Deck 13: Promotion and Pricing Strategies

Question 1

Which of the following is not an advantage of advertising?

A) The message can be tailored for each customer.
B) It reaches a large consumer audience at low cost per contact.
C) It allows strong control of the message.
D) The message can be modified to suit different audiences.

Answer 1

A

Question 2

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

Answer 2

A

Question 3

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.

Answer 3

C

Question 4

Which one of the following statements concerning personal selling is incorrect?

A) Businesses spend considerably more on personal selling than on advertising.
B) Personal selling is used for products that are relatively inexpensive.
C) Products sold through personal selling move through direct-distribution channels.
D) Personal selling is used when customers are relatively few in number.

Question 5

When a business prices a new product much lower than competing products when they enter new industries that have dozens of competing brands, this is referred to as _______________________.

A) predatory pricing
B) skimming pricing
C) penetration pricing
D) competitive pricing

Question 6

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 7

A type of advertising that tries to improve the competitive status of a product is persuasive advertising. This type of advertising is usually seen during which stage of the product lifecycle?

A) growth and maturity
B) introductory
C) late maturity or decline
D) decline

Question 8

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 9

A company that offers the gift of useful merchandise carrying its name and logo is practising which type of advertising?

A) trade promotion
B) rebates
C) advocacy advertising
D) specialty advertising

Question 10

When a firm bases its pricing decisions on market share, it is pursuing which category of pricing objectives?

A) profitability
B) volume
C) meeting competition
D) prestige

Question 11

When a firm determines pricing by calculating total costs per unit and then adding markups to cover overhead costs and generate profits, it is undertaking _____________.

A) cost-based pricing
B) skimming pricing
C) penetration pricing
D) discount pricing

Question 12

Local advertising is currently dominated by _____________________________.

A) the Internet
B) radio
C) word-of-mouth
D) newspaper

Question 13

Which one of the following statements concerning the sales process is CORRECT?

A) Salespeople identify potential customers at the approach stage.
B) Promotional messages are communicated by salespeople at the closing stage.
C) The closing stage is the critical point when the salesperson asks the prospect to buy.
D) A demonstration is an optional step in the sales process.

Question 14

Which one of the following statements concerning online advertising is correct?

A) Widgets or gadgets are associated with print advertisement.
B) Sales from online advertising and marketing are now greater than the sales from print media.
C) Viral advertising never relies on word-of-mouth promotion.
D) Buzz agents are professionals recruited for pay.

Question 15

There are several common objectives of a promotional strategy. When a television commercial compares the performance of two leading laundry detergents, this attempts to meet the objective of ________________________________________.

A) providing information
B) highlight product value
C) differentiate product
D) stabilize sales