Question 1

The total annual expenditures on advertising in the United States:

Accepted Answer

A) peaked last year at approximately $70 billion. 
B) have declined significantly as firms utilize the promotional opportunities of the Internet. 
C) Is very close to $300 billion. 
D) Have been capped at $200 billion by the government stimulus package.

Question 2

B2C salespeople spend more time prospecting their customers than do B2B salespeople.

Accepted Answer

A) True 
 B)False

Question 3

The activity that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance is called:

Accepted Answer

A) public research. 
B) public relations. 
C) public communication. 
D) public advocacy.

Question 4

In evaluating personal selling it is safe to conclude that it represents a form of individualized advertising.

Accepted Answer

A) True 
 B)False

Question 5

Lenora just finished writing a news release regarding a new product developed by her firm. She intends to email the message to local radio stations and newspapers in hopes that they will find the information newsworthy and run a story about the product. Lenora's efforts represent the firm's:

Accepted Answer

A) public relations. 
B) institutional advertising. 
C) secondary advertising. 
D) interactive marketing.

Question 6

Advertising on the Internet has become the number one medium and ranks ahead of newspapers and network television, based on total advertising expenditures.

Accepted Answer

A) True 
 B)False

Question 7

When developing the promotional campaign for a new product, the first step for a firm is to identify their target market.

Accepted Answer

A) True 
 B)False

Question 8

Depending upon the promotional campaign, advertising may include paid and non-paid forms of non-personal communication.

Accepted Answer

A) True 
 B)False

Question 9

Because customers eventually lose interest, businesses achieve the best results when they use sales promotion activities on a limited and irregular basis.

Accepted Answer

A) True 
 B)False

Question 10

The use of coupons and sales contests represent internal public relations and sampling activities.

Accepted Answer

A) True 
 B)False

Question 11

Registration in Professor McNick's classes reaches maximum enrollment quickly. Students register immediately online just to insure their seat in her class. One student summed it up, "Everyone's heard she is the best teacher on campus." Professor McNick's classes benefit from:

Accepted Answer

A) viral publicity. 
B) positive public relations. 
C) free advertising. 
D) word-of-mouth promotion.

Question 12

Advertising provides the public with free TV and radio programs.

Accepted Answer

A) True 
 B)False

Question 13

Internet advertising is rapidly growing and now ranks third in terms of total advertising expenditures.

Accepted Answer

A) True 
 B)False

Question 14

Coupons, contests, and sampling are examples of sales promotion activities.

Accepted Answer

A) True 
 B)False

Question 15

Massachusetts Manufacturing has redesigned its promotional strategy. The company now utilizes a system that combines all the elements of their promotion mix to create a more responsive organization providing a consistent message. Massachusetts Manufacturing has adopted a(n):

Accepted Answer

A) internal marketing program. 
B) integrated marketing communication system. 
C) multilevel coordination plan. 
D) stakeholder response system.

Question 16

The free tickets, backstage passes and merchandise firms give to people who agree to hype products through Internet chat rooms are called:

Accepted Answer

A) virtual sweeteners. 
B) swag. 
C) chat cache. 
D) cookies.

Question 17

Successful firms realize that each target group requires:

Accepted Answer

A) a separate promotion mix. 
B) online computer advertising. 
C) infomercial testimonials. 
D) customized legislation and training.

Question 18

Mini-Case
The Xer-Wise Corporation manufactures and markets high quality home exercise equipment. The firm has just developed a new piece of equipment that top executives believe will be a big seller if promoted correctly. The new product uses a system of adjustable weights that can be arranged in various ways to allow the user to perform exercises that tone all major muscle groups. Additionally, unlike other strength building machines, this equipment also incorporates a recumbent bicycle to provide a complete aerobic workout. The entire piece of equipment is easy to assemble, and when not in use it can be folded into a compact unit that is easy to store. A group of fitness experts have tested the equipment and have provided rave reviews. Company executives believe that this product, called the MuscleMaster, will appeal to busy young adults living in relatively small apartments. Melody Fitt and Tom Trym have been assigned the responsibility of developing a promotion mix for this product. The team of Fitt and Trym is convinced that they can develop a successful promotion mix for this outstanding product.
-Due to the unique nature of this product, Tom and Melody have decided to develop a half-hour TV program to demonstrate the benefits of the MuscleMaster. It is hoped that this will provide a great start in the market.

Accepted Answer

A) interactive TV ad 
B) online TV ad 
C) infomercial 
D) publicity commercial

Question 19

James Erler likes to search online for values at sites like Drugstore.com and do online comparisons of what he thinks are the best products for him at the right price. James would be a consumer active in using a pick economy.

Accepted Answer

A) True 
 B)False

Question 20

When Pepsi introduced its FruitWorks product line during spring break in Panama City, Florida and South Padre Island, Texas it gave out free samples and provided free rides on Pepsi trucks. Pepsi was practicing event marketing.

Accepted Answer

A) True 
 B)False

Exam 16: Using Effective Promotions

The total annual expenditures on advertising in the United States:

B2C salespeople spend more time prospecting their customers than do B2B salespeople.

The activity that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance is called:

In evaluating personal selling it is safe to conclude that it represents a form of individualized advertising.

Lenora just finished writing a news release regarding a new product developed by her firm. She intends to email the message to local radio stations and newspapers in hopes that they will find the information newsworthy and run a story about the product. Lenora's efforts represent the firm's:

Advertising on the Internet has become the number one medium and ranks ahead of newspapers and network television, based on total advertising expenditures.

When developing the promotional campaign for a new product, the first step for a firm is to identify their target market.

Depending upon the promotional campaign, advertising may include paid and non-paid forms of non-personal communication.

Because customers eventually lose interest, businesses achieve the best results when they use sales promotion activities on a limited and irregular basis.

The use of coupons and sales contests represent internal public relations and sampling activities.

Registration in Professor McNick's classes reaches maximum enrollment quickly. Students register immediately online just to insure their seat in her class. One student summed it up, "Everyone's heard she is the best teacher on campus." Professor McNick's classes benefit from:

Advertising provides the public with free TV and radio programs.

Internet advertising is rapidly growing and now ranks third in terms of total advertising expenditures.

Coupons, contests, and sampling are examples of sales promotion activities.

Massachusetts Manufacturing has redesigned its promotional strategy. The company now utilizes a system that combines all the elements of their promotion mix to create a more responsive organization providing a consistent message. Massachusetts Manufacturing has adopted a(n) :

The free tickets, backstage passes and merchandise firms give to people who agree to hype products through Internet chat rooms are called:

Successful firms realize that each target group requires:

James Erler likes to search online for values at sites like Drugstore.com and do online comparisons of what he thinks are the best products for him at the right price. James would be a consumer active in using a pick economy.

When Pepsi introduced its FruitWorks product line during spring break in Panama City, Florida and South Padre Island, Texas it gave out free samples and provided free rides on Pepsi trucks. Pepsi was practicing event marketing.