Deck 13: Promotion and Pricing Strategies

Question 1

When marketers attempt to establish their product in the minds of the consumer, they are utilizing _________________________.

A) product placement
B) coercion
C) positioning
D) subliminal perception

Answer 1

C

Question 2

Displays or demonstrations that promote products when and where consumers buy them, such as in retail stores, are considered _________________________________.

A) in-store advertising
B) product samples
C) specialty advertising
D) point-of-purchase advertising

Answer 2

C

Question 3

Promotion is the same as advertising.
a) True
b) False

Answer 3

False

Question 4

Reminder-oriented advertising is often used during the ___________ stage(s) of the product life cycle to maintain awareness of the importance and usefulness of the product, concept, or institution.

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

Question 5

A salesperson tells the product's story during the ______ step of the sales process.

A) qualifying
B) demonstration
C) closing
D) presentation

Question 6

Six out of every ten sales promotion dollars are spent on _______________________.

A) premiums
B) samples
C) contests
D) coupons

Question 7

Sales promotion consists of all of the following except _________________________.

A) coupons
B) product samples
C) advertising
D) rebates

Question 8

When Tylenol mentions in its advertising that it doesn't upset the stomach like aspirin, what type of advertising is it using?

A) informative
B) comparative
C) persuasive
D) reminder-oriented

Question 9

Dawn operates a small marine service company. She has an up-to-date customer database with names, addresses, and past-purchase data. She wants to offer her customers a pre-season special on engine tune-ups. The best form of advertising would be __________________________.

A) a magazine ad
B) a local TV spot
C) a direct-mail postcard
D) flyers distributed in the mail

Question 10

Advertising, sales promotion, direct marketing, and public relations are all types of ____________________.

A) nonpersonal selling
B) personal selling
C) publicity
D) promotion

Question 11

What type of activity might involve hiring someone to wear a sandwich board with an advertisement for a particular product?

A) guerrilla marketing
B) personal selling
C) institutional advertising
D) persuasive marketing

Question 12

T-shirts, free pens, or refrigerator magnets are examples of ______________________.

A) give aways
B) product samples
C) specialty advertising
D) promotional objects

Question 13

Nancy sells textbooks to college professors by visiting their offices. What type of activity is this?

A) direct marketing
B) personal selling
C) face-to-face promotion
D) promotional marketing

Question 14

One of Canada's leading types of advertising media is _______________________.

A) magazines
B) flyers
C) direct mail
D) television

Question 15

Personal selling works best when _________________________________.

A) customers are geographically dispersed
B) the product has a relatively high price
C) the distribution channel is intensive and includes many channel members
D) the product is simple to understand and frequently purchased

Question 16

The manager at Price-Rite grocery store created an end-of-aisle display featuring healthy snack food and beverages. His goal was to _____________________________.

A) differentiate the products
B) provide information
C) accentuate the products' value
D) increase sales

Question 17

Procter & Gamble's online forum, Capessa, and the Tremor campaign, which relies on influential teenagers to generate interest for its products, are examples of _______________.

A) marketing communication.
B) advertising.
C) personal selling.
D) sales promotion.

Question 18

Local advertising is currently dominated by ___________________________.

A) TV
B) radio
C) billboards
D) newspaper

Question 19

The goal of integrated marketing communications is to ________________________.

A) give the customer many opportunities to buy
B) create a unified promotional approach
C) target messages to completely separate audiences with little overlap
D) take advantage of viral marketing

Question 20

Which type of advertising tries to improve the competitive status of a product, institution, or concept?

A) informative
B) comparative
C) persuasive
D) reminder-oriented

Question 21

The skimming pricing strategy would work best for __________________________.

A) an existing product that was being repositioned in the marketplace
B) a unique product that would be difficult for competitors to copy
C) a product nearing the end of the maturity phase of the product life cycle
D) convenience goods

Question 22

When companies promote products to channel members, rather than to end users, they are using a ________ strategy.

A) indirect
B) short
C) pulling
D) pushing

Question 23

A consumer's perception of product quality is closely related to the item's ___________.

A) price
B) distribution method
C) promotional strategy
D) benefits

Question 24

Consumer products depend more heavily on pushing strategies than do B2B products.

Question 25

A breakeven point in pricing will cover all fixed costs and some variable costs.

Question 26

The breakeven point _______________________________________.

A) ensures profit maximization
B) is the same as the market clearing price
C) is always lower than the amount demanded by consumer.
D) is the level of sales that will generate enough revenue to cover total costs

Question 27

What promotional strategy listed below is used to promote a specific brand?

A) primary demand
B) integrated marketing communications
C) selective demand
D) secondary demand

Question 28

A ________ strategy is used to generate consumer demand.

A) pulling
B) cooperative
C) volume
D) pushing

Question 29

When you call a toll-free number to get information on a product, you are participating in _____________________________.

A) outbound telemarketing
B) inbound telemarketing
C) information promotion
D) B2B marketing

Question 30

The skimming pricing strategy is usually used during the decline stage of the product life cycle.

Question 31

The _________ strategy attempts to promote a product by generating consumer demand for it primarily through advertising and sales promotion appeals.

A) pushing
B) publicity
C) word-of-mouth
D) pulling

Question 32

Research shows that consumer perception of quality is closely related to an item's price.

Question 33

Exclusiveness is often obtained through a _________ pricing strategy.

A) limited
B) highball
C) prestige
D) elite

Question 34

A pricing strategy that sets prices low in order to penetrate the market is called a __________ strategy.

A) skimming
B) penetrating
C) even pricing
D) new pricing

Question 35

Guerilla marketing ___________________________________________.

A) targets hard-to-reach consumers
B) is only effective for large corporations
C) works best in urban areas
D) is an innovative, low-cost approach to marketing

Question 36

Retailers often reduce the price of pencils and crayons during the back-to-school selling season. This is an example of __________________________.

A) volume pricing
B) pricing to achieve profitability goals
C) prestige pricing
D) psychological pricing

Question 37

______ pricing causes consumers to believe they are buying for less.

A) Odd
B) Even
C) Skim
D) Demand

Question 38

The Green Thumb Lawn Service mails postcards in September offering fall and winter clean-up specials. This is an example of __________________________________.

A) providing information about a new service
B) accentuating product value by comparing a professional service to the quality of work done by homeowners
C) an effort to stabilize sales after the summer lawn care season ends
D) increasing sales by capitalizing on impulse purchases

Question 39

________ is the sum of total variable costs and total fixed costs.

A) Breakeven
B) Total costs
C) Total revenue
D) Cost-based pricing

Question 40

Consumers associate odd prices with products that cost less or are on sale.