4.014.01

Sara and SierraSara and Sierra

37. Which of the following best 37. Which of the following best describes the relationship of describes the relationship of promotion and marketing?promotion and marketing?

A.A. Subsidiary Subsidiary

B.B. InterrelatedInterrelated

C.C. DependentDependent

D.D. One to oneOne to one

38. Determine whether the following 38. Determine whether the following is a true statement: It is important is a true statement: It is important for the promotional message to be for the promotional message to be factual. factual. A.A. False, it must only be memorableFalse, it must only be memorable

B.B. True, it should alter facts as necessary True, it should alter facts as necessary

C.C. False, it need not be based on factsFalse, it need not be based on facts

D.D. True, it must be based on factsTrue, it must be based on facts

39. Advertising that promotes the 39. Advertising that promotes the support a bank gives to community support a bank gives to community projects is ______ advertising.projects is ______ advertising.

A.A. Promotional Promotional

B.B. Prestige Prestige

C.C. Institutional Institutional

D.D. ServiceService

40. Which of the following 40. Which of the following situations most accurately depicts a situations most accurately depicts a promotional ethical issue in relation promotional ethical issue in relation to children:to children:A.A. A television commercial portrays preschool age A television commercial portrays preschool age

children eating breakfastchildren eating breakfast

B.B. A print ad in a national teen magazine shows a girl A print ad in a national teen magazine shows a girl modeling fashionable outerwearmodeling fashionable outerwear

C.C. A radio spot announces an upcoming concert for A radio spot announces an upcoming concert for preteens during the morning time slotpreteens during the morning time slot

D.D. A newscast teaser televises graphic film clips of a war A newscast teaser televises graphic film clips of a war zone during prime time viewing zone during prime time viewing

41. Banner and pop up ads impact the way 41. Banner and pop up ads impact the way audiences receive promotional information. audiences receive promotional information. These types of messages exist because of These types of messages exist because of

the following technological development:the following technological development: A.A. HTMTHTMT

B.B. EuronetEuronet

C.C. URLURL

D.D. InternetInternet

42. Some governments regulate 42. Some governments regulate promotional activities in their promotional activities in their countries to protect consumers from countries to protect consumers from

A.A. Unnecessary media exposureUnnecessary media exposure

B.B. Inconsistent selling strategies Inconsistent selling strategies

C.C. Deceptive advertisingDeceptive advertising

D.D. Unlimited liability Unlimited liability

81. What is an example of an 81. What is an example of an external factor that affects external factor that affects promotionpromotion

A.A. Reorganization of the business Reorganization of the business

B.B. Increase in a products priceIncrease in a products price

C.C. Government regulations of adsGovernment regulations of ads

D.D. A change in distribution methodsA change in distribution methods

Answer: CAnswer: C

Government regulations such as the one Government regulations such as the one prohibiting radio and television cigarette prohibiting radio and television cigarette advertising, are part of the external factors advertising, are part of the external factors that affect promotion. Changes in the that affect promotion. Changes in the products price or distribution methods, or products price or distribution methods, or reorganization of the businesses are reorganization of the businesses are examples of internal factors that affect examples of internal factors that affect promotion. promotion.

82. How does promotion benefit 82. How does promotion benefit customers?customers?

A.A. Causes them to postpone making buying Causes them to postpone making buying decisions decisions

B.B. Enables them to identify their buying Enables them to identify their buying motives motives

C.C. Helps them to select appropriate Helps them to select appropriate products products

D.D. Requires them to spend more on Requires them to spend more on products products

Answer: CAnswer: C

Promotion helps the customer determine Promotion helps the customer determine which product is the right one for him/her, which product is the right one for him/her, or the most appropriate. Promotion or the most appropriate. Promotion introduces new products to consumers introduces new products to consumers and assists with decision making. It does and assists with decision making. It does not help consumers to spend more on not help consumers to spend more on products or delay decisions. It is the products or delay decisions. It is the salespersons job to identify the customers salespersons job to identify the customers buying motives or reasons for buying. buying motives or reasons for buying.

83. What type of promotion is 83. What type of promotion is depicted by a business’s one-time depicted by a business’s one-time announcement of its half-price sale announcement of its half-price sale

in the local newspaper? in the local newspaper? A.A. Product promotionProduct promotion

B.B. Institutional advertisingInstitutional advertising

C.C. Free publicity Free publicity

D.D. Sales promotionSales promotion

Answer: AAnswer: A

Product promotion attempts to persuade Product promotion attempts to persuade consumers to buy a good or service. A consumers to buy a good or service. A half-price sale is attempting to do just that. half-price sale is attempting to do just that. Since the business is paying for its own Since the business is paying for its own announcement, this is not publicity. announcement, this is not publicity. Institutional promotion aims to create a Institutional promotion aims to create a certain image in the eyes of consumers. certain image in the eyes of consumers. Sales services, images, and/or ideas to Sales services, images, and/or ideas to achieve a desired outcome.achieve a desired outcome.

85. In which stage of a products 85. In which stage of a products lifecycle do promotional activities lifecycle do promotional activities

focus on differences between focus on differences between competing products? competing products?

A.A. Introductory Introductory

B.B. GrowthGrowth

C.C. DecliningDeclining

D.D. IntroductionIntroduction

Answer: BAnswer: B

In the growth stage, competing products on the In the growth stage, competing products on the market, and promotional activities focus on market, and promotional activities focus on pointing out differences between competing pointing out differences between competing products. When a product is first placed on the products. When a product is first placed on the market, it is in the introductory stage, and it is market, it is in the introductory stage, and it is promoted to gain customer awareness. Little promoted to gain customer awareness. Little product promotion occurs during the declining product promotion occurs during the declining stage; rather, money is invested in promotional stage; rather, money is invested in promotional activities to maintain a positive company image.activities to maintain a positive company image.

84. What is an objective of 84. What is an objective of institutional advertising?institutional advertising?

A.A. To support personal selling activities To support personal selling activities

B.B. To demonstrate the organizations role in To demonstrate the organizations role in community affairscommunity affairs

C.C. To introduce new goods or services To introduce new goods or services

D.D. To create consumer interest in the To create consumer interest in the company’s goods or servicescompany’s goods or services

Answer: BAnswer: B

Intuitional promotions aim to create a Intuitional promotions aim to create a certain image in the eyes of the certain image in the eyes of the consumers. Supporting personal selling consumers. Supporting personal selling activities, introducing new goods or activities, introducing new goods or services, and creating consumer interests services, and creating consumer interests in goods or services are all objectives of in goods or services are all objectives of promotional advertising. promotional advertising.

86. What form of promotion is 86. What form of promotion is generally emphasized for complex, generally emphasized for complex, technical products sold to industrial technical products sold to industrial

users? users? A.A. Personal sellingPersonal selling

B.B. Sales promotionSales promotion

C.C. PublicityPublicity

D.D. AdvertisingAdvertising

Answer: AAnswer: A

Products sold to industrial users are Products sold to industrial users are usually complex, technical, expensive, and usually complex, technical, expensive, and require demonstration. Because of these require demonstration. Because of these characteristics, personal selling should be characteristics, personal selling should be emphasized. Sales promotion, publicity, emphasized. Sales promotion, publicity, and advertising could be used to support and advertising could be used to support personal selling. personal selling.

87. How do competing businesses 87. How do competing businesses within the same industry usually within the same industry usually react to each others promotional react to each others promotional

mixes? mixes? A.A. By playing follow the leaderBy playing follow the leader

B.B. By reducing their promotional budgetsBy reducing their promotional budgets

C.C. By trying not to outdo each otherBy trying not to outdo each other

D.D. By changing distribution channels By changing distribution channels

Answer: AAnswer: A

Competing businesses within the same industry Competing businesses within the same industry usually use quite similar promotional mixes usually use quite similar promotional mixes because of the factors affecting the promotional because of the factors affecting the promotional mix are the same for those businesses. mix are the same for those businesses. Businesses also use the same promotional Businesses also use the same promotional activities to prevent losing customers to activities to prevent losing customers to competitors. Changing the distribution channel competitors. Changing the distribution channel would not necessarily make the business more would not necessarily make the business more competitive. Reducing the promotional budget or competitive. Reducing the promotional budget or trying not to outdo the competition would make trying not to outdo the competition would make the business less competitive. the business less competitive.

88. What is an example of 88. What is an example of publicity?publicity?

A.A. Company news release Company news release

B.B. Direct mail Direct mail

C.C. Billboard Billboard

D.D. Company television commercialCompany television commercial

Answer: AAnswer: A

Publicity is a nonpersonal form of Publicity is a nonpersonal form of promotion that's not paid for by the promotion that's not paid for by the company or individual that receives it. A company or individual that receives it. A news release would be prepared by the news release would be prepared by the company but presented at the publisher’s company but presented at the publisher’s expense. Direct mail, a billboard, and a expense. Direct mail, a billboard, and a company television commercial are company television commercial are examples of advertising. examples of advertising.

89. What is an example of 89. What is an example of advertisement stereotyping? advertisement stereotyping?

A.A. A television commercial depicts a woman A television commercial depicts a woman moping the kitchen with a new floor cleanermoping the kitchen with a new floor cleaner

B.B. A print ad shows a middle age male pouring A print ad shows a middle age male pouring orange juice in glasses for his childrenorange juice in glasses for his children

C.C. A magazine ad campaign presents a variety of A magazine ad campaign presents a variety of people who encourage others to drink milkpeople who encourage others to drink milk

D.D. A well known athlete records a PSA that A well known athlete records a PSA that emphasizes the importance of continuing emphasizes the importance of continuing education education

Answer: AAnswer: A

A stereotype is a set image or an assumption A stereotype is a set image or an assumption about a person or thing. Until recent decades, about a person or thing. Until recent decades, many people associated home making or house many people associated home making or house cleaning as a females primary responsibility. cleaning as a females primary responsibility. However, it is not generally true today. With However, it is not generally true today. With more women in the work force, house hold and more women in the work force, house hold and child care (e.g. a man pouring orange juice for child care (e.g. a man pouring orange juice for children), responsibilities are often shared with children), responsibilities are often shared with males. Therefore, the print aren't engaging in males. Therefore, the print aren't engaging in stereotyping. Using a well known athlete to stereotyping. Using a well known athlete to promote continuing education does not promote continuing education does not necessarily promote stereotypes. necessarily promote stereotypes.

90. Which advertising message 90. Which advertising message reinforces the concept of reinforces the concept of

materialism?materialism?A.A. We make this product by hand and use We make this product by hand and use

organic materialsorganic materialsB.B. The government rates our product higher The government rates our product higher

than the competitors productthan the competitors productC.C. You can increase your social status by You can increase your social status by

purchasing this product.purchasing this product.D.D. For more information about our line of For more information about our line of

products, visit our website. products, visit our website.

Answer: CAnswer: C

Materialism is an emphasis on, or preoccupation with, Materialism is an emphasis on, or preoccupation with, attaining things or certain positions- the right clothes, car, attaining things or certain positions- the right clothes, car, job, or social status. Some critics believe that job, or social status. Some critics believe that advertisements reinforce a materialistic attitude in today's advertisements reinforce a materialistic attitude in today's society- defining a person value in society by his/her society- defining a person value in society by his/her possessions. For example, an add for a designer product possessions. For example, an add for a designer product might imply that you will achieve a certain social status or might imply that you will achieve a certain social status or acceptance if you buy the product. An advertisement acceptance if you buy the product. An advertisement claiming that a product has a higher government rating claiming that a product has a higher government rating than a competitors product is an example of a comparison than a competitors product is an example of a comparison ad. An advertisement stating that a handmade product is ad. An advertisement stating that a handmade product is constructed of organic materials is an example of an ad constructed of organic materials is an example of an ad that reinforces the concept of social responsibility. A that reinforces the concept of social responsibility. A business usually would not place an advertisement for the business usually would not place an advertisement for the sole purpose of directing consumers to its website. sole purpose of directing consumers to its website.

91. What is new technology 91. What is new technology enabling businesses to create that enabling businesses to create that

is impacting the promotion is impacting the promotion function?function?

A.A. Personalized premiumsPersonalized premiums

B.B. Attractive commercialsAttractive commercials

C.C. Publicity campaignsPublicity campaigns

D.D. Individualized messagesIndividualized messages

Answer: DAnswer: D

The new information technology that includes The new information technology that includes computerized databases that allows businesses to computerized databases that allows businesses to create individualized promotional messages. Businesses create individualized promotional messages. Businesses can collect a variety of information about customers, can collect a variety of information about customers, enter the information into a database and use the enter the information into a database and use the computer to sort data. For example, a business might computer to sort data. For example, a business might track customers according to their preferences for track customers according to their preferences for products and then generate mailing lists and products and then generate mailing lists and individualized messages that promote specific products individualized messages that promote specific products to specific customers. Businesses created commercials, to specific customers. Businesses created commercials, premiums, and publicity campaigns before the new premiums, and publicity campaigns before the new technology was developed; however, new technology technology was developed; however, new technology makes some of these activities easier to perform.makes some of these activities easier to perform.

92. How have technological 92. How have technological advancements enhanced a small advancements enhanced a small businesses ability to promote its businesses ability to promote its

products?products?A.A. Most companies need fewer channels to Most companies need fewer channels to

coordinate and carry out promotional activities. coordinate and carry out promotional activities. B.B. Small companies now have more money to Small companies now have more money to

spend on promotional activities. spend on promotional activities. C.C. Less time and creativity are required to Less time and creativity are required to

develop promotional campaigns. develop promotional campaigns. D.D. Information can be communicated by more Information can be communicated by more

venues, and messages can be customized. venues, and messages can be customized.

Answer: DAnswer: D

Because there are more people who are using personal Because there are more people who are using personal computers, new computer software programs are being computers, new computer software programs are being developed to help businesses of all sizes to personalize developed to help businesses of all sizes to personalize promotional messages. Personalized messages can be promotional messages. Personalized messages can be developed for specific target market members and can developed for specific target market members and can be communicated through traditional direct mail or be communicated through traditional direct mail or internet channels. Although technological advancements internet channels. Although technological advancements often help companies become more productive and cost often help companies become more productive and cost efficient, it does necessarily mean that the businesses efficient, it does necessarily mean that the businesses have additional funds to spend on promotional activities. have additional funds to spend on promotional activities. Although computer advancements have helped Although computer advancements have helped accelerate the time to develop promotional campaigns, it accelerate the time to develop promotional campaigns, it does not necessarily affect creativity. The number of does not necessarily affect creativity. The number of channels needed to carry out promotional plans is highly channels needed to carry out promotional plans is highly dependant on the type of promotional activity. dependant on the type of promotional activity.

93. Why are there specific 93. Why are there specific guidelines for advertising to guidelines for advertising to

children?children?A.A. Research indicated that juvenile offenders watch more Research indicated that juvenile offenders watch more

advertising on television than the average child advertising on television than the average child

B.B. Children are impressionable, and the wrong kinds of Children are impressionable, and the wrong kinds of advertising can affect their developmentadvertising can affect their development

C.C. Parents mounted a campaign against advertisers Parents mounted a campaign against advertisers because their children demanded products they saw because their children demanded products they saw advertised. advertised.

D.D. Children revealed, in focus groups, that while they like Children revealed, in focus groups, that while they like

watching ads, it doesn’t make them behave differently.watching ads, it doesn’t make them behave differently.

Answer: BAnswer: B

This was one of the most controversial issues of the 1970’s. This was one of the most controversial issues of the 1970’s. Children were watching hours and hours of television each day, and Children were watching hours and hours of television each day, and some people believed that advertisers were taking advantage of the some people believed that advertisers were taking advantage of the fact that children are impressionable and often unable to evaluate fact that children are impressionable and often unable to evaluate advertising messages and make responsible purchase decisions. advertising messages and make responsible purchase decisions. So, legislation was passed in the better business bureau, among So, legislation was passed in the better business bureau, among others, published guidelines geared specifically to advertisers who others, published guidelines geared specifically to advertisers who target children in their communication. Parents were among those target children in their communication. Parents were among those who raised issues about advertising to children, but not primarily who raised issues about advertising to children, but not primarily because their children were asking for the products they saw on because their children were asking for the products they saw on television. Research has shown that children exposed to a lot of television. Research has shown that children exposed to a lot of advertising behave differently but there is no known research advertising behave differently but there is no known research linking juvenile offenders with watching television advertising. linking juvenile offenders with watching television advertising.

94. Which statement is 94. Which statement is truetrue about about regulating international promotional regulating international promotional

activities?activities?A.A. Most countries have a system of checks and balances Most countries have a system of checks and balances

to verify that promotional regulations are fairto verify that promotional regulations are fairB.B. Businesses must submit all promotional materials to Businesses must submit all promotional materials to

the international ad coalition for approval the international ad coalition for approval C.C. Governments bare the sole responsibility of monitoring Governments bare the sole responsibility of monitoring

promotional materials and regulationspromotional materials and regulationsD.D. A business must understand that the laws governing A business must understand that the laws governing

promotional activities vary by countrypromotional activities vary by country

Answer: DAnswer: D

Some countries have strict promotional laws that Some countries have strict promotional laws that markers must follow, while other countries laws are markers must follow, while other countries laws are lenient. A business that breaks a promotional may have lenient. A business that breaks a promotional may have to pay government fines, which is costly to the business. to pay government fines, which is costly to the business. Therefore, it is important for marketers to understand Therefore, it is important for marketers to understand which promotional activates are, and are not, permissible which promotional activates are, and are not, permissible in the countries where they sell and promote products. in the countries where they sell and promote products. The international ad coalition is a fictitious organization in The international ad coalition is a fictitious organization in some countries, industry and consumer goods groups some countries, industry and consumer goods groups influence how the government regulate promotion. influence how the government regulate promotion. Some, rather than most, countries have a system of Some, rather than most, countries have a system of checks and balances to verify promotion regulations are checks and balances to verify promotion regulations are fair. fair.