Chapter 16 Advertising and Sales Promotion Strategies

1) The goal of ________ is to influence how consumers think, feel, and act toward a brand or market offering.
A) encoding
B) decoding
C) marketing analysis
D) marketing communications
E) feedback
Answer: D

2) Marketing communication is also known as ________.

A) production
B) promotion
C) pricing
D) press
E) placement
Answer: B

3) Which of the following is a direct communication that marketers can use to communicate with a target market?
A) personal selling
B) advertising
C) sales promotions
D) sponsorships
E) public relations
Answer: A

4) The communication channel a company uses to convey its advertising messages from sender to receiver is
called the ________.
A) message
B) medium
C) encoder
D) communicator
E) feedback
Answer: B

5) The receiver assigns meaning to the language or graphics in an advertisement through a process known as
________.
A) disencoding
B) feedback
C) encoding
D) decoding
E) response
Answer: D

6) When a customer lets a producer know something about its products or advertising, the customer is providing
________.
A) decoding
B) noise
C) feedback
D) encoding
E) viral marketing
Answer: C

7) In the marketing communications process, a consumer request for additional information on a product is an
example of ________.
A) decoding
B) noise
C) feedback
D) encoding
E) viral marketing
Answer: C

8) Anything that might distort, block, or otherwise prevent a message from being properly encoded, sent, or
comprehended is referred to as ________.
A) noise
B) static
C) feedback
D) response
E) decoding
Answer: A

9) In the traditional model of the marketing communication process, the marketer is the ________ and the
consumer is the ________.
A) receiver; sender
B) receiver; sender and receiver
C) sender; receiver
D) sender and receiver; receiver
Answer: C

10) A marketing communications objective to ________ has the goal of influencing how the consumer feels about
a category or brand and encouraging the consumer to find out more.
A) help the consumer recognize a need
B) build awareness and interest
C) remind about a brand
D) reinforce the buying decision
E) stimulate action
Answer: B

11) A marketing communications objective to ________ has the goal of influencing the consumer to take the next
step toward buying.
A) help the consumer recognize a need
B) build awareness and interest
C) reinforce the buying decision
D) remind about a brand
E) stimulate action
Answer: E
12) Communication between consumers about a brand, marketing offer, or marketing message is referred to as
________.
A) publicity
B) public relations
C) direct marketing
D) word of mouth
E) personal selling
Answer: D

13) Which of the following is NOT a major marketing communication tool?

A) sales promotion
B) strategic positioning
C) direct marketing
D) public relations
E) advertising
Answer: B
14) Of the following, which type of marketing communication tool gives the marketer the greatest level of control
over the message?
A) sales promotion
B) advertising
C) public relations
D) word of mouth
E) personal selling
Answer: B

15) Which of the following types of marketing communication tools offers the marketer the lowest level of control
over the message?
A) sales promotion
B) advertising
C) public relations
D) word of mouth
E) personal selling
Answer: D

16) Which of the following is aimed at encouraging consumers to share a company's marketing message with
friends?
A) advertising
B) sales promotions
C) sponsorships
D) personal selling
E) viral marketing
Answer: E

17) Any paid form of nonpersonal communication of a marketing message by an identified sponsor through mass
media is called ________.
A) sales promotion
B) advertising
C) publicity
D) personal selling
E) public relations
Answer: B

18) Unlike public relations, ________ messages are by definition paid marketing communications.
A) word of mouth
B) publicity
C) advertising
D) viral marketing
E) two-way marketing
Answer: C

19) In 2008, ________ were the top advertising spending category in the United States.
A) food producers
B) automobile manufacturers
C) apparel producers
D) health care providers
E) restaurants
Answer: B

20) Advertising ________ define the task that advertising must accomplish with a specific target audience during a
specific period of time.
A) objectives
B) budgets
C) strategies
D) campaigns
E) evaluations
Answer: A

21) After determining its advertising objectives, the company's next step in developing an advertising program is
to ________.
A) set its advertising budget
B) select the media channel
C) use cash refund offers
D) plan its advertising campaign
E) develop its message strategy
Answer: A

22) Which type of advertising is used to build awareness and initial demand for a new product?
A) personal advertising
B) persuasive advertising
C) reminder advertising
D) informative advertising
E) comparative advertising
Answer: D

23) Which type of advertising is used to develop brand preferences and to increase brand loyalty?
A) personal advertising
B) persuasive advertising
C) reminder advertising
D) informative advertising
E) comprehensive advertising
Answer: B

24) Which type of advertising is used to maintain brand awareness?

A) personal advertising
B) persuasive advertising
C) reminder advertising
D) informative advertising
E) causal advertising
Answer: C

25) Which of the following statements about advertising is true?

A) Advertising is personal communication from an identified sponsor using the mass media.
B) Consumers perceive advertising as always having a high level of credibility.
C) Advertising can be used to suggest how to compare competing brands.
D) The effect of advertising is more easily measured than the effect of sales promotions.
E) Advertising always relies on factual information.
Answer: C

26) To be successful, an advertisement must ________.

A) guarantee the highest quality product
B) offer the highest quality service
C) reach consumers frequently
D) promise the lowest market price
E) gain the attention of consumers
Answer: E

27) Which message execution style depicts average people using a product in an everyday setting?
A) lifestyle
B) scientific evidence
C) slice of life
D) personality symbol
E) technical expertise
Answer: C

28) ________ refers to how many people were exposed to a brand through a promotional effort and ________
refers to how many times they were exposed.
A) Reach; exposure
B) Reach; efficiency
C) Reach; frequency
D) Efficiency; frequency
E) Efficiency; synergy
Answer: C
29) The use of short-term incentives to encourage the purchase of a product or service is called ________.
A) direct marketing
B) sales promotion
C) advertising
D) public relations
E) publicity
Answer: B

30) ________ involves enhancing the value of a market offering for a limited time.
A) Direct marketing
B) Viral marketing
C) Advertising
D) Sales promotion
E) Publicity
Answer: D

31) Trade promotions are incentives offered to ________.

A) stakeholders
B) retailers and wholesalers
C) end users
D) individual consumers
E) internal publics
Answer: B

32) "Buy it now" is the message of ________.

A) indirect marketing
B) advertising
C) sponsorship
D) sales promotion
E) publicity
Answer: D

33) Sales promotions are targeted toward all of the following EXCEPT ________.
A) retailers
B) investors
C) consumers
D) business customers
E) members of the sales force
Answer: B

34) Which major communication tool makes use of displays, discounts, coupons, and samples?
A) sales promotion
B) sponsorship
C) publicity
D) public relations
E) advertising
Answer: A

35) Which of the following is NOT a type of consumer sales promotion?

A) advertising allowance
B) point-of-purchase display
C) loyalty program
D) trial offer
E) coupon
Answer: A

36) Which of the following rewards consumers for repeat purchases of a product or brand?
A) trial offers
B) loyalty programs
C) rebates
D) exhibits
E) advertising allowances
Answer: B

37) Sales promotion features a wide assortment of tools. Which of the following is NOT one of these tools?
A) contests
B) premiums
C) catalogs
D) coupons
E) loyalty programs
Answer: C

38) Which of the following is a promotional technique that returns some or all of the purchase price to the buyer to
encourage product trial or repurchase?
A) contest
B) allowance
C) loyalty program
D) refund or rebate
E) premium
Answer: D

39) Which of the following is a promotional technique that involves giving buyers free or low-cost items in the
product package to encourage buying?
A) point-of-purchase display
B) sweepstakes
C) loyalty program
D) refund or rebate
E) premium
Answer: E

40) Which of the following is a trade sales promotion technique that involves rewarding retailers or wholesalers
with discounts or payments for promoting a product to consumers?
A) trade allowance
B) trade exhibit
C) loyalty program
D) trade premium
E) trade coupon
Answer: A

41) Which of the following is a trade sales promotion technique that involves compensation for retailers that
include a product in their local advertising?
A) trade allowance
B) co-operative advertising allowance
C) loyalty program
D) trade premium
E) trade coupon
Answer: B

42) Which of the following marketing communication tools includes the functions of building up a positive
corporate image and handling unfavorable stories and events?
A) sales promotion
B) sponsorship
C) direct marketing
D) public relations
E) advertising
Answer: D

43) Customers, employees, suppliers, government officials, community members, and industry groups are all
examples of a company's ________.
A) publics
B) shareholders
C) markets
D) sponsors
E) consumers
Answer: A

44) Which of the following functions is LEAST likely to be performed by a public relations department?
A) sponsorships
B) publicity
C) product placement
D) brand activation
E) advertising media selection
Answer: E

45) A company uses ________ to evaluate and shape long-term public opinion of the company and ________ to
achieve specific marketing objectives by targeting consumers with product-focused messages.
A) advertising; marketing public relations
B) advertising; corporate public relations
C) corporate public relations; marketing public relations
D) corporate public relations; product placement
E) marketing public relations; advertising
Answer: C

46) Product placement, in which a company arranges for a brand or product to appear in an entertainment vehicle
such as a television show or movie, is an example of ________.
A) advertising
B) sponsorship
C) viral marketing
D) public relations
E) sales promotion
Answer: D

47) Branded Coca-Cola cups have been prominently featured on episodes of American Idol. This is an example of
________.
A) advertising
B) sponsorship
C) viral marketing
D) sales promotion
E) product placement
Answer: E

48) ________ is a way of publicly associating a brand with an event, issue, or activity that the company supports
financially.
A) Publicity
B) Mass marketing
C) Sales promotion
D) Sponsorship
E) Specialty advertising
Answer: D

49) The purpose of a sponsorship is to ________.

A) immediately increase sales
B) influence brand awareness and attitudes
C) convey a specific brand message
D) encourage immediate consumer action
E) establish a dialogue about consumers' concerns
Answer: B

50) Bringing a brand to life by creating an experience that reflects the values of a brand is known as ________.
A) brand activation
B) brand valuation
C) cause marketing
D) social marketing
E) viral marketing
Answer: A

51) Marketing communicators should be good at ________ messages that take into account how the target
audience ________ them.
A) delivering; encodes
B) sending; encodes
C) encoding; decodes
D) retrieving; perceives
E) decoding; receives
Answer: C

52) The decision to use a cleaning genie to communicate the strength and power of Mr. Clean cleaning liquid is
representative of the ________ process of the communication model.
A) sourcing
B) encoding
C) medium
D) decoding
E) messaging
Answer: B

53) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina
Kanakaredes and offered readers a $1-off coupon when they try the new makeup. In terms of the communication
model, which of the following would be the best way for the source to measure feedback?
A) the number of subscribers to Ladies' Home Journal
B) the number of people make up the target market
C) the number of people who redeem the coupon
D) the number of people who were exposed to the ad
E) the number of people to whom Melina Kanakaredes is an appealing spokesperson
Answer: C

54) A company that created an entirely new consumer technology would be most likely to begin a marketing
campaign focused on which of the following marketing objectives?
A) inform about benefits
B) persuade about value
C) stimulate action
D) help the consumer recognize a need
E) remind about brand
Answer: D

55) Mercy University's initial ads for the school's new MBA program are most likely intended to create ________.
A) reinforcement
B) awareness and interest
C) preference
D) insistence
E) conviction
Answer: B

56) A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive
methods of building and maintaining brand awareness and excitement. The marketing department then recruited
consumers who were early adopters of technological devices to spread the word on social networks and blogs
about the company's new products. This is an example of ________.
A) public relations
B) advertising
C) viral marketing
D) sales promotion
E) direct marketing
Answer: C

57) Familiar products such as Coca-Cola are more likely to use ________.
A) informative advertising
B) comparative advertising
C) persuasive advertising
D) reminder advertising
E) institutional advertising
Answer: D

58) Suave ran ads featuring a woman with beautiful hair questioning "Suave or Matrix? Can You Tell?" This is an
example of ________.
A) informative advertising
B) reminder advertising
C) comparative advertising
D) personal advertising
E) word-of-mouth marketing
Answer: C

59) The AFLAC duck and Kellogg's Tony the Tiger are examples of ________ used in successful advertising
campaigns.
A) mood executions
B) slice of life executions
C) fantasy figures
D) celebrity spokespeople
E) personality symbols
Answer: E

60) When a pharmaceutical ad includes a world-renowned heart surgeon describing the benefits of the medication,
which type of execution style is being used?
A) lifestyle
B) fantasy
C) personality symbol
D) slice of life
E) technical expertise
Answer: E

61) An email from Amazon.com offers free shipping on your next purchase of more than $35 within five days.
This is an example of ________.
A) sales promotion
B) personal selling
C) public relations
D) advertising
E) publicity
Answer: A

62) A newspaper article announced that VoiceStream Wireless, the nation's sixth-largest wireless carrier, was
changing its name to T-Mobile and that to begin the makeover process it had replaced spokesperson Jamie Lee
Curtis with Catherine Zeta-Jones. Of which element of the promotion mix is this an example?
A) sales promotion
B) advertising
C) public relations
D) sponsorship
E) direct marketing
Answer: C

Refer to the scenario below to answer the following questions. John Mayes opened Sparkle Janitorial in 1999.
John began by acquiring two contracts for office cleaning services from two local manufacturing facilities. For
two years, John and his wife, Barb, performed the cleaning services alone. After acquiring three additional
cleaning contracts in 2001, John hired two employees.
"Up to that point, we had room to grow but we really had no advertising plan," John stated. "We were relying
mostly on word-of-mouth."
By 2003, Barb hired another two full-time employees to begin Sparkle's new endeavor: carpet cleaning in homes
and offices.
"Competition was getting tough for both of our services at that point," Barb added. "We ran a local radio spot three
times each week. Then we had an advertiser print coupons on placemats. That gave us a little more exposure."
John and Barb Mayes admit that they never realized the value of a sound promotional plan before now.
"We wish we would have put together something catchy with a jingle way before now," they said.

63) In the communication model, Sparkle Janitorial's radio spot is the ________.
A) message
B) sender
C) encoder
D) medium
E) feedback
Answer: D

64) Sparkle Janitorial printed coupons that guaranteed $25 off services for first-time customers; the coupons were
distributed on paper placemats at a local restaurant. Which of the following is most likely the marketing
communication objective of this promotional activity?
A) to build interest
B) to remind about the brand
C) to inform about benefits
D) to reinforce the buying decision
E) to stimulate action
Answer: E

65) Based on the scenario, Sparkle Janitorial has used which of the following marketing communication tools?
A) public relations
B) sales promotion
C) sponsorship
D) viral marketing
E) direct marketing
Answer: B

66) The goal of marketing communications is to influence the thoughts, feelings, and/or actions of consumers.
Answer: TRUE

67) In the marketing communication process, the marketer can act as both sender and receiver.
Answer: TRUE

68) In the marketing communication process, competing advertising messages create noise.
Answer: TRUE

69) Marketing communications are used both before and after a consumer has purchased a product.
Answer: TRUE

70) Consumers are more likely to trust the credibility of company-controlled sources such as advertisements than
their friends, relatives, or colleagues.
Answer: FALSE

71) Advertising used to reach a mass audience can be cost-effective.

Answer: TRUE

72) One purpose of reminder advertising is to encourage repeat purchasing.

Answer: TRUE

73) Before selecting media that will be used in an advertising campaign, a marketer should complete the message.
Answer: FALSE

74) The easiest method of determining the advertising budget is the competitive budget method.
Answer: FALSE

75) Through the competitive budget method, the ad budget is set to match the percentage of sales budget of an
important competitor.
Answer: FALSE

76) The effectiveness of an advertisement should be measured both before and after it reaches the target market.
Answer: TRUE

77) It is relatively easy to measure the effect of a sales promotion.

Answer: TRUE

78) Sales contests are an example of consumer sales promotion.

Answer: FALSE

79) A company can use public relations internally as well as externally.

Answer: TRUE

80) Public relations involves, by definition, two-way communication.

Answer: TRUE

81) According to the communication model, a coffee cup printed with a company's name and logo is an example
of a medium.
Answer: TRUE

82) The personalized email offering discounts on specific items that Geoff received from an upscale cheese and
wine shop is an example of an advertisement.
Answer: FALSE

83) A marketer has no control over when a consumer redeems a coupon.

Answer: FALSE