MKTG Final Exam Flashcards Part 2

True or False? A company that offers the same services as its competition has a competitive advantage.
False
True or False? Noise refers to anything that interferes with, distorts, or slows down the transmission of information.
True
True or False? Persuasive promotion is used to keep the product and brand name in the public’s mind.
False
True or False? Publicity refers to the public information about a company, product, service, or issue appearing in the mass media as a news item.
True
True or False? Personal selling, unlike other promotional mix elements, is independent of the Internet.
False
True of False? Social media rely on the idea of repetition of the brand message.
False
True or False? Earned media is a category of promotional tactic based on a public relations or publicity model that gets customers talking about products or services.
True
True or False? Owned media is often used as another term for content marketing.
True
True or False? Social media are a more immediate form of two-way communication than personal selling.
False
True or False? Sales promotion’s greatest strength is in creating strong desire and purchase intent.
True
True or False? Advertising increases as a product enters the decline stage of its life cycle.
False
True or False? Personal selling is not required when buyers are well informed and geographically dispersed.
False
True or False? Print advertising can be used to sell goods and services to potential customers who are hard to locate.
True
True or False? Print advertising does not involve using the Internet.
False
True or False? ​Consumers making routine buying decisions are more extensively involved in the decision-making process than consumers making complex buying decisions.
False
_____ refers to communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.​
Promotion
The managers at Pork Farm Inc., a meat packing company, want to create more consumer demand for the company’s products that are being overshadowed by its competitors. They have a meeting to decide the effective communication strategies that can be used to increase the popularity of Pork Farm Inc.’s products among customers by highlighting their company’s products. In this scenario, the managers at Pork Farm Inc. are developing a _____.​
Promotional Strategy
The researchers at Beans Inc., a coffee manufacturing company, developed a new variety of high-quality ground coffee. The new variety was priced at a comparatively lower price than those available in the market. Therefore, the advertisements for the product stated, “The highest quality coffee does not have to be expensive.” This is an example of communicating a product’s _____.​
Competitive Advantage
_____ is the process by which meanings are exchanged or shared through a common set of symbols.​
Communication
Bag TV, a commercial television broadcast network, uses billboards, television, magazines, and newspaper advertising to create awareness about upcoming shows and to inform viewers about the new episodes of its existing shows. Bag TV uses _____ to promote its television programs.​
Mass Communication
As receivers in the communication process, marketers:​
listen to the target market in order to develop appropriate messages.
Advent Automobiles Inc. launches a new sport utility vehicle (SUV). It develops a marketing message and places advertisements in leading newspapers and on social media sites to inform consumers about the new SUV and its various features. In the context of the communication process, Advent Automobiles Inc. is the _____.​
sender
A difference between interpersonal communication and mass communication is that:​
​reception level is high in interpersonal communication, whereas it is low in mass communication.
_____ seeks to convert an existing need into a want or to stimulate interest in a new product.​
​Informative promotion
_____ is designed to stimulate a purchase or an action.​
Persuasive promotion
Dernz Inc., a food manufacturing company, markets tomato ketchup globally. As its consumers are well aware of the uses of ketchup, the company does not have to generate product awareness. The company, however, wishes to focus on convincing consumers to buy Dernz’s ketchup instead of other brands’ ketchup. In this scenario, Dernz Inc. must employ _____.​
Persuasive promotion
The _____ is the combination of advertising, personal selling, sales promotion, social media, and public relations that is used to reach a target market and fulfill an organization’s overall goals.​
promotional mix
A proper promotional mix is one that:​
meets the needs of a target market
Which of the following is a characteristic of the elements of a promotional mix?​
A. ​All elements of the promotional mix entail direct, one-way communication.
B. Managerial emphasis is the minimum for the most important element in the promotional mix.
C. The most important promotional element receives the least funding in the promotional mix.
D. Data influences how marketers distribute funding among the various elements of the promotional mix
D. Data influences how marketers distribute funding among the various elements of the promotional mix
A benefit of advertising is that:​
it has a very low cost per contact.
To increase its revenue, Sky Airlines, an airline company, decides to promote well-known companies in its in-flight magazine. These companies would pay a fixed price to Sky Airlines to print their promotional messages in the in-flight magazine. In the context of the promotional mix, the in-flight magazine is being used for _____.​
advertising
The objective of public relations is:​
​to educate the public about a company’s goals and objectives.
King’s Crown, a beverage company, launches a new energy drink. It sponsors a marathon in the city as part of its promotional strategy. Moreover, it issues a press release about the sponsorship and persuades media reporters of different newspapers to print it. King’s Crown is generating _____.​
publicity
Wild Plus, a television channel dedicated to wildlife, wanted to promote its new wildlife adventure series. The series received wide coverage in newspapers and on television, which created awareness about Wild Plus and led to a large viewership. Wild Plus engaged in:​
public relations
_____ consists of all marketing activities that stimulate consumer purchasing and dealer effectiveness.​
Sales promotion
Which of the following statements is true of sales promotions?​
A. ​It is a long-run tool used by marketers.
B. It complements advertising by yielding faster sales responses.
C. ​It is allotted less marketing money than advertising.
D. ​It uses personal selling, advertising, and public relations.
B. It complements advertising by yielding faster sales responses.
Threads Inc., an apparel manufacturing company, employs personal selling to market goods. Its employees handcraft products that are then marketed by a professional team. In this case, which of the following strategies can be adopted by Threads Inc.?​
A. Generating large amounts of publicity quickly
B. ​Refraining from educating the public about the company’s goals and objectives
C. Making planned presentations to prospective buyers
D. Refraining from advertising and public relations
C. Making planned presentations to prospective buyers
An objective of a seller engaging in personal selling is:​
​to persuade a buyer to accept a point of view.
Unlike traditional methods of personal selling, relationship selling:​
focuses on maintaining a loyal relationship between a salesperson and a customer.
_____ is based on the traditional advertising model, whereby a brand offers money for media space.​
Paid media
A difference between paid media and earned media is that unlike paid media, earned media:​
​is created when people talk and share content on social media.
Doodle Inc., a renowned interior design services company, tries to increase its customer base through Web presence. It regularly posts its interior decorations on its Web site, and its followers can review the designs, suggest changes, and recommend the company to their friends. This results in electronic word of mouth advertising. Doodle uses social media as a(n) _____.​
earned media
Roar Bros., a beverage manufacturing firm, has recently launched a new energy drink. To make consumers aware of the new drink and to stimulate their interest in it, the managers at Roar Bros. want to use owned media to promote their new product. In this case, the managers at Roar Bros. will most likely:​
make short commercials for the energy drink and upload it on YouTube
Which of the following is a difference between social media and personal selling?​
A. ​Social media can disperse a message quickly to a wide audience, while personal selling is very slow in dispersing a message to a large audience.
B. Social media entails two-way communication, while personal selling entails one-way communication.
C. ​Social media is a means of interpersonal communication, while personal selling is a means of mass communication.
D. ​Social media provides opportunity for immediate feedback, while personal selling does not provide opportunity for direct feedback.
A. ​Social media can disperse a message quickly to a wide audience, while personal selling is very slow in dispersing a message to a large audience.
The _____ is a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with a promotional message.​
AIDA model
Which of the following is a reason for the increasing popularity of the integrated marketing communications (IMC) concept?​
A. More selectively segmented markets have replaced the traditional broad market groups.
B. ​Marketers have discontinued the use of online advertising due to its lack of measurability.
C. Proliferation of thousands of media choices beyond traditional television has made promotion easier.
D. Marketers have increased their advertisement spending for promotional techniques that generate gradual sales responses.
A. More selectively segmented markets have replaced the traditional broad market groups
The basic goal of promotion during the introduction stage of the product life cycle is:​
​to inform the target audience that the product is available.
As a product reaches the growth stage of its life cycle, _____.​
sales promotion can be reduced​
Which of the following statements is true of buying decisions?​
A. The type of buying decision does not affect the promotional mix of an organization.
B. Consumers are the not involved in complex buying decisions.
C. Print advertising may be used for high-involvement purchase decisions.
D. ​Personal selling is most effective in helping consumers in routine decisions.
C. Print advertising may be used for high-involvement purchase decisions.
_____ is a promotional element with a very low cost per contact.​
Social media
Fournotts Bros. is a firm that designs and manufactures women’s apparel. It sells its merchandise to retailers to handle them. Given this information, which of the following statements is true of Fournotts Bros.?​
A. ​Its retailers convince consumers to buy Fournotts Bros.’s products.
B. ​It uses a pull strategy to sell its merchandise.
C. ​It uses introductory consumer advertising as a part of its strategy.
D. It focuses its promotional efforts on end consumers or opinion leaders.
A. ​Its retailers convince consumers to buy Fournotts Bros.’s products.
A _____ requires a manufacturer to focus its promotional efforts on end consumers.​
​pull strategy
Which of the following is a difference between a push and a pull strategy?​
A. Social media is used in a push strategy, while personal selling is used in a pull strategy.
B. Wholesalers are targeted in a push strategy, while end consumers are targeted in a pull strategy.
C. ​A push strategy focuses on content marketing, while a pull strategy focuses on offering aggressive discounts.
D. No intermediaries are involved in a push strategy, while wholesalers and retailers are involved in a pull strategy.
B. Wholesalers are targeted in a push strategy, while end consumers are targeted in a pull strategy.
Which of the following strategies can be used by a firm that uses a pull strategy?
A. Offering aggressive discounts for retailers to buy its products
B. Using trade advertising
C. Offering heavy sampling and introductory consumer advertising
D. Selling products to wholesalers
C. Offering heavy sampling and introductory consumer advertising
True or False? Serious or emotional advertisements are largely used to change people’s deeply rooted values and attitudes.
False
True or False? ​Advertising can affect the way consumers rank a brand’s attributes.
True
True or False? Corporations often use advocacy advertising to express their views on controversial issues.
True
True or False? The Federal Trade Commission does not allow the identification of competing brands in comparative advertising.
False
True or False? A product’s benefit is simply a feature of the product such as its easy-open package, special formulation, or new lower price.
False
True or False? Evaluating an advertising campaign is the simplest part of the advertising process because the factors that determine the effectiveness of an ad are limited and clear.
False
True or False? In the context of campaign evaluation, testing ad effectiveness can be done only after the advertising campaign is over.
False
True or False? The selection of media is not dependent on promotional objectives, the appeal, or executional style of advertising.
False
True or False? Newspapers and magazines have a high noise level.
True
True or False? Unlike radio, a magazine has a relatively long life span, which is further increased by a high pass-along rate.
True
True or False? Experiential marketing involves minimal engagement with a brand’s consumers.
False
True or False? In a free-press environment, publicity is easily controlled in a crisis.
False
True or False? A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.
False
True or False? Intermediaries receive push money as a bonus for pushing the manufacturer’s brand through the distribution channel.
True
Laelle Corp., a furniture manufacturing company, uses marketing efforts like paid television commercials and magazine inserts to publicize its products. These are examples of activities associated with:
​advertising.
Which of the following is an example of unmeasured media ad spending?
A. Cable Tv
B. Magazines
C. Catalogs
D. Newspapers
C. Catalogs
New brands with a small market share tend to spend proportionately more for advertising and sales promotion than those with a large market share because:
a certain minimum level of exposure is needed to measurably affect purchase habits.
Understanding the advertising response function helps marketers:
​use their advertising budgets wisely to suit the target market.
Tread Inc. is the market leader for sports shoes in the subcontinent of Gavon. Though the brand has not introduced any new product lines over the past decade, its signature products enjoy a high demand and have always remained popular. According to the concept of advertising response function, which of the following should be Tread Inc.’s advertising strategy?
A. ​It should have a large budget for advertising expenditures.
B. ​It should spend proportionately less on advertising than on a newer line.
C. ​It should penetrate consumers’ perceptual defenses and affect purchase intentions.
D. ​Its advertisements should easily affect target consumers’ deeply rooted values and attitudes.
B. ​It should spend proportionately less on advertising than on a newer line.
In the context of the effects of advertisements, humorous advertisements:
are effective at shaping attitudes when consumers already have a positive image of an advertised brand.
If the goal of the promotion plan is to improve the image of the company or the industry, _____ may be used.
institutional advertising
If an advertiser wants to enhance the sales of a specific good or service, _____ should be used.
product advertising
Pioneering advertising is heavily used during the _____ of the product life cycle.
introductory stage
Which of the following statements is true of pioneering advertising?
A. ​It offers consumers in-depth information about the benefits of the product class.
B. It is heavily used during the growth stage of the product life cycle.
C. It focuses on influencing demand for a specific brand over other brands.
D. ​It is used mainly to compare brands on one or more specific attributes.
A. ​It offers consumers in-depth information about the benefits of the product class.
Firms use competitive or brand advertising when a product enters the _____ of the product life cycle and other companies begin to enter the marketplace.
growth stage
_____ is a form of advertising designed to influence demand for a specific brand.
Competitive advertising
Identify a true statement about an advertising campaign.
A. ​It contains a wide variety of themes and slogans.
B. It extends for a defined period of time.
C. It cannot focus on more than one advertising appeal.
D. ​It follows the Boston Consulting Group’s matrix.
B. It extends for a defined period of time.
Advertising campaigns follow the _____.
AIDA model
Which of the following is a difference between an attribute and a benefit of a product?
A. ​An attribute includes pleasure or improved health, while a benefit includes an easy-open package or a special formulation.
B. ​An attribute cannot be experienced by consumers, while a benefit is tangible and can be experienced.
C. ​An attribute is bought by consumers, while a benefit is not bought by consumers.
D. An attribute is simply a feature of a product, while a benefit is what consumers receive by using a product.
D. An attribute is simply a feature of a product, while a benefit is what consumers receive by using a product.
Advertisements of Brita LED Lightings are in the form of comparative advertising to emphasize the benefits of using LEDs over CFLs. The ads emphasize that Brita’s LEDs cost less than CFLs or other brands’ LEDs, last longer, consume lesser energy, and need to be replaced fewer times than CFLs. In this case, which of the following advertising appeals is used in these ads?
A. Admiration
B. Profit
C. Vanity and egotism
D. Health
B. Profit
Duski, a very expensive brand of clothing and accessories, promotes its products by using advertisements that feature beautiful women clothed in its brands. Given this information, which of the following advertising appeals is used by Duski?
A. Health
B. Environmental consciousness
C. Profit
D. Vanity and egotism
D. Vanity and egotism
Which of the following statements is true of executional styles?
A. Executional styles often dictate what type of media is to be employed to convey the message.
B. Injecting humor into an advertisement is the least effective executional style.
C. ​A message can be easily communicated through humor in print or magazine advertising.
D. ​Scientific executional styles lend themselves well to billboard advertising.
A. Executional styles often dictate what type of media is to be employed to convey the message.
Magnira Corp., a manufacturer of hygiene and personal care products, launches a new toothpaste “Tidy” that is more effective in maintaining oral hygiene than other brands. The advertisements of Tidy provide highly valid research information. This is an example of _____.
scientific executional style
_____ is the channel used to convey a message to a target market.
​A medium
A disadvantage of newspaper advertising is that:
​it may not be the best vehicle for marketers trying to reach a very narrow market.
Which of the following statements is true of cooperative advertising?
A. It does not allow retailers to devote effort to the manufacturer’s lines.
B. It resolves the impracticality of listing all the dealers of the brand in national advertising.
C. ​It doubles the revenue generation for the retailer.
D. ​It cannot be used for advertising through radio.
B. It resolves the impracticality of listing all the dealers of the brand in national advertising.
An alternative to a commercial spot is _____, a thirty-minute or longer advertisement, which is relatively inexpensive to produce and air.
the infomercial
Which of the following is an advantage of using cost per contact to determine the media mix for a product?
A. ​It allows advertisers to increase an ad’s effectiveness by reaching potential customers.
B. It enables an advertiser to compare the relative expenses of specific media vehicles.
C. It requires advertisers to pay only for the customers who view their ad.
D. ​It allows marketers to minimize the cost of advertising by reaching a large number of people.
B. It enables an advertiser to compare the relative expenses of specific media vehicles.
Reach is related to a medium’s ratings, generally referred to in the industry as:
gross ratings points.
_____ is the number of times an individual is exposed to a given message during a specific period.
Frequency
_____ is the ability of an advertising medium to reach a precisely defined market.
​Audience selectivity
Unlike magazine advertising, radio advertising:
provides maximum flexibility
At Rue’s Hunting Emporium, a retail store, equipment required for hunting is sold. When a new or revised equipment is introduced, it advertises those products steadily throughout a planned period of time. This is an example of a _____.​
​continuous media schedule
A _____ is a media scheduling strategy in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times.
​flighted media schedule
_____ is the element in the promotional mix that evaluates people’s attitudes, identifies issues that may elicit their concern, and executes programs to gain their understanding and acceptance.​
Public relations
_____ is a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events.​
Product placement
Fournotts Corp., a sports shoe manufacturer, launched a new sports shoe. As a part of publicity, it invited its customers to try the shoes and get a feel of its features. This is an example of _____.​
​experiential marketing
Which of the following is a similarity between trade sales promotion and consumer sales promotion?
A. Both focus on providing incentives to consumers or wholesalers to make an immediate purchase.
B. ​Both focus on providing push money and trade allowance to loyal consumers.
C. Both aim to increase sales by using point-of-purchase display.
D. ​Both aim to segment a market based on its characteristics.
A. Both focus on providing incentives to consumers or wholesalers to make an immediate purchase.
Kriyoto Inc. is a manufacturer of printers, scanners, and other office equipment. It announced a cash refund for corporate purchases in quantities more than ten. Rick purchased 20 color printers for his office from Kriyoto during this sale. To avail the cash refund, he had to mail in a proof of purchase, purpose of purchase, proof of his company’s legality, and his cash register receipt. In this case, Rick has received a:
​rebate.