Q&A Hero

Q: Competitive parity budgeting refers to a. matching a competitor's absolute level of spending or the proportion per point of market share. b. allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. c. allocating funds to a promotion only after all other budget items are covered. d. determining a firm's promotion objectives, outlining the tasks to accomplish these objectives, and determining the advertising cost of performing these tasks. e. allocating funds to a promotion based on expected profits generated from it.

Q: The promotional mix includes advertising, personal selling, __________, public relations, and direct marketing. a. publicity b. infomercials c. merchandising d. word-of-mouth e. sales promotion

Q: A marketing manager at Ford computed the promotion-to-sales ratio for Ford, GM, and the auto industry itself. She found that Ford's ratio was 2.8 percent, GM's ratio was 4.5 percent, and the auto industry average was 3.2 percent. She then realized a. she had better find a new job as she had been responsible for these results. b. she needed to explain these numbers to her boss, especially in relation to the industry. c. GM shortly would be taking market share from Ford. d. she spent her promotional dollars effectively. e. she wasn"t the marketer she thought she was.

Q: The promotional mix includes advertising, __________, sales promotion, public relations, and direct marketing. a. publicity b. personal selling c. merchandising d. branding e. people

Q: The formula to calculate a promotion-to-sales ratio is: Total promotion expenditures divided by a. Total revenue. b. Marginal revenue. c. Average revenue. d. Net sales. e. Total sales.

Q: The promotional mix includes __________, personal selling, sales promotion, public relations, and direct marketing. a. publicity b. infomercials c. advertising d. risk-free trials e. word-of-mouth

Q: The best way to assess the effectiveness of all promotion expenditures during the past year is to compute a __________. a. break-even point b. promotion-to-sales ratio c. ROI d. promotion-to-expenses ratio e. advertising-to-sales-promotion ratio

Q: The __________ includes advertising, personal selling, sales promotion, public relations, and direct marketing. a. promotional mix b. promotion channel c. communication message d. marketing matrix e. media mix

Q: The promotion-to-sales ratio can be used by managers to make year-to-year comparisons of their programs, to compare the effectiveness of their program with competitors' programs, or to make comparisons with a. calculated break-even points. b. estimated return on investments. c. promotion-to-expense ratios. d. industry averages. e. advertising-to-sales promotion ratios.

Q: The __________ element of the marketing mix consists of communication tools, including advertising, personal selling, sales promotion, public relations, and direct marketing. a. product b. price c. place d. promotional e. advertising

Q: Managers often use the promotion-to-sales ratio on their marketing dashboard to assess how effective the integrated marketing communications program expenditures are at generating _________. a. sales b. the media mix c. the marketing matrix d. the promotional blend e. marketing by objectives (MBO)

Q: Which of the following is the newest way to engage consumers? a. television advertising b. QR codes c. e-mail d. magazine advertising e. public service announcements

Q: Imagine you have overheard the owner of a medium-sized manufacturing company saying, "We had a good year, and I think next year will be even better. I"m going to raise this year's promotion budget 4.5 percent based on last year's gross sales. That will let me do more advertising than the 3.5 percent I budgeted last year." From this information, the manufacturer is using __________ budgeting. a. percentage of sales b. competitive parity c. all-you-can-afford d. objective and task e. linear forecast

Q: Which of the following is a suggestion for ensuring the success of a Twitter-based integrated campaign? a. The message should not be serious. b. There should be several tweets each day. c. There should not be any links in the messages. d. The campaign should take place in real time. e. There should be an "engagement" letter.

Q: A major fallacy of __________ budgeting is that by tying a promotion budget to sales, a company may reduce the amount it spends on promotion when it actually needs to spend more. a. competitive parity b. all-you-can-afford c. objective and task d. linear forecast e. percentage of sales

Q: Experts have observed that our marketplace is in the midst of an "age of engagement." What does "engagement" mean at Twitter? a. one-way communication b. multimedia communication c. free advertising d. Marketers are "loud." e. The recipient takes some action.

Q: In which sales budgeting approach is the amount of money spent based on past or anticipated sales? a. competitive parity b. all-you-can-afford c. objective and task d. percentage of sales e. relative scale

Q: A budgeting method that allocates funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold, is referred to as __________ budgeting. a. percentage of sales b. competitive parity c. all-you-can-afford d. objective and task e. linear forecast

Q: Percentage of sales budgeting refers to a. matching a competitor's absolute level of spending or the proportion per point of market share. b. allocating funds to a promotion only after all other budget items are covered. c. allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. d. determining a firm's promotion objectives, outlining the tasks to accomplish these objectives, and determining the advertising cost of performing these tasks. e. allocating funds to a promotion based on expected profits generated from it.

Q: All of the following are methods described in the textbook that firms use to set their promotion budgets EXCEPT: a. objective and task. b. number (#) of unit of sales. c. competitive parity. d. percentage ( percent) of sales. e. all-you-can-afford.

Q: Which of the following companies had the largest promotional expenditures (advertising + all other promotions) according to Figure 1. in the textbook? a. General Motors b. AT&T c. Johnson & Johnson d. Procter & Gamble (P&G) e. Walmart

Q: Promotion objectives should possess three important qualities. They should be designed for a well-defined target audience, cover a specified time period, and be a. unique in character. b. appealing. c. measurable. d. repeatable. e. creative.

Q: Promotion objectives should possess three important qualities. They should be designed for a well-defined target audience, be measurable, and a. contain some element of appeal, such as sex, fear, or humor. b. be profitable. c. stay within clearly defined budgetary constraints. d. cover a specified time period. e. retain some degree of flexibility.

Q: No matter what the specific objective might be, from building awareness to increasing repeat purchases, promotion objectives should possess three important qualities. They should be designed for a well-defined target audience, cover a specified time period, and be a. unique in character. b. measurable. c. humorous. d. repeatable. e. creative.

Q: In the hierarchy of effects, adoption refers to a. the point at which the consumer accepts the integrity of the manufacturer and the reliability of the product. b. the consumer's appraisal of the product or brand on the majority of important attributes. c. an increase in the consumer's desire to learn about some of the features of the product or brand. d. the consumer's actual first purchase and use of the product or brand. e. the consumer's repeated purchase and use of the product or brand after a favorable experience on the first trial.

Q: In the hierarchy of effects, the consumer's repeated purchase and use of the product or brand is referred to as the _________ stage. a. evaluation b. adoption c. awareness d. interest e. trial

Q: CoolMax is a fabric made by DuPont. It is used in the manufacture of exercise clothes because it keeps the user "cool and dry." The ads for the fabric in health and fitness magazines convinced Kumar to buy a pair of Thorlo CoolMax walking crew socks made of the material. Since he had never before owned anything made with CoolMax, Kumar was in which stage of the hierarchy of effects? a. trial b. diffusion c. innovation d. evaluation e. interest

Q: In the hierarchy of effects, trial refers to a. the consumer's ability to recognize and remember the product or brand name. b. the consumer's appraisal of the product or brand on important attributes. c. the consumer's first actual purchase and use of the product or brand. d. an increase in the consumer's desire to learn about some of the features of the product or brand. e. a favorable experience on the first trial, resulting in the consumer's repeated purchase and use of the product or brand.

Q: In the hierarchy of effects, the consumer's actual first purchase and use of the product or brand is referred to as the _________ stage. a. adoption b. evaluation c. awareness d. interest e. trial

Q: In the hierarchy of effects, evaluation refers to a. the consumer's ability to recognize and remember the product or brand name. b. the consumer's appraisal of the product or brand on important attributes. c. an increase in the consumer's desire to learn about some of the features of the product or brand. d. a favorable experience on the first trial, resulting in the consumer's repeated purchase and use of the product or brand. e. the consumer's first actual purchase and use of the product or brand.

Q: In the hierarchy of effects, the consumer's appraisal of the product or brand on important attributes is referred to as the _________ stage. a. evaluation b. adoption c. awareness d. interest e. trial

Q: Ann's young son suffers from allergies and complains about his watery eyes and drowsiness. Ann felt bad because she thought there was nothing she could do to help him. When Ann saw the ad for a new drug that counters these symptoms in Martha Stewart Living magazine, she vowed to ask his doctor about this product on her son's next visit. Ann is at which stage in the hierarchy of effects? a. She is the trial stage and will move to the interest stage soon. b. She has moved quickly from the awareness stage to the interest stage. c. She was in the consumer development stage and will more than likely move to the transition stage. d. She is in the evaluation stage and will move to the interest stage soon. e. She was in the interest stage and then moved quickly to the diffusion stage.

Q: In the hierarchy of effects, interest refers to a. the consumer's ability to recognize and remember the product or brand name. b. the consumer's appraisal of the product or brand on important attributes. c. an increase in the consumer's desire to learn about some of the features of the product or brand. d. a favorable experience on the first trial, resulting in the consumer's repeated purchase and use of the product or brand. e. the consumer's first actual purchase and use of the product or brand.

Q: In the hierarchy of effects, an increase in the consumer's desire to learn about some of the features of the product or brand is referred to as the _________ stage. a. adoption b. evaluation c. awareness d. interest e. trial

Q: In the hierarchy of effects, awareness is defined as a. the consumer's first actual purchase and use of the product or brand. b. the consumer's repeated purchase and use of the product or brand. c. the consumer's appraisal of the product or brand on important attributes. d. an increase in the consumer's desire to learn about some of the features of the product or brand. e. the consumer's ability to recognize and remember the product or brand name.

Q: In the hierarchy of effects, the consumer's ability to recognize and remember the product or brand name is referred to as the _________ stage. a. adoption b. evaluation c. awareness d. interest e. trial

Q: The fifth stage in the hierarchy of effects is __________. a. interest b. awareness c. adoption d. trial e. evaluation

Q: The fourth stage in the hierarchy of effects is __________. a. interest b. awareness c. adoption d. trial e. evaluation

Q: The second stage in the hierarchy of effects is __________. a. interest b. awareness c. adoption d. trial e. evaluation

Q: The first stage in the hierarchy of effects is __________. a. interest b. awareness c. adoption d. trial e. evaluation

Q: A prospective buyer goes through a sequence of stages from initial awareness of a product to eventual action (either trial or adoption of the product). The stages include awareness, interest, evaluation, trial, and adoption, and are referred to as _________. a. the hierarchy of effects b. Maslow's hierarchy c. the purchase continuum d. the consumer-product cycle e. the consumer purchasing hierarchy

Q: For a promotional campaign, hierarchy of effects refers to the stages a prospective buyer goes through, which include: a. awareness, interest, evaluation, trial, and rejection. b. interest, adoption, and brand loyalty. c. cognitive, affective, and behavioral. d. awareness, interest, evaluation, trial, and adoption. e. see an ad, try the product, and buy the product.

Q: For a promotional campaign, the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action is referred to as _________. a. the purchase continuum b. the hierarchy of effects c. the product life cycle d. the consumer purchasing scale e. Maslow's hierarchy

Q: Promotional programs are specifically directed toward a group of prospective buyers, or a(n) __________. a. source b. diffuser c. encoder d. target audience e. particular media

Q: The group of prospective buyers toward which a promotion program is directed is referred to as a a. target audience. b. target selection. c. selected audience. d. prospective audience. e. media audience.

Q: The _________ is defined as the group of prospective buyers toward which a promotion program is directed. a. directed audience b. intended audience c. promotion audience d. selling audience e. target audience

Q: During the planning phase of the promotion program, marketers focus on the "four Ws," which include all of the following, in question form, EXCEPT: a. "What are (a) the promotion objectives? (b) the amounts of money that can be budgeted for the promotion program? and (c) the kinds of copy to use?" b. "Why is the promotion being done?" c. "When should the promotion be run?" d. "Who is the target audience?" e. "Where should the promotions be run?"

Q: During the evaluation phase of an IMC program, a firm will __________ and make needed changes. a. posttest the promotion b. design the promotion c. state the mission e. carry out the promotion d. identify possible advertising or promotional firms

Q: During the implementation phase of an IMC program, a firm will pretest the promotion and __________. a. posttest the promotion b. design the promotion c. state the mission d. carry out the promotion e. identify possible advertising or promotional firms

Q: During the implementation phase of an IMC program, a firm will __________ and carry out the promotion. a. posttest the promotion b. design the promotion c. state the mission d. identify possible advertising or promotional firms e. pretest the promotion

Q: During the planning phase of an IMC program, a firm will identify the target audience, specify the promotion objectives, set the budget, select the right promotional tools, __________, and schedule the promotion. a. pretest the promotion b. design the promotion c. state the mission d. identify possible advertising or promotional firms e. carry out the promotion

Q: During the planning phase of an IMC program, a firm will identify the target audience, specify the promotion objectives, set the budget, __________, design the promotion, and schedule the promotion. a. pretest the promotion b. state the mission c. identify possible advertising or promotional firms d. carry out the promotion e. select the right promotional tools

Q: During the planning phase of an IMC program, a firm will identify the target audience, __________, set the budget, select the right promotional tools, design the promotion, and schedule the promotion. a. specify the promotion objectives b. pretest the promotion c. state the mission d. identify possible advertising or promotional firms e. carry out the promotion

Q: During the planning phase of an IMC program, a firm will __________, specify the promotion objectives, set the budget, select the right promotional tools, design the promotion, and schedule the promotion. a. pretest the promotion b. identify the target audience c. state the mission d. identify possible advertising or promotional firms e. carry out the promotion

Q: The first decision in developing the promotion program is to __________. a. set the budget b. state the mission c. identify the target audience d. select the appeal e. select the media

Q: The actions a firm takes during the promotion decision process include __________, executing, and assessing the promotion program. a. pretesting b. developing c. stating the mission d. selecting the appeal e. selecting the media

Q: Figure 1. The promotion decision process is divided into three phases. In Figure 1. above, "C" refers to the _________ phase. a. planning b. implementation c. forecasting d. discharge e. evaluation

Q: Figure 1. The promotion decision process is divided into three phases. In Figure 1. above, "B" refers to the _________ phase. a. scheduling b. development c. implementation d. evaluation e. planning

Q: Figure 1. The promotion decision process is divided into three phases. In Figure 1. above, "A" refers to the _________ phase. a. planning b. forecasting c. evaluation d. realization e. implementation

Q: Many prescription drugs such as Lipitor have national TV advertising campaigns to encourage patients to learn more about the drugs and ask for them by name from their doctors. The manufacturers of these drugs are using a(n) __________ promotional strategy. a. intense b. pull c. push d. inertia e. exclusive

Q: The manufacturers of drugs encourage patients to learn more about the drugs and ask for them by name from the doctor. The manufacturers of these drugs are using a(n) __________ promotional strategy. a. pull b. intense c. push d. inertia e. exclusive

Q: Pharmaceutical companies now spend more than $4 billion annually on __________ prescription drug advertising to complement traditional personal selling and free samples directed only at doctors. a. consumer integrated b. doctor cohort c. informational DVD d. direct-to-consumer e. customized on-line

Q: A pull strategy is when a manufacturer a. advertises a great deal to its wholesalers, retailers, and ultimate consumers with the use of nationwide advertising campaigns. b. forces a retailer to promote its product by placing national brand ads in local newspapers. c. directs the promotional mix at ultimate consumers to encourage them to ask retailers for the product. d. directs the promotional mix toward channel members to gain their cooperation in ordering and stocking the product. e. directs retailers to promote one product over another to help balance fluctuations in inventory.

Q: Directing the promotional mix at ultimate consumers to encourage them to ask retailers for the product is referred to as a(n) __________. a. push strategy b. intense strategy c. inertia strategy d. exclusivity strategy e. pull strategy

Q: Chrysler Corporation provides support and incentives for its Chrysler and Jeep dealers. Through a multilevel program, Chrysler provides incentives to reward dealers for meeting sales goals. Dealers receive an incentive when they are near a goal, another when they reach a goal, and a larger incentive if they exceed sales projections. All of these actions are intended to encourage Chrysler dealers to __________ the Chrysler products through the channel to consumers. a. dump b. pull c. unload d. no haggle e. push

Q: When a manufacturer directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product, it is using a(n) __________ strategy. a. push b. pull c. inertia d. exclusivity e. logistics

Q: A push strategy is when a manufacturer a. advertises a great deal to its wholesalers, retailers, and ultimate consumers with the use of nationwide advertising campaigns. b. directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product. c. forces a retailer to promote its products by placing national ads in local newspapers. d. directs its efforts in the form of advertising and sales promotions to ultimate consumers to encourage them to ask the retailer for the product. e. directs retailers to promote one product over another to help balance fluctuations in inventory.

Q: Figure 1. Channel "B" in Figure 1. above represents which type of promotional channel strategy? a. direct b. indirect c. push d. pull e. vertical

Q: Figure 1. Channel "A" in Figure 1. above represents which type of promotional channel strategy? a. direct b. indirect c. push d. pull e. vertical

Q: During the postpurchase stage of the consumer purchase decision process, marketers want to reduce postpurchase anxiety for their customers. Which of the following would be most useful for accomplishing this objective? a. advertising only b. personal selling only c. sales promotion and advertising d. publicity and advertising e. advertising and personal selling

Q: In the prepurchase stage of the consumer purchase decision process, a. trade promotions are more effective than personal selling. b. publicity is the most effective promotion tool. c. advertising is more helpful than personal selling. d. personal selling is more effective than advertising. e. personal selling is the most effective way to communicate with potential buyers.

Q: Figure 1. In Figure 1. above line "D" shows that __________, a tool of the promotion mix, is least important during the purchase stage of the consumer purchase decision process. a. advertising b. public relations c. communication d. sales promotion e. personal selling

Q: Figure 1. In Figure 1. above line "C" shows that __________, a tool of the promotion mix, is highest in importance during the prepurchase stage of the consumer purchase decision process. a. advertising b. public relations c. communication d. sales promotion e. personal selling

Q: Figure 1. In Figure 1. above line "B" shows that __________, a tool of the promotion mix, is highest in importance during the purchase stage of the consumer purchase decision process. a. advertising b. public relations c. communication d. sales promotion e. personal selling

Q: Figure 1. In Figure 1. above, line "A" shows that __________, a tool of the promotion mix, is highest in importance during the purchase stage of the consumer purchase decision process. a. advertising b. public relations c. communication d. sales promotion e. personal selling

Q: With many industrial products and consumer purchases, ancillary services are an important consideration in selecting the promotional mix. The role of __________ is important to establish the seller's reputation. However, __________ is essential for building buyer confidence and providing evidence of customer service. a. direct marketing; personal selling b. personal selling; direct marketing c. advertising; personal selling d. sales promotion; advertising e. public relations; direct marketing

Q: In terms of product characteristics, the greater the risk, the greater the need for __________ as a key element of the promotional mix. a. advertising b. personal selling c. sales promotion d. publicity e. public relations

Q: With respect to a product for which a promotional mix is being developed, risk a. refers to the degree of service or support required after the sale. b. refers to the technical sophistication of the product and hence the amount of understanding required to use it. c. in a product means there should be less emphasis on personal selling. d. can be assessed in terms of financial, social, and physical aspects. e. is irrelevant.

Q: A product characteristic known as __________ is relevant to promotional mix decisions and has financial, social, and physical components. a. risk b. complexity c. ancillary services d. empathy e. synergy

Q: The Olympus Eye Trek is a device that 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 product works. This Olympus Eye Trek is most likely high in __________. a. user friendliness b. complexity c. risk d. synergy e. accessibility