Chapter 16

Chapter 16—Integrated Marketing Communications
ESSAY
1. What is integrated marketing communications? Explain its purpose.
ANS:
Answer not provided.
PTS: 1 DIF: Moderate

OBJ: 16-01 Describe the nature of integrated marketing communications.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge
2. Why is communication an important concept in marketing a new or existing product?
ANS:
PTS: 1 DIF: Easy OBJ: 16-02 Examine the process of communication.

NAT: AACSB: Communication | MKTG: Customer MSC: Knowledge
3. Draw, label, and explain the communication process.
ANS:
PTS: 1 DIF: Moderate OBJ: 16-02 Examine the process of communication.

4. If a message to customers is not properly encoded, what might happen? How can a marketer make sure
this does not happen?
ANS:
PTS: 1 DIF: Moderate OBJ: 16-02 Examine the process of communication.

5. Identify the major objectives of promotion.
ANS:

OBJ: 16-03 Understand the role and objectives of promotion.
6. What are the differences in trying to stimulate primary demand versus selective demand?
ANS:
7. In what ways can promotion be used to reduce sales fluctuations?
ANS:

8. Identify and describe the four major promotion mix elements.
ANS:
PTS: 1 DIF: Easy OBJ: 16-04 Explore the elements of the promotion mix.
9. How does sales promotion differ from promotion in general?
ANS:
PTS: 1 DIF: Moderate OBJ: 16-04 Explore the elements of the promotion mix.
10. Compared to advertising, what are the major advantages and limitations of personal selling?
ANS:
PTS: 1 DIF: Moderate OBJ: 16-04 Explore the elements of the promotion mix.
11. Discuss the major factors that affect the selection of promotion mix elements.
ANS:
PTS: 1 DIF: Difficult

OBJ: 16-05 Examine the selection of promotion mix elements.
12. What is the difference between a push policy and a pull policy? How is each implemented?
ANS:
PTS: 1 DIF: Easy

NAT: AACSB: Communication | MKTG: Promotion| MKTG: Strategy
MSC: Knowledge
13. Why is public relations an important form of communication about a company? Discuss negative
public relations, and give an example.
ANS:

NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge
14. Select three criticisms of promotion, and provide defenses to rebut them.
ANS:

OBJ: 16-08 Examine criticisms and defenses of promotion.
15. Does promotion cost too much relative to the benefits that it provides to customers?
ANS:
PTS: 1 DIF: Difficult

SHORT ANSWER
16. A major goal of integrated marketing communications is to ____________________.
ANS:
send a consistent message to customers.
PTS: 1 DIF: Easy

MULTIPLE CHOICE
17. The coordination of promotion and other marketing efforts for maximum informational and persuasive
impact defines
a. communication.
b. integrated marketing communications.
c. tactile communication.
d. kinesic communication.
e. proxemic communication.
ANS: B PTS: 1 DIF: Easy
18. Chris sees a television commercial for Arby's promoting its roast beef sandwiches at 5 for $5.95. Later
that day he goes to the nearest Arby's for a roast beef feast, but is told that the special offer is not
available at that location. Arby's seems to lack
a. communication.
b. promotional efforts.
c. integrated marketing communications.
d. channel capacity.
e. coordinated awareness.
ANS: C PTS: 1 DIF: Moderate
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application
19. Effective management of integrated marketing communications is based upon

a. consumer attitudes towards promotion.
b. information about customers.
c. the communication process model.
d. budgetary allowances.
e. the firm's organizational structure.
ANS: B PTS: 1 DIF: Moderate
20. If FedEx-Kinko's decided to outsource all of its marketing efforts to the MaxPro Company, which
specializes in advertising, sales promotion activities, and public relations, FedEx-Kinko's would likely
be striving to practice
a. one-stop shopping.
b. more expertise.
c. pioneer promotional efforts.
d. competitive promotional programming.
e. integrated marketing communications.
ANS: E PTS: 1 DIF: Moderate
21. A sharing of meaning defines

a. promotion.
b. information.
c. noise.
d. interference.
e. communication.
ANS: E PTS: 1 DIF: Difficult
OBJ: 16-02 Examine the process of communication.
22. A person, group, or organization that has a meaning it intends and attempts to share with a receiver or
an audience is a
a. communications channel.
b. source.
c. relay channel.
d. decoder.
e. sender.
23. In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette is the
communication
a. receiver.
b. transmitter.
c. decoder.
d. source.
e. noise.
ANS: D PTS: 1 DIF: Easy
24. The individual or group that decodes a coded message is called a

a. sender.
b. receiver.
c. source.
d. decoder.
e. receptor.
25. Sierra is driving to work on I-95 and notices a billboard for new salads at Wendy's. She reads the
message and sees the pictures of the new salads. In this case, Sierra is the ____ and Wendy's is the
____ of this communication.
a. receiver; source
b. audience; promoter
c. decoder; coder
d. communicatee; communicator
e. feedback; noise
ANS: A PTS: 1 DIF: Moderate
26. The process of putting one's thoughts (meaning) into signs (symbols) is called
a. decoding.
b. noise.
c. interference.
d. transmission.
e. the coding process.
ANS: E PTS: 1 DIF: Easy
27. When a source converts meaning into a series of signs or symbols representing ideas or concept, the
source is undergoing
a. communication.
b. the coding process.
c. the decoding process.
d. the conversion process.
e. communications channel.
28. As Emily Jeffries prepares the script for a radio commercial for her boutique, she is engaging in the
____ stage of the communication process.
a. encoding
b. sourcing
c. decoding
d. sending
e. receiving
NAT: AACSB: Communication | MKTG: Customer MSC: Application
29. When encoding the message, the source should use signs that have
a. new and exciting meanings.
b. different meanings to different people.
c. contemporary jargon.
d. meanings that the target market will understand.
e. broad interpretations.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Customer
MSC: Knowledge
30. Radio and television signals as well as ink on the paper of a magazine or newspaper are all considered
a. noise.
b. communication links.
c. communication resources.
d. communication channels.
e. decoding sources.
31. The Barrister's Deli decides to run advertisements for its lunch specials on a local FM radio station.
Marketing research later reveals that the restaurant's target market listens primarily to satellite radio
stations. This promotion program suffered from an error in the selection of
a. shared symbols.
b. targeted customers.
c. communication channel.
d. decoded meanings.
e. noise minimizers.
ANS: C PTS: 1 DIF: Difficult
32. The vehicle through which the coded message is transmitted from the source to the receiver is called
a(n)
a. coder.
b. decoder.
c. encoder.
d. relay channel.
e. communication channel.
33. OES Office Systems' use of fax machines to carry its advertising messages to its business customers is
which component of the communication process?
a. Communication channel
b. Decoding process
c. Encoding process
d. Sharing of meaning
e. Noise minimization
ANS: A PTS: 1 DIF: Easy
NAT: AACSB: Communication | MKTG: Promotion MSC: Application
34. During the decoding process, the

a. intensity of the transmission becomes stronger.
b. receiver attempts to convert signs or symbols into concepts and ideas.
c. source attempts to convert signs or symbols into concepts and ideas.
d. source converts meaning into a series of signs or symbols that represent ideas or concepts.
e. receiver filters noise from the feedback.
35. The message that a source originally encodes and the meaning a receiver ultimately decodes
a. contain circular feedback.
b. may be different because of noise.
c. are usually exactly the same.
d. rarely are similar because of feedback.
e. are collectively termed the communications channel.
36. During a one-minute television ad for Nike, the National Weather Service interrupts to announce a
flash flood warning for surrounding counties. Such an occurrence is an example of ____ in the
communication process.
a. encoding
b. bad luck
c. noise
d. deflected transmission
e. poor implementation
ANS: C PTS: 1 DIF: Easy
37. Sonya is watching the six o'clock news as she prepares dinner. As commercial breaks come on, Sonya's
dinner preparation would be considered
a. a communication inhibitor.
b. feedback.
c. noise.
d. decoding blocker.
e. interference.
38. Which is the best example of noise that originates with the receiver in the communication process?
a. Sarah drives through a tunnel, and her radio signals become very weak.
b. Maria has been studying English for two years and does not understand the symbolism
being used in a commercial.
c. Kevin simply tunes out pop-up ads on the Internet so that they don't even enter his
awareness.
d. Because of poor printing, Claire cannot read an advertisement in her local newspaper.
e. A mother fails to hear a new commercial for diapers because her new baby is crying.
ANS: C PTS: 1 DIF: Difficult
39. The receiver's response to a message is ____ for the source.

a. feedback
b. the communications channel
c. noise
d. channel capacity
e. decoding
40. Communication can be viewed as a circular process because

a. during feedback, the receiver can be viewed as the source of the message while the
original source becomes the receiver.
b. the message goes from encoding by the source to decoding by the receiver.
c. during a personal selling situation, both verbal and nonverbal feedback can be very fast
and immediate.
d. channel capacity is determined by the least efficient component.
e. the message goes from person to person.
NAT: AACSB: Communication | MKTG: Distribution MSC: Comprehension
41. In one corner of its magazine advertisement for office copiers, Epson places a small box asking for the
names and addresses of individuals or companies seeking more information. Epson has included this
box to facilitate ____ for this communication.
a. decoding
b. feedback
c. encoding
d. perceptual attention
e. noise reduction
42. Channel capacity is determined by the

a. most efficient component of the communication process.
b. least efficient component of the communication process.
c. source.
d. receiver.
e. meanings of the message.
ANS: B PTS: 1 DIF: Difficult
NAT: AACSB: Communication | MKTG: Promotion MSC: Comprehension
43. Each communication channel has a limit on the volume of information it can handle effectively. This
limit is called
a. transmission load.
b. feedback.
c. encoding.
d. noise.
e. channel capacity.
44. Although a radio announcer can read several hundred words a minute, a one-minute advertising
message should not exceed 150 words because most announcers cannot articulate words into
understandable messages at faster rates. This illustrates the ____ consideration in effective
communication.
a. transmission load
b. feedback
c. encoding
d. noise
e. channel capacity
45. For many consumers, the pages near the back of magazines with dozens of very small black and white
advertisements exceed their
a. channel capacity.
b. threshold of awareness.
c. decoding abilities.
d. transmission limitations.
e. noise limit.
46. Anything that reduces the accuracy and clarity of communication is called
a. distraction.
b. feedback.
c. interference.
d. discordance.
e. noise.
47. Claire Nevsky is in charge of advertising for her company and has produced a 30-second television
spot to promote one of the company's new products. One of her assistants just out of college believes
that the commercial has too much visual and audio information packed into such a small amount of
time. The assistant is specifically concerned about limits in the receiver's
a. noise.
b. coding process.
c. encoding.
d. channel capacity.
e. feedback.
ANS: D PTS: 1 DIF: Difficult
48. What is the overall role of promotion?

a. To stimulate product demand
b. To identify prospects
c. To retain loyal customers
d. To encourage product trial
e. To reduce sales fluctuations
ANS: A PTS: 1 DIF: Difficult
49. Communication that builds and maintains favorable relationships by informing and persuading one or
more audiences to view an organization more positively and to accept its product is the role of
a. the vice president of sales.
b. manipulation.
c. promotion.
d. information.
e. sales promotion.
50. Companies tend to view promotion from many vantage points. Which of the following alternatives is
most accurate?
a. Promotion costs cause product costs to be higher.
b. Promotion activities make up the bulk of marketing.
c. The role of promotion is to stimulate product demand.
d. Promotion should be directed toward numerous audiences.
e. Most promotional efforts are performed through advertising.
51. ____ links the purchase of an organization's products to support of philanthropic organizations favored
by the target market.
a. Promotion
b. Cause-related marketing
c. Charity-related promotion
d. Selective demand promotion
e. Charitable nonprofit marketing
52. When Yoplait Yogurt gives a portion of its profits to Breast Cancer Research, it is using
a. promotion.
b. integrated marketing communications.
c. charity marketing.
d. charitable promotion.
e. cause-related marketing.
53. Threatt Production makes low-priced, convenience products that are widely available. It is most likely
to focus its promotion efforts on
a. public relations.
b. personal selling.
c. viral marketing.
d. advertising.
e. sales promotion.
ANS: D PTS: 1 DIF: Moderate
54. To gain maximum benefit from promotional efforts, marketers must strive to
a. become directly involved rather than indirectly involved.
b. obtain information about the marketing environment through their MIS.
c. realize the needs of their target market and try to meet them.
d. properly plan, implement, coordinate, and control communications.
e. use promotion during the growth stage of the product's life cycle.
55. Often when a company introduces a new product or line extension, its promotion will focus on ____ in
order to initiate the product-adoption process.
a. creating awareness
b. stimulating demand
c. retaining loyal customers
d. combating competitive promotional efforts
e. identifying prospects
56. By promoting the fact that "orange juice is not just for breakfast anymore," the Florida Orange
Growers Association attempted to stimulate
a. primary demand.
b. secondary demand.
c. competition.
d. comparison of orange juices.
e. demand elasticity.
57. Primary demand is defined as

a. demand for a product category.
b. demand for a new product.
c. consumer awareness of a product category.
d. stimulating demand for any products.
e. demand for a particular brand.
58. When Blue-ray disc players were first introduced to the market, what would the logical choice for
promotion have been?
a. Selective demand
b. Pioneer promotion
c. Comparative promotion
d. Primary demand promotion
e. Retention promotion
59. Which of the following types of promotion informs potential customers about a product and what it is?
a. Reminder
b. Competitive
c. Comparative
d. Pioneer
e. Repetitive
60. During the introduction stage of the product life cycle, which type of promotion would a firm focus
on?
a. Reminder
b. Competitive
c. Comparative
d. Pioneer
e. Repetitive
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Strategy
MSC: Knowledge
61. Pioneer promotion is most likely to be used during the ____ stage of the product life cycle.
a. maturity
b. decline
c. growth
d. introduction
e. presentation
62. When a marketer makes an effort in promotion to point out the strengths and benefits of a specific
brand, it is an attempt to build ____ demand.
a. primary
b. secondary
c. selective
d. economic
e. competitive
63. Selective demand is demand for a

a. general type of product.
b. particular brand.
c. new product.
d. competitor's product.
e. service.
64. When Sears promotes the benefits and strengths of its Kenmore brand appliances, it is attempting to
build
a. primary demand.
b. pioneer promotion.
c. prospects.
d. brand awareness.
e. selective demand.
65. Retro64 distributes free downloadable versions of its computer games for a short time. These efforts
have a primary promotional objective of
a. encouraging product trial.
b. stimulating demand.
c. identifying prospects.
d. creating awareness.
e. reducing sales fluctuations.
66. Promotional efforts designed to reduce the risk to consumers for using a product for the first time seek
to
a. stimulate demand.
b. encourage product trial.
c. create awareness.
d. combat competitive promotional efforts.
e. retain loyal customers.
67. Bowflex uses infomercials to demonstrate its fitness products and encourage customers to call and
receive a free video with more information about its products. This promotional effort is directed at
a. creating awareness.
b. encouraging product trial.
c. identifying prospects.
d. stimulating demand.
e. retaining loyal customers.
68. A direct-response information form found in a magazine advertisement that allows customers to send
for more information has a primary objective of
b. retaining loyal customers.
c. stimulating demand.
d. creating awareness.
e. identifying prospects.
69. The basic promotional objective underlying a magazine advertisement with a direct-response
information form that requests the reader to complete and mail the form to receive additional
information is to
a. retain loyal customers.
b. facilitate reseller support.
c. reduce sales fluctuations.
d. stimulate primary demand.
e. identify prospects.
70. The cost of ____ is usually substantially lower than the cost of ____.
a. stimulating primary demand; stimulating selective demand
b. identifying prospects; encouraging product trial
c. retaining existing customers; acquiring new customers
d. comparative advertising; pioneer promotion
e. personal selling; public relations
71. Blockbuster offers its customers a Blockbuster Rewards Card that allows them to rent every sixth
movie free and provides various discounts throughout the year. The primary promotional objective of
programs such as this is
b. retaining existing customers.
c. stimulating demand.
d. combating competitive promotional offers.
72. When Hamburger Helper introduced its Oven Varieties, it gave special offers to supermarkets to
purchase the new product and supplemented these offers with consumer advertising. Hamburger
Helper's primary objective is to
a. facilitate reseller support.
b. reduce sales fluctuations.
c. combat competitive promotional efforts.
d. encourage product trial.
73. Cooperative advertising efforts between manufacturers and retailers demonstrate the promotional
objective of
a. stimulating demand.
b. reducing sales fluctuations.
c. combating competitive promotional efforts.
d. facilitating reseller support.
e. retaining loyal customers.
74. Which of the following is the best example of the promotional objective of combating competitive
promotional efforts?
a. Joy advertises that its dish soap has more suds than Dawn, Sunlight, and other leading
dish soaps.
b. Joe Boxer and Kmart collaborate to promote Joe Boxer's lines of clothing and
housewares.
c. The Pork Council advertises pork as the "other white meat" and a healthier alternative to
beef.
d. After Ford promotes the towing capacity of its F-series trucks, DaimlerChrysler soon
emphasizes the towing capacity of its Dodge trucks.
e. Hyundai offers 10-year/100,000 mile warranties on its vehicles in order to give customers
confidence in its brand name and automotive offerings.
75. Which of the following industries is most likely to employ combative promotional efforts?
a. Fast food
b. Computer processors
c. Tax-preparation services
d. Television producers
e. Automotive paints
76. Factors such as climate, seasons, and holidays tend to lead to the promotional objective of
a. combating competitive promotional offers.
b. facilitating reseller support.
c. encouraging product trial.
d. retaining loyal customers.
77. Newspaper ads for Blue Haven Pools offering discounted prices during October are examples of which
of the following uses of promotion?
a. Retaining loyal customers
b. Promoting new product uses
c. Making salespeople more effective
d. Stimulating primary demand
e. Reducing sales fluctuations
78. A spokesperson for Mott's apple juice encourages television audiences to use its juice in the winter by
serving it hot with a cinnamon stick. In this instance, Mott's is using promotion to
a. stimulate primary demand.
b. offset competitors' promotional efforts.
c. facilitate reseller support.
d. retain loyal customers.
e. reduce sales fluctuations.
79. An advertisement from a ski lodge extolling the benefits of a summer getaway in the mountains uses
promotion to
a. combat competitive promotional efforts.
b. stimulate demand.
c. reduce sales fluctuations.
d. encourage product trial.
80. Advertising, personal selling, sales promotion, and public relations are called
a. promotion mix ingredients.
b. marketing mix components.
c. characteristics of a product.
d. advertising tools.
e. nonpersonal communication.
OBJ: 16-04 Explore the elements of the promotion mix.
81. A paid form of nonpersonal communication about an organization and/or its products that is
transmitted to a target audience through a mass medium is
a. advertising.
b. public relations.
c. sales promotion.
d. personal selling.
e. campaigning.
82. Slow feedback, high absolute-dollar outlay, and difficulty in measuring effects on sales are
disadvantages of which promotion mix ingredient?
a. Advertising
b. Public relations
c. Sales management
d. Sales promotion
e. Personal selling
83. Cost efficiency, repetition, and adding product value are all potential benefits of
a. public relations.
b. advertising.
c. personal selling.
d. promotion.
e. guerilla marketing.
84. One of the biggest problems associated with ____ as an element of promotion is the high absolute
dollar outlay often required.
a. personal selling
b. advertising
c. public relations
d. sales promotion
e. packaging
85. Paid personal communication that seeks to inform customers and persuade them to purchase products
in an exchange situation is
a. personal promotion.
b. advertising.
d. public relations.
e. individual promotion.
86. Which promotion mix ingredient costs considerably more than advertising to reach just one person but
can provide more immediate feedback?
a. Publicity
b. Sales management
c. Sales promotion
d. Personal selling
e. Public relations
87. Kinesic communication is an element in which type of promotional method?

a. Advertising
b. Public relations
c. Personal selling
d. Packaging
e. Sales promotion
MSC: Comprehension
88. Head nodding, winking, hand gestures, and arm motions are all forms of ____ communication.
a. kinesic
b. spacing
c. proxemic
d. touching
e. tactile
89. As they walk to the car, Erin Brandeis tells her sales representative, Joachin Perez, that they may need
to modify the price structure they just presented to the prospect. Erin bases her statement on the way
the prospect folded his arms when Joachin quoted him the prices on the new system. Joachin says he
didn't notice. Erin recommends a book on ____ communication to Joachin.
a. tactile
b. proxemic
c. kinesic
d. verbal
e. signal
NAT: AACSB: Analytic | MKTG: Customer MSC: Application
90. When a salesperson varies the physical distance between himself and a customer he is using
a. kinesic communication.
c. tactile communication.
d. comfort relations.
e. proxemic communication.
91. Brandon walks around behind purchasing agent Shannon Wise as she looks at the pamphlet describing
Hyster's new conveyer system. Shannon stands up and walks to a table on the other side of her office.
Brandon follows, but he does not understand the ____ communication Shannon is sending.
a. tactile
b. proxemic
c. kinesic
d. verbal
e. promotional
NAT: AACSB: Analytic | MKTG: Customer MSC: Application
92. As their meeting concludes, Jamal rises and thanks Gina for taking the time to come by and explain
her firm's new line of industrial fasteners. A(n) ____, which is a form of tactile communication,
concludes the session.
a. smile
b. walk to the door
c. handshake
d. exchange of business cards
e. pleasant good-bye
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Customer
MSC: Application
93. A common form of tactile communication in U.S. business activities is

a. hugging.
b. kissing.
c. handshaking.
d. eye contact.
e. head nodding.
MSC: Knowledge
94. ____ is a broad set of communication efforts used to create and maintain favorable relationships
between a company and its stakeholders.
a. Stakeholder management
b. Personal selling
c. Integrated marketing communications
d. Sales promotion
e. Public relations
95. Communication through the use of brochures, annual reports, event sponsorships, and news stores is
referred to as
a. advertising.
c. sales promotion.
d. publicity.
e. public relations.
96. The Sharper Image likes to use nonpersonal communication in news story form such as press releases
for its new and improved products. This is an example of
a. sales promotion.
b. advertising.
d. publicity.
e. kinesic communication.
97. All of the following are examples of publicity-based public relations tools except
a. press conferences.
b. feature articles.
c. news releases.
d. annual reports.
e. news stories.
98. Public relations

a. should be used mostly to counteract any competitive promotions or negative publicity.
b. is an element of promotion that should be handled on a continuous basis.
c. should be used solely to respond to emergencies that could significantly damage the
company's reputation.
d. is paid communication that helps enhance a company's image by highlighting its
philanthropic efforts.
e. is generally not given much weight because the information is generated by the company
itself.
99. An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers
is
a. advertising.
c. public relations.
d. sales promotion.
e. packaging.
100. Frequently, Burger King restaurants offer 32-ounce glasses depicting currently popular movie
characters free with the purchase of a large drink. This example illustrates Burger King's use of which
one of the following elements of the promotion mix?
a. Packaging
b. Personal selling
c. Sales promotion
d. Public relations
e. Telemarketing
101. When McDonald's uses the Monopoly game in which customers receive game pieces with each visit
and try to assemble a set of properties to win prizes, McDonald's is utilizing
a. sales promotion.
b. advertising.
c. guerilla marketing.
102. Marketers of highly seasonal products tend to have more irregular use of
a. advertising.
b. sales promotion.
e. marketing.
103. Hunt's decided to put a much larger share of its promotion budget into ____ because of the heavy
reliance it will be placing on coupons in the second quarter.
a. advertising
b. sales promotion
c. public relations
d. telemarketing
e. personal selling
104. Procter & Gamble periodically sends out coupons and free samples of products like Downy fabric
softener. This illustrates P&G's use of which of the following elements of the promotion mix?
a. Advertising
b. Personal selling
c. Sales promotion
d. Public relations
e. Telemarketing
105. A consumer contest is an example of

a. personal selling.
b. sales promotion.
c. advertising.
d. indirect selling.
106. Sweepstakes, free samples, coupons, and rebates are examples of

a. advertising.
b. sales promotion techniques.
c. publicity.
d. personal selling techniques.
e. packaging methods.
107. Generally, promotion mixes for companies with extremely limited promotional budgets tend to
concentrate on
a. advertising.
b. publicity.
c. sales promotions.
e. distributor incentives.
108. Which of the following target market characteristics are most important to consider before determining
the promotion mix ingredients?
a. The size, geographic distribution, and demographic characteristics
b. The cultural diversity and population size
c. The age, sex, religion, and race characteristics
d. Existing product adoption categories
e. Existing levels of price consciousness
109. If a firm's promotional budget were extremely limited, for which of the following reasons would it be
more likely to rely on personal selling as its main promotional tool?
a. People are more likely to believe a human being than a print ad.
b. TV and radio ads are not feasible for smaller companies.
c. It can achieve more sales through business customers than through individual consumers.
d. It is easier to measure a salesperson's effects on sales than advertising's effects on sales.
e. The firm is charging a higher price to cover the expensive salaries of its salespeople.
110. Organizations that sell products to industrial markets or a few wholesalers tend to focus their
promotion efforts on
a. advertising.
b. word-of-mouth communication.
d. sales promotion.
e. personal selling.
111. High-priced products usually depend heavily on which promotion mix ingredient?
a. Advertising
b. Personal selling
c. Public relations
d. Sales promotion
e. Telemarketing
112. The use of heavy advertising in the promotion mix is least likely to occur in which product life cycle
stage?
a. Introduction
b. Decline
c. Maturity
d. Growth
e. Plateau
MSC: Knowledge
113. If the push policy is used in promoting a product, the firm

a. promotes directly to consumers.
b. promotes only to the next marketing institution down the marketing channel.
c. promotes the product to wholesalers only.
d. promotes the product to retailers only.
e. will be assured of having an effective promotional mix.
114. If a manufacturer decides to use a push policy to promote its products, it is most likely to focus its
efforts on
a. retailers.
b. wholesalers.
c. ultimate consumers.
d. other producers.
e. institutional users.
115. When Hershey Dark Chocolate Kisses were introduced, Hershey promoted directly to consumers and
told them to ask for the product at their favorite stores. This is an example of a ____ policy.
a. reseller promotional
b. push
c. customer promotional
d. pull
e. channel promotional
116. If a pull policy is to be used in promoting a product, the firm

a. promotes directly to consumers.
b. promotes only to the next marketing institution down the marketing channel.
c. promotes the product to retail stores only.
d. promotes the product to wholesalers only.
e. must also use the push policy to be effective.
117. The use of a pull policy may require heavy expenditures for
a. advertising and sales promotion.
b. public relations and distribution.
c. personal selling and public relations.
d. distribution and advertising.
e. sales promotion and personal selling.
118. Which of the following are personal informal exchanges of communication that customers share with
one another about products, brands, and companies?
a. Guerilla communication
b. Word-of-mouth communication
c. Buzz marketing
d. Viral marketing
e. Conversational promotion
OBJ: 16-06 Understand word-of-mouth communication and how it affects promotion.
119. An attempt to create a trend or acceptance of a product through word-of-mouth communication is

called
a. guerilla marketing.
b. viral marketing.
c. buzz marketing.
d. personal publicity.
e. conversational promotion.
120. Andrea receives an e-mail from her sister-in-law that is actually a recommendation for a website with a
demonstration of a new home hair-coloring system. She later discovers that her sister-in-law received a
free trial kit for passing Andrea's and four other friends' e-mail addresses along to the marketer. This is
known as
a. viral marketing.
b. buzz marketing.
c. guerilla marketing.
d. a word-of-mouth pyramid.
e. personal advertising.
121. The two main reasons for criticism of promotional activities are that promotion
a. has some flaws, and it is deceptive.
b. is deceptive, and it causes prices to rise.
c. pervades our daily lives, and it creates needs in us.
d. creates needs in us, and it encourages materialism.
e. has some flaws, and it pervades our daily lives.
122. Promotion can help keep prices lower because

a. demand for the product does not increase.
b. promotion of prices intensifies price competition.
c. promotion of prices leads to nonprice competition.
d. promotion tends to reduce consumers' price sensitivity.
e. promotion tends to stabilize a product's price elasticity of demand.
NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Knowledge
123. A commercial for a weight-loss program that explains that the customer pays only one dollar for every
pound he or she wants to lose but specifies in fine print that the cost of meals is extra exemplifies ____
advertising.
a. unfair
b. illegal
c. deceptive
d. push
e. pull
NAT: AACSB: Ethics | MKTG: Promotion MSC: Application
124. If a marketer of a perfume ad develops a commercial involving a man being attracted to a woman who
wears a particular perfume, it is attempting to influence one's need for
a. love and affection.
b. safety.
c. self-esteem.
d. self-actualization.
e. respect from others.
NAT: AACSB: Reflective Thinking | MKTG: Promotion | MKTG: Customer
MSC: Application
125. If children and teenagers are insisting on wearing expensive name-brand apparel, a criticism of
promotion can be made that promotion
a. forces people to spend too much.
b. forces prices to go up.
c. encourages materialism.
d. creates needs.
e. can be harmful.
NAT: AACSB: Ethics | MKTG: Promotion MSC: Comprehension
126. Promotion tends to

a. create needs.
b. capitalize on existing needs.
c. be overly focused on the self-actualization needs.
d. overemphasize physiological and safety needs.
e. avoid focusing on people's needs.
127. Promotion helps consumers because it

a. costs billions of dollars each year, which stimulates the U.S. economy.
b. always stresses wholesome values, which benefits society.
c. persuades consumers to make the right choices.
d. informs consumers and places them in a position to specify the products that they seek.
e. tends to be informative and not persuasive.
MSC: Knowledge
128. Some critics, including consumer groups and government officials, suggest that certain products
should not be promoted because they
a. cost too much.
b. are illegal.
c. are potentially harmful.
d. do not last.
e. are not competitive.
NAT: AACSB: Ethics | MKTG: Promotion | MKTG: Strategy MSC: Knowledge
Scenario 16.1
Use the following to answer the questions.
When introducing a new vehicle targeted to the under-30 population, Toyota used several different
methods of communication. First, it did research in several large cities to find out who the opinion
leaders were in that age group. By visiting the local nightlife, one or two people in each city were
selected and given a new vehicle to drive for two weeks. They were told to share information about
this new vehicle with their friends. After a few weeks, then a television campaign was launched with
commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to
the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas.
129. Refer to Scenario 16.1. Toyota's act of giving the opinion leaders a new vehicle for two weeks is best
described as an example of
a. advertising.
c. sales promotion.
d. buzz marketing.
e. push marketing.
MSC: Application
130. Refer to Scenario 16.1. Suppose Toyota also offered the dealership salespeople a trip to Hawaii for
anyone who could sell ten of the new vehicles within the first month they were available? This tactic
would be an example of ____ marketing, while the TV commercials described above would be an
example of ____ marketing.
a. pull; push
b. personal selling; push
c. pull; sales promotion
d. push; pull
e. personal selling; sales promotion
NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Application
131. Refer to Scenario 16.1. Suppose that Toyota has decided to contract with the producer of the next
James Bond 007 movie to use one of its new vehicles in a chase scene. This would best be an example
of
a. sales promotion.
b. word-of-mouth promotion.
c. product placement.
d. viral marketing.
e. publicity.
OBJ: 16-07 Understand product placement.
132. Refer to Scenario 16.1. Which of the following is not an integrated communications tactic used by
Toyota?
a. word-of-mouth communication
b. advertising
c. publicity
d. personal selling
e. sales promotion
Scenario 16.2
Use the following to answer the questions.
The manufacturers of Whizz, a new laundry detergent, are developing their promotional plan for the
first year. They know they want to use an integrated communications strategy and are considering the
use of advertising through TV and magazines, coupons, public relations, sales promotion, and viral
marketing. They are not sure when to use each of these methods however, and have asked for your
advice.
133. Refer to Scenario 16.2. Since Whizz is a new product, which of the following promotional methods
would you least recommend?
a. magazine ads.
b. viral marketing.
c. television commercials.
d. a price-reduction sales promotion.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Product
MSC: Application
134. Refer to Scenario 16.2. If the manufacturers of Whizz were to partner with Whirlpool to place a bottle
of Whizz in each new washer that is purchased during the first year, this would be an example of
a. advertising.
b. sales promotion.
c. viral marketing.
d. packaging.
e. publicity-based public relations.
TRUE/FALSE
135. Today, technology is allowing marketers to be more precise in targeting individual customers.
ANS: T PTS: 1 DIF: Easy

NAT: AACSB: Technology | MKTG: Promotion MSC: Knowledge
136. If integrated marketing communications works as intended, customers should receive clear and
consistent messages.

137. Communication is a sharing of meaning.

NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge
138. When encoding a message, the source should use signs or symbols that are new to the audience.
ANS: F PTS: 1 DIF: Easy

139. Encoding is the process by which a receiver takes the coded message received from the source and
converts it into ideas and concepts.
ANS: F PTS: 1 DIF: Moderate

140. Signs and symbols that can have more than one meaning should be avoided.

141. The receiver's response to the decoded message is called noise.

142. Interference on one's television set during a commercial is an example of noise.

143. When feedback occurs, the source becomes the receiver.

144. Rapid feedback enables communicators to quickly improve the effectiveness of their communication.
ANS: T PTS: 1 DIF: Moderate

145. When an individual goes out and buys a product after having seen or read an advertisement for it,
feedback is occurring.

146. A communications channel is the vehicle used to transmit the coded message from the source to the
receiver.

147. When a firm uses mass communication, feedback is rapid.

148. Feedback does not exist for mass communication.

149. The capacity of a communication channel is determined by the least efficient component of the
communication process.

150. Channel capacity is determined by the most efficient component of the communication process.

151. A television advertisement that transmits several types of audio messages and visual materials may be
ineffective.

152. The role of promotion is to communicate.

153. Firms that link the purchase of their product to philanthropic efforts practice cause-related marketing.

154. Effective promotional programs require management efforts such as planning, organization,
implementation, and control.

155. Promotion that focuses on creating awareness is only important when introducing a new product to the
market.

156. A marketer uses pioneer promotion in the introductory stage of the product life cycle, when there are
many competitive brands.

MSC: Knowledge
157. Demand for a product category rather than for a specific brand is called primary demand.

158. Pioneer promotion neither emphasizes brand names nor compares brands.

159. Selective demand is demand for a certain brand.

160. Promotion to encourage trial use attempts to retain loyal customers.

MSC: Knowledge
161. Promotion can assist salespeople in finding likely sales prospects.

MSC: Knowledge
162. A business usually cannot operate at peak efficiency when sales fluctuate significantly.

NAT: AACSB: Analytic | MKTG: Strategy MSC: Knowledge
163. A promotion mix is a blend of four possible ingredients, which are advertising, personal selling, public
relations, and sales promotion.

164. Advertising is a paid form of nonpersonal communication.

165. Advertising is an inflexible promotional method.

166. Several forms of promotion can be used to complement personal selling efforts.

167. The absolute dollar outlay for advertising is usually low.

168. Measuring the effect of advertising on sales is difficult.

169. Personal selling makes possible immediate feedback from consumers.

170. Proxemic communication is communication through touching.

171. Tactile communication is communication through the movement of head, eyes, arms, hands, legs, or
torso.

172. The phrase, purchase products, includes the acceptance of ideas and issues.

NAT: AACSB: Communication | MKTG: Product MSC: Knowledge
173. Public relations is a broad set of communication efforts used to create and maintain favorable
relationships between the organizations and its stakeholders.

174. Public relations is nonpersonal communication in news story form about an organization, or its
products, or both, transmitted through a mass medium at no charge.

175. Public relations is a set of tools to be used primarily during crises.

176. A news story about a product is an example of sales promotion.

177. Coupons are a form of sales promotion.

178. Sales promotion activity occurs more during peak selling periods than in off-peak selling periods.

179. An organization's promotion mix is viewed as an unchanging part of the marketing mix.

NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Marketing Plan
MSC: Knowledge
180. If an organization is large and has a large promotional budget, it should utilize all four promotional
methods.

MSC: Knowledge
181. If a company has very limited promotional resources, it is most likely to use mainly personal selling.

MSC: Knowledge
182. The geographic distribution of a firm's customers can affect the combination of promotional methods
used.

NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Knowledge
183. The price of a product influences the promotion mix to be used by the producer.

MSC: Knowledge
184. The promotional method most commonly used for highly personal items is personal selling.

185. A breakfast cereal maker most likely will not use personal selling to promote its product.

MSC: Application
186. Marketers usually decrease expenditures in advertising for products in the decline stage.

MSC: Knowledge
187. Advertising is one element of the promotion mix that is too expensive for small business firms.

188. When a push policy is used in promotion of a particular product, the producer promotes the product
only to the next channel member.
ANS: T PTS: 1 DIF: Difficult

189. If a pull policy is used in promoting a product, the producer promotes the product only to the next
marketing institution down the channel.
ANS: F PTS: 1 DIF: Difficult

190. When a push policy is used in promoting a particular product, the producer promotes the product
directly to consumers.

191. Word-of-mouth communication is not especially important when people are choosing restaurants and
automotive, medical, and personal services such as hair care.

MSC: Application
192. Successful marketers that understand the significance of word-of-mouth communication seek out
opinion leaders and try to encourage them to try their products in the hope they will spread favorable
word about them.

MSC: Knowledge
193. Viral marketing is an attempt to create a trend or acceptance of a product through word-of-mouth
communications.

194. Product placement is a form of advertising that strategically locates products or product promotions
within entertainment media to reach the product's target market(s).

OBJ: 16-07 Understand product placement.
195. One reason that promotion suffers from widespread criticism is that promotional efforts are highly
visible and affect our everyday lives.

MSC: Knowledge
196. During the nineteenth and early twentieth centuries, promotion was about as accurate as it is today.

197. A small percentage of promotion efforts are fraudulent.

NAT: AACSB: Ethics | MKTG: Promotion MSC: Knowledge
198. Deceptive promotional practices today are common because of a lack of regulation.

NAT: AACSB: Ethics | MKTG: Promotion MSC: Knowledge
199. If promotion is successful at stimulating demand, it will tend to increase prices.

NAT: AACSB: Reflective Thinking | MKTG: Promotion | MKTG: Pricing
MSC: Knowledge
200. One truth about promotion is that it raises prices.

MSC: Knowledge
201. Certain types of promotion facilitate price competition.

MSC: Knowledge
202. Promotion of products tends to keep their prices high.

MSC: Knowledge
203. While promotion does not create needs, it does capitalize on them.

MSC: Knowledge
204. One positive aspect of promotion is that it informs consumers about product uses, features, benefits,
prices, and locations where the products can be bought.

MSC: Knowledge
205. Because we are exposed to so much promotion in our daily lives, and the purpose of promoting goods
is to persuade people to buy them, a common criticism is that promotion encourages materialism.

NAT: AACSB: Ethics | MKTG: Promotion | MKTG: Customer MSC: Knowledge

Chapter 16

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Chapter 16

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Chapter 16—Integrated Marketing Communications

1. What is integrated marketing communications? Explain its purpose.

PTS: 1 DIF: Moderate

2. Why is communication an important concept in marketing a new or existing product?

PTS: 1 DIF: Easy OBJ: 16-02 Examine the process of communication.

3. Draw, label, and explain the communication process.

PTS: 1 DIF: Moderate OBJ: 16-02 Examine the process of communication.

PTS: 1 DIF: Moderate OBJ: 16-02 Examine the process of communication.

5. Identify the major objectives of promotion.

PTS: 1 DIF: Moderate

7. In what ways can promotion be used to reduce sales fluctuations?

PTS: 1 DIF: Moderate

8. Identify and describe the four major promotion mix elements.

9. How does sales promotion differ from promotion in general?

PTS: 1 DIF: Difficult

PTS: 1 DIF: Easy

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

PTS: 1 DIF: Difficult

16. A major goal of integrated marketing communications is to ____________________.

PTS: 1 DIF: Easy

19. Effective management of integrated marketing communications is based upon

21. A sharing of meaning defines

24. The individual or group that decodes a coded message is called a

34. During the decoding process, the

39. The receiver's response to a message is ____ for the source.

40. Communication can be viewed as a circular process because

42. Channel capacity is determined by the

48. What is the overall role of promotion?

57. Primary demand is defined as

63. Selective demand is demand for a

87. Kinesic communication is an element in which type of promotional method?

93. A common form of tactile communication in U.S. business activities is

98. Public relations

105. A consumer contest is an example of

106. Sweepstakes, free samples, coupons, and rebates are examples of

113. If the push policy is used in promoting a product, the firm

116. If a pull policy is to be used in promoting a product, the firm

119. An attempt to create a trend or acceptance of a product through word-of-mouth communication is

122. Promotion can help keep prices lower because

126. Promotion tends to

127. Promotion helps consumers because it

ANS: T PTS: 1 DIF: Easy

ANS: T PTS: 1 DIF: Easy

137. Communication is a sharing of meaning.

ANS: T PTS: 1 DIF: Easy

ANS: F PTS: 1 DIF: Easy

ANS: F PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Easy

141. The receiver's response to the decoded message is called noise.

ANS: F PTS: 1 DIF: Easy

142. Interference on one's television set during a commercial is an example of noise.

143. When feedback occurs, the source becomes the receiver.

ANS: T PTS: 1 DIF: Easy

ANS: T PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Moderate

147. When a firm uses mass communication, feedback is rapid.

ANS: F PTS: 1 DIF: Moderate

148. Feedback does not exist for mass communication.

ANS: F PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Moderate