photographing a couple entering a restaurant or theater, women should be shown preceding the man in Germany and France.

Q: Acknowledging that some consumers are intimidated by France's culinary heritage, the Ministry sponsored a promotion to demonstrate that French cuisine can be relaxed and laid back.

Q: Many people rely on a prescription drug to control their cholesterol. An increase in the price of the drug would have little effect on the quantity demanded because there are no substitutes for the drug and because people who take it have no choice but to continue taking it if they wish to stay healthy. The demand for the cholesterol drug is ________. A) elastic B) inelastic C) cross-elastic D) supply-driven E) asymmetrical

Q: In Japan, intimate scenes between men and women are in bad taste, and in Saudi Arabia such ads are outlawed.

Q: Since market maturity can be different from country to country, consumer sampling and coupons are appropriate for mature markets.

Q: In a market with ________, the market consists of many buyers and a few sellers who are likely to have similar pricing. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) socialism

Q: In China, a humorous TV ad showing a student humiliating a teacher in the classroom would be an effective execution for a soft drink brand.

Q: To fight counterfeiting, the "Disney Magical Journey" promotion was keyed to mail-in hologram stickers on imitation Disney products.

Q: In a market with ________, there are many sellers, each offering a slightly different product. Firms can differentiate products and focus on nonprice competition. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) socialism

Q: In China, McDonald's is careful not to advertise prices with multiple occurrences of the number four since, in Cantonese, the pronunciation of the word four sounds similar to that of the word death.

Q: In a contest in 45 different languages covering 60 countries, marketers for Axe Apollo invited consumers to fill out an "astronaut profile."

Q: When setting prices, a company must consider factors in its pricing environment. ________ such as the business cycle, economic growth, and consumer confidence can have a significant impact on the firm's pricing strategies. A) Consumer trends B) Economic trends C) Competitors' responses D) Regulations E) Market structures

Q: The challenge of encoding and decoding slogans and taglines in different national and cultural contexts can lead to unintentional errors.

Q: Which of the following is an external influence that affects pricing decisions? A) the salaries of production management B) competition C) the salaries of finance management D) overall pricing objectives E) the company's overall marketing strategy

Q: Overall, sales promotion tools, such as coupons, are used less frequently as consumer products companies increase budget allocations for media advertising.

Q: Copywriters are specialists who check advertisements to see that they meet copyright regulations in different countries.

Q: A marketer of fine French cognac offers a fancy cigar ashtray to persons who correctly solve a crossword puzzle and mail it in. This is an example of a trade promotion.

Q: Each member of a channel of distribution adds a ________ to create the price at which they will sell the product. A) break-even point B) percentage of sales C) list price D) markup E) contribution per unit

Q: The way a product's appeal or proposition is presented is called the "creative execution."

Q: From the point of view of the marketer, sales promotion provides accountability.

Q: The manufacturer's suggested retail price is also referred to as the ________. A) break-even price B) marginal price C) list price D) markup E) markdown

Q: When creating global advertising, it is important to remember that the "advertising appeal" should be based on the agency's understanding of the target audience's buying motives.

Q: At concerts and other events, street teams pass out free samples while driving specially modified cars with giant Red Bull cans mounted on them. This is an example of regiocentric orientation.

Q: To determine the break-even point, a firm needs to first do which of the following? A) determine what percentage of the market it wants B) determine the point at which supply equals demand C) calculate the contribution per unit D) conduct an environmental audit E) determine total market share

Q: Some of the world's most memorable advertising campaigns originate from "big" ideas with an unlimited number of new executions. Such a campaign is said to have "legs."

Q: It was found that Malaysians hesitate to use coupons due to the: A) lower power distance. B) higher uncertainty avoidance. C) fear of public embarrassment. D) impact of religion. E) general dislike for coupons.

Q: The break-even point is the point at which ________. A) the total revenue and total costs lines intersect B) demand equals supply C) the production of one more unit will not increase profit D) the company can pay all of its long-term debt E) a firm's profit goal is reached

Q: A German agency devised McDonald's "I'm lovin' it" tagline.

Q: Which of the following statements about the break-even point is true? A) It is used to determine how many more units need to be sold to increase market share by a specific amount. B) It is a technique used to calculate fixed costs. C) It determines the amount of retained earnings a company will have during an accounting period. D) It is a technique marketers use to examine the relationship between supply and demand. E) It is calculated using contribution per unit costs and total fixed costs.

Q: Social couponing is one of the hottest sales promotion trends today. This refers to: A) sampling. B) Groupons. C) sweepstakes. D) freestanding inserts. E) personal selling.

Q: Western advertising agencies still find markets such as China and Japan to be very complex, as Asian agencies find it just as difficult to establish local agency presence in Western markets.

Q: Break-even analysis is used to examine the relationship between ________. A) fixed costs and variable costs B) costs and contributions C) costs and price D) demand and costs E) demand and profits

Q: Despite an unmistakable trend toward using global advertising agencies to support global marketing efforts, companies with geocentric orientations will adapt to the global market requirements and select the best agency or agencies accordingly.

Q: A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents when purchasing a Crest toothbrush. What type of sales promotion does this represent? A) cross coupon B) product placement coupon C) trade promotion coupon D) freestanding coupon E) online coupon