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Marketing: Real People, Real Choices

1) Video on demand(VOD), iPods, and DVRs (digital video recorders) present which of
the following challenges for advertisers?
a. Consumers are watching less television programming.
b. Consumers have difficulty attending to specific advertising messages due to
advertising clutter.
c. Audiences are less interested in media consumption.
d. Consumers have more choices about what advertisements to watch or not watch.
e. Television advertising is becoming more expensive.
Answer: d
Diff: 2
Type: MC
Page Reference: 388
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
2) What type of advertising delivers a message that focuses on a specific good or service?
a. retail advertising
b. product advertising
c. institutional advertising
d. brand placement
e. advocacy advertising
Answer: b
Diff: 1
Type: MC
Page Reference: 389
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
3) Which of the following is true of institutional advertising ?
a. It is also known as public-service advertising.
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Marketing: Real People, Real Choices

b. It describes products as customer services.


c. It is primarily used to support sales promotion activities.
d. It promotes the activities or point of view of an organization.
e. It is used only by non-profit and government organizations.
Answer: d
Diff: 1
Type: MC
Page Reference: 389
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
4) ________ advertising promotes the company as a whole instead of the firm's
individual products.
a. Advocacy
b. Public service
c. Public relations
d. Corporate
e. Testimonial
Answer: d
Diff: 1
Type: MC
Page Reference: 389
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
5) Which of the following is true of advocacy advertising ?
a. It is also known as public-service advertising.
b. It is primarily used to support sales promotion activities.
c. It is used only for non-profit causes.
d. It is intended to inform customers about a new product.
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Marketing: Real People, Real Choices

e. It is intended to influence public opinion.


Answer: e
Diff: 2
Type: MC
Page Reference: 389
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
6) Which of the following is the type of advertising that the media run free of charge?
a. product advertisements
b. advocacy advertisements
c. public service advertisements
d. institutional advertisements
e. local advertisements
Answer: c
Diff: 1
Type: MC
Page Reference: 390
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
7) A(n) ________ is a coordinated, comprehensive plan that carries out promotion
objectives and results in a series of advertisements placed in various media over a period
of time.
a. sales promotion
b. advertising campaign
c. mass marketing plan
d. media schedule
e. integrated marketing communication campaign

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Marketing: Real People, Real Choices

Answer: b
Diff: 1
Type: MC
Page Reference: 390
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
8) Which of the following provides a firm with one or more specialized services, such as
media buying or creative development, that an advertising campaign requires?
a. a limited-service agency
b. an account management agency
c. a retail advertising agency
d. a media planning agency
e. an integrated marketing agency
Answer: a
Diff: 1
Type: MC
Page Reference: 390
Topic: Who creates Advertising?
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
9) A(n) ________ provides most or all of the services needed to mount an advertising
campaign.
a. institutional agency
b. limited-service agency
c. creative services agency
d. in-house agency
e. full-service agency
Answer: e
Diff: 1

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Marketing: Real People, Real Choices

Type: MC
Page Reference: 390
Topic: Who creates Advertising?
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
10) Advertising account managers are typically responsible for which of the following?
a. writing the advertising copy
b. acting as liaison between the agency and client
c. posttesting advertisements
d. collecting data to make informed strategic decisions
e. identifying the most effective communication vehicles for the advertising campaign
Answer: b
Diff: 2
Type: MC
Page Reference: 390
Topic: Who creates Advertising?
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
11) Which advertising agency specialist is responsible for acting as the voice of the
consumer in creating effective advertising?
a. the account executive
b. the account planner
c. the creative director
d. the media planner
e. the art director
Answer: b
Diff: 2
Type: MC
Page Reference: 391
Topic: Who creates Advertising?
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Marketing: Real People, Real Choices

Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
12) CGM, which stands for ________, includes online consumer comments, discussions,
reviews, photos, images, videos, podcasts, and webcasts.
a. crowd-generated media
b. community-generated media
c. consumer-generated media
d. content-graded media
e. consumer-generated messaging
Answer: c
Diff: 2
Type: MC
Page Reference: 391
Topic: User Generated Advertising Content
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
13) Which of the following is an example of Do-it-Yourself advertising?
a. Toyota's presence in online communities
b. Nike's Nike Plus running Web site
c. MasterCard's use of "Priceless" commercials shot by customers
d. Neiman Marcus's InCircle Rewards program for its best customers
e. The Lexus Covenant aimed at creating customer delight
Answer: c
Diff: 2
Type: MC
Page Reference: 391
Topic: User Generated Advertising Content
Skill: Application
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
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Marketing: Real People, Real Choices

14) Advertising "puffery" is a term for a(n)________.


a. straightforward promotional message
b. claim of superiority that cannot be proven or disproven
c. emotional appeal to customers
d. subliminal appeal to customers
e. value-added promotion
Answer: b
Diff: 1
Type: MC
Page Reference: 393
Topic: Ethical Issues in Advertising
Skill: Application
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
15) Which of the following should be the first step of developing an advertising
campaign?
a. set the budget objectives
b. establish the advertising message
c. understand the target audience
d. draft the creative brief
e. select the execution format
Answer: c
Diff: 2
Type: MC
Page Reference: 394
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
16) ________ can be classified by primary purpose-whether the aim is to inform,
persuade, or remind.
a. Budget objectives
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Marketing: Real People, Real Choices

b. Message objectives
c. Creative strategies
d. Advertising appeals
e. Media plans
Answer: b
Diff: 2
Type: MC
Page Reference: 395
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
17) The creative strategy for an advertising campaign is summarized in a(n) ________.
a. agency contract
b. account plan
c. media plan
d. creative brief
e. message objective
Answer: d
Diff: 1
Type: MC
Page Reference: 395
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
18) The central idea of an ad is expressed in its ________.
a. media vehicle
b. media schedule
c. reach
d. advertising appeal
e. message objective

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Answer: d
Diff: 1
Type: MC
Page Reference: 396
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
19) ________ is the execution format that depicts typical people using the product in an
everyday setting.
a. Lifestyle
b. Fantasy
c. Slice of life
d. Testimonial
e. Demonstration
Answer: c
Diff: 2
Type: MC
Page Reference: 397
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
20) Apple recently ran ads featuring real people who had switched from Microsoft
Windows-based PCs to Macs. When companies use people, actors, or sports celebrities to
express the product's effectiveness, what kind of execution format is being used?
a. testimonial
b. lifestyle
c. comparative
d. unique selling proposition
e. slice of life
Answer: a
Diff: 2
Type: MC
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Marketing: Real People, Real Choices

Page Reference: 397


Topic: Develop the Advertising Campaign
Skill: Application
Objective: 11-2 Process of Developing and evaluating advertising campaign
21) ________ refers to the mood or attitude an advertisement conveys.
a. Creative technique
b. Execution format
c. Unique selling proposition
d. Appeal
e. Tonality
Answer: e
Diff: 1
Type: MC
Page Reference: 397
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
22) ________ is a problem-solving process for getting an advertising message to a
specific target audience in the most effective fashion.
a. Pretesting
b. Lobbying
c. Media pulsing
d. Media planning
e. Sampling
Answer: d
Diff: 2
Type: MC
Page Reference: 399
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
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Marketing: Real People, Real Choices

23) You are looking to advertise your new product, and you want good mass-marketing
coverage and low cost per exposure. You should go with ________ as your advertising
medium.
a. radio
b. place-based media
c. branded entertainment
d. advergaming
e. television
Answer: e
Diff: 3
Type: MC
Page Reference: 401
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
24) Which of the following statements about magazines as an advertising medium is true?
a. Magazines have long lead times and deadlines that can reduce flexibility.
b. Magazines have not benefited from advances in communication technologies.
c. Magazines typically use a mass marketing strategy.
d. Magazines do not accept local advertising.
e. Magazines have poor reproduction quality of images.
Answer: a
Diff: 2
Type: MC
Page Reference: 401
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
25) Web sites and mobile phones are examples of ________.
a. social networks
b. digital media
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Marketing: Real People, Real Choices

c. augmented realities
d. analog media
e. place-based media
Answer: b
Diff: 1
Type: MC
Page Reference: 403
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
26) Which of the following types of ads can users block through the use of applications
developed by Internet access software?
a. banners
b. buttons
c. pop-ups
d. search engine listings
e. directory listings
Answer: c
Diff: 2
Type: MC
Page Reference: 404
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
27) Which of the following practices helps to protect consumers from spamming
?
a. puffery
b. permission marketing
c. pop-up blocking
d. adware installation
e. sampling

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Marketing: Real People, Real Choices

Answer: b
Diff: 1
Type: MC
Page Reference: 405
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
28) Ads on the sides of delivery trucks, ads on the fence around a baseball field, and ads
that you see on interstate billboards are all examples of ________ media.
a. out-of-home
b. place-based
c. branded entertainment
d. banner
e. pop-up
Answer: a
Diff: 1
Type: MC
Page Reference: 407
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
29) Which of the following would a marketer use to track customers as they pass through
the aisles of a retail outlet?
a. RFID technology
b. augmented reality technology
c. permission-based marketing
d. cookies
e. digital signage
Answer: a
Diff: 2
Type: MC
Page Reference: 407
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Marketing: Real People, Real Choices

Topic: Develop the Advertising Campaign


Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
30) ________ is a measure of the percentage of people in the target market who are
exposed to the media vehicle at least once during a given time period.
a. Reach
b. Frequency
c. Impression
d. Exposure
e. Gross rating
Answer: a
Diff: 2
Type: MC
Page Reference: 408
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
31) Which of the following is a technique for measuring the impact of an advertisement
during the final step of developing an advertising campaign?
a. pretesting
b. attitudinal measures
c. pulsing
d. gross rating points (GRPs)
e. cost per thousand (CPM)
Answer: b
Diff: 2
Type: MC
Page Reference: 410
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign

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Marketing: Real People, Real Choices

32) Which of the following promotion tools is most closely associated with building up a
positive corporate image and handling unfavorable stories and events?
a. sales promotion
b. personal selling
c. direct marketing
d. public relations
e. advertising
Answer: d
Diff: 2
Type: MC
Page Reference: 410
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
33) The basic rule of ________ is "do something good, then talk about it."
a. customer relationship management
b. public affairs
c. public relations
d. social marketing
e. promotions
Answer: c
Diff: 1
Type: MC
Page Reference: 410
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
34) There are three steps involved in creating a public relations campaign. The first step
is to ________.
a. conduct a SWOT analysis
b. develop objectives
c. formulate a mission statement
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Marketing: Real People, Real Choices

d. recruit and train public relations specialists


e. pretest components of the proposed public relations campaign
Answer: b
Diff: 2
Type: MC
Page Reference: 411
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
35) The most common way for public relations specialists to communicate is through the
use of ________.
a. sponsorship
b. lobbying
c. press releases
d. special events
e. speech writing
Answer: c
Diff: 2
Type: MC
Page Reference: 414
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
36) Timely topics and research project stories are both types of ________.
a. advertising appeals
b. advocacy advertising
c. puffery
d. press releases
e. creative strategies
Answer: d
Diff: 2
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Marketing: Real People, Real Choices

Type: MC
Page Reference: 414
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
37) A company newsletter is an example of ________.
a. media relations
b. sponsorship
c. corporate identity
d. internal PR
e. publicity
Answer: d
Diff: 2
Type: MC
Page Reference: 415
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
38) Lobbying, or building and maintaining relations with legislators and government
officials to influence legislation and regulation, is part of ________.
a. outdated business ethics
b. media relations
c. reactive PR
d. crisis management
e. public relations
Answer: e
Diff: 1
Type: MC
Page Reference: 414
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
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Marketing: Real People, Real Choices

39) ____________ in the form of logos, stationery, brochures, signs, business forms,
business cards, buildings, uniforms, and company trucks can be used to help a company
create an identity that the public immediately recognizes.
a. Direct marketing
b. Social marketing
c. Public service activities
d. Corporate identity materials
e. Sponsorships
Answer: d
Diff: 2
Type: MC
Page Reference: 415
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
40) Planning and implementing special events are typically responsibilities of ________.
a. a planning agency
b. a full-service agency
c. creative services
d. the PR department
e. the sales promotion department
Answer: d
Diff: 1
Type: MC
Page Reference: 414
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
41) Which of the following is a strategy that involves a company "ambushing" consumers
with promotional content in places consumers would typically not expect to see
information about a product or service?

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Marketing: Real People, Real Choices

a. sales promotion
b. guerrilla marketing
c. sponsorships
d. internal PR
e. crowdsourcing
Answer: b
Diff: 1
Type: MC
Page Reference: 415
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
42) ________ is the promotional tool used to build interest in or encourage purchase of a
good or service during a specified period.
a. A patronage reward
b. A segmented promotion
c. Advertising
d. Public relations
e. Sales promotion
Answer: e
Diff: 1
Type: MC
Page Reference: 416
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
43) Which of the following would be most useful if a firm has an immediate objective to
achieve?
a. public relations activities
b. sales promotions
c. out-of-home media
d. sponsorships
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Marketing: Real People, Real Choices

e. product placement
Answer: b
Diff: 2
Type: MC
Page Reference: 416
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
44) A downside to ________ is that if used too frequently, consumers become
conditioned to purchase the product only at the lower promotional price.
a. promotional products
b. a merchandising allowance
c. contests
d. premiums
e. price-based consumer sales promotion
Answer: e
Diff: 2
Type: MC
Page Reference: 417
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
45) ________ are the most common price promotion.
a. Rebates
b. Merchandising allowances
c. Coupons
d. Contests and sweepstakes
e. Premiums
Answer: c
Diff: 2
Type: MC
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Marketing: Real People, Real Choices

Page Reference: 418


Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
46) ________ offer consumers savings off the regular price of a product, with the reduced
price marked by the producer directly on the label or package.
a. Bonus packs
b. Rebates
c. Premiums
d. Price-off packs
e. Coupons
Answer: d
Diff: 2
Type: MC
Page Reference: 418
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
47) An example of a(n) ________ is an airline's practice of awarding customers points for
miles traveled that can be turned in for free airline trips.
a. price-off pack
b. rebate
c. special pack
d. loyalty program
e. premium
Answer: d
Diff: 2
Type: MC
Page Reference: 418
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
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Marketing: Real People, Real Choices

48) ________ are goods offered either free or at low cost as an incentive to buy a
product; they may be in-pack, on-pack, or delivered through the mail.
a. Rebates
b. Bonus packs
c. Price-off packs
d. Premiums
e. Sweepstakes
Answer: d
Diff: 2
Type: MC
Page Reference: 419
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
49) Of the major consumer promotion tools, which is the most effective for introducing a
new product?
a. sponsorships
b. sampling
c. loyalty programs
d. lobbying
e. advertising
Answer: b
Diff: 2
Type: MC
Page Reference: 419
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
50) Which of the following types of sales promotions would NOT be offered to a final
consumer?
a. rebates
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Marketing: Real People, Real Choices

b. push money
c. bonus packs
d. sweepstakes
e. premiums
Answer: b
Diff: 2
Type: MC
Page Reference: 420
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
51) Which type of allowance is a reimbursement to retailers for in-store
support of a product, such as an off-shelf display?
a. merchandising
b. case
c. diverting
d. advertising
e. co-op
Answer: a
Diff: 1
Type: MC
Page Reference: 420
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
52) Which of the following is a discount to the retailer or wholesaler based on the volume
of product ordered?
a. merchandising allowance
b. case allowance
c. forward buying allowance
d. push money
e. incentive program
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Marketing: Real People, Real Choices

Answer: b
Diff: 1
Type: MC
Page Reference: 420
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
53) Which of the following is an example of a discount promotion given to members of
the distribution channel?
a. incentive programs
b. trade shows
c. co-op advertising
d. SPIF programs
e. promotional products
Answer: c
Diff: 2
Type: MC
Page Reference: 421
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
54) A trade show is a way for a company to do all of the following EXCEPT which one?
a. distribute literature about its product
b. pay a bonus to members of its salesforce
c. give away sample products
d. establish new business contacts
e. showcase its new products in elaborate exhibits
Answer: b
Diff: 2
Type: MC
Page Reference: 421
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Marketing: Real People, Real Choices

Topic: Sales promotion directed towards the trade


Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
55) ________ attempts to influence consumers while they are in the store by catching
their attention with signs and showcased merchandise.
a. Brand placement
b. An incentive program
c. A promotional product
d. A point of purchase display
e. A trade show
Answer: d
Diff: 2
Type: MC
Page Reference: 421
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
56) Which of the following is a bonus paid by a manufacturer to a salesperson for selling
its product?
a. a rebate
b. a merchandising allowance
c. a premium
d. a cross-promotion
e. push money
Answer: e
Diff: 1
Type: MC
Page Reference: 422
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members

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Marketing: Real People, Real Choices

57) Someone who orders a product through a catalog is responding to ________.


a. place-based communication
b. point of purchase selling
c. direct marketing
d. direct selling
e. personal selling
Answer: c
Diff: 2
Type: MC
Page Reference: 423
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
58) Which of the following is NOT a form of direct marketing?
a. mass marketing
b. catalogs
c. telemarketing
d. m-commerce
Answer: a
Diff: 1
Type: MC
Page Reference: 423
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
59) Which kind of marketing involves sending a brochure or pamphlet that offers
a specific good or service at one point in time?
a. personal marketing
b. telemarketing
c. direct mail
d. catalog
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Marketing: Real People, Real Choices

e. spam
Answer: c
Diff: 1
Type: MC
Page Reference: 425
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
60) Catalogs, brochures, and pamphlets are all examples of which type of marketing?
a. direct mail
b. catalog
c. mail order
d. personal
e. m-commerce
Answer: c
Diff: 2
Type: MC
Page Reference: 423
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
61) A collection of products offered for sale in book form, usually consisting of product
descriptions accompanied by photos of the items, is a ________.
a. brochure
b. pamphlet
c. catalog
d. direct-mail item
e. junk-mail item
Answer: c
Diff: 2
Type: MC
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Marketing: Real People, Real Choices

Page Reference: 424


Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
62) The modern catalog consumer is most likely which of the following?
a. someone who has little or no access to retail stores
b. someone who has little or no access to Internet technologies
c. someone who wants to save time shopping
d. someone who shops only for sales bargains
e. someone who does not accept telemarketing calls
Answer: c
Diff: 3
Type: MC
Page Reference: 424
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
63) The National Do Not Call Registry was established by which of the following?
a. The Canadain Radio-Television and Telecommunication Commission (CRTC)
b. the Direct Marketing Association (DMA)
c. the Consumer Review
d. the American Marketing Association (AMA)
e. the Robinson-Patman Act
Answer: a
Diff: 3
Type: MC
Page Reference: 425
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing

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Marketing: Real People, Real Choices

64) ________ is direct communication to a consumer that is conducted over the


telephone.
a. Direct order
b. Telemarketing
c. Direct-response advertising
d. Direct selling
e. Promotional selling
Answer: b
Diff: 1
Type: MC
Page Reference: 425
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
65) Businesses selling to other businesses use ________ to keep in personal contact with
smaller customers at much less cost than face-to-face sales calls.
a. telemarketing
b. direct-response advertising
c. catalog marketing
d. direct selling
e. promotional selling
Answer: a
Diff: 1
Type: MC
Page Reference: 425
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
66) What are two major forms of direct-response television (DRTV)?
a. shows on home shopping networks and infomercials
b. home-selling and toll-free response
c. home television response and attention commercials
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d. direct selling and m-commerce


e. home shopping networks and short-messaging systems
Answer: a
Diff: 2
Type: MC
Page Reference: 427
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
67) The "m" in m-commerce stands for ________.
a. medium-oriented
b. mobile
c. message-oriented
d. marketplace
e. marketspace
Answer: b
Diff: 1
Type: MC
Page Reference: 427
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
68) A type of m-commerce that simply involves sending a text message is known as
________.
a. predictive marketing
b. spam
c. short-message system marketing
d. telemarketing
e. e-commerce
Answer: c
Diff: 2
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Type: MC
Page Reference: 427
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
69) Which of the following communication and promotion tools involves establishing
direct connections with customers aimed toward building crucial relationships?
a. personal selling
b. advertising
c. e-commerce
d. publicity
e. m-commerce
Answer: a
Diff: 1
Type: MC
Page Reference: 428
Topic: Personal Selling
Skill: Concept
Objective: 11-7 The role of personal selling
70) According to an axiom in marketing, the more ________ the product, the more
heavily firms tend to rely on personal selling to promote it.
a. popular
b. available
c. intangible
d. impersonal
e. marketable
Answer: c
Diff: 3
Type: MC
Page Reference: 428
Topic: Personal Selling
Skill: Concept
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Objective: 11-7 The role of personal selling


71) Which of the following is the most logical reason that many organizations rely
heavily on personal selling?
a. to make more efficient use of the promotional mix
b. to quickly move a product to the maturity stage of the product life cycle
c. to create consistent marketing communications
d. to more effectively sell highly technical or very expensive products
e. to decrease promotional expenditures
Answer: d
Diff: 3
Type: MC
Page Reference: 428
Topic: Personal Selling
Skill: Concept
Objective: 11-7 The role of personal selling
72) Factors that increase a firm's emphasis on ________ include purchases that are "new
tasks" for a customer and transactions that require negotiation.
a. m-commerce
b. mass marketing
c. public relations
d. direct marketing
e. personal selling
Answer: e
Diff: 2
Type: MC
Page Reference: 428
Topic: Personal Selling
Skill: Concept
Objective: 11-7 The role of personal selling
73) What type of software do salespeople use to track all aspects of customer interaction?
a. TQM (total quality management)
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b. CRM (customer relationship management)


c. DRM (direct response management)
d. PR (public relations)
e. JIT (just in time)
Answer: b
Diff: 2
Type: MC
Page Reference: 431
Topic: Personal Selling
Skill: Concept
Objective: 11-7 The role of personal selling
74) What type of software links information between selling and buying firms?
a. CRM (customer relationship management)
b. PRM (partner relationship management)
c. TQM (total quality management)
d. database management
e. account management
Answer: b
Diff: 2
Type: MC
Page Reference: 431
Topic: Personal Selling
Skill: Concept
Objective: 11-7 The role of personal selling
75) ________, which uses a data network to carry voice calls, is frequently used for
communication between salespeople and customers.
a. Voice-over Internet Protocol (VoIP)
b. Customer relationship management (CRM)
c. Telemarketing
d. Partner relationship management (PRM)
e. Total Quality Management (TQM)
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Answer: a
Diff: 2
Type: MC
Page Reference: 431
Topic: Personal Selling
Skill: Concept
Objective: 11-7 The role of personal selling
76) Voice-over Internet protocol (VoIP) systems enable salespeople to ________.
a. access data from key partners
b. deliver text messages to key customers through a short-messaging system
c. track all aspects of customer interaction
d. avoid the capital outlay of a CRM system
e. make and receive phone calls anywhere just as though they were in the office
Answer: e
Diff: 2
Type: MC
Page Reference: 431
Topic: Personal Selling
Skill: Concept
Objective: 11-7 The role of personal selling
77) A television commercial for Post Select cereal is an example of which of the
following?
a. product advertising
b. institutional advertising
c. sales promotion
d. direct selling
e. retail advertising
Answer: a
Diff: 2
Type: MC
Page Reference: 389
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Topic: Advertising: The Image of Marketing


Skill: Application
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
78) An ad for Ford did not advertise any cars, but instead explained the meaning of the
company's slogan, "no boundaries." This ad is an example of ________.
a. product advertising
b. a sales promotion
c. institutional advertising
d. advocacy advertising
e. retail advertising
Answer: c
Diff: 2
Type: MC
Page Reference: 389
Topic: Advertising: The Image of Marketing
Skill: Application
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
79) Prior to the 2008 U.S. presidential election, MTV's "Choose or Lose" campaign
encouraged millions of young people ages eighteen to thirty to learn about the issues, to
vote, and to be a deciding factor in the election. This campaign is an example of _____
a. product advertising
b. brand placement
c. institutional advertising
d. advocacy advertising
e. local advertising
Answer: d
Diff: 2
Type: MC
Page Reference: 389
Topic: Advertising: The Image of Marketing

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Skill: Application
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
80) Which of the following advertising situations would LEAST likely be considered
"puffery"?
a. a mouthwash that claims to make your mouth feel its freshest
b. toned thighs and legs as a result of using the Thigh Master for only 15 minutes each
day
c. children growing into attractive adults as a result of drinking milk
d. a retired couple drinking a vitamin and protein shake and then going bicycling
e. a sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks out
her window to see golden sunshine, beautiful flowers blooming, songbirds singing, and a
rainbow on the horizon
Answer: d
Diff: 2
Type: MC
Page Reference: 393
Topic: Ethical Issues in Advertising
Skill: Application
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
81) U-Frame-It is a small company that has hired a local ad agency to put together an
advertising campaign. Which of the following questions should be addressed before the
others?
a. What percentage of the budget should be for U-Frame-It radio ads?
b. Which type of media is most appropriate for U-Frame-It ads?
c. What are the message objectives of U-Frame-It?
d. How does U-Frame-It's competition advertise?
e. What type of appeal will work best for U-Frame-It's products?
Answer: c
Diff: 3
Type: MC
Page Reference: 395
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Topic: Develop the Advertising Campaign


Skill: Application
Objective: 11-2 Process of Developing and evaluating advertising campaign
82) An ad for Mongoose mountain bikes shows a serious biker traversing remote and
rugged but beautiful terrain and states, "There are places that are so awesome and so
killer that you'd like to tell the whole world about them. But please, don't." This ad uses
the ________ appeal.
a. slice of life
b. lifestyle
c. fear
d. testimonial
e. straight-forward
Answer: b
Diff: 2
Type: MC
Page Reference: 397
Topic: Develop the Advertising Campaign
Skill: Application
Objective: 11-2 Process of Developing and evaluating advertising campaign
83) Jell-O ads contain the phrase "Make some magic." All Ace Hardware store ads
contain the statement "Life is an ongoing project." The American Dairy Farmers run ads
that say, "Ahh, the power of cheese." These are all examples of ________.
a. jingles
b. testimonials
c. unique selling propositions (USPs)
d. slogans
e. slice-of-life appeals
Answer: d
Diff: 2
Type: MC
Page Reference: 399
Topic: Develop the Advertising Campaign

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Skill: Application
Objective: 11-2 Process of Developing and evaluating advertising campaign
84) A supermarket chain wants to quickly inform loyal customers who are close to one of
the chain's locations of short-term price cuts. Which of the following would be the most
effective media vehicle for the chain?
a. mobile advertising
b. newspaper
c. cable television
d. directory
e. brand placement
Answer: a
Diff: 2
Type: MC
Page Reference: 405
Topic: Develop the Advertising Campaign
Skill: Application
Objective: 11-2 Process of Developing and evaluating advertising campaign
85) Some television shows have shown actors drinking a cup of Starbucks coffee. In
these instances, Starbucks has chosen ________ as a marketing tool.
a. corporate advertising
b. a promotional product
c. testimonial
d. Branded entertainment
e. augmented reality
Answer: d
Diff: 2
Type: MC
Page Reference: 406
Topic: Develop the Advertising Campaign
Skill: Application
Objective: 11-2 Process of Developing and evaluating advertising campaign

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86) Kathy Champe, a public relations specialist for a regional chain of pharmacies,
regularly contacts members of the local and state-wide media with information about
community events and charity fundraisers sponsored by her company. She is using
________.
a. press releases
b. product publicity
c. crisis management
d. institutional advertising
e. lobbying
Answer: a
Diff: 2
Type: MC
Page Reference: 414
Topic: Public Relations
Skill: Application
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
87) A company outing like the huge road rallies organized by Harley Davidson to
reinforce loyalty towards their product is an example of___________.
a. Sponsorships an special events
b. product publicity
c. crisis management
d. institutional advertising
e. lobbying
Answer: a
Diff: 2
Type: MC
Page Reference: 415
Topic: Public Relations
Skill: Application
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
88) In an attempt to set the company apart from its competitors, United Parcel Service
has its employees wear brown uniforms and drive brown trucks. What type of public
relations tool is UPS using?
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a. buzz marketing
b. social networking
c. corporate identity materials
d. product publicity
e. public service materials
Answer: c
Diff: 2
Type: MC
Page Reference: 415
Topic: Public Relations
Skill: Application
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
89) A manufacturer of toilet tissue sent its brand mascot to help refurbish restrooms at
fairgrounds across the country. As part of this project, each restroom was to provide
fairgoers with a clean oasis featuring aromatherapy, soothing music, constant
maintenance, and premium toilet tissue. The use of this brand in this clean-up effort is an
example of ________.
a. lobbying
b. corporate identity
c. sponsorship
d. a promotional product
e. a premium
Answer: c
Diff: 2
Type: MC
Page Reference: 415
Topic: Public Relations
Skill: Application
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
90) Which of the following is an example of a sales promotion?
a. a news release encouraging voters to support a new bond issue for a local elementary
school

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b. a staged dance routine promoting a new product in a busy public place


c. a coupon for $5 off a visit to an amusement park
d. a listing of all the television programs to be shown by Charter Cable the week of
March 16
e. a plan to increase ice cream sales by adding two new flavors
Answer: c
Diff: 2
Type: MC
Page Reference: 417
Topic: Sales Promotion
Skill: Application
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
91) Toro ran a clever preseason promotion on some of its snow blower models, offering
some money back if the snowfall in the buyer's market area turned out to be below
average. This is an example of a ________.
a. rebate
b. premium
c. price-off pack
d. continuity program
e. sweepstake
Answer: a
Diff: 2
Type: MC
Page Reference: 417
Topic: Sales Promotion
Skill: Application
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
92) Keely was invited to examine a free copy of a new magazine called Coastal Living. If
she did not enjoy the magazine, she could write "Refused" on the invoice for her
subscription, which would arrive about three weeks after the free magazine. The
magazine's publisher was using ________.
a. a continuity program
b. a rebate
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c. a premium
d. product placement
e. sampling
Answer: e
Diff: 3
Type: MC
Page Reference: 417
Topic: Sales Promotion
Skill: Application
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
93) An example of a(n) ________ is a five-foot-high cardboard display of Cap'n Crunch
next to Cap'n Crunch cereal boxes.
a. point of purchase (POP) display
b. incentive program
c. promotional product
d. co-op advertisement
e. case allowance
Answer: a
Diff: 2
Type: MC
Page Reference: 421
Topic: Sales promotion directed toward the trade
Skill: Application
Objective: 11-5 Sales Promotion aimed at Channel members
94) An office supply store that pays a discounted price when it orders more than twelve
metal filing cabinets is receiving a(n) ________.
a. merchandising allowance
b. promotional product
c. case allowance
d. co-op promotion
e. incentive program

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Answer: c
Diff: 2
Type: MC
Page Reference: 420
Topic: Sales promotion directed toward the trade
Skill: Application
Objective: 11-5 Sales Promotion aimed at Channel members
95) Fiona Lambrech is the marketing director of a charity that raises funds to help
provide educational services to children and families in developing countries. Fiona
wants to reach a selective market of individuals who have recently donated to
international charities. Which of the following types of direct marketing is Fiona most
likely to use?
a. Mail Order marketing
b. catalog marketing
c. telemarketing
d. direct-response TV marketing
e. m-commerce
Answer: a
Diff: 2
Type: MC
Page Reference: 423
Topic: Mail Order
Skill: Application
Objective: 14-2 Direct marketing
96) For which of the following operations would telemarketing efforts likely be the most
successful and the most profitable?
a. selling magazine subscriptions to consumers
b. selling double-pane windows to home owners
c. selling plastic bottles to a bottling company
d. asking people for charitable donations
e. selling vacation packages to people who earn $50,000 or more annually
Answer: c
Diff: 2
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Type: MC
Page Reference: 425
Topic: Telemarketing
Skill: Application
Objective: 14-2 Direct marketing
97) Organic Designs is a small, successful chain of stores offering stylish clothes made of
all-organic materials for infants, toddlers, and young children. Most of the Organic
Designs stores are located in urban areas. Now Organic Designs is considering using
direct marketing to reach potential customers who live outside of the company's existing
markets. Which of the following methods of direct marketing would likely be most
effective in accomplishing this goal?
a. direct-mail marketing
b. m-commerce
c. catalog marketing
d. infomercials
e. telemarketing
Answer: c
Diff: 2
Type: MC
Page Reference: 424
Topic: Catalogue Marketing
Skill: Application
Objective: 14-2 Direct marketing
98) A producer of beverages and snack foods wants to market its products to the 14-to22-year-old demographic, providing incentives to respond instantly to time-sensitive
offers. Which of the following forms of direct marketing would this producer most likely
choose?
a. direct-response TV
b. m-commerce
c. telemarketing
d. catalog marketing
e. direct mail
Answer: b
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Diff: 3
Type: MC
Page Reference: 427
Topic: M-commerce
Skill: Application
Objective: 14-2 Direct marketing
99) A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional
salespeople to sell its products to wholesalers and cities. This is an example of ________.
a. telemarketing
b. personal selling
c. direct selling
d. public relations
e. trade promotion
Answer: b
Diff: 2
Type: MC
Page Reference: 428
Topic: Personal Selling
Skill: Application
Objective: 11-7 The role of personal selling
100) In which of the following situations would personal selling be the LEAST costeffective choice?
a. a manufacturer selling a line of running shoes to a chain of department stores
b. an automobile dealer selling luxury cars
c. a real estate agent selling a home
d. a chain of supermarkets selling convenience products
e. a computer systems firm selling hardware and software to a large business
Answer: d
Diff: 2
Type: MC
Page Reference: 429
Topic: Personal Selling
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Skill: Application
Objective: 11-7 The role of personal selling
101) Advertising and marketing are interchangeable terms.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 388
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
102) A small percentage of the advertising we see and hear is product advertising.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 389
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
103) Institutional advertising does not focus on a specific brand.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 389
Topic: Advertising: The Image of Marketing
Skill: Concept
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Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
104) In Canada, the Competition Bureau protects consumers from deceptive advertising.
a. True
b. False
Answer: a
Diff: 3
Type: TF
Page Reference: 392
Topic: Ethical Issues in Advertising
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
105) Slice of life, lifestyle, and celebrity are all appeal styles used in public relations.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 397
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
106) In developing an advertising campaign, agencies do not use pretesting until they
have determined the media types and media schedule.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 399
Topic: Develop the Advertising Campaign
Skill: Concept
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Objective: 11-2 Process of Developing and evaluating advertising campaign


107) Banners are online ads that pop up between changes on a Web site.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 404
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
108) Reach is a measure of how many times the average person in the target market is
exposed to the message.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 408
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
109) Gross rating points (GRPs) are a measure of the quantity of media included in a
given media plan.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 404
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
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110) Public relations activities can be used to influence the attitudes and perceptions of
various publics toward politicians and celebrities.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 411
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
111) Crisis management is typically a public relations function.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 410
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
112) It is more difficult to assess the bottom-line impact of public relations activities than
the bottom-line impact of advertising.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 410
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign

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113) Declining brand loyalty has led marketers to place less of their total marketing
communication budgets in sales promotions
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 416
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
114) A traditional advertising medium can be used to publicize a sales promotion.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 416
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
115) Most consumer sales promotions temporarily change the price/value relationship.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 416
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
116) Trade promotions are deals that reduce the cost of the product to the retailer or help
defray advertising expenses.
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a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 420
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
117) A merchandising allowance is a discount to a wholesaler or retailer based on the
order volume of a product.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 420
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
118) Push money is used to encourage consumers to buy more of a particular product
during a specified time period.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 422
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
119) Telemarketing is more profitable for consumer markets than for business markets.
a. True
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b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 425
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
120) As a result of the CRTC's Do Not Call Registry, telemarketing is now rarely used.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 425
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
121) Direct-response TV (DRTV) includes short commercials of less than two minutes,
thirty-minute or longer infomercials, and home shopping networks such as the Shopping
Channel.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 427
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
122) Personal selling is crucial in business-to-business marketing, especially when the
deal involves intense price negotiations.
a. True
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b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 428
Topic: Personal Selling
Skill: Concept
Objective: 11-7 The role of personal selling
123) On a cost per contact basis, personal selling is much more expensive than national
advertising.
a. True
b. False
Answer: a
Diff: 3
Type: TF
Page Reference: 428
Topic: Personal Selling
Skill: Concept
Objective: 11-7 The role of personal selling
124) A new trend in promotions is the use of technology to replace personal selling.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 429
Topic: Personal Selling
Skill: Concept
Objective: 11-7 The role of personal selling
125) An ad showing how much food a Dixie paper plate can handle and how much more
food a Chinet paper plate can handle is an example of comparative advertising.
a. True
b. False
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Answer: a
Diff: 2
Type: TF
Page Reference: 397
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
126) How are technological devices such as digital video recorders (DVRs), TiVo, and
iPods having an effect upon advertising in the television industry?
Answer:
Television reviewers who have DVRs and/or TiVo have the ability to skip over ads. The
number of such devices in U.S. households is on the increase. Consumers are more
frequently using iPods, video on demand, and their personal computers to watch
television shows. This makes it more difficult to reach consumers through traditional
network television ads. These trends, combined with the growing number of media
outlets, have led marketers to scale back on pricey mass market campaigns and increase
spending on alternative media, such as online, mobile, and out-of-home.
Diff: 2
Type: ES
Page Reference: 388
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
127) How are companies taking advantage of interactive technologies to tap consumers
for message ideas and actual ads? What are the benefits and disadvantages of "do-ityourself" advertising?
Answer:
Companies can now search existing video sites such as YouTube, monitor related blogs,
and sponsor ad-creation contests. Several companies, such as Frito-Lay, MasterCard, and
JetBlue, have used do-it-yourself ads in national campaigns. Consumer-generated content
offers companies a way to gather new perspectives on their products and develop insights
into how their products are used and seen by actual consumers. Also, consumer-generated
content is very inexpensive. On the other hand, companies do not control consumer54
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generated material, which can lead to conflicting, or even negative, messages about a
brand.
Diff: 2
Type: ES
Page Reference: 391
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
128) Briefly describe four main objections to advertising.
Answer:
Some people believe that advertising is manipulative, causing people to make purchases
they would not make without having been exposed to the ads. Similarly, some criticize
advertising for encouraging people to buy products they do not need. Advertisers are
sometimes accused of deceptive practices that lead consumers to believe they will get
more value than they actually do. In addition, some advertising has been accused of being
offensive, and some advertising has been accused of perpetuating negative stereotypes of
certain groups of consumers.
Diff: 2
Type: ES
Page Reference: 392
Topic: Ethical issues in Advertising
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
129) Specialists at an advertising agency must determine the best execution format for an
advertising message. Name and describe three of these formats.
Answer:
Comparison: explicitly names one or more competitors
Demonstration: shows a product "in action" to prove it performs as claimed
Testimonial: shows a celebrity, expert, or "man on the street" vouching for the product's
effectiveness
Slice of life: shows a scene from everyday life
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Lifestyle: shows a person attractive to the target audience in an appealing setting


Diff: 3
Type: ES
Page Reference: 397
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
130) Identify the traditional mass media vehicles and identify some of the strengths and
weaknesses of each type.
Answer:
Television: Advantages are good mass-marketing coverage, low cost per exposure, and
appeals to the senses; weaknesses are high total costs and an increasingly fragmented
audience.
Newspapers: Strengths are timeliness, good local market coverage, and high
believability; weaknesses are short life and poor reproduction quality.
Magazines: Strengths are high audience selectivity, credibility, and good pass-along
readership; weaknesses are high costs and reduced flexibility.
Radio: Strengths are good local acceptance and low cost; weaknesses are low attention
and fleeting exposure to messages.
Diff: 3
Type: ES
Page Reference: 401
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
131) Discuss the advantages and disadvantages of using different types of Internet
advertising.
Answer:
Internet advertising such as banners, pop-ups, buttons, and search engine and directory
listings allow marketers to finely target their customers and to track in real time how
people respond to specific messages. Internet advertising also has the advantage of being
interactive, leading to a closer relationship between customer and product. Despite all of
its advantages, Internet advertising is limited in its audience. Also, Internet users are
paying less attention to banners, evidenced by declining click-through rates. One
disadvantage of pop-up ads is that most Internet users consider them a nuisance and use
pop-up blocking software to avoid them.
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Diff: 2
Type: ES
Page Reference: 405-406
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
132) Compare reach and frequency. For which type of products is media reach more
important? For which type of products is media frequency more important?
Answer:
Reach is the percentage of the target market that will be exposed to the media vehicle.
This measure is particularly important for widely used products when it's important to get
the message to as many consumers as possible. Frequency is the average number of times
a person would be exposed to the message. This measure is important for products that
are complex or are targeted to relatively small markets for which multiple exposures are
needed to make an impact.
Diff: 3
Type: ES
Page Reference: 408
Topic: Develop the Advertising Campaign
Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
133) During an episode of the TV show Everybody Loves Raymond, Ray knocked over
an entire display of Ragu Express, a packaged pasta-and-sauce meal, when he was in the
supermarket with his wife. What style of advertising was implemented during this
television scene? Explain your answer.
Answer:
This is an in-show product plug known as a product or brand placement. This product,
Ragu Express, was seen by viewers who are potential purchasers of this product; the next
time a viewer of the show sees this product, she or he may remember it from watching
the TV show.
Diff: 2
Type: ES
Page Reference: 408
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Topic: Develop the Advertising Campaign


Skill: Concept
Objective: 11-2 Process of Developing and evaluating advertising campaign
134) Describe public relations and four objectives it is often used to achieve.
Answer:
Public relations departments build good relations with the company's various publics and
handle or head off unfavorable rumors, stories, and events. Public relations objectives
include:
a.introducing new products to retailers and consumers
b.enhancing the image of the organization
c.influencing government legislation
d.providing advice and counsel for top management
e.enhancing the image of a city, region, or country
Diff: 2
Type: ES
Page Reference: 413
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
135) What are the basic differences between sales promotion and advertising?
Answer:
The main difference is the time frame associated with their objectives. Advertising
campaigns are typically crafted to create long-term positive feelings about a brand, a
company, or a store. Sales promotions focus on short-term objectives, such as an
immediate boost in sales or the introduction of a new product.
Diff: 2
Type: ES
Page Reference: 416
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities

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136) What is the difference between institutional advertising and advocacy advertising?
Answer:
Institutional advertising promotes the activities, personality, or point of view of an
organization or company; advocacy advertising is a type of institutional advertising used
to sway public opinion.
Diff: 2
Type: ES
Page Reference: 389
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
137) Explain how and why a marketer might use crowdsourcing.
Answer:
Through crowdsourcing, a marketer outsources marketing activities--such as selecting an
ad, designing a logo, or developing campaign ideas--to a community of product users or
enthusiasts. Crowdsourcing is an excellent way to find out what consumers think and
what they like.
Diff: 2
Type: ES
Page Reference: 389
Topic: Advertising: The Image of Marketing
Skill: Concept
Objective: 11-1 Describe the major types of advertising and discuss criticisms of
advertising
138) Why might public relations efforts have a strong impact on public awareness at a
substantially lower cost than advertising?
Answer:
With public relations, the company is paying for a staff to develop and circulate
information and plan events instead of paying for space or time in the media.
Diff: 3
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Type: ES
Page Reference: 410
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
139) Describe the role of the public relations department in preparing a crisismanagement plan.
Answer:
The public relations department plans how to communicate with the public in the case of
a crisis, such as a defective or harmful product. In the crisis management plan, the PR
department outlines who the spokesperson for the organization will be, how the
organization will deal with the press, and what sort of message it will deliver to the press
and public.
Diff: 2
Type: ES
Page Reference: 410
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign
140) Why might a company with a small advertising budget turn to guerilla marketing?
Answer:
Guerrilla marketing involves "ambushing" customers with promotional materials and
content in unexpected places. Guerrilla marketing activities are increasingly popular
because they are relatively cheap and can generate buzz.
Diff: 2
Type: ES
Page Reference: 415
Topic: Public Relations
Skill: Concept
Objective: 11-3 Explain the role of public relations and steps in PR Campaign

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141) A customer has a piece of paper that states that he will receive five dollars off the
selling price if he purchases a certain brand of teeth whitening strips. What sales
promotion technique is being offered to this customer?
Answer:
This customer has a coupon. Coupons are certificates for money off on selected products,
often with an expiration date, and are used to encourage product trial.
Diff: 2
Type: ES
Page Reference: 417
Topic: Sales Promotion
Skill: Concept
Objective: 11-4 Sales promotion and types of consumer sales promotion activities
142) A retail salesperson at a department store cosmetics counter gets five dollars every
time he sells a bottle of a certain brand of cologne. Explain the type of trade promotion
that is being used in this instance.
Answer:
Push money is the promotion technique being used; it is an incentive program used by a
manufacturer to pay a salesperson for selling, or "pushing," its product.
Diff: 2
Type: ES
Page Reference: 422
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
143) What are Point of Purchase (POP) displays?
Answer:
Point-of-purchase (POP) display materials include signs, mobiles, banners, shelf ads,
floor ads, lights, plastic reproductions of products, permanent and temporary
merchandising displays, in-store television, and shopping cart advertisements.
Manufacturers spend over $17 billion annually on POP displays, because it keeps the
name of the brand in front of the consumer, reinforces mass-media advertising, calls
attention to other sales promotion offers, and stimulates impulse purchasing.

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Diff: 2
Type: ES
Page Reference: 422
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
144) Explain the difference between the practices of forward buying and diverting.
Answer:
Forward buying is the practice of purchasing and warehousing a large volume of product
offered through a case allowance, drawing on the warehoused product until the
manufacturer offers another discount. Diverting is similar. It involves selling the
warehoused product after the manufacturer's discount has expired at a price below the
manufacturer's regular price but high enough for the selling company to make a profit.
Diff: 3
Type: ES
Page Reference: 420
Topic: Sales promotion directed towards the trade
Skill: Concept
Objective: 11-5 Sales promotion element aimed at channel members
145) Why are people reached by direct mail better prospects for a company than those
reached by mass media such as television or magazines?
Answer:
Direct mail can be personalized for each individual, which helps to build customer
relationships.
Diff: 2
Type: ES
Page Reference: 425
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
146) What is the difference between catalogs and direct mail?
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Answer:
A catalog is a collection of products offered for sale in book form, usually consisting of
product descriptions accompanied by photos of the items. Direct mail is a brochure or
pamphlet offering a specific product or service at one point in time.
Diff: 2
Type: ES
Page Reference: 425
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
147) Why is m-commerce considered an important form of direct marketing?
Answer:
M-commerce is mobile commerce conducted over smartphones and other mobile devices.
This is an important medium for direct marketing because almost 70% of the world's
population has a mobile phone.
Diff: 3
Type: ES
Page Reference: 427
Topic: Direct Marketing
Skill: Concept
Objective: 11-6 Elements of Direct marketing
148) What is the relationship between personal selling and the marketing push strategy?
Answer:
Generally, a personal selling effort is more important when a firm engages in a push
strategy, in which the goal is to "push" the product through the channel of distribution of
the retailer so it is available to the consumer. This is a business-to-business use of
personal selling; the large customer is the retailer.
Diff: 3
Type: ES
Page Reference: 429
Topic: Personal Selling
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Skill: Concept
Objective: 11-7 The role of personal selling
149) A major manufacturer of automobile tires sells its products at its dealership retail
stores. After a tire is sold, the customer can return to any manufacturers' retail store and
the tire can be rotated on the car at no expense to the customer. Should a repair to the tire
be needed, the customer will receive a discount from the list price bill as a form of a
warranty received at the time of purchase of the tire. Identify and explain the selling
approach being implemented by this manufacturer
Answer:
Relationship selling is being implemented by the manufacturer at its dealership retail
stores. The free rotation of the tire and the discount pricing if a repair is needed are means
of developing a long-time relationship with customers who will likely return to this
manufacturer the next time they need to buy tires.
Diff: 2
Type: ES
Page Reference: 429
Topic: Personal Selling
Skill: Application
Objective: 11-7 The role of personal selling
150) How can sales managers benefit from customer relationship management (CRM)?
Answer:
Sales managers benefit when the salespeople they manage become more efficient and
effective. Customer relationship management (CRM) provides these benefits to the
salespeople.
Diff: 3
Type: ES
Page Reference: 431
Topic: Personal Selling
Skill: Application
Objective: 11-7 The role of personal selling

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