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In which of the following situations would use of the competitive parity budget-setting method be most appropriate?


A) Two or more companies are competing with similar products and similar promotional goals.
B) Two or more companies are introducing a totally new product to the market.
C) Two or more companies exist in an oligopoly, and are planning on a product diversification strategy.
D) Two or more companies exist in pure competition and compete on the basis of product differentiation.

E) A) and B)
F) A) and D)

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All of the following are aspects of the development stage of the promotion program,EXCEPT


A) understanding who is the target market
B) understanding the budget for the promotion program
C) deciding where the promotion should be run
D) developing the product

E) A) and B)
F) A) and C)

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In a brainstorming session for a new drug to lower cholesterol,the members of the marketing department agreed the benefits of the new drug could best be promoted by comparing the drug to those currently on the market.In terms of the communication process,the transformation of this idea into an ad campaign is an example of:


A) encoding.
B) receiving.
C) decoding.
D) messaging.

E) A) and B)
F) None of the above

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Which of the following statements describes a disadvantage associated with personal selling?


A) Presentations often provide little opportunity for consumer feedback.
B) Personal selling permits far too much wasted coverage.
C) There may be inconsistency from one salesperson to another.
D) A salesperson cannot control to whom a presentation is made.

E) B) and D)
F) All of the above

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Kraft Canada created an advertisement for its Cheez Whiz processed cheese spread.In terms of the communication process,the _____ in the ads for Cheez Whiz informed prospective customers that Cheez Whiz was a healthy and nutritious cheese spread.


A) communication channel
B) message
C) decoder
D) source

E) A) and C)
F) A) and B)

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Instead of sending or receiving messages to a 10-digit phone number,some companies use a six digit number (665766) that spells out a brand name.The use of this number is called:


A) simplicity in the message
B) common short code (CSC)
C) cooperation of cell phone service providers
D) short message service (SMS)

E) B) and C)
F) A) and D)

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The Canadian Tourism Commission (CTC) created several "Canada,Keep Exploring" advertisements to be aired in France,Germany,and the UK.In terms of the communication process,the _____ in the "Canada,Keep Exploring" advertisements informed Europeans that they should consider Canada for a unique and authentic vacation.


A) communication channel
B) message
C) decoder
D) source

E) None of the above
F) A) and B)

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E-mail newsletters and ezines are a great way to direct interested readers to the site to learn more.These tools would be used for:


A) Direct order consignment
B) Lead generation
C) Traffic generation
D) Indirect order fulfillment

E) C) and D)
F) None of the above

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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:


A) remind customers that such a product exists.
B) increase the level of customer awareness of the product.
C) differentiate the product from all other medications.
D) support a product penetration distribution strategy.

E) A) and D)
F) A) and C)

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Figure: 16-3 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? A) Introduction B) Growth C) Maturity D) Decline -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?


A) Introduction
B) Growth
C) Maturity
D) Decline

E) None of the above
F) All of the above

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Cadbury connected their television commercials of 'Joyville' the place where Cadbury Dairy Milk Bubbly is made to 'floating' chocolate bars:


A) in transit shelters
B) online using banner ads
C) beside highway billboards
D) with Twitter promotions

E) B) and D)
F) B) and C)

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Personal selling would most likely be used to sell:


A) dog dandruff shampoo.
B) a retail website design.
C) fresh produce.
D) a bottle of soda.

E) B) and C)
F) A) and D)

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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?


A) Devote 40 percent of the promotional budget to sales promotion that supply the public with demonstration diskettes to prove the merits of Albert Searchware.
B) Spend 30 percent of the budget in the effort to generate publicity for Albert Searchware.
C) Use the majority of its promotional budget on advertising that focuses on creating brand awareness.
D) Encourage its sales force to emphasize the superiority of Albert Searchware and their after-sale support.

E) A) and B)
F) None of the above

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All-you-can-afford budgeting is a budgeting method:


A) that allocates funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold.
B) that matches the competitor's absolute level of spending or the proportion per point of market share.
C) that allocates funds to promotion only after all other budget items are covered.
D) whereby the company determines its promotion objectives, outlines the tasks necessary to accomplish these objectives, and determines the promotion cost of performing these tasks.

E) B) and C)
F) A) and D)

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At which stage in the product life cycle would a company's promotional objective most likely be to increase the level of consumer awareness?


A) introduction
B) growth
C) maturity
D) decline

E) A) and B)
F) A) and C)

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Each of the following occurrences can be construed as noise EXCEPT:


A) Ann sees an ad for Claritin, a medicine perfect for counteracting her allergy symptoms so she calls her doctor and asks for a prescription.
B) The radio commercial gives the wrong address for the advertiser's store.
C) The salesperson tells the buyer that the software he is selling contains smart tags, and the customer does not understand.
D) Mack does not see the ad for the new Route 66 club because he is more interested in the news article on the opposite page.

E) B) and C)
F) All of the above

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Like personal selling,_____ often consists of interactive communication.


A) direct marketing
B) advertising
C) a sales promotion
D) publicity

E) A) and B)
F) A) and C)

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Adding QR codes to products that allow consumers to connect with the company online,or using a hashtag in a commercial or during a television show are examples of how advertisers are trying to increase:


A) consumer engagement
B) consumer sharing
C) consumer purchasing
D) consumer networking

E) A) and B)
F) B) and C)

Correct Answer

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The best approach to budgeting is objective and task budgeting,whereby the company determines its promotion objectives,outlines the tasks to accomplish those objectives,and:


A) asks the ad agency for an estimate.
B) asks the media to propose a program.
C) determines the promotion cost of performing those tasks.
D) determines what spending level top management will allow for the proposed program.

E) A) and B)
F) A) and C)

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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 to 4.5 percent of last year's gross sales.That will let me do more advertising than the 3.5 percent I budgeted last year." From this information,you know the small retailer used _____ budgeting.


A) percentage of sales
B) competitive parity
C) all-you-can-afford
D) objective and task

E) All of the above
F) None of the above

Correct Answer

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