marketing principles,dhngoaithuong

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Marketing Management, 14e (Kotler/Keller)

Chapter 17 Designing and Managing Integrated Marketing Communications

1) ________ refers to the means by which firms attempt to inform, persuade, and remind

consumers—directly or indirectly—about the products and brands they sell.

A) Human resource development

B) Marketing communications

C) Financial management

D) Operations management

E) Planning

Answer: B

Page Ref: 476

Objective: 1

Difficulty: Easy

2) Which of the following elements of the marketing communications mix refers to any paid

form of nonpersonal presentation and promotion of ideas, goods, or services by an identified

sponsor via print, broadcast, network, electronic, and display media?

A) advertising

B) personal selling

C) sales promotion

D) direct marketing

E) public relations

Answer: A

Page Ref: 478

Objective: 1

Difficulty: Easy

3) Which of the following elements of the marketing communications mix involves a variety of

short-term incentives to encourage trial or purchase of a product or service?

A) advertising

B) direct marketing

C) public relations

D) personal selling

E) sales promotion

Answer: E

Page Ref: 478

Objective: 1

Difficulty: Easy

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

4) Which of the following is an example of a trade promotion?

A) free samples

B) discount coupons

C) display allowances

D) contests for sales reps

E) premiums

Answer: C

Page Ref: 478

Objective: 1

Difficulty: Easy

5) Which of the following is an example of a business and sales force promotion?

A) advertising allowance

B) free samples

C) contests for sales reps

D) display allowance

E) discount coupons

Answer: C

Page Ref: 478

Objective: 1

Difficulty: Easy

6) ________ refer to the marketing communications element that involves company-sponsored

activities and programs designed to create daily or special brand-related interactions with

consumers.

A) Publicity campaigns

B) Trade promotions

C) Advertisements

D) Public relations

E) Events and experiences

Answer: E

Page Ref: 478

Objective: 1

Difficulty: Easy

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

7) Which of the following elements of the marketing communications mix includes a variety of

programs directed internally to employees of the company or externally to consumers, other

firms, the government, and media to promote or protect a company's image or its individual

product communications?

A) direct marketing

B) public relations and publicity

C) personal selling

D) advertising

E) sales promotion

Answer: B

Page Ref: 478

Objective: 1

Difficulty: Easy

8) Which of the following elements of the marketing communication mix involves use of mail,

telephone, fax, e-mail, or Internet to communicate with or solicit response or dialogue from

specific customers and prospects?

A) advertising

B) personal selling

C) direct marketing

D) public relations

E) sales promotion

Answer: C

Page Ref: 478

Objective: 1

Difficulty: Easy

9) ________ is an element of the marketing communications mix that involves online activities

and programs designed to engage customers or prospects and directly or indirectly raise

awareness, improve image, or elicit sales of products and services.

A) Personal selling

B) Direct marketing

C) Sales promotion

D) Interactive marketing

E) Public relations

Answer: D

Page Ref: 478

Objective: 1

Difficulty: Easy

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

10) ________ is an element of the marketing communications mix that involves people-to-

people oral, written, or electronic communications that relate to the merits or experiences of

purchasing or using products or services.

A) Personal selling

B) Sales promotion

C) Word-of-mouth marketing

D) Public relations

E) Advertising

Answer: C

Page Ref: 478

Objective: 1

Difficulty: Easy

11) Which of the following elements of the marketing communications mix involves face-to-face

interaction with one or more prospective purchasers for the purpose of making presentations,

answering questions, and procuring orders?

A) advertising

B) sales promotion

C) word-of-mouth marketing

D) public relations

E) personal selling

Answer: E

Page Ref: 478

Objective: 1

Difficulty: Easy

12) Which of the following is an example of an advertising platform?

A) posters and leaflets

B) company magazines

C) fairs and trade shows

D) sales presentations

E) continuity programs

Answer: A

Page Ref: 479

Objective: 1

Difficulty: Easy

13) Which of the following is an example of an events and experiences platform?

A) fairs and trade shows

B) continuity programs

C) factory tours

D) sales presentations

E) community relations

Answer: C

Page Ref: 479

Objective: 1

Difficulty: Easy

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

14) Which of the following is an example of a public relations and publicity communication

platform?

A) lobbying

B) company museums

C) street activities

D) company blogs

E) incentive programs

Answer: A

Page Ref: 479

Objective: 1

Difficulty: Easy

15) Which of the following is an example of an interactive marketing communication platform?

A) product demonstrations

B) factory tours

C) company museums

D) TV shopping

E) community relations

Answer: D

Page Ref: 479

Objective: 1

Difficulty: Easy

16) Which of the following is an example of a word-of-mouth marketing communication

platform?

A) chat rooms

B) billboards

C) factory tours

D) incentive programs

E) trade shows

Answer: A

Page Ref: 479

Objective: 1

Difficulty: Easy

17) Which of the following is an example of a personal selling communication platform?

A) sales presentations

B) company blogs

C) telemarketing

D) TV shopping

E) press kits

Answer: A

Page Ref: 479

Objective: 1

Difficulty: Easy

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

18) The starting point in planning marketing communications is a ________ that profiles all

interactions customers in the target market may have with the company and all its products and

services.

A) marketing budget

B) communications audit

C) market research program

D) publicity campaign

E) product launch

Answer: B

Page Ref: 479

Objective: 1

Difficulty: Moderate

19) Along which of the following parameters should marketers evaluate communication options

when building brand equity?

A) popularity

B) innovativeness

C) technological sophistication

D) efficiency

E) novelty

Answer: D

Page Ref: 479

Objective: 1

Difficulty: Moderate

20) Which of the following factors found in the macromodel of the communications process

refers to random and competing messages that may interfere with the intended communication?

A) negative feedback

B) noise

C) attenuation

D) phase lag

E) selective distortion

Answer: B

Page Ref: 480

Objective: 2

Difficulty: Easy

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

21) Which of the following represents one of the major tools for effective communication in the

macromodel of the communications process?

A) feedback

B) noise

C) receiver

D) message

E) sender

Answer: D

Page Ref: 480

Objective: 2

Difficulty: Easy

22) Which of the following is the correct order of stages that a buyer is assumed to pass through,

by the four classic response hierarchy models?

A) cognitive stage-affective stage-behavioral stage

B) affective stage-cognitive stage-behavioral stage

C) behavioral stage-affective stage-cognitive stage

D) cognitive stage-behavioral stage-affective stage

E) affective stage-behavioral stage-cognitive stage

Answer: A

Page Ref: 480

Objective: 2

Difficulty: Moderate

23) LCH is a leading electronics company that produces and markets its own brand of desktop

and laptop computers, for both individual consumers and businesses. Which of the following

sequences of consumer responses is relevant as a marketing communications model for LCH's

products?

A) learn-do-feel

B) feel-learn-do

C) do-feel-learn

D) feel-do-learn

E) do-learn-feel

Answer: C

Page Ref: 480

Objective: 2

AACSB: Analytic skills

Difficulty: Moderate

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24) All response hierarchy models of the communication process assume the buyer passes

through cognitive, affective, and behavioral stages, in that order. Which of the following product

categories lends itself most appropriately to such a "learn-feel-do" sequence?

A) clothes

B) dish-washers

C) real estate

D) personal computer

E) air tickets

Answer: C

Page Ref: 480

Objective: 2

AACSB: Analytic skills

Difficulty: Moderate

25) When planning communications for a detergent brand, which of the following sequences of

buyer responses should the marketer choose on which to base the communications model?

A) feel-do-learn

B) do-feel-learn

C) feel-learn-do

D) learn-do-feel

E) learn-feel-do

Answer: D

Page Ref: 481

Objective: 2

AACSB: Analytic skills

Difficulty: Moderate

26) Which of the following steps in the innovation-adoption model of marketing

communications corresponds to the cognitive stage that a buyer passes through?

A) interest

B) evaluation

C) trial

D) awareness

E) adoption

Answer: D

Page Ref: 481

Objective: 2

Difficulty: Easy

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

27) According to the hierarchy-of-effects model, which of the following corresponds to the

behavioral stage that a buyer passes through?

A) awareness

B) knowledge

C) purchase

D) preference

E) conviction

Answer: C

Page Ref: 481

Objective: 2

Difficulty: Easy

28) According to the hierarchy-of-effects model, which of the following corresponds to the

affective stage that a buyer passes through?

A) attention

B) exposure

C) reception

D) adoption

E) conviction

Answer: E

Page Ref: 481

Objective: 2

Difficulty: Easy

29) Which of the following sequences accurately represents the hierarchy-of-effects model of

marketing communications?

A) attention-interest-desire-action

B) awareness-interest-evaluation-trial-adoption

C) awareness-knowledge-liking-preference-conviction-purchase

D) exposure-reception-cognitive response-attitude-intention-behavior

E) knowledge-persuasion-decision-implementation-confirmation

Answer: C

Page Ref: 481

Objective: 2

Difficulty: Moderate

30) Which is the first step to be performed by a marketer in developing effective marketing

communications?

A) identifying a target audience

B) determining the objectives

C) establishing the budget

D) deciding on the media mix

E) selecting the communication channels

Answer: A

Page Ref: 482

Objective: 3

Difficulty: Easy

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

31) Marketing communication strategy can be decided by conducting an image analysis by

profiling the target audience in terms of ________.

A) brand knowledge

B) purchase patterns

C) demographic characteristics

D) income levels

E) psychographic characteristics

Answer: A

Page Ref: 482

Objective: 3

Difficulty: Moderate

32) Which of the following is the marketing communications objective for a new-to-the-world

product, such as electric cars?

A) enhancing brand awareness

B) developing brand attitude

C) increasing brand purchase intention

D) encouraging repeat purchases

E) establishing category need

Answer: E

Page Ref: 482

Objective: 3

Difficulty: Moderate

33) When Apple introduced the iPod in October, 2001, it was the first-of-its-kind product that

offered sizable storage capacity for songs and a portable device that was not seen before in the

market. Which of the following is most likely to have been the marketing communications

objective for the iPod at the time of its introduction?

A) developing brand awareness

B) building customer traffic

C) enhancing purchase actions

D) establishing product category

E) enhancing firm image

Answer: D

Page Ref: 482

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

34) One of the possible objectives of marketing communications is helping consumers evaluate a

brand's perceived ability to meet a currently relevant need. Which of the following is a

negatively oriented relevant brand need?

A) normal depletion

B) sensory gratification

C) social approval

D) intellectual stimulation

E) value enhancement

Answer: A

Page Ref: 483

Objective: 3

Difficulty: Moderate

35) One of the possible objectives of marketing communications is helping consumers evaluate a

brand's perceived ability to meet a currently relevant need. Which of the following is a positively

oriented relevant brand need?

A) problem removal

B) social approval

C) normal depletion

D) problem avoidance

E) incomplete satisfaction

Answer: B

Page Ref: 483

Objective: 3

Difficulty: Moderate

36) One of the possible objectives of marketing communications is helping consumers evaluate a

brand's perceived ability to meet a currently relevant need. Which of the following relevant

brand needs is emphasized by an advertisement for dish-washing gloves?

A) social approval

B) intellectual stimulation

C) problem removal

D) normal depletion

E) sensory gratification

Answer: C

Page Ref: 483

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

37) One of the possible objectives of marketing communications is helping consumers evaluate a

brand's perceived ability to meet a currently relevant need. Which of the following relevant

brand needs is most likely emphasized by an advertisement for a luxury car?

A) problem removal

B) sensory gratification

C) normal depletion

D) intellectual stimulation

E) problem avoidance

Answer: B

Page Ref: 483

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

38) Creative strategies refer to _______.

A) the way marketers translate their messages into a specific communication

B) the amount of creative content in a communications message

C) the degree of innovation involved in the marketing of a product

D) the novelty of a marketing communication

E) the type of medium used to deliver a marketing communication

Answer: A

Page Ref: 484

Objective: 3

Difficulty: Easy

39) A(n) ________ appeal is a creative strategy that elaborates on product or service attributes or

benefits.

A) aesthetic

B) informational

C) bandwagon

D) emotional

E) transformational

Answer: B

Page Ref: 484

Objective: 3

Difficulty: Easy

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

40) A(n) ________ appeal is a creative strategy that elaborates on a nonproduct-related benefit or

image.

A) logical

B) transformational

C) reasonable

D) informational

E) rational

Answer: B

Page Ref: 484

Objective: 3

Difficulty: Easy

41) Which of the following ads depict a transformational appeal?

A) Thompson Water Seal can withstand intense rain, snow, and heat

B) DIRECTV offers better HD options than cable or other satellite operators

C) NBA phenomenon LeBron James pitching Nike, Sprite, and McDonald's

D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years

E) Excedrin stops the toughest headache pain

Answer: D

Page Ref: 484

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

42) Which of the following ads depict an informational appeal?

A) Thompson Water Seal can withstand intense rain, snow, and heat

B) The California Milk Processor Board ran the successful "Got Milk?" ad to boost declining

sales

C) VW advertised to active, youthful people with its famed "Drivers Wanted" campaign

D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years

E) KFC has marketed its fast-food products under the slogan, "Finger Lickin' Good"

Answer: A

Page Ref: 484

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

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43) ________ is one of the sources of a spokesperson's credibility that refers to the specialized

knowledge that he or she possesses to claim.

A) Trustworthiness

B) Expertise

C) Acquaintance

D) Likability

E) Professionalism

Answer: B

Page Ref: 485

Objective: 3

Difficulty: Easy

44) ________ is a source of a spokesperson's credibility that describes how objective and honest

the spokesperson is perceived to be.

A) Likability

B) Expertise

C) Experience

D) Trustworthiness

E) Compassion

Answer: D

Page Ref: 485

Objective: 3

Difficulty: Easy

45) Which of the following sources of a spokesperson's credibility describes his or her

attractiveness?

A) expertise

B) trustworthiness

C) likability

D) integrity

E) experience

Answer: C

Page Ref: 485

Objective: 3

Difficulty: Easy

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46) Which of the following marketing communications principles implies that communicators

can use their good image to reduce some negative feelings toward a brand but in the process

might lose some esteem with the audience?

A) principle of closure

B) principle of duality

C) principle of delegation

D) principle of congruity

E) principle of neutrality

Answer: D

Page Ref: 486

Objective: 3

Difficulty: Easy

47) Which of the following is an example of a personal communications channel?

A) public relations

B) events and experiences

C) interactive marketing

D) sales promotions

E) advertising

Answer: C

Page Ref: 487

Objective: 3

Difficulty: Easy

48) Which of the following personal communication channels consist of company salespeople

contacting buyers in the target market?

A) expert channels

B) social channels

C) advocate channels

D) independent channels

E) informal channels

Answer: C

Page Ref: 487

Objective: 3

Difficulty: Easy

49) Which of the following personal communications channels consist of family members,

neighbors, friends, and associates talking to target buyers?

A) expert channels

B) advocate channels

C) social channels

D) formal channels

E) sponsored channels

Answer: C

Page Ref: 487

Objective: 3

Difficulty: Easy

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50) Top Gear is an award-winning British television series about motor vehicles, mainly cars. It

is presented by a set of hosts who test drive new cars and provide reviews on the cars'

performance, their prices, and other factors. Which of the following personal communications

channels is Top Gear closest to in description?

A) expert channel

B) formal channel

C) social channel

D) sponsored channel

E) advocate channel

Answer: A

Page Ref: 487

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

51) Which of the following is a form of earned media for marketing communication messages?

A) experts providing product reviews

B) celebrities endorsing products

C) social network discussions about products

D) company salespeople contacting target buyers

E) sponsored advertisements promoting products

Answer: C

Page Ref: 487

Objective: 3

Difficulty: Moderate

52) Personal influence in marketing communications carries great weight when ________.

A) the product being marketed is a convenience item

B) the purchase of the product is considered to be safe and risk-free

C) the product suggests something about the user's status or taste

D) the product being marketed is purchased on a frequent basis

E) the product or service in questions is used without being recommended by others

Answer: C

Page Ref: 487

Objective: 3

Difficulty: Moderate

53) Which of the following is a form of mass communications channel?

A) interactive marketing

B) personal selling

C) public relations

D) word-of-mouth marketing

E) sales presentations

Answer: C

Page Ref: 487

Objective: 3

Difficulty: Easy

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54) Which of the following statements is true of the two-step approach to mass communications?

A) The influence of mass media on public opinion is more direct, powerful, and automatic than

marketers have supposed.

B) Communications through mass media bypasses opinion leaders and reaches the individual

buyers.

C) The two-step flow supports the notion that consumption styles are primarily influenced by a

"trickle-down" or "trickle-up" effect from mass media.

D) According to the two-step flow, people interact primarily within their own social groups and

acquire ideas from opinion leaders in their groups.

E) Two-step communication suggests that mass communicators should direct messages to groups

of buyers who interpret the message and act accordingly.

Answer: D

Page Ref: 488

Objective: 3

Difficulty: Moderate

55) Which of the following is a characteristic of the affordable method of establishing a

marketing communications budget?

A) fixed annual budget

B) suitable for long-range planning

C) priority given to role of promotion as an investment

D) calculated to reflect what the company can spare for marketing communications

E) based on the immediate impact of promotion on sales volume

Answer: D

Page Ref: 489

Objective: 3

Difficulty: Easy

56) Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the

chief financial officer to decide on the company's marketing communications budget. After

extensive discussions, they decide that the size of the budget will be calculated as a fraction of

the overall turnover. What method did Kelly and Trent use to arrive at the marketing

communications budget?

A) affordable method

B) objective-and-task method

C) competitive-parity method

D) activity-based method

E) percentage-of-sales method

Answer: E

Page Ref: 489

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

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57) Which of the following is an advantage of using the percentage-of-sales method to determine

the marketing communications budget?

A) The percentage-of-sales method encourages stability when competing firms spend

approximately the same portion of their sales on communications.

B) The percentage-of-sales method views sales as the determiner of communications rather than

as the result.

C) The percentage-of-sales method leads to a budget set by market opportunities rather than the

availability of funds.

D) The percentage-of-sales method encourages experimentation with countercyclical

communication or aggressive spending.

E) The percentage-of-sales method encourages building the communication budget by

determining what each product and territory deserves.

Answer: A

Page Ref: 489

Objective: 3

Difficulty: Moderate

58) Which of the following is a disadvantage of using a percentage-of-sales method to determine

the marketing communications budget?

A) It discourages stability when competing firms spend approximately the same percentage of

their sales on communications.

B) By using a percentage-of-sales method, communication expenditures tend to be extremely

high irrespective of what a company can afford.

C) It discourages management from thinking of the relationship among communication cost,

selling price, and profit per unit.

D) Dependence of the percentage-of-sales method on year-to-year sales fluctuations interferes

with long-range planning.

E) The percentage-of-sales method views sales as the result in itself rather than the determiner of

communications.

Answer: D

Page Ref: 489

Objective: 3

Difficulty: Moderate

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59) Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the

chief financial officer to decide on the company's marketing communications budget. They pore

over the sales reports and other financial records and determine the amount of resources they can

spare for marketing communications, after resources have been allocated to other functions, such

as R&D, logistics, etc. What method did Kelly and Trent use to arrive at the marketing

communications budget?

A) objective-and-task method

B) affordable method

C) competitive-parity method

D) activity-based method

E) percentage-of-sales method

Answer: B

Page Ref: 489

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

60) Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the

chief financial officer to decide on the company's marketing communications budget. They

decide to trust in the prevailing collective wisdom of the industry as a whole, and not wanting to

instigate a communications war, settle on spending only as much as their nearest market rival

does on marketing communications. What method did Kelly and Trent use to arrive at the

marketing communications budget?

A) objective-and-task method

B) affordable method

C) competitive-parity method

D) activity-based method

E) percentage-of-sales method

Answer: C

Page Ref: 489

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

61) Marketing communications budgets tend to be higher when ________.

A) there is high channel support

B) there exists hardly any change in the marketing program over time

C) there are infrequent product purchases in large quantities

D) there are differentiated products and nonhomogeneous customer needs

E) there are many easily-reachable customer spread over small geographic territories

Answer: D

Page Ref: 490

Objective: 3

Difficulty: Moderate

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62) Which of the following benefits is offered by sales promotion tools?

A) Sales promotion tools are more authentic and credible to buyers than others such as

advertising, public relations, and personal selling.

B) Sales promotion tools can reach prospects who prefer to avoid mass media and targeted

promotions.

C) Sales promotion tools are typically an indirect form of "soft-sell" and hence, better received

by customers.

D) Sales promotion tools incorporate some concession, inducement, or contribution that gives

value to the consumer.

E) Sales promotion tools allow buyers personal choices and encourage them to respond directly.

Answer: D

Page Ref: 491

Objective: 4

Difficulty: Moderate

63) Which of the following statements correctly reflects a characteristic of public relations as a

marketing communications tool?

A) Public relations can reach prospects who prefer to avoid mass media and targeted promotions.

B) They incorporate some concession, inducement, or contribution that gives value to the

consumer.

C) Given their live, real-time quality, public relations tools are more actively engaging for

consumers.

D) Public relations communications can be prepared to appeal to the addressed individual.

E) Public relations tools create an immediate and interactive episode between two or more

persons.

Answer: A

Page Ref: 491

Objective: 4

Difficulty: Moderate

64) Janet is a marketing manager with a Injoos, a company that manufactures packaged fruit

juices. Knowing that there exist several other companies in the market that offer similar

products, Janet decides to build a customer base from among those who prefer to avoid mass

media and other targeted promotions. Which of the following marketing communications tools

would be her best option to build a favorable impression among the prospective customers?

A) advertising

B) personal selling

C) sales promotions

D) direct marketing

E) public relations

Answer: E

Page Ref: 491

Objective: 4

AACSB: Analytic skills

Difficulty: Moderate

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65) Which of the following marketing communications tools is most effective at the later stages

of the buying process?

A) personal selling

B) public relations

C) advertising

D) sales promotions

E) direct marketing

Answer: A

Page Ref: 492

Objective: 4

Difficulty: Easy

66) Which of the following statements is true of the role of advertising in business markets?

A) Advertising is unsuitable for explaining any new features that a product might have.

B) Sales calls are more economical than reminder advertisements.

C) Sales calls are more effective than advertisements at reminding customers how to use a

product and reassure them about their purchase.

D) Sales representatives can use copies of the company's ads to legitimize their company and

products.

E) Advertisements are the least preferred tools when intended to generate leads for sales

representatives.

Answer: D

Page Ref: 492

Objective: 4

Difficulty: Moderate

67) Which of the following circumstances are best suited for the use of personal selling?

A) when the products used are simple and easy-to-use

B) when there is minimal risk involved in buying or using the products

C) when the market has fewer and larger sellers

D) when the products being marketed are inexpensive and easily available

E) when prospective customers are spread across a wide geographic area

Answer: C

Page Ref: 492

Objective: 4

Difficulty: Moderate

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68) Which of the following marketing communications tools is most effective at influencing

customers at the conviction stage of buyer readiness?

A) advertising

B) publicity

C) sales promotion

D) personal selling

E) events and experiences

Answer: D

Page Ref: 493

Objective: 4

Difficulty: Easy

69) Advertising and publicity tools play the most important roles in influencing buying decisions

at the ________ stage of buyer readiness.

A) comprehension

B) conviction

C) ordering

D) reordering

E) awareness-building

Answer: E

Page Ref: 493

Objective: 4

Difficulty: Easy

70) Which of the following tools or combinations of tools is most influential at the

comprehension stage of buyer readiness?

A) sales promotion and advertising

B) advertising and personal selling

C) publicity and personal selling

D) reminder advertising and publicity

E) sales promotion and personal selling

Answer: B

Page Ref: 493

Objective: 4

Difficulty: Moderate

71) Which of the following marketing communications tools has the highest cost-effectiveness in

the introduction stage of the product life cycle?

A) personal selling

B) sales promotion

C) interactive marketing

D) direct marketing

E) events and experiences

Answer: E

Page Ref: 493

Objective: 4

Difficulty: Moderate

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72) Which of the following marketing communications tools is most influential at the maturity

stage of a product's life cycle?

A) sales promotions

B) direct marketing

C) advertising

D) publicity

E) interactive marketing

Answer: C

Page Ref: 493

Objective: 4

Difficulty: Easy

73) Luke is considering the various options available to him to promote an energy-drink,

Turbozade, that is seeing decreasing sales volumes after having peaked some time back. Which

of the following marketing communications tools should Luke focus marketing efforts on to

keep the sales volume up?

A) advertising

B) direct marketing

C) events and experiences

D) sales promotions

E) publicity

Answer: D

Page Ref: 493

Objective: 4

AACSB: Analytic skills

Difficulty: Moderate

74) Which of the following marketing communications tools is most influential at the reordering

stage of buyer readiness?

A) events and experiences

B) publicity

C) direct marketing

D) sales promotion

E) interactive marketing

Answer: D

Page Ref: 493

Objective: 4

Difficulty: Moderate

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75) ________ is a measure of communications effectiveness that describes the percentage of

target market exposed to a communication.

A) Frequency

B) Reach

C) Width

D) Depth

E) Range

Answer: B

Page Ref: 494

Objective: 4

Difficulty: Easy

76) ________ refers to a planning process designed to assure that all brand contacts received by

a customer or prospect for a product, service, or organization are relevant to that person and

consistent over time.

A) Brand engagement

B) Integrated marketing communications

C) Market research

D) Customerization

E) Marketing research

Answer: B

Page Ref: 495

Objective: 5

Difficulty: Easy

77) Marketing communications allow companies to link their brands to other people, places,

events, brands, experiences, feelings, and things.

Answer: TRUE

Page Ref: 476

Objective: 1

Difficulty: Easy

78) The rapid diffusion of multipurpose smart phones, broadband and wireless Internet

connections, and ad-skipping digital video recorders (DVRs) have augmented the effectiveness

of the mass media.

Answer: FALSE

Page Ref: 476

Objective: 1

Difficulty: Moderate

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79) The pervasive nature of advanced communications technologies, such as the Internet, has

resulted in greater exposure of customers to advertising content than it was in the 1960s.

Answer: FALSE

Page Ref: 476

Objective: 1

Difficulty: Moderate

80) Marketing communications in almost every medium and form have been on the rise, and

some consumers feel they are increasingly invasive.

Answer: TRUE

Page Ref: 477

Objective: 1

Difficulty: Easy

81) In this new communication environment, advertising is often the single-most important

element of a marketing communications program for sales and building brand and customer

equity.

Answer: FALSE

Page Ref: 478

Objective: 1

Difficulty: Easy

82) Personal selling refers to people-to-people oral, written, or electronic communications that

relate to the merits or experiences of purchasing or using products or services.

Answer: FALSE

Page Ref: 478

Objective: 1

Difficulty: Easy

83) In building brand equity, marketers should be "media neutral" and evaluate all

communication options on effectiveness and efficiency.

Answer: TRUE

Page Ref: 479

Objective: 1

Difficulty: Easy

84) The less the sender's field of experience overlaps that of the receiver, the more effective the

message is likely to be.

Answer: FALSE

Page Ref: 480

Objective: 2

Difficulty: Easy

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85) All the response hierarchy models assume that a buyer passes through affective, cognitive,

and behavioral stages, in that order.

Answer: FALSE

Page Ref: 480

Objective: 2

Difficulty: Easy

86) A "do-feel-learn" response sequence is considered appropriate when the audience has high

involvement but perceives little or no differentiation within the product category.

Answer: TRUE

Page Ref: 480

Objective: 2

Difficulty: Moderate

87) Though the target audience can be profiled in terms of demographic, psychographic, or

behavioral segments, it is often useful to do so in terms of usage and loyalty.

Answer: TRUE

Page Ref: 482

Objective: 3

Difficulty: Easy

88) Marketers can set communications objectives at any level of the hierarchy-of-effects model.

Answer: TRUE

Page Ref: 482

Objective: 3

Difficulty: Easy

89) The marketing communications objective of "brand attitude" refers to helping consumers

evaluate the brand's perceived ability to meet a currently relevant need.

Answer: TRUE

Page Ref: 483

Objective: 3

Difficulty: Easy

90) Problem removal and normal depletion are examples of positively oriented relevant brand

needs.

Answer: FALSE

Page Ref: 483

Objective: 3

Difficulty: Easy

91) Communications effectiveness depends solely on the content of a message, irrespective of

how it is expressed.

Answer: FALSE

Page Ref: 484

Objective: 3

Difficulty: Moderate

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92) Volkswagen's famed "Drivers Wanted" advertising campaign aimed at attracting active,

youthful people uses a transformational appeal as its creative strategy.

Answer: TRUE

Page Ref: 484

Objective: 3

Difficulty: Easy

93) One-sided presentations that praise a product are found to be more effective than two-sided

arguments that also mention shortcomings.

Answer: FALSE

Page Ref: 484

Objective: 3

Difficulty: Moderate

94) Two-sided messages are more effective with more educated audiences and those who are

initially opposed.

Answer: TRUE

Page Ref: 484

Objective: 3

Difficulty: Easy

95) In a one-sided message, presenting the strongest argument first arouses attention and interest,

important in media where the audience often does not attend to the whole message.

Answer: TRUE

Page Ref: 484

Objective: 3

Difficulty: Moderate

96) Fear appeals work best when they are rather strong and reinforce what the audience already

believes.

Answer: FALSE

Page Ref: 485

Objective: 3

Difficulty: Easy

97) If the messages are too discrepant, audiences will counterargue and disbelieve them.

Answer: TRUE

Page Ref: 485

Objective: 3

Difficulty: Easy

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98) Motivational or "borrowed interest" devices—such as the presence of cute babies, frisky

puppies, popular music, or provocative sex appeals—are often employed to attract attention and

raise involvement with an ad.

Answer: TRUE

Page Ref: 485

Objective: 3

Difficulty: Easy

99) Celebrities are likely to be effective when they are credible or personify a key product

attribute.

Answer: TRUE

Page Ref: 485

Objective: 3

Difficulty: Easy

100) Trustworthiness is that source of a spokesperson's credibility that describes his or her

attractiveness.

Answer: FALSE

Page Ref: 485

Objective: 3

Difficulty: Easy

101) The most highly credible source would score high on at least two of the three dimensions—

expertise, trustworthiness, and likability.

Answer: FALSE

Page Ref: 485

Objective: 3

Difficulty: Moderate

102) The principle of congruity implies that communicators can use their good image to reduce

some negative feelings toward a brand but in the process might lose some esteem with the

audience.

Answer: TRUE

Page Ref: 486

Objective: 3

Difficulty: Moderate

103) Personal communications channels derive their effectiveness from individualized

presentation and feedback and include direct and interactive marketing, word-of-mouth

marketing, and personal selling.

Answer: TRUE

Page Ref: 487

Objective: 3

Difficulty: Easy

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104) Personal influence carries especially great weight when products are inexpensive, risk-free,

or purchased frequently.

Answer: FALSE

Page Ref: 487

Objective: 3

Difficulty: Easy

105) Although personal communication is often more effective than mass communication, mass

media might be the major means of stimulating personal communication.

Answer: TRUE

Page Ref: 488

Objective: 3

Difficulty: Easy

106) The two-step flow supports the notion that consumption styles are primarily influenced by a

"trickle-down" or "trickle-up" effect from mass media.

Answer: FALSE

Page Ref: 488

Objective: 3

Difficulty: Moderate

107) Two-step communication suggests that mass communicators should direct messages

specifically to opinion leaders and let them carry the message to others.

Answer: TRUE

Page Ref: 488

Objective: 3

Difficulty: Easy

108) The affordable method accounts for the role of promotion as an investment and the

immediate impact of promotion on sales volume.

Answer: FALSE

Page Ref: 489

Objective: 3

Difficulty: Moderate

109) The percentage-of-sales budgeting method encourages management to think of the

relationship among communication cost, selling price, and profit per unit.

Answer: TRUE

Page Ref: 489

Objective: 3

Difficulty: Easy

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110) The percentage-of-sales method leads to a budget set by market opportunities rather than by

the availability of funds.

Answer: FALSE

Page Ref: 489

Objective: 3

Difficulty: Easy

111) Marketing communications budgets tend to be higher when there is much change in the

marketing program over time and more complex customer decision making.

Answer: TRUE

Page Ref: 490

Objective: 3

Difficulty: Easy

112) Advertising allows the buyer to receive and compare the messages of various competitors.

Answer: TRUE

Page Ref: 490

Objective: 4

Difficulty: Easy

113) Public relations is incapable of reaching prospects who prefer to avoid mass media and

targeted promotions.

Answer: FALSE

Page Ref: 491

Objective: 4

Difficulty: Easy

114) In general, personal selling is used more with complex, expensive, and risky goods and in

markets with fewer and larger sellers.

Answer: TRUE

Page Ref: 492

Objective: 4

Difficulty: Easy

115) Advertising and publicity play the most important roles in the conviction stage of buyer

readiness.

Answer: FALSE

Page Ref: 493

Objective: 4

Difficulty: Moderate

116) In the growth stage of a product's life cycle, demand has its own momentum through word

of mouth and interactive marketing.

Answer: TRUE

Page Ref: 493

Objective: 4

Difficulty: Easy

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117) Media coordination can occur across and within media types, but marketers should combine

personal and nonpersonal communications channels through multiple-vehicle, multiple-stage

campaigns to achieve maximum impact and increase message reach and impact.

Answer: TRUE

Page Ref: 495

Objective: 5

Difficulty: Moderate

118) By using full-service marketing communications agencies, integrated and more effective

marketing communications at a much lower total communications cost can be achieved.

Answer: TRUE

Page Ref: 496

Objective: 5

Difficulty: Easy

119) Briefly describe the current marketing communications environment.

Answer: Technology and other factors have profoundly changed the way consumers process

communications, and even whether they choose to process them at all. The rapid diffusion of

multipurpose smart phones, broadband and wireless Internet connections, and ad-skipping digital

video recorders (DVRs) have eroded the effectiveness of the mass media. In 1960, a company

could reach 80 percent of U.S. women with one 30-second commercial aired simultaneously on

three TV networks: ABC, CBS, and NBC. Today, the same ad would have to run on 100

channels or more to achieve this marketing feat. Consumers not only have more choices of

media, they can also decide whether and how they want to receive commercial content.

Page Ref: 476

Objective: 1

Difficulty: Moderate

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120) What are the elements of the marketing communications mix?

Answer: The marketing communications mix consists of eight major modes of communication:

1. Advertising — Any paid form of nonpersonal presentation and promotion of ideas, goods, or

services by an identified sponsor via print, broadcast, network, electronic, and display media.

2. Sales promotion — A variety of short-term incentives to encourage trial or purchase of a

product or service including consumer promotions, trade promotions, and business and sales

force promotions.

3. Events and experiences — Company-sponsored activities and programs designed to create

daily or special brand-related interactions with consumers, including sports, arts, entertainment,

and cause events as well as less formal activities.

4. Public relations and publicity — A variety of programs directed internally to employees of

the company or externally to consumers, other firms, the government, and media to promote or

protect a company's image or its individual product communications.

5. Direct marketing — Use of mail, telephone, fax, e-mail, or Internet to communicate directly

with or solicit response or dialogue from specific customers and prospects.

6. Interactive marketing — Online activities and programs designed to engage customers or

prospects and directly or indirectly raise awareness, improve image, or elicit sales of products

and services.

7. Word-of-mouth marketing — People-to-people oral, written, or electronic communications

that relate to the merits or experiences of purchasing or using products or services.

8. Personal selling — Face-to-face interaction with one or more prospective purchasers for the

purpose of making presentations, answering questions, and procuring orders.

Page Ref: 478

Objective: 1

Difficulty: Moderate

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121) Briefly describe the macromodel of the marketing communications process.

Answer:

The macromodel of the communications process has nine key factors in effective

communication. Two represent the major parties — sender and receiver. Two represent the

major tools — message and media. Four represent major communication functions — encoding,

decoding, response, and feedback. The last element in the system is noise, random and

competing messages that may interfere with the intended communication. Senders must know

what audiences they want to reach and what responses they want to get. They must encode their

messages so the target audience can decode them. They must transmit the message through

media that reach the target audience and develop feedback channels to monitor the responses.

The more the sender's field of experience overlaps that of the receiver, the more effective the

message is likely to be.

Page Ref: 480

Objective: 2

Difficulty: Moderate

122) Gravity is a company that markets customized T-shirts to its customers. Gravity runs an ad

that seeks to attract more customers. Apply the macromodel of the communications process to

describe the communication between Gravity and its target customers.

Answer: The macromodel of the communications process comprises of nine key factors in

effective communication. Two represent the major parties - sender (Gravity) and receiver

(audience). Two represent the major tools - message (content of the ad) and media (print, TV,

radio, etc). Four represent the major communications functions - encoding (creation and

transmission of the ad by Gravity), decoding (the reception and comprehension of the ad by the

audience), response (either ignoring the message or buying Gravity shirts), and feedback

(customers providing information about the ad to measure its effectiveness). The last element is

noise, random and competing messages that may interfere with the intended communication.

Examples of noise in this case could be misunderstood messages from the ad, similar ads from

competitors, etc.

Page Ref: 480

Objective: 2

AACSB: Analytic skills

Difficulty: Moderate

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123) Alan is an executive with an ad agency that has been entrusted with accounts for a used-car

showroom, a home appliances maker, and a soap company. With reference to response hierarchy

models, how does Alan plan communication strategies for the three accounts effectively?

Answer: All the four classic response hierarchy models assume that the buyer passes through

cognitive (learn), affective (feel), and behavioral stages (do), in that order. Since buying a car,

used or new, represents a significant investment for the buyer, it can be said that the buyer has

involvement in the purchase decision and perceives high differentiation with the product

category. Hence a "learn-feel-do" sequence is considered appropriate for the used-car showroom

account.

Similarly, a buyer intending to purchase home appliances, such as a dishwasher or a refrigerator,

has high involvement in the purchase decision, even though he perceives little differentiation

within the product category. Hence, a "do-feel-learn" approach may be appropriate when

planning communications for the home appliances account.

Finally, a buyer has low involvement in purchasing soap that has very little differentiation within

its category. For the soap company account, Alan should consider a "learn-do-feel" sequence for

planning communications.

Page Ref: 480-481

Objective: 2

AACSB: Analytic skills

Difficulty: Moderate

124) Derek is working on promoting his company's Glazer brand of electronic razors.

Preliminary surveys have revealed that even though a sizable portion of the target market has

developed a liking for the product due to innovative advertising, few customers would actually

consider replacing their current razors with Glazers. How can Derek modify the communications

program to get customers to favor Glazers over other brands?

Answer: Student answers may vary.

Since customers are comfortable with their present electronic razors, Derek's communications

strategy should aim to build preference for Glazers. Customers have already developed a liking

for Glazers. So, Derek should focus on comparing the quality of Glazers with that of competing

brands. This can be done by illustrating the improved features of Glazers that provide clean and

hassle-free use. Derek could do well to compare the Glazers with other brands in terms of value,

utility, and performance factors as well.

Page Ref: 481

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

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125) Derek is working on promoting his company's Glazer brand of electronic razors. Market

research suggests that the target audience possesses an intent to use Glazers, but is dithering over

actually making the purchase. How can Derek modify the communications program to get

customers to purchase Glazer razors?

Answer: Student answers may vary.

Derek's task, once the intent to make a purchase has been fostered in the consumers, is to lead

the them to the actual buying action. This can be achieved by offering the razors at a low

introductory purchase to encourage initial use among customers, offering a discount on the price,

or holding a promotional event where they can actually try out the product first-hand.

Page Ref: 481

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

126) Provide a general description of the four classic response hierarchy models.

Answer: Micromodels of marketing communications concentrate on consumers' specific

responses to communications. All the response hierarchy models assume the buyer passes

through cognitive, affective, and behavioral stages, in that order. This "learn-feel-do" sequence is

appropriate when the audience has high involvement with a product category perceived to have

high differentiation, such as an automobile or house. An alternative sequence, "do-feel-learn," is

relevant when the audience has high involvement but perceives little or no differentiation within

the product category, such as an airline ticket or personal computer. A third sequence, "learn-do-

feel," is relevant when the audience has low involvement and perceives little differentiation, such

as with salt or batteries. By choosing the right sequence, the marketer can do a better job of

planning communications.

Page Ref: 480-481

Objective: 2

Difficulty: Moderate

127) What are the features of an ideal advertising campaign?

Answer: To increase the odds for a successful marketing communications campaign, marketers

must attempt to increase the likelihood that each step occurs. For example, the ideal ad campaign

would ensure that:

1. The right consumer is exposed to the right message at the right place and at the right time.

2. The ad causes the consumer to pay attention but does not distract from the intended message.

3. The ad properly reflects the consumer's level of understanding of and behaviors with the

product and the brand.

4. The ad correctly positions the brand in terms of desirable and deliverable points-of-difference

and points-of-parity.

5. The ad motivates consumers to consider purchase of the brand.

6. The ad creates strong brand associations with all these stored communications effects so they

can have an impact when consumers are considering making a purchase.

Page Ref: 482

Objective: 2

Difficulty: Moderate

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128) What are the steps involved in developing effective marketing communications?

Answer: 1. Identify target audience

2. Determine objectives

3. Design communications

4. Select channels

5. Establish budget

6. Decide on media mix

7. Measure results

8. Manage integrated marketing communications

Page Ref: 482

Objective: 3

Difficulty: Easy

129) When asked about their preferred brand of instant noodles outside a supermarket setting,

customers could not remember Nissin's name, but relied on the distinct packaging to help them

spot the noodles while shopping. Describe how this problem can be addressed through the

objective of Nissin's marketing communications.

Answer: The objective for Nissin's marketing communications objective should be to build

brand awareness, i.e. fostering the consumer's ability to recognize or recall the brand within the

category, in sufficient detail to make a purchase. Recognition is easier to achieve than recall—

consumers asked to think of a brand of frozen entrées are more likely to recognize Stouffer's

distinctive orange packages than to recall the brand. Brand recall is important outside the store;

brand recognition is important inside the store. Brand awareness provides a foundation for brand

equity.

Page Ref: 482

Objective: 3

AACSB: Analytic skills

Difficulty: Easy

130) Write a short note on "brand awareness" as an objective of marketing communications.

Answer: Brand awareness refers to fostering the consumer's ability to recognize or recall the

brand within the category, in sufficient detail to make a purchase. Recognition is easier to

achieve than recall. Brand recall is important outside the store; brand recognition is important

inside the store. Brand awareness provides a foundation for brand equity.

Page Ref: 482

Objective: 3

Difficulty: Easy

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131) Compare and contrast the use of negative and positive appeals in advertising messages.

Answer: Communicators use negative appeals such as fear, guilt, and shame to get people to do

things (brush their teeth, have an annual health checkup) or stop doing things (smoking, abusing

alcohol, overeating). Fear appeals work best when they are not too strong, when source

credibility is high, and when the communication promises, in a believable and efficient way, to

relieve the fear it arouses. Messages are most persuasive when moderately discrepant with

audience beliefs. Stating only what the audience already believes at best just reinforces beliefs,

and if the messages are too discrepant, audiences will counterargue and disbelieve them.

Communicators also use positive emotional appeals such as humor, love, pride, and joy.

Motivational or "borrowed interest" devices—such as the presence of cute babies, frisky puppies,

popular music, or provocative sex appeals—are often employed to attract attention and raise

involvement with an ad. These techniques are thought necessary in the tough new media

environment characterized by low-involvement consumer processing and competing ad and

programming clutter. Attention-getting tactics are often too effective. They may also detract

from comprehension, wear out their welcome fast, and overshadow the product.

Page Ref: 485

Objective: 3

Difficulty: Moderate

132) An ad agency has landed an account for Savola, a brand of healthy cooking oil. Describe

how the ad can incorporate negative appeals in its messages effectively.

Answer: Student answers may vary.

Negative appeals such as fear, guilt, and shame are used by communicators to get people to do

things (brush their teeth) or stop doing things (smoking). The cooking oil ad can use fear appeals

to get consumers to start using its product. This can be achieved by depicting health risks

associated with using cooking oils other than Savola, such as hypertension, heart attacks, etc.

Guilt appeal can be used to depict a family grieving the death of someone who did not use

Savola. Shame appeal could illustrate the case of a parent who cannot play catch with his kids

because his fitness is compromised by not using Savola.

However, the ad agency should take care to ensure that the negative appeals do not come across

as too strong to the audiences, the credibility of the source in the ads is high, and the ad promises

to relieve fears of health risks in a believable and efficient way. The ad is most persuasive when

moderately discrepant with audience beliefs. If the ad merely says that using unhealthy oil leads

to health risks, it only serves to reinforce the belief, and if the message exaggerates the health

risks of not using Savola, audiences will only counterargue and disbelieve the ad.

Page Ref: 485

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

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133) Tiger Woods' endorsement deals were terminated by a host of sponsors, including

Accenture, Gillette, AT&T, and General Motors. What are the reasons for these companies

dropping Woods from their promotional efforts?

Answer: Celebrities are likely to be effective when they are credible or personify a key product

attribute. Tiger Woods' personal problems have resulted in the erosion of his credibility as a

product's spokesperson. The three most important sources of a spokesperson's credibility are

expertise, trustworthiness, and likability. Following revelations about his personal life and his

past indiscretions, his trustworthiness (how objective and honest the source is perceived to be)

was negatively affected and also his likability (the source's attractiveness). The most highly

credible source would score high on all three dimensions—expertise, trustworthiness, and

likability. Scoring high on only one or two dimensions would still negatively affect his

credibility. Also, the principle of congruity implies that communicators can use their good image

to reduce some negative feelings toward a brand but in the process might lose some esteem with

the audience. The converse also holds true, i.e. a product's positive brand image is likely to be hit

by virtue of being associated with a communicator with a negative image.

Page Ref: 485-486

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

134) Name a few products for which personal influence plays a significant role in marketing

communications.

Answer: Personal influence carries especially great weight (1) when products are expensive,

risky, or purchased infrequently, and (2) when products suggest something about the user's status

or taste. On that count, life insurance, real estate, health services, automobiles, luxury items,

consultation services, etc. can be expected to be significantly influenced by word-of-mouth and

endorsements by credible sources.

Page Ref: 487

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

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135) Derek is working on promoting his company's Glazer brand of electronic razors. The

company estimates 50 million potential users and sets a target of attracting 8 percent of the

market. Derek hopes to reach 80 percent of the potential customers with an advertising message.

He would be pleased if 25 percent of the prospects that were aware, tried the Glazer. According

to further estimates, 40 percent of all triers will become loyal users. If the cost of exposing 1

percent of the target population to one impression is $4500 on an average, determine the

necessary advertising budget, according to the objective-and-task method.

Answer: Using the objective-and-task method, Derek can arrive at the marketing

communications budget by following these steps:

1. The company estimates 50 million potential users and sets a target of attracting 8 percent of

the market—that is, 4 million users.

2. The percentage of the market that should be reached by advertising is determined. Derek

hopes to reach 80 percent (40 million prospects) with his advertising message.

3. The percentage of aware prospects that should be persuaded to try the brand is then calculated.

Derek would be pleased if 25 percent of aware prospects (10 million) tried Glazers. He estimates

that 40 percent of all triers, or 4 million people, will become loyal users. This is the market goal.

4. Next, the number of advertising impressions per 1 percent trial rate is estimated. Derek

estimates that 40 advertising impressions (exposures) for every 1 percent of the population will

bring about a 25 percent trial rate.

5. The number of gross rating points that would have to be purchased is now calculated. A gross

rating point is one exposure to 1 percent of the target population. Because Derek wants to

achieve 40 exposures to 80 percent of the population, he will want to buy 3,200 gross rating

points.

6. Finally, the necessary advertising budget on the basis of the average cost of buying a gross

rating point is estimated. To expose 1 percent of the target population to one impression costs an

average of $4,500. Therefore, 3,200 gross rating points will cost $14,400,000 (= $4,500 × 3,200)

in the introductory year.

Page Ref: 490

Objective: 3

AACSB: Analytic skills

Difficulty: Difficult

136) What are the major characteristics of sales promotions as an element of the marketing

communications mix?

Answer: Companies use sales promotion tools—coupons, contests, premiums, and the like—to

draw a stronger and quicker buyer response, including short-run effects such as highlighting

product offers and boosting sagging sales. Sales promotion tools offer three distinctive benefits:

1. Ability to be attention-getting—They draw attention and may lead the consumer to the

product.

2. Incentive—They incorporate some concession, inducement, or contribution that gives value to

the consumer.

3. Invitation—They include a distinct invitation to engage in the transaction now.

Page Ref: 491

Objective: 4

Difficulty: Moderate

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40

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

137) What is the role of advertising as a communications tool in marketing for business markets?

Answer: Although marketers rely more on sales calls in business markets, advertising still plays

a significant role:

1. Advertising can provide an introduction to the company and its products.

2. If the product has new features, advertising can explain them.

3. Reminder advertising is more economical than sales calls.

4. Advertisements offering brochures and carrying the company's phone number or Web address

are an effective way to generate leads for sales representatives.

4. Sales representatives can use copies of the company's ads to legitimize their company and

products.

5. Advertising can remind customers how to use the product and reassure them about their

purchase.

Page Ref: 492

Objective: 4

Difficulty: Moderate

138) How do the stages of buyer readiness affect the composition of a product's marketing

communications mix?

Answer: Communication tools vary in cost-effectiveness at different stages of buyer readiness.

Advertising and publicity play the most important roles in the awareness-building stage.

Customer comprehension is primarily affected by advertising and personal selling. Customer

conviction is influenced mostly by personal selling. Closing the sale is influenced mostly by

personal selling and sales promotion. Reordering is also affected mostly by personal selling and

sales promotion, and somewhat by reminder advertising.

Page Ref: 493

Objective: 4

Difficulty: Moderate

139) How do the stages in a product's life cycle influence the marketing communications mix?

Answer: In the introduction stage of the product life cycle, advertising, events and experiences,

and publicity have the highest cost-effectiveness, followed by personal selling to gain

distribution coverage and sales promotion and direct marketing to induce trial. In the growth

stage, demand has its own momentum through word of mouth and interactive marketing.

Advertising, events and experiences, and personal selling all become more important in the

maturity stage. In the decline stage, sales promotion continues strong, other communication tools

are reduced, and salespeople give the product only minimal attention.

Page Ref: 493

Objective: 4

Difficulty: Moderate

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

140) Karl Lipton is marketing communications coordinator for a major electronics manufacturer.

He is assigned with charting out a communications strategy for a new range of mobile phones

developed by his company. How will Karl's communications strategy look like over the course

of the mobile phones' life cycle?

Answer: Mobile phones have relatively short life cycles. In the introduction stage of the phones'

life cycle, advertising, events and experiences, and publicity have the highest cost-effectiveness.

In-store personal selling helps improve distribution coverage, while sales promotions such as

discounted accessories, freebies etc., help induce trial. In the growth stage, demand has its own

momentum through word of mouth and interactive marketing. Web sites are effective tools

during the growth stage. As the phones reach the maturity stage, advertising, promotional events

and experiences, and personal selling again become more important. As the phones enter the

decline stage of their life cycle, sales promotion takes over as the most important tool in the

marketing communications mix, even as other communication tools are reduced, and salespeople

give the phones only minimal attention.

Page Ref: 493

Objective: 4

AACSB: Analytic skills

Difficulty: Moderate

141) Briefly describe the process of measuring the results of marketing communications.

Answer: Senior managers want to know the outcomes and revenues resulting from their

communications investments. Too often, however, their communications directors supply only

inputs and expenses: press clipping counts, numbers of ads placed, media costs. In fairness,

communications directors try to translate inputs into intermediate outputs such as reach and

frequency (the percentage of target market exposed to a communication and the number of

exposures), recall and recognition scores, persuasion changes, and cost-per-thousand

calculations. Ultimately, behavior-change measures capture the real payoff.

After implementing the communications plan, the communications director must measure its

impact. Members of the target audience are asked whether they recognize or recall the message,

how many times they saw it, what points they recall, how they felt about the message, and what

are their previous and current attitudes toward the product and the company. The communicator

should also collect behavioral measures of audience response, such as how many people bought

the product, liked it, and talked to others about it.

Page Ref: 494

Objective: 4

Difficulty: Moderate

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

142) What is integrated marketing communications? What is its significance in the current

marketing environment?

Answer: Many companies still rely on only one or two communication tools. This practice

persists in spite of the fragmenting of mass markets into a multitude of minimarkets, each

requiring its own approach; the proliferation of new types of media; and the growing

sophistication of consumers. The wide range of communication tools, messages, and audiences

makes it imperative that companies move toward integrated marketing communications.

Companies must adopt a "360-degree view" of consumers to fully understand all the different

ways that communications can affect consumer behavior in their daily lives.

The American Marketing Association defines integrated marketing communications (IMC) as "a

planning process designed to assure that all brand contacts received by a customer or prospect

for a product, service, or organization are relevant to that person and consistent over time." This

planning process evaluates the strategic roles of a variety of communications disciplines—for

example, general advertising, direct response, sales promotion, and public relations—and

skillfully combines these disciplines to provide clarity, consistency, and maximum impact

through the seamless integration of messages.

Page Ref: 494-495

Objective: 5

Difficulty: Moderate

143) How is coordination of media achieved through integrated marketing communications?

Answer: Media coordination can occur across and within media types, but marketers should

combine personal and nonpersonal communications channels through multiple-vehicle, multiple-

stage campaigns to achieve maximum impact and increase message reach and impact.

Promotions can be more effective when combined with advertising, for example. The awareness

and attitudes created by advertising campaigns can increase the success of more direct sales

pitches. Advertising can convey the positioning of a brand and benefit from online display

advertising or search engine marketing that offers a stronger call to action.

Many companies are coordinating their online and offline communications activities. Web

addresses in ads (especially print ads) and on packages allow people to more fully explore a

company's products, find store locations, and get more product or service information. Even if

consumers don't order online, marketers can use Web sites in ways that drive them into stores to

buy.

Page Ref: 495-496

Objective: 5

Difficulty: Moderate

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