In the AIDA concept, the D indicates:

Question 1: In the AIDA concept, the D indicates:

a. delivery of the promotional message.
b. decoding the message.
c. desire for the product being promoted.
d. decision to listen to the message.

Question 2: At which level of brand loyalty is advertising often used heavily to promote a product?

a. Brand recognition
b. Brand preference
c. Brand insistence
d. Brand equity

Question 3: When potential buyers of a product are dispersed geographically, a pulling promotional strategy should lay emphasis on:

a. advertising.

b. personal selling.

c. publicity.

d. public relations.

Question 4: An example of a company that relies heavily on direct selling is:

a. Compaq.

b. Goodyear Corporation.

e. Amway.

d. General Motors.

Question 5: Public service announcements are:

a. costly for nonprofit organizations to broadcast.

b. ads that generate awareness or educate the public.

c. any type of information released by a public relations department.

d. media ads that promote medical products.

Question 6: Marketing channels play a key role in marketing strategy because they:

a. provide criteria for promotional expenditures.

b. provide the means by which products move from producer to ultimate user.

c. allow more participants to contribute to the economy.

d. reduce the distribution channel length.

Question 7: Vending machines are an example of:

a. automatic merchandising,

b. Internet retailing.

c. telemarketing.

d. direct selling.

Question 8: To grow profitably in a competitive environment, a wholesaler must:

a, cut costs in every possible area.

b. make as many tying agreements as possible.

c. be the exclusive distributor of most products.

d. provide better service at a lower cost than manufacturers or retailers can do themselves.

Question 9: The process of collecting information about the external marketing environment is called:

a. environmental management.

b. marketing research.

c. marketing management.

d. environmental scanning.

Question 10: Which of the following is a reason why sponsorships have grown in popularity in the last ten years?

a. Greater media coverage of sponsored events

b. Legal restrictions on other forms of promotion

c. Declining costs of traditional advertising

d. Inability of other forms of promotion to target specific markets

Question 11: The function of informing, persuading, and influencing the consumer’s purchase decision is called:

a. salesmanship.

b. advertising.

e. promotion.

d. communication.

Question 12: Brand recognition as a stage of brand loyalty occurs when:

a. the product becomes familiar to the consumer.

b. the consumer insists on purchasing that brand even at higher prices.

c. the consumer sees or recognizes the product and chooses it over its competition.

d. the product offers a distinct price advantage to its consumers over its nearest rivals,

Question 13: Because direct marketing is interactive, it:

a. focuses more on promoting the company’s goodwill and educating consumers about the firm.

b. allows marketers so tailor individual responses to meet consumers’ needs.

c. is not very effective in reaching a wide audience.

d. is very informal and its effectiveness is difficult to measure.

Question 14: In the 1950s, discount stores delivered lower prices in exchange for:

a. higher profits

b. reduced services

c. lower inventories

d. continued patronage

Question 15: The two critical components of distribution strategy are _____ and _____.

a. marketing channels; logistics and supply-chain management

b. physical distribution; relationship marketing

c. location; cost

d. warehousing transportation

Question 16: Which of the following is a means of conducting a personal selling effort?

a. Ads displayed on billboards

b. Television ads

c. Newspaper ads

d. Videoconferencing

Question 17: Which promotional tool would more likely be used by a company adopting a push strategy of product promotion?

a. Print and TV advertising

b. Testimonials and product sampling

c. Cooperative advertising and sales incentives

d. Coupons and rebates

Question 18: Business purchasers usually prefer to buy from:

a. agents.

b. retailers.

c. wholesalers.

d. manufacturers.

Question 19: Jim stops at the local convenience store on his way home to buy a six-pack of beer. He goes in thinking he will purchase his usual brand, but ends up buying another because it is on sale. What stage of brand loyalty is Jim presently at?

a. Brand insistence

b. Brand awareness

c. Brand preference

d. Brand recognition

Question 20: A global brand generally is defined as:

a. one that has production facilities in two or more non-home countries.

b. one that sells at least 20 percent outside its home country.

c. one that uses regional branding for essentially the same product.

d. one that is recognizable across the world by its unique trademark.

Question 21: An effective promotional strategy designed to influence a retailer or wholesaler to carry a new brand would be a(n) _____ strategy.

a. pulling

b. channel influence

c. pushing

d. brand management

Question 22: The Kirkland brand is owned by Costco, and the products can only be purchased at Costco stores. Costco contracts with manufacturers to produce and package products under the Kirkland name. This arrangement is called:

a. family branding.

b. individual branding.

c. generic branding.

d. private branding.

Question 23: Which of the following is the most frequently used form of direct marketing?

a. Direct response retailing

b. Online retailing

c. Telemarketing

d. Direct mail

Question 24: Which statement concerning telemarketing is correct?

a. It has been unaffected by the Do Not Call Registry.

b. It remains the most frequently used form of direct marketing.

c. Telemarketers are not required to transmit their Caller ID information.

d. Telemarketers arc allowed to send recorded messages to all prospective customers.

Question 25: Generic products are:

a. characterized by plain labels, little or no advertising, and no brand names.

b. identified through a brand name owned by a manufacturer or other producer.

c. typically national brands sold exclusively by a single retail chain.

d. identified through a brand name owned by a wholesaler or retailer.

Question 26: After identifying a target market, a retailer must:

a. develop marketing strategies to attract chosen customers to its stores.

b. apply a standardized marketing strategy to attract customers from outside the target market.

c. concentrate on determining the ideal levels of inventory to be maintained

d. segment the market based on factors such as family income and customer lifetime value.

Question 27: The added value that a certain brand name gives to a product in the marketplace is called brand:

a. knowledge

b. esteem

c. recognition

d. equity

Question 28: Which of the following retailers is an exception to the wheel of retailing?

a. Discount stores

b. Supermarkets

c. Catalog retailers’

d. Convenience food stores

Question 29: An offering within a product line, such as a specific size of liquid detergent, is known as a(n) _____.

a. universal product code

b. price look-up code

c. stock-keeping unit

d. universal resource locator

Question 30: Patricia calls a firm’s 800 number and expresses her reaction to a recent television ad. This is an example of:

a. Feedback.

b. noise.

c. encoding.

d. decoding.

Question 31: Guerrilla marketing can best be described as:

a. a defensive strategy that places counter-advertising in a market targeted against strong competitive products.

b. free promotion initiated by fans, loyal customers, or other interested product users

c. a relatively new approach to promotion that avoids orthodox media and attempts to find innovative, low-cost ways to reach a target Markel

d. any negative campaign against a product or a company because of poor performance, initiated by angered consumers who share experiences on blogs and message boards.

Question 32: The _____ is at the heart of integrated marketing communications.

a. product

b. brand

c. organization

d. customer

Question 33: Which group of activities is considered to be a form of sales promotion?

a Personal selling. advertising

b. Telemarketing. publicity

c. Coupons, rebates

d. Guerrilla marketing. public relations

Question 34: Which of the following is a disadvantage of guerrilla marketing?

a The innovation involves high cost.

b. It can be offensive to members of the target audience.

c. The company has no control over the marketing channel it relies on.

d It does not work for small companies with low budgets.

Question 35: A characteristic of a good brand name is that it should:

a. avoid any specific connotation relative to product consent.
b. be short and also descriptive of the product or its characteristics.
c. hold universal appeal with respect to its customers.
d. be pronounced the same in every language.

Question 36: As a part of the promotional campaign for a product, online video clips help to:

a. show how homogeneous the product is.
b. enhance personal selling.
c. provide information.
d. improve product placement.

Question 37: Movement of products through more than one marketing channel to reach the same market is:

a. multiple selling
b. dual distribution.
c. distribution redundancy.
d. exclusive distribution.

Question 38: Small appliances and related products bearing the General Electric brand are only available through Wal-Mart stores. This type of product distribution strategy is called _____ branding.

a. private
b. unique
C. captive
d. exclusive

Question 39: A _____ provides space for permanent showrooms and exhibits, which manufacturers rent to market their goods.

a. merchandise man
b. trade fair
c. drop ship
d. clearing house

Question 40: Licensed goods manufactured abroad and then sold in the U.S. market in competition with U.S. counterparts are called _____ goods.

a, black market
b. inferior
c. gray
d. horizontal

Question 41: A company’s ability to market a product successfully at a higher price is directly related to its:

a. market capitalization.
b. product relevance.
c. brand equity.
d. market share.

Question 42: When Frito Lay introduces a new flavor of potato chips, it is likely to focus on _____ in its promotional mix.

a advertising
b. personal selling
c. direct marketing via broadcast channels
d. publicity

Question 43: One of the advantages of the direct mail medium is that:

a. it offers the ability to reach a broad target market.
b. the per-reader cost is lower than other types of advertising.
c. response rates are measurable and higher than those of other types of advertising.
d. it enhances credibility of the product offering and the company.

Question 44: _____ refers to  a product to determine its selling price.

a. Markup
b. Discount
c. Rebate
d. Concession

Question 45: The primary factor that attracts a consumer to a generic product is:

a. package design.
b. family branding.
c. low price.
d. ease of distribution.

Question 46: Direct selling is more common:

a. in raw material purchases in the B2B market.
b. between retailers and consumers.
c. in products classified as maintenance, repair, and operating supplies.
d. with products that require little demonstration.

Question 47: An integrated marketing communication strategy begins with:

a. separating the pads of the promotional mix into categories based on the media that is being utilized.
b. isolating and eliminating non-promotional contacts between the consumer and the organization.
c. consumer wants and needs and then woks in reverse to the product, brand, or organization.
d. the realization that different components of promotion should deliver different messages to their target audiences.

Question 48: Acceptable promotional practices in the marketplace are ultimately determined by:

a. the Ad Council.
b. consumer buying decisions, with consumers being free to choose what they wish to buy.
c. the universally accepted rules of what constitutes good and had taste.
d. the Federal Communications Commission.

Question 49: All of the following retail stores would be found at a power center except:

a. Home Depot.
b. Spoils Authority.
c. Bed Bath & Beyond.
d. IKEA.

Question 50: The traditional marketing channel for consumer goods proceeds from producer to:

a. the consumer.
b. agent to wholesaler to retailer to consumer.
c. agent to the end user.

Question 51: If Procter & Gamble were to introduce a value-priced brand of laundry detergent, they should:

a. just emphasize the low price
b. attempt to convince consumers the lower-priced band offers compare quality to higher-priced products.
c. demonstrate the prestige the consumer gets along with this product.
d. attempt to eliminate competition by offending high discounts and free coupons with its introductory package.

Question 52: Persuasive advertising:

a. reinforces the effect of previous promotional activity.
b. increases demand for an existing good or service, organization, or other concept.
c. develops initial demand for a newly introduced product.
d is used primarily in the maturity and decline states of the product life cycle.

Question 53: The most intrusive form of online advertising is _____.

a. interstitial
b. adware
c. missile
d. pop-up

Question 54: Which of the following is one of the nonpersonal elements of the promotional mix?

a. Customer service
b. Television advertising
c. Product demonstration
d. Direct marketing

Question 55: Although research shows that most consumers dislike the practice of telemarketing and more than 191 million have signed up for the national Do Not Call Registry, organizations still use telemarketing because:

a. it provides employment to a large number of people.
b. it guarantees a sales order with every call.
c. it is cost effective; the average call costs are low.
d. it does not require experienced and trained sales personnel

Question 56: A major challenge with product-line pricing is that:

a. once price lines have been set, its difficult to re-price individual items,
b. it does not result m improved consumer decisions.
c. consumers we easily confused by this pricing option.
d. it may be in violation of the LePetomaine Act.

Question 57: At present, long-distance telephone services and wireless carriers are both tending to adhere to a:

a. competitive pricing objective.
b. prestige pricing policy.
c. breakeven pricing approach.
d. psychological pricing model

Question 58: One of the major benefits derived from target-return objectives is that they:

a. eliminate competition.
b. allow firms to achieve control over a large portion of the market.
c. ensure supernormal profits to the organization.
d. serve as tools for evaluating performance.

Question 59: Which of the following is true of missionary selling?

a. It involves only fie2 training and not telemarketing or over-the-counter selling.
b. Salespeople offer low value sales incentives to their customers for superior performance.
c. It is mostly used by non-profit making organizations for educating people about their cause.
d, Salespeople are allowed to offer incentives of value to their customers as per the industry code of conduct.

Question 60: Penetration pricing is sometimes referred to as _____ pricing.

a. market-plus
b. market-minus
c. cost-plus
d. prestige

Question 61: The most expensive sales method overall is:

a. over-the-counter sales because of the high overhead in retail operations,
b. telemarketing because of the technology costs.
c. telemarketing because of the high rejection rate from customers who avoid telemarketers.
d. field selling, largely because of the travel costs of sales personnel.

Question 62: All of the following are advantages of television as an advertising medium except:

a. mass Coverage.
b repetition
c. flexibility.
d. public trust.

Question 63: The global pricing strategy that allows the greatest flexibility in setting prices to reflect local marketplace conditions is:

a standard worldwide price.
b. dual picking approach.
c. market-differentiated pricing.
d. flexible pricing.

Question 64: Which of the following is not a function of relationship selling?

a. Meeting buyer expectations
b. Improving the level of customer service
c. Building a mutually beneficial relationship over time
d. Focusing on meeting the customer’s short-term needs

Question 65: A product’s market price is ordinarily the:

a. same as the product’s list price.
b. list price less any allowances and discounts that may be involved in the purchase.
c. list price less any discounts and allowances plus any geographic considerations that may apply.
d. price that consumers pay using a credit card.

Question 66: The PIMS project revealed that the two most important factors influencing profitability were:

a. sales cost and market demand.
b. product quality and market share.
c. profit margin and market share.
d. profit maximization and competition.

Question 67: Which of the following is a part of the consultative selling process?

a. Understanding customer problems
b. Offering multiple goods or services to the same customer
c. Applying pressure to close the sale
d. Concentrating mostly on short-term or quick sales

Question 68: Which of the following was rendered invalid by the federal Consumer Goods Pricing Act of 1975?

a. The Robinson-Patman Act (1936)
b. State unfair-trade laws
c. State fair-trade Laws
d. The Clayton Act(1914)

Question 69: Radio Shack is advertising Sirius satellite radios as gifts for the holiday season. The television ad benefits both companies and is an example of _____ advertising.

a. informative
b. cooperative
c. institutional
d. retail

Question 70: The type of advertising that seeks to develop initial demand for a newly introduced good, service, organization, person, place, idea, or cause is known as _____ advertising.

a. reminder
b. informative
c comparative
d. advocacy

Question 71: The pricing strategy that permits marketers to control demand in the introductory stages of a product?s life cycle and then adjust productive capacity to match changing demand is known as _____ pricing.

a penetration
b. value-added
c. skimming
d. monopolistic

Question 72: Some advertisers try to avoid problems with celebrity endorsers by using cartoon characters as endorsers. One drawback of using such cartoon characters is:

a. that their unrealistic quality limits their appeal.
b. their shorter shelf life and need for innovation.
c. high licensing fees compared to celebrities.
d. the availability of more than a thousand characters.

Question 73: The exchange value of a good or service defines its:

a. quality.
b. price.
c. durability.
d. production cost.

Question 74: A pricing policy that assumes that some prices are more appealing than others is known as _____ pricing.

a, psychological
b. unit
c. list
d. prestige

Question 75: Jamie works for a local bank. Whenever a new customer opens a checking account, Jamie makes sure to mention some of the other financial services the bank offers. Jamie is engaged in:

a. cross-selling.
b. team selling.
c. transaction sell thg
d. virtual selling.

Question 76: An example of odd pricing would be:

a. a buy-two-get-one-free promotion.
b. selling a radar detector for $129.99 instead of SI 30.
c. subtracting trade-ins from the list price.
d. rebates that lower total price.

Question 77: Pharmaceutical companies frequently use _____ to market their product.

a. consultant selling
b. missionary selling
c. creative selling
d. order processing

Question 78: All of the following statements regarding cooperative advertising are correct except:

a. it allows a retailer to secure advertising ir otherwise would not have been able to run.
b. it is a trend that is witnessed majorly in broadcast media.
c. it strengthens the vertical marketing relationships.
d. it is the sharing of advertising costs between the manufacturer and the wholesaler.

Question 79: The Robinson-Patman Act specifically prohibits:

a. the accumulation of cost differences in the production of different types of products.
b. earning excess profits, that is. more than the average for an industry.
c. price discrimination in sales to wholesalers, retailers, and other producers.
d charging the same price to everyone for every thing you sell.

Question 80: When Bufferin advertises that its products have a greater pain-relieving effect than aspirin or Tylenol, it is using _____ advertising.

a. cooperative
b. comparative
c. advocacy
d. institutional

Question 81: The type of advertising that strives to reinforce previous promotional activity by keeping the name of the good, service, organization, person, place, idea, or cause before the public is _____ advertising.

a. retentive
5. reminder
c. informative
d. promotional

Question 82: Because it involves the use of a high price relative to prices of competing products or services, the skimming pricing strategy is sometimes referred to as _____ pricing.

a. market-plus
b. competitive
c. penetration
d. functional

Question 83: Personal selling can be broadly defined as:

a. selling consumer products.
b. a promotional presentation conducted on a person-to-person basis with the buyer.
c. personalized advertising.
d. the use of promotional material cist directly to the prospective buyer.

Question 84: Discounts off the list price given for prompt payment of the invoice may be classified as _____ discounts.

a. cash
b. trade
C. quantity
d. functional

Question 85: Many credit cards offer so-called “teaser” rates — low introductory rates that rise after a few months. The use of teaser rates is an example of which type of pricing objective?

a. Profitibility

b. Volume

c. Meeting in the competition

d. prestige

Question 86: Which type of ads typically lose their effectiveness very fast?

a. Fear
b. Sex
c. Humor
d. Factual

Question 87: Which federal agency reversed its stand on comparative advertising after realizing that competition drives down prices?

a. FCC
b. SEC
c. IRS
d. FTC

Question 88: Oriental Insurance promotes identity theft insurance with an advertisement that warns of stolen credit cards and falsified social security numbers. Which appeal is being used in this commercial to motivate the viewer to act?

a. Factual

b. Humor

c. Sex

D. Fear

Question 89: A series of related but different ads that use a single theme and appear in different media within a specified time period is an example of a(n):

a. advertising campaign.
b. reminder advertising
c. special promotion.
d. advertisement series.

Question 90: The role of a sales representative in the promotion process has changed from that of persuader to that of:

a. a technician and expert on product repair.
b. a process designer.
c. a consultant and problem solver.
d. a close friend and confidant.

Question 91: Retailers such as Home Depot and Lowe’s, who offer to meet or beat the best price offered by their competitors, use the strategy of _____ pricing.

a. skimming
b. penetration
C. competitive
d. cost-plus

Question 92: Which of the following is an inappropriate pricing objective for a not-for-profit organization?

a. Market domination
b. Profit maximization
c. Cost recovery
d. Providing market incentives

Question 93: The part of the sales process consisting of identifying potential customers is called:

a. screening.
b. prospecting.
c. approaching.
d. processing.

Question 94: Prestige pricing objectives emphasize:

a. quality and exclusivity.
b. revenue maximization.
C. cost minimization
d. sales maximization.

Question 95: In general, marketers that participate in comparative advertising:

a. sell products with smaller market shares than category leaders.
b. are the market share leaders.
c. are trying to eliminate one or more competitors as a means of driving up prices.
d. sell mostly shopping goods.

Question 96: The process of qualifying a sales prospect:

a involves gathering information about the prospect 10 make initial contact go more smoothly.
b. is the task of making sure that the prospect really is a potential customer.
c. is used more frequently by retail salespersons that is by wholesalers and manufacturers’
sales representatives.
d. involves making the initial contact with the prospect

Question 97: The two biggest spenders on advertising in the United States are:

a. aviation and shipbuilding.
b. consumer electronics and entertainment.
c. cosmetics and apparel.
d automotive arid personal care.

Question 98: Which of the following can be categorized as a tariff?

a. A tax exemption provided to domestic import competing firms
6. A tax levied on domestic exporters
c. A tax levied o foreign producers accused of dumping
d. A tax exemption on agricultural produce

Question 99: Compared with broadcast networks, advertising on cable gives marketers access to _____ target audiences.

a. smaller
b. more broadly deflated
C. more narrowly defined
d. much larger

Question 100: According to studies, consumers respond with suspicion to:

a. celebrity endorsements.
b. online communities.
c. brand promotions.
d. retail price advertisements




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