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