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Marketing: Real People, Real Choices

1) The coordination of marketing communication efforts to influence attitudes or


behavior is known as ________.
a. promotion
b. advertising
c. marketing
d. public relations
e. the communication model
Answer: a
Diff: 1
Type: MC
Page Reference: 356
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
2) Which of the following is NOT one of the four main roles performed by marketing
communication?
a. to inform
b. to entertain
c. to persuade
d. to remind
e. to build relationships
Answer: b
Diff: 2
Type: MC
Page Reference: 356
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
3) ________ is a strategic business process that marketers use to plan, develop, execute,
and evaluate coordinated, measurable, persuasive brand communication programs over
time to targeted audiences.
a. Integrated marketing communications (IMC)
b. A push strategy
c. A pull strategy
d. Database marketing
e. Experiential marketing
Answer: a
Diff: 1
Type: MC
Page Reference: 357
Topic: One-to-Many: The Traditional Communication Model
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Copyright 2013 Pearson Canada Inc.

Marketing: Real People, Real Choices

Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
4) The concept of ________ marketing communication suggests that the company must
blend the marketing communication forms carefully to make sure the message is
consistent, clear, and compelling.
a. coordinated
b. integrated
c. mass
d. segmented
e. single channel
Answer: b
Diff: 2
Type: MC
Page Reference: 357
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
5) Every point of contact a company or brand has with a consumer is called a(n)
________.
a. touchpoint
b. channel
c. promotion
d. integration
e. feedback
Answer: a
Diff: 1
Type: MC
Page Reference: 357
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
6) Advertising, sales promotion, public relations, and buzz building activities are all
________.
a. channels that should be integrated under the concept of integrated marketing
communications
b. channels focused more on interactive marketing than traditional marketing
c. promotional tools used for push strategies but not pull strategies
d. promotional tools used for pull strategies but not push strategies
e. promotional tools adapted for use in mass marketing
Answer: a
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Marketing: Real People, Real Choices

Diff: 2
Type: MC
Page Reference: 357
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
7) As a part of IMC, marketers do which of the following?
a. use only one or two elements of the promotion mix at a time
b. identify what information customers want and how, when, and where they want it
c. focus on one-to-one marketing to the exclusion of mass marketing
d. focus on increasing profit margins rather than lifetime value of a customer
e. produce promotions in-house instead of using outside agencies
Answer: b
Diff: 2
Type: MC
Page Reference: 357
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
8) Which of the following is NOT a traditional form of marketing communication?
a. public relations
b. out-of-home
c. strategic positioning
d. advertising
e. sales promotion
Answer: c
Diff: 1
Type: MC
Page Reference: 357
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
9) Which of the following is NOT a form of one-to-one marketing?
a. social networking
b. direct marketing
c. database marketing
d. trade sales promotion activities
e. personal selling
Answer: a
Diff: 1
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Copyright 2013 Pearson Canada Inc.

Marketing: Real People, Real Choices

Type: MC
Page Reference: 357
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
10) Which of the following specifies that a source, message, medium, and receiver are
the elements necessary for communication to occur?
a. the IMC process
b. the communication model
c. the hierarchy of effects
d. the AIDA model
e. the experiential model
Answer: b
Diff: 1
Type: MC
Page Reference: 358
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
11) According to the communication model, ________ is the process of translating an
idea into a form of communication that will convey the desired meaning.
a. sourcing
b. messaging
c. encoding
d. signifying
e. sending
Answer: c
Diff: 1
Type: MC
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
12) According to the communication model, the ________ is an organization or
individual that sends a message.
a. medium
b. source
c. messenger
d. feedback
e. decoder

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Marketing: Real People, Real Choices

Answer: b
Diff: 1
Type: MC
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
13) Marketers often hire celebrities as spokespersons for their products, thus associating
the ________ of the message with an attractive, exciting, or admirable person.
a. source
b. medium
c. coding
d. decoding
e. receiver
Answer: a
Diff: 2
Type: MC
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
14) Which of the following is NOT true about the message in the communication model?
a. It may include both verbal and nonverbal elements.
b. It is the actual communication going from sender to receiver.
c. It must be carefully crafted to connect with a variety of people when it is delivered
through advertising.
d. It will be understood in the same way by all receivers.
e. It is often individualized when it is delivered by a salesperson.
Answer: d
Diff: 2
Type: MC
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
15) In the communication model, the ________ can be any organization or individual that
intercepts and interprets a message.
a. medium
b. receiver
c. source
d. encoder
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Marketing: Real People, Real Choices

e. noise source
Answer: b
Diff: 1
Type: MC
Page Reference: 360
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
16) In terms of the communication model, ________ is the process whereby a receiver
assigns meaning to a message.
a. sourcing
b. encoding
c. decoding
d. feedback
e. receiving
Answer: c
Diff: 1
Type: MC
Page Reference: 360
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
17) The communication model acknowledges that messages can be blocked by
________, which is anything that interferes with effective communication.
a. media
b. feedback
c. noise
d. encoding
e. decoding
Answer: c
Diff: 1
Type: MC
Page Reference: 360
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
18) In terms of the communication model, ________ is a reaction to a message that helps
the source gauge the effectiveness of the message.
a. looping
b. feedback
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Marketing: Real People, Real Choices

c. translating
d. encoding
e. decoding
Answer: b
Diff: 1
Type: MC
Page Reference: 360
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
19) For marketers, which of the following is associated with the feedback stage of the
communication model?
a. the variety of media available to carry the message
b. the use of frame-of-reference encoding
c. the need for continuous quantitative measurement
d. the need to seek out customer complaints
e. the need to check the reality of customers' unsolicited feedback
Answer: d
Diff: 2
Type: MC
Page Reference: 360
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
20) A company's total marketing communications mix consists of a special blend of
advertising, sales promotion, public relations, personal selling, and direct-marketing tools
that the company uses to communicate customer value and build customer relationships.
This is also called ________.
a. direct marketing
b. integrated marketing
c. competitive marketing
d. the promotion mix
e. target marketing
Answer: d
Diff: 1
Type: MC
Page Reference: 361
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix

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Marketing: Real People, Real Choices

21) Which of the following is NOT an element of the promotion mix?


a. public relations
b. personal selling
c. sales promotion
d. product
e. direct marketing
Answer: d
Diff: 1
Type: MC
Page Reference: 361
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
22) With which type of marketing communication does the marketer have the greatest
level of control over the message?
a. word-of-mouth communication
b. advertising
c. public relations
d. direct marketing
e. personal selling
Answer: b
Diff: 2
Type: MC
Page Reference: 362
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
23) With which type of marketing communication does the marketer have the lowest
level of control over the message?
a. word-of-mouth communication
b. advertising
c. public relations
d. direct marketing
e. personal selling
Answer: a
Diff: 2
Type: MC
Page Reference: 362
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
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Copyright 2013 Pearson Canada Inc.

Marketing: Real People, Real Choices

24) The use of short-term incentives to encourage the immediate purchase or sale of a
product or service is called ________.
a. indirect marketing
b. sales promotion
c. personal selling
d. public relations
e. advertising
Answer: b
Diff: 2
Type: MC
Page Reference: 362
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
25) Contests and coupons are both types of ________.
a. indirect marketing
b. sales promotion
c. personal selling
d. public relations
e. advertising
Answer: b
Diff: 2
Type: MC
Page Reference: 362
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
26) Which of the following is the nonpersonal presentation and promotion of ideas,
goods, or services by an identified sponsor using the mass media?
a. direct marketing
b. sales promotion
c. public relations
d. advertising
e. direct selling
Answer: d
Diff: 1
Type: MC
Page Reference: 362
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
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Copyright 2013 Pearson Canada Inc.

Marketing: Real People, Real Choices

Objective: 10-1 Understand the communication process and traditional promotion mix
27) Advertising has some shortcomings. What is NOT one of them?
a. It is impersonal.
b. It can be very costly.
c. It does not allow the marketer control over when the message will appear.
d. It sometimes suffers from a credibility problem.
e. It does not make the audience feel the need to respond.
Answer: c
Diff: 3
Type: MC
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
28) Unlike other forms of promotion, ________ is intended to stimulate immediate action
rather than build long-term loyalty from a customer.
a. sales promotion
b. guerrilla marketing
c. advertising
d. word-of-mouth communication
e. personal selling
Answer: a
Diff: 2
Type: MC
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
29) ________ is the element of the promotion mix that involves direct interaction
between a company representative and a customer.
a. Word of mouth
b. Public relations
c. Advertising
d. Personal selling
e. Sales promotion
Answer: d
Diff: 2
Type: MC
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
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Copyright 2013 Pearson Canada Inc.

Marketing: Real People, Real Choices

Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
30) A company is implementing ________ when it airs a television commercial to
millions.
a. interactive marketing
b. viral marketing
c. mass communication
d. personal communication
e. buzz
Answer: c
Diff: 2
Type: MC
Page Reference: 361
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
31) Which of the following statements about advertising is true?
a. Advertising is personal communication from an identified sponsor using the mass
media.
b. Consumers perceive advertising as always having a high level of credibility.
c. Advertising can be used to establish and reinforce a distinctive brand identity.
d. Advertising tends to be comparatively inexpensive.
e. Advertising always relies on factual information.
Answer: c
Diff: 2
Type: MC
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
32) ________ components of the promotion mix do not seek a short-term increase in
sales. Instead, with these communication activities, the company tries to maintain a
positive image of an organization and its products.
a. Personal selling
b. Sales promotion
c. Public relations
d. Word of mouth marketing
e. Direct marketing
Answer: c
Diff: 2
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Copyright 2013 Pearson Canada Inc.

Marketing: Real People, Real Choices

Type: MC
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
33) Today's consumers are increasingly getting information from one another rather than
from the original source. This new communication landscape is referred to as ________.
a. the groundswell
b. evangelist marketing
c. integrated marketing communications
d. stealth marketing
e. the infiltration
Answer: a
Diff: 1
Type: MC
Page Reference: 364
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
34) Which of the following refers to everyday people participating in marketing by
sharing their opinions with their friends, neighbors, and acquaintances?
a. personal selling
b. buzz
c. indirect marketing
d. stealth marketing
e. shilling
Answer: b
Diff: 1
Type: MC
Page Reference: 365
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
35) WOM stands for ________.
a. with original marketing
b. weak owners' market
c. word of mouth
d. word of marketing
e. without original marketing
Answer: c
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Marketing: Real People, Real Choices

Diff: 1
Type: MC
Page Reference: 365
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
36) Buzz that comes from a deliberate buzz marketing campaign is called ________,
while buzz that occurs without a deliberate campaign from the marketer is called
________.
a. virtual WOM; viral WOM
b. viral WOM; virtual WOM
c. organic WOM; amplified WOM
d. amplified WOM; organic WOM
e. direct WOM; indirect WOM
Answer: d
Diff: 2
Type: MC
Page Reference: 365
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
37) Activities that deliberately deceive consumers or involve lying on behalf of clients
are referred to as ________.
a. virtual marketing
b. viral marketing
c. buzz marketing
d. stealth marketing
e. word of mouth marketing
Answer: d
Diff: 2
Type: MC
Page Reference: 367
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
38) Which of the following is NOT considered an unethical buzz marketing strategy?
a. infiltration
b. creating evangelist programs
c. shilling
d. comment spam
e. stealth marketing
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Marketing: Real People, Real Choices

Answer: b
Diff: 3
Type: MC
Page Reference: 367
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
39) Viral marketing (
) primarily uses which of the
following communication channels?
a. billboards
b. print media
c. radio
d. cable television
e. the Internet
Answer: e
Diff: 2
Type: MC
Page Reference: 366
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
40) Viral marketing is most closely related to which of the following?
a. buzz building
b. personal selling
c. shilling
d. public relations
e. direct marketing
Answer: a
Diff: 2
Type: MC
Page Reference: 366
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
41) A ________ is a loyal customer who works for a brand for free.
a. shiller
b. stealth marketer
c. brand ambassador
d. public relations specialist
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Marketing: Real People, Real Choices

e. brand avatar
Answer: c
Diff: 1
Type: MC
Page Reference: 367
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
42) Which of the following refers to Internet-based platforms that allow users to create
their own content and share it with others who access these sites?
a. integrated media
b. social media
c. virtual media
d. stealth media
e. geospatial platforms
Answer: b
Diff: 1
Type: MC
Page Reference: 368
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
43) Blogs, wikis, and podcasts are all examples of ________.
a. traditional media
b. social media
c. virtual worlds
d. review sites
e. geospatial platforms
Answer: b
Diff: 2
Type: MC
Page Reference: 368
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
44) Which of the following social media sites was originally designed to connect college
students with their friends?
a. Second Life
b. LinkedIn
c. Facebook
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Marketing: Real People, Real Choices

d. Twitter
e. Avatar
Answer: c
Diff: 2
Type: MC
Page Reference: 369
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
45) Which of the following is a service that lets users post short text messages to
followers who subscribe to their microblog?
a. Second Life
b. LinkedIn
c. Facebook
d. Twitter
e. Yelp
Answer: d
Diff: 2
Type: MC
Page Reference: 369
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
46) An avatar is a ________.
a. site that creates a connection between a consumer and a brand
b. mobile app with increasing popularity
c. type of geospatial platform
d. tweet of more than 140 characters
e. graphic representation of a user
Answer: e
Diff: 1
Type: MC
Page Reference: 369
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
47) Which of the following is true of virtual worlds?
a. They are among the most popular product review sites.
b. They are likely to replace Twitter.
c. They are the most popular tool for stealth marketing campaigns.
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Marketing: Real People, Real Choices

d. They are a booming marketplace for virtual goods paid for in actual money.
e. They use "dashboards" so businesses can monitor the locations of avatars.
Answer: d
Diff: 2
Type: MC
Page Reference: 369
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
48) Yelp and TripAdvisor are both examples of ________.
a. virtual worlds
b. geospatial platforms
c. product review sites
d. social networking sites
e. avatars
Answer: c
Diff: 2
Type: MC
Page Reference: 372
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
49) Which of the following were designed to allow users to alert their friends of their
exact whereabouts via their mobile phones?
a. virtual worlds
b. geospatial platforms
c. product review sites
d. social networking sites
e. avatars
Answer: b
Diff: 1
Type: MC
Page Reference: 372
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
50) Which of the following is NOT a step in developing a promotional plan?
a. identifying the target audiences
b. designing the marketing mix
c. establishing communication objectives
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Marketing: Real People, Real Choices

d. determining the communication budget


e. evaluating the effectiveness of the communication program
Answer: b
Diff: 2
Type: MC
Page Reference: 373
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
51) After determining its communication objectives, the company's next step in
developing a promotional plan is to ________.
a. identify the target audiences
b. determine its marketing communication budget
c. design the promotion mix
d. decide on a push or pull strategy
e. identify its product's phase in the product life cycle
Answer: b
Diff: 2
Type: MC
Page Reference: 373
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
52) The series of stages through which a marketer attempts to guide a consumer is called
the ________.
a. promotional mix
b. marketing mix
c. hierarchy of effects
d. AIDA model
e. push-pull model
Answer: c
Diff: 1
Type: MC
Page Reference: 374
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
53) The ________ step in the hierarchy of effects calls for marketers to inform the target
market that there is a new brand on the market using simple, repetitive advertising in a
variety of media.
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Marketing: Real People, Real Choices

a. awareness
b. knowledge
c. demand
d. desire
e. purchase
Answer: a
Diff: 2
Type: MC
Page Reference: 374
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
54) Which of the following is NOT a step in the hierarchy of effects?
a. create awareness
b. inform the market
c. create demand
d. create desire
e. build loyalty
Answer: c
Diff: 2
Type: MC
Page Reference: 374
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
55) Which of the following is the last step in the hierarchy of effects?
a. create demand
b. create desire
c. encourage purchase
d. build loyalty
e. establish a relationship
Answer: d
Diff: 2
Type: MC
Page Reference: 374
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
56) In which step of the hierarchy of effects would a marketer most likely use celebrity
endorsements and status appeals?
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Marketing: Real People, Real Choices

a. create awareness
b. inform the market
c. create desire
d. encourage purchase
e. build loyalty
Answer: c
Diff: 1
Type: MC
Page Reference: 374
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
Hint 1: 10-03-52
57) In which step of the hierarchy of effects would a marketer most likely rely on
samples and coupons?
a. create awareness
b. inform the market
c. create desire
d. encourage purchase
e. build loyalty
Answer: d
Diff: 3
Type: MC
Page Reference: 375
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
58) Which of the following is an example of a top-down budgeting technique used to
determine how much a firm will allocate to its promotional activities?
a. the objective-task method
b. the percentage-of-sales method
c. the push-pull method
d. the AIDA method
e. the price lining method
Answer: b
Diff: 2
Type: MC
Page Reference: 376
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
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Marketing: Real People, Real Choices

59) Though the ________ method of setting an advertising budget is simple to use and
helps management think about the relationships among promotion spending, selling price,
and profit per unit, it wrongly views sales as the cause of promotion rather than the result.
a. percentage-of-sales
b. competitive-parity
c. bottom-up
d. objective-task
e. push-pull
Answer: a
Diff: 2
Type: MC
Page Reference: 376
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
60) A florist who decides to budget five percent of last year's sales for promotional
activities is using which of the following budgeting techniques?
a. bottom-up
b. objective-task
c. competitive-parity
d. percentage-of-sales
e. push-pull
Answer: d
Diff: 2
Type: MC
Page Reference: 376
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
61) Which method of setting an advertising budget is based on analyzing competitors'
spending?
a. the percentage-of-sales method
b. the top-down method
c. the bottom-up method
d. the objective-task method
e. the competitive-parity method
Answer: e
Diff: 1
Type: MC
Page Reference: 376
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Marketing: Real People, Real Choices

Topic: Promotional Planning in a Web 2.0 World


Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
62) Which of the following statements about the competitive-parity method of budgeting
is true?
a. It is the most commonly used bottom-up method for budgeting.
b. It works because it relies on dynamic market shares that change annually.
c. It is the only top-down budgeting method used to determine promotional budgets.
d. It is considered the most logical budgeting method.
e. It mirrors the best thinking of others in the business.
Answer: e
Diff: 2
Type: MC
Page Reference: 376
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
63) The ________ method of promotional budgeting is based on determining spending
necessary to accomplish specific promotion goals.
a. percentage-of-sales
b. competitive-parity
c. top-down
d. pull-push
e. objective-task
Answer: e
Diff: 2
Type: MC
Page Reference: 376
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
64) Which of the following is an example of a bottom-up technique for developing
promotional budgets?
a. the competitive-parity method
b. the objective-task method
c. the percentage-of-sales method
d. the pull-push method
e. the AIDA method
Answer: b
Diff: 2
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Type: MC
Page Reference: 376
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
65) Which promotional mix strategy directs marketing efforts toward final consumers?
a. push
b. pull
c. flighting
d. pulsing
e. AIDA
Answer: b
Diff: 2
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
66) Which promotional mix strategy directs marketing efforts toward market channel
members?
a. push
b. pull
c. flighting
d. pulsing
e. AIDA
Answer: a
Diff: 2
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
67) Which of the following is typically true during the introduction stage of the product
life cycle?
a. Personal selling is the primary promotional tool in the consumer market.
b. The pull strategy is implemented more frequently than the push strategy.
c. Publicity is not effective.
d. Sales promotion may be used to encourage trial.
e. Sales promotion is more successful than advertising.
Answer: d
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Diff: 2
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
68) Which of the following is typically true during the growth stage of the product life
cycle?
a. The use of advertising decreases.
b. Product benefits are the focus of promotions.
c. The use of sales promotion to encourage trial increases.
d. Spending on most aspects of promotion decreases.
e. The tool of public relations is rarely used.
Answer: b
Diff: 3
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
69) In the maturity phase of the product life cycle, the primary promotional objective is to
________.
a. create product awareness
b. encourage product trial
c. build product credibility
d. inform the public of product benefits
e. persuade consumers to switch brands
Answer: e
Diff: 2
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
70) Which of the following is typically true during the decline stage of the product life
cycle?
a. Advertising expenses increase.
b. Sales promotion efforts are increased.
c. Public relations efforts are the promotional focus.
d. Personal selling costs are increased.
e. Spending on all elements of the promotion mix is reduced.
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Answer: e
Diff: 2
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
71) In which phase of the product life cycle are sales driven by the loyalty of a small
group of customers?
a. growth
b. introduction
c. awareness
d. maturity
e. decline
Answer: e
Diff: 2
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
72) In the AIDA(ATTENTION, INTEREST, DESIRE AND ACTION)model, the D
stands for ________.
a. demand
b. desire
c. data
d. do-it-yourself
e. decoding
Answer: b
Diff: 2
Type: MC
Page Reference: 378
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
73) Which of the following types of communication programs is typically the easiest to
evaluate?
a. public relations
b. word of mouth marketing
c. personal sales
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d. sales promotion
e. advertising
Answer: d
Diff: 3
Type: MC
Page Reference: 379
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
74) Which of the following types of communication programs is typically the most
difficult to evaluate?
a. public relations
b. online advertising
c. personal sales
d. sales promotion
e. advertising
Answer: a
Diff: 3
Type: MC
Page Reference: 379
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
75) Which of the following is a benefit of multichannel promotional strategies that blend
traditional promotional activities with online buzz building activities?
a. Online buzz building activities are clearly effective.
b. Marketers have more opportunities to convert customers.
c. Marketers can more easily control the brand message.
d. It is easy to measure the results of online buzz building activities.
e. Budgeting for mutlichannel strategies is more straightforward than for single channel
strategies.
Answer: b
Diff: 2
Type: MC
Page Reference: 379
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
76) Delia's is a clothing retailer that targets teenage girls. It runs coordinated promotions
for its catalogs, its Web site, and its retail outlets. Delia's works to make sure its public
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relations activities as well as its sales promotions harmonize with its advertising in all
venues. From this information, you can infer that Delia's is using ________.
a. viral marketing
b. stealth marketing
c. integrated marketing communication
d. word of mouth marketing
e. database marketing
Answer: c
Diff: 1
Type: MC
Page Reference: 357
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
77) Tara Keegan owns Live Well, a small chain of health stores offering a variety of
natural health products and related services. In order to implement integrated marketing
communications, Tara has hired a marketing communications director, whose job it will
be to ensure that each ________ will deliver a consistent and positive message to
consumers about the company.
a. public relations message
b. touchpoint
c. advertisement
d. logo
e. media vehicle
Answer: b
Diff: 2
Type: MC
Page Reference: 357
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
78) The decision to use a cleaning genie to communicate the strength and power of Mr.
Clean cleaning liquid is representative of the ________ process of the communication
model.
a. sourcing
b. encoding
c. feedback
d. decoding
e. messaging
Answer: b
Diff: 2
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Type: MC
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
79) In terms of the communication model, the animated M&M candies in television
commercials ________.
a. are representatives of the source
b. are feedback mechanisms
c. are the medium
d. introduce noise
e. encode the message
Answer: a
Diff: 2
Type: MC
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
80) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine
featured actress Melina Kanakaredes and offered readers a $1-off coupon when they try
the new makeup. In terms of the communication model, the source of this ad is
________.
a. Melina Kanakaredes
b. Ladies' Home Journal
c. readers who redeem the $1-off coupon
d. Maybelline
e. the target market to whom Melina Kanakaredes appeals
Answer: d
Diff: 2
Type: MC
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
81) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine
featured actress Melina Kanakaredes and offered readers a $1-off coupon when they try
the new makeup. In terms of the communication model, the medium of this ad is
________.
a. Melina Kanakaredes
b. Ladies' Home Journal
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c. readers who redeem the $1-off coupon


d. Maybelline
e. the target market to whom Melina Kanakaredes appeals
Answer: b
Diff: 1
Type: MC
Page Reference: 360
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
82) Which of the following best explains why a forty-year-old woman and a fifteen-yearold boy would interpret an ad for an age-minimizing makeup differently?
a. They respond in contrasting ways to different media.
b. They are not equally susceptible to noise.
c. They follow different communication models.
d. They have different frames of reference.
e. One is not as likely as the other to provide feedback.
Answer: d
Diff: 3
Type: MC
Page Reference: 360
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
83) Chevrolet runs a promotion whereby consumers can redeem two free single-day ski
lift tickets at their local dealer through a test-drive promotion. According to the
communication model, the people coming into the dealership to test-drive a vehicle are
the ________.
a. encoders
b. message
c. source
d. medium
e. feedback
Answer: e
Diff: 3
Type: MC
Page Reference: 360
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix

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84) A new pizza restaurant is opening in town. The owners of this restaurant decide to
place an advertisement in the town newspaper announcing the date of their big opening.
The owners of the restaurant are using ________.
a. mass communications
b. a push strategy
c. word-of-mouth communications
d. public relations
e. one-to-one marketing
Answer: a
Diff: 2
Type: MC
Page Reference: 361
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
85) An email from Amazon.com offers free shipping on your next purchase of more than
$35. This is an example of ________.
a. sales promotion
b. personal selling
c. public relations
d. stealth marketing
e. viral marketing
Answer: a
Diff: 2
Type: MC
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
86) A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional
salespeople to sell its products to wholesalers and cities. This is an example of ________.
a. sales promotion
b. personal selling
c. public relations
d. direct marketing
e. advertising
Answer: b
Diff: 2
Type: MC
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
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Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
87) A newspaper article announced that VoiceStream Wireless, the nation's sixth-largest
wireless carrier, was changing its name to T-Mobile and that to begin the makeover
process it had replaced spokesperson Jamie Lee Curtis with Catherine Zeta-Jones. Of
which element of the promotion mix is this an example of?
a. sales promotion
b. advertising
c. public relations
d. personal selling
e. product
Answer: c
Diff: 2
Type: MC
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
88) When FedEx communicates with its target markets through the use of a print medium
such as Newsweek magazine, it is using which element of the promotion mix?
a. sales promotion
b. personal selling
c. word of mouth marketing
d. direct marketing
e. advertising
Answer: e
Diff: 2
Type: MC
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
89) A representative from a nationally known cookie manufacturer is at a local
supermarket distributing samples of a new flavor of cookie that the company has just
introduced. The cookie manufacturer is implementing ________ in giving away samples
of the cookie.
a. personal selling
b. stealth marketing
c. sales promotion
d. direct marketing
e. shilling
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Answer: c
Diff: 3
Type: MC
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
90) A newspaper article discussed a lawsuit in which independent video stores accused
Blockbuster of engaging in an illegal conspiracy to drive them out of business. What
promotion element would Blockbuster most likely use to improve its corporate image,
which has been tarnished by these accusations?
a. sales promotion
b. personal selling
c. public relations
d. direct marketing
e. stealth marketing
Answer: c
Diff: 3
Type: MC
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
91) Marketers for Alive!, a new sports energy drink, have hired teams of college students
to encourage friends and classmates on campus to try the new product. The students have
been directed by Alive! to promote the new drink without revealing that they are
contracting with the company. Alive! is most likely to be accused of which of the
following unethical marketing strategies?
a. falsification
b. shilling
c. evangelist marketing
d. viral marketing
e. defacement
Answer: b
Diff: 2
Type: MC
Page Reference: 367
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model

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92) A manufacturer of a variety of technological devices asked its marketing department


to develop inexpensive methods of building and maintaining brand awareness and
excitement. The marketing department then recruited consumers who were early adopters
of technological devices to spread the word about the company's new products. This is an
example of ________.
a. public service activities
b. shilling
c. evangelist marketing
d. stealth marketing
e. direct marketing
Answer: c
Diff: 2
Type: MC
Page Reference: 365
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
93) If you visit www.diamondsareforever.com, you can design your own ring. This site,
which is operated by De Beers, then allows you to email a picture of your ring to friends
and relatives. This way, they can share in the excitement and be informed of the Web
site's existence. De Beers is using ________.
a. shilling
b. viral marketing
c. stealth marketing
d. direct marketing
e. virtual marketing
Answer: b
Diff: 2
Type: MC
Page Reference: 366
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
94) Toward the end of the fiscal year, the owner of a small company came back from
lunch concerned because he had learned that a business targeted to the same customers as
his was planning on spending $150,000 on promotion. As soon as he arrived at the office,
he called his financial manager and said, "I want to budget $150,000 for next year's
promotion." Which method of promotional budgeting did the owner want to use?
a. the objective-task method
b. the percentage-of-sales method
c. the competitive-parity method
d. the bottom-up method
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e. the pull-push method


Answer: c
Diff: 2
Type: MC
Page Reference: 376
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
95) Business-to-consumer companies are more likely to emphasize a ________ strategy,
while business-to-business companies are more likely to emphasize a ________ strategy.
a. pull; push
b. push; pull
c. push; pulse
d. pulse; pull
e. pulse; push
Answer: a
Diff: 3
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
96) An ad in a professional journal targeted to an audience of dentists asked dentists to
recommend Crest toothpaste to their patients. It offered toothpaste samples that dentists
could buy at cost to give to their patients to encourage patients to take better care of their
teeth. The manufacturer of Crest toothpaste was using ________.
a. viral marketing
b. stealth marketing
c. a push strategy
d. a pull strategy
e. public relations
Answer: c
Diff: 2
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning

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97) Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend
magazine advising consumers to request their body shops use Glasis paint is an example
of how a company uses ________.
a. viral marketing
b. stealth marketing
c. buzz marketing
d. a push strategy
e. a pull strategy
Answer: e
Diff: 2
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
98) A commercial for Martox compares the speed with which Martox soothes an upset
stomach to the speed of Tums antacids. The commercial also emphasizes that Martox is
less expensive than Tums. Martox is most likely at which stage of the product life cycle?
a. introduction
b. growth
c. maturity
d. awareness
e. decline
Answer: c
Diff: 2
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
99) Vitamin drinks are in the growth stage of their product life cycle. This means that
promotion for vitamin drinks most likely focuses on ________.
a. encouraging trial through sales promotion
b. creating public awareness through public relations
c. encouraging customers to switch brands through sales promotion
d. stressing product benefits through advertising
e. using competitive-parity strategies
Answer: d
Diff: 2
Type: MC
Page Reference: 377
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Topic: Promotional Planning in a Web 2.0 World


Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
100) An established retail clothing store in a town with a large university wants to quickly
increase the number of college students who shop at the store. Which of the following
would be the best way to offer a sales promotion to this target market?
a. run coupons in the local daily newspaper
b. buy an online ad on the university newspaper's homepage announcing a 10% discount
for students who show a school ID
c. produce a commercial and buy airtime on local television channels
d. sponsor an organization or event at the university in a public relations effort
e. use shilling to create buzz for the store
Answer: b
Diff: 2
Type: MC
Page Reference: 377
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
101) Virtually everything an organization says and does is a form of marketing
communication.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 356
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
102) Through word-of-mouth communication, consumers look to each other for product
information and recommendations.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 356
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
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Objective: 10-1 Understand the communication process and traditional promotion mix
103) In the communication model, the message is the actual communication that bounces
back from the receiver to the sender.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
104) The communications model is an effective way to look at traditional marketing
communications, but not for new buzz building activities.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
105) According to the communication model, a coffee cup printed with a company's
name and logo is an example of a medium.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
106) In the communication model, noise is anything that interferes with effective
communication.
a. True
b. False

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Answer: a
Diff: 2
Type: TF
Page Reference: 377
Topic: Decide on a Push or a Pull Strategy
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
107) Like sales promotion, public relations components of the promotion mix are used to
create short-term increases in sales.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
108) By definition, personal selling takes place in person.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
109) Personal selling is less effective but more cost-efficient than advertising.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix

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110) Unlike direct marketing, personal selling focuses on direct communication with a
consumer or business customer.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
111) The idea of buzz isn't really new, but the magnifying effect that technology has on
the spread of buzz is new.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 365
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
112) Happy customers are more likely to tell their friends about their pleasant customer
experiences than unhappy customers are to tell their friends about their unpleasant
customer experiences.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 365
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
113) Only small companies with limited promotional budgets have successfully used
viral marketing.
a. True
b. False
Answer: b
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Diff: 2
Type: TF
Page Reference: 366
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
114) Brand ambassadors are volunteers spreading a company's brand message, while
brand evangelists are paid employees using stealth marketing tactics to spread a
company's brand message.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 367
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
115) Though the idea is catching on, only a few marketing firms currently use word-ofmouth marketing techniques.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 365
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
116) Buzz works best when companies put paid consumers in charge of creating their
own messages.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 365
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
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117) Each step in the hierarchy of effects is more difficult to achieve than the previous
step.
a. True
b. False
Answer: a
Diff: 3
Type: TF
Page Reference: 374
Topic: Promotional Planning in a Web 2.0 World
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
118) The percentage-of-sales method of setting a communication budget wrongly treats
sales as a cause of promotion rather than a result.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 376
Topic: Determine and Allocate the Marketing Communication Budget
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
119) If the pull strategy is effective, consumers will then demand the product from
channel members, who will in turn demand it from producers.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 377
Topic: Decide on a Push or a Pull Strategy
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
120) Companies rely on either a push strategy or a pull strategy, seldom using both
throughout a product's life cycle.
a. True
b. False
Answer: b
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Diff: 2
Type: TF
Page Reference: 377
Topic: Decide on a Push or a Pull Strategy
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
121) The process of developing the Nike logo "Just Do It" as a way to communicate the
power and capability of people who wear Nike shoes is an example of encoding, as
defined by the communication model.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
122) In 2001, IBM had hundreds of "Peace Love Linux" logos painted on sidewalks to
publicize the company's adoption of the Linux operating system. This is an example of
buzz marketing.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 365
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
123) Tired Toes is a new line of foot care products. The company's marketing team wants
to help build buzz for the line by creating a brand community. The marketing team should
use social networks to achieve this objective.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 368
Topic: Many-to-Many: The New Media Communication Model
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Skill: Concept
Objective: 10-2 The Updated Communication Model
124) The objective-and-task method of setting a promotion budget is the most logical
method because it forces management to articulate its assumptions about the relationship
between dollars spent and promotion results.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 376
Topic: Determine and Allocate the Marketing Communication Budget
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
125) Coca-Cola's Minute Maid unit is introducing a new beverage called Minute Maid
Premium Limeade; it is a refrigerated limeade. The primary promotional objective of
marketing communications for the new product should be to create awareness.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 377
Topic: Decide on a Push or a Pull Strategy
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
126) What is integrated marketing communication (IMC)? Explain how it differs from
more traditional marketing communication approaches.
Answer:
Integrated marketing communication (IMC) is the process that marketers use to plan,
develop, execute, and evaluate coordinated, measurable, persuasive brand communication
programs over time with targeted audiences. With an IMC program, marketers focus on
the information needs of the consumer and work to coordinate all of the communication
from the firm using the best combination of available communication methods. This
differs from traditional marketing communication approaches, which can offer a
fragmented message to consumers, with different types of message conveyed through
different promotional tools, often sending conflicting brand messages.
Diff: 2
Type: ES
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Page Reference: 357


Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
127) The background for a Benadryl allergy medication ad appearing in the magazine
Better Homes and Gardens shows green grass and lovely flowers. The headline states
"Benadryl is 54 percent more effective than the leading prescription." At the bottom of
the ad, in small print, is an explanation of how the effectiveness of Benadryl was
determined. The ad also shows a package of Benadryl so consumers can easily recognize
it at the store. Identify the different components of the communication model for this
advertisement.
Answer:
The marketers of Benadryl are the source. These marketers encoded their ideas into the
actual message, which includes the images and text of the advertisement. The medium for
this communication is the page in Better Homes and Gardens. The receiver is anyone
reading the magazine who sees this page of advertising; the receiver may or may not
decode the message in the way the marketers intended. Noise could pop up at any stage
of the communication process.
Diff: 2
Type: ES
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
128) A company's traditional promotion mix consists of the specific blends of five
different parts. Name and define these parts
Answer:
Advertising is any nonpersonal presentation and promotion of ideas, goods, or services
by an identified sponsor. Sales promotion includes short-term incentives to encourage the
purchase or sale of a product or service. Public relations includes building good relations
with the company's various publics by obtaining favorable publicity, building up a good
corporate image, and handling or heading off unfavorable rumors, stories, or events.
Personal selling includes a personal presentation by the firm's salesforce for the purpose
of making sales and building customer relationships. Direct marketing includes direct
connections with consumers to obtain an immediate response.
Diff: 2
Type: ES
Page Reference: 361
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
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Objective: 10-1 Understand the communication process and traditional promotion mix
129) In one section of the Sunday newspaper there are four-color, magazine-style
advertisements for different stores. Each of these advertisements informs consumers of
the products being marketed at sale prices during the coming week. How are these
magazine-style advertisements the implementation of sale promotions?
Answer:
Sale promotions are programs such as contests, coupons, or other incentives that
marketers design to build interest in or encourage the purchase of a product during a
specified time period. Unlike other forms of promotion, sales promotions are intended to
stimulate immediate action rather than build long-term loyalty. The magazine
advertisements are trying to entice consumers to go to the store during the week and buy
the items that are being sold at lower than the original selling price.
Diff: 2
Type: ES
Page Reference: 363
Topic: One-to-Many: The Traditional Communication Model
Skill: Application
Objective: 10-1 Understand the communication process and traditional promotion mix
130) Compare the traditional one-to-many marketing communication model to the
updated many-to-many communication model. What has caused the shift? What are the
advantages and disadvantages of the new model for marketers?
Answer:
The traditional marketing model of one-to-many communication involves mass media
tools such as advertising, out-of-home, consumer sales promotions, and public relations.
However, through advances in Internet and mobile technologies, consumers are
connected in ways they never were before. They can instantly share their opinions on
products and consult the opinions of other consumers. This many-to-many
communication model involves buzz building activities, viral marketing, and new social
media platforms such as social networks, brand communities, product review sites,
virtual worlds, and geospatial platforms. For marketers, this new model offers benefits
and dangers. Consumers are more likely to listen to and trust the opinions of other
consumers, which can work two ways. Positive product opinions spread through social
media can greatly boost a product's image, but negative reviews can devastate it. Even
worse, companies have little or no control over what consumers say about their products.
Diff: 3
Type: ES
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
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131) Explain the buzz building form of viral marketing. What are the aims of viral
marketing, and how are they accomplished? Give an example of a successful viral
marketing campaign.
Answer:
Through viral marketing, marketers hope to increase brand awareness or sales by
encouraging consumers to pass a message along to other consumers, hopefully in an
exponential fashion. Viral marketing tends to include entertaining video clips, interactive
games, or other activities that consumers will find so unique and interesting that they'll
want to share them with their friends. The trick is producing something that consumers
will want to independently pass on through email or social networks. Examples of
successful campaigns will vary.
Diff: 2
Type: ES
Page Reference: 365
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
132) Briefly describe some of the ethical problems that can be associated with buzz
marketing and how companies have dealt with these issues.
Answer:
Some buzz marketing activities have been deceptive, such as companies hiring actors to
appear as regular consumers and hype a product to target markets, or companies hiring
writers to submit positive product reviews on shopbots. The Word of Mouth Marketing
Association (WOMMA) defines these activities as unethical and takes the position that
anyone paid to talk up a product should identify the employing company. Buzz marketing
directed at children is generally frowned upon, as these young consumers are susceptible
to deception. Also, defacement activities that damage property are categorized as
unethical, and may also be illegal.
Diff: 2
Type: ES
Page Reference: 367
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
133) Allyson Godwin plans on setting up a small business where she will offer quilting
lessons, sell material and quilting kits that she will create, and market her own creations.
Last year her quilting skills earned her $2,000. She estimates that quilting as a full-time
business will earn $10,000 during her first year. She has budgeted five percent of her

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sales estimate to be spent on promotion. What promotion method is Godwin using? What
are the advantages and disadvantages of this method?
Answer:
Diff: 2
Type: ES
Page Reference: 376
Topic: Determine and Allocate the Marketing Communication Budget
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
134) Marketers can choose from two basic strategies: push or pull. Compare these two
strategies.
Answer:
Using the pull strategy, the producer directs its marketing activities toward final
consumers to induce them to buy the product; if the pull strategy is effective, consumers
will then demand the product from channel members who will in turn demand it from
producers. Using a push strategy, the producer focuses instead on the channel members,
persuading them to carry the product and promote it to final consumers.
Diff: 2
Type: ES
Page Reference: 376
Topic: Decide on a Push or a Pull Strategy
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
135) A company has developed over-the-counter eye drops to alleviate cataract problems
in senior dogs and cats. It is the first product of its type to enter the marketplace. What
promotional mix would the company most likely use with this new product? Why?
Answer:
In the introduction phase, the objective is to build product awareness among consumers.
Advertising is the primary promotional tool for creating awareness, and a publicity
campaign to generate news reports about the eye drops may help as well. Sales
promotions will encourage trial. Personal selling is important to get channel members to
carry the product and to encourage veterinarians to recommend the use of the drops.
Trade promotions may be useful to encourage retailers to carry the items.
Diff: 3
Type: ES
Page Reference: 376
Topic: Decide on a Push or a Pull Strategy
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Skill: Application
Objective: 10-3 Traditional and multichannel promotional planning
136) Why should a company be concerned about integrating communications from
different sources within the company?
Answer:
Customers won't separate conflicting or varying messages from different sources within a
company, so failing to integrate communications could lead to blurred consumer brand
perceptions.
Diff: 2
Type: ES
Page Reference: 357
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
137) A TV commercial shows an adult, whose face is hidden, speaking of the enjoyment
he gets from having eaten the same breakfast cereal for the past thirty years. This cereal is
not just for kids! What are the marketing communications messages presented in this TV
commercial?
Answer:
The person who has enjoyed eating the same cereal for breakfast for the past thirty years
is informing TV viewers of the enjoyment received from eating the cereal. The
advertisement also reminds others how they may have felt eating the cereal as children
and attempts to persuade people who used to eat this cereal to buy it again, no matter how
old they are.
Diff: 2
Type: ES
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
138) Explain why effective communication occurs only when the source and the receiver
have a mutual frame of reference.
Answer:
For effective communication to occur, both the source and the receiver must have an
understanding of the message. If the message cannot be decoded by the receiver in the
way the sender intended it, then there will not be successful communication.
Diff: 2
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Type: ES
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
139) How is a company that buys a block of advertising pages in a magazine to advertise
its brand striving to eliminate noise, as it is defined in the communication model?
Answer:
Noise is anything that interferes with effective communication. The rationale for the
purchase of a block of advertising is that the reader will not be distracted with other ads,
particularly those of the competition.
Diff: 2
Type: ES
Page Reference: 359
Topic: One-to-Many: The Traditional Communication Model
Skill: Concept
Objective: 10-1 Understand the communication process and traditional promotion mix
140) Why has traditional mass market diminished as a way to talk to younger consumers?
Answer:
Younger consumers spend more and more time online and are less likely to rely on mass
media outlets such as network television, national newspapers, and magazines for
information and entertainment.
Diff: 2
Type: ES
Page Reference: 364
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
141) Hotmail put the message "Get Your Free Email at Hotmail.com" at the bottom of
every email sent by Hotmail users. What type of marketing technique did Hotmail use?
Answer:
Viral marketing is the strategy in which a company recruits customers to be sales agents
and spread the word about the product. The message about being able to have free email
is being spread to potential customers by current customers.
Diff: 2
Type: ES
Page Reference: 366
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Topic: Many-to-Many: The New Media Communication Model


Skill: Concept
Objective: 10-2 The Updated Communication Model
142) Explain how companies identify and use brand ambassadors and brand evangelists.
Answer:
Companies may seek out customers who blog about a product or share opinions about a
product online. Companies give evangelists and ambassadors special access to the
company and its marketing strategies, and in turn the evangelists and ambassadors spread
positive word of mouth about the brand.
Diff: 2
Type: ES
Page Reference: 367-368
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
143) Explain how new social media formats have democratized marketing messages.
Answer:
New social media formats such as social networks and product review sites give
individual consumers a voice in shaping brand images. The brand image is not solely
created by the company's marketing team.
Diff: 2
Type: ES
Page Reference: 368-369
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
144) Identify an important difference for marketers between Twitter and Facebook.
Answer:
Facebook requires users to be recognized and accepted as a "friend" to follow another
user's posts. Twitter allows users to follow anyone they like. Twitter is a much more
narrow service, letting users microblog in text messages of 140 characters or less.
Diff: 2
Type: ES
Page Reference: 369
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
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145) Discuss how marketers can use virtual worlds to convey marketing communications.
Answer:
Virtual worlds allow users to hang out in virtual clubs, shop for virtual clothes and design
virtual homes. These are all opportunities for marketers to build enthusiasm and loyalty
for actual products.
Diff: 2
Type: ES
Page Reference: 369
Topic: Many-to-Many: The New Media Communication Model
Skill: Concept
Objective: 10-2 The Updated Communication Model
146) What promotional efforts would a marketer be likely to use if the communication
objective was to increase awareness of the brand?
Answer:
If the marketer wants to increase awareness of the brand, he might use repetitive
advertising, slogans, jingles, or publicity stunts.
Diff: 3
Type: ES
Page Reference: 367
Topic: Communication abilities
Skill: Application
Objective: 10-3 Traditional and multichannel promotional planning
147) What promotional efforts would a marketer be likely to employ if the
communication objective was to create desire for the product?
Answer:
When the marketer's communication objective is to create desire for the product, he
would probably use flashy advertising spreads in magazines, endorsements of wellknown celebrities, and sex appeal to create positive attitudes toward the brand.
Diff: 3
Type: ES
Page Reference: 373-374
Topic: Establish the Communication Objectives
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
148) What promotional efforts would a marketer be likely to employ if the
communication objective was to encourage purchase of the product?
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Answer:
When the marketer's communication objective is to encourage purchase of the product,
he would probably use samples, create elaborate displays in stores that dispense moneysaving coupons, and sponsor contests.
Diff: 3
Type: ES
Page Reference: 373-374
Topic: Establish the Communication Objectives
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
149) What type of promotional effort would a marketer likely use for a product in the
decline phase?
Answer:
Because sales drop off, a marketer would be likely to drastically reduce spending on the
promotion mix and focus on individualized ways to communicate with the small group of
loyal users of the product.
Diff: 2
Type: ES
Page Reference: 377
Topic: Decide on a Push or a Pull Strategy
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning
150) What are the four objectives a message should ideally accomplish each time a
promotion mix is designed?
Answer:
The message should ideally get Attention, hold Interest, create Desire and produce
Action. This is known as the AIDA model.
Diff: 2
Type: ES
Page Reference: 378
Topic: Design the Promotion Mix
Skill: Concept
Objective: 10-3 Traditional and multichannel promotional planning

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