Engaging Consumers and Communicating Customer Value Answers Part 2

31) A company that uses telephone marketing to sell its products to customers is most likely using the promotion tool of ________. A) advertising B) public relations C) direct and digital marketing D) retailing E) merchandising Answer: C 32) Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn promote the product to customers? A) direct marketing B) a push strategy C) the publish-subscribe method D) a pull strategy E) vertical integration Answer: B 33) A pharmaceutical manufacturer offers monetary incentives to its sales representatives to promote a new drug to the medical professionals in their respective geographic territories. This is an example of a ________ strategy. A) push B) direct marketing C) vertical integration D) pull E) publish-subscribe Answer: D 34) Chic Eyewear, a producer of designer eyeglass frames, promotes their new line in national fashion magazines. Chic Eyewear lists the select optical retailers that carry their line at the bottom of their ads. This is an example of a ________ strategy. A) push B) vertical integration C) pull D) publish-subscribe E) direct marketing Answer: C 35) In a pull strategy, the producer promotes the product to channel members who in turn promote it to final consumers. Answer: FALSE 36) Content marketing managers create, inspire, share, and curate marketing content–both their own content and that created by consumers and others. Answer: TRUE 37) Despite the shift toward digital media, traditional mass media still capture a sizable share of the promotion budgets of most major marketing firms. Answer: TRUE 38) Mass marketing is the optimal promotion tool for building personal and long-lasting relationships with customers. Answer: FALSE 39) Some marketers now rely almost entirely on digital and social media. Answer: TRUE 40) Paid media refers to promotional channels owned and controlled by the company, including company websites, corporate blogs, owned social media pages, proprietary brand communities, sales forces, and events. Answer: FALSE 41) A consumer demanding a product from a retailer after watching an ad on television has responded to a pull promotional advertising strategy. Answer: TRUE 42) John Deere's sales force working with Lowe's, Home Depot, independent dealers, and other channel members to promote their products to final consumers is an example of a push promotion strategy. Answer: TRUE 43) How has the new communications model changed the face of today's marketing communications? Answer: (Students' answers may vary. The answer given below is indicative.) The new communications model is changing the face of today's marketing communications in several ways. First, consumers are changing. In this digital age, wireless consumers are better informed and more communications empowered. Rather than relying on marketer-supplied information, they can use the Internet, social media, and other technologies to find information on their own. Second, marketing strategies are changing. As mass markets have fragmented, marketers are shifting away from mass marketing. More and more, they are developing focused marketing programs designed to build closer relationships with customers in more narrowly defined micromarkets. Finally, sweeping advances in digital technology are causing remarkable changes in the ways companies and customers communicate with each other. The digital age has spawned a host of new information and communication tools—from smartphones and tablets to satellite and cable television systems to the many faces of the Internet (brand websites, e-mail, blogs, social media and online communities, the mobile Web, and so much more). Just as mass marketing once gave rise to a new generation of mass-media communications, the new digital and social media have given birth to a more targeted, social, and engaging marketing communications model. 44) Why do today's firms need integrated marketing communications systems? How do firms benefit from such systems? Answer: (Students' answers may vary. The answer given below is indicative.) Consumers today are bombarded by commercial messages from a broad range of sources. But consumers don't distinguish between message sources the way marketers do. In the consumer's mind, messages from different media and promotional approaches all become part of a single message about the company. Conflicting messages from these different sources can result in confused company images, brand positions, and customer relationships. An integrated marketing communications system helps to integrate its many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands. Integrated marketing communications calls for recognizing all touchpoints where the customer may encounter the company and its brands. Each brand contact will deliver a message—whether good, bad, or indifferent. The company's goal should be to deliver a consistent and positive message to each contact. Integrated marketing communications leads to a total marketing communications strategy aimed at building strong customer relationships by showing how the company and its products can help customers solve their problems. Integrated marketing communications ties together all of the company's messages and images. 45) Watson Insurance is an insurance company that provides coverage for personal property and bodily injury. The company offers customized policy options for individual customers. High levels of interaction with customers are needed so that the company can provide the best customized service possible. What kind of promotional tool will best help Watson Insurance to sell its policies to its target customers? Answer: (Students' answers may vary. The answer given below is indicative.) Since Watson Insurance requires high levels of interactions with its customers, so as to customize its policies, the promotional tool of personal selling will best help Watson Insurance. Personal selling is the most effective tool at certain stages of the buying process, particularly in building up buyers' preferences, convictions, and actions. It involves personal interaction between two or more people, so each person can observe the other's needs and characteristics and make quick adjustments. Personal selling also allows all kinds of customer relationships to spring up, ranging from matter-of-fact selling relationships to personal friendships. An effective salesperson keeps the customer's interests in mind to build a long-term relationship. 46) Explain the use of sales promotions as a promotion mix tool. Answer: Sales promotion includes a wide assortment of tools—coupons, contests, discounts, premiums, and others—all of which have many unique qualities. They attract consumer attention, offer strong incentives to purchase, and can be used to dramatize product offers and boost sagging sales. Sales promotions invite and reward quick response. Whereas advertising says, "Buy our product," sales promotion says, "Buy it now." Sales promotion effects are often short lived, however, and often are not as effective as advertising or personal selling in building longrun brand preference and customer relationships. 47) Contrast pull and push promotion mix strategies with suitable examples. Answer: (Students' answers may vary. The answer given below is indicative.) Marketers can choose from two basic promotion mix strategies: push promotion or pull promotion. A push strategy involves "pushing" the product through marketing channels to final consumers. The producer directs its marketing activities (primarily personal selling and trade promotion) toward channel members to induce them to carry the product and promote it to final consumers. For example, John Deere does very little promoting of its lawn mowers, garden tractors, and other residential consumer products to final consumers. Instead, John Deere's sales force works with Lowe's, Home Depot, independent dealers, and other channel members, who in turn push John Deere products to final consumers. Using a pull strategy, the producer directs its marketing activities (primarily advertising and consumer promotion, and direct and digital media) toward final consumers to induce them to buy the product. For example, Unilever promotes its Axe grooming products directly to its young male target market using TV and print ads, a brand website, its YouTube channel and Facebook page, and other channels. If the pull strategy is effective, consumers will then demand the brand from retailers. 48) Which of the following is the first step in developing an advertising program? A) setting the advertising budget B) developing an advertising strategy C) developing a brand message D) setting advertising objectives E) evaluating advertising campaigns Answer: D 49) "Informing the target market about a price change for a signature cookie dough product through a national TV campaign within three months" is an example of a(n) ________ objective. A) reminder B) comparative C) informative D) advertising E) persuasive Answer: D 50) The objective of ________ advertising is to build primary demand. A) reminder B) comparative C) personal D) informative E) persuasive Answer: D 51) Inglast, a chocolate producer, is faced with a class action suit when customers found pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used? A) classified B) informative C) comparative D) personalized E) reminder Answer: B 52) The primary objective of ________ advertising is to build selective demand. A) reminder B) classified C) personal D) informative E) persuasive Answer: E 53) ________ advertising would most likely result in attack ads between competitors. A) Reminder B) Comparative C) Personal D) Informative E) Classified Answer: B 54) ________ advertising primarily maintains brand relationships and is important for mature products. A) Comparative B) Persuasive C) Personalized D) Reminder E) Classified Answer: D 55) Trendy Appliances has introduced a new product, Minute Yogurt, into the yogurt maker appliance market. Minute Yogurt differs from competitive offerings because it takes a minute to blend and a minute to clean. Which type of advertising would be best for promoting Minute Yogurt? A) informative advertising B) reminder advertising C) classified advertising D) comparative advertising E) personalized advertising Answer: A 56) Which statement is most likely true about the affordable method of setting an advertising budget? A) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish. B) Spending on advertising is calculated after operating expenses and capital outlays are deducted from total revenues. C) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year. D) Spending on advertising is calculated as a percentage of the unit sales price. E) Spending on advertising is based on a competitor's advertising outlays. Answer: B 57) The ________ method of setting an advertising budget typically overlooks how promotion affects sales. A) affordable B) percentage-of-sales C) objective-and-task D) competitive parity E) adaptive-control Answer: A 58) Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit? A) adaptive-control method B) objective-and-task method C) competitive-parity method D) affordable method E) percentage-of-sales method Answer: E 59) In the competitive-parity method of setting an advertising budget, the budget is set based on ________. A) a percentage of future sales B) the total revenues that a company makes C) the amount spent by similar companies in the same industry D) objectives set by the company and the cost required to accomplish them E) a percentage of current sales Answer: C 60) According to the text, the most logical budget-setting method in advertising is the ________ method. A) adaptive-control B) objective-and-task C) competitive-parity D) affordable E) percentage-of-sales Answer: B 61) Which of the following best describes the term "Madison and Vine"? A) utilizing the slice of life style of advertising B) emphasizing reach over impact in advertising C) using social media for advertising a brand D) merging advertising with entertainment E) voicing social concerns through advertising Answer: D