Use the following to answer questions 133-136:

When introducing a new vehicle targeted to the under-30
population, Toyota used several different methods of communication. First, it did research in several large
cities to find out who the opinion leaders were in that age group. By visiting the local nightlife, one or two
people in each city were selected and given a new vehicle to drive for two
weeks. They were told to share
information about this new vehicle with their friends. After a few weeks, then a television campaign
was launched with commercials introducing the new vehicle. Toyota also placed ads in magazines that were
targeted to the under-30 age group, and used drive-by billboards in the large
cities near the nightclub areas.

133. Toyota’s
act of giving the opinion leaders a new vehicle for two weeks is best described
as an example of
a) advertising.
b) personal
selling.
c) sales
promotion.
d) buzz
marketing.
e) push
marketing.

134. Suppose
Toyota also offered the dealership salespeople a trip to Hawaii for anyone who
could sell ten of the new vehicles within the first month they were
available? This tactic would be an
example of _____ marketing, while the TV commercials described above would be
an example of ________ marketing.
a) pull;
push
b) personal
selling; push
c) pull;
sales promotion
d) push;
pull
e) personal
selling; sales promotion

135. Suppose
that Toyota has decided to contract with the producer of the next James Bond
007 movie to use one of its new vehicles in a chase scene. This would best be an example of
a) sales
promotion.
b) word-of-mouth
promotion.
c) product
placement.
d) viral
marketing.
e) publicity.

136. Which of
the following is not an integrated communications tactic used by Toyota?
a) word-of-mouth
communication
b) advertising
c) publicity
d) personal
selling
e) sales
promotion

Use the following to answer questions 137-140:

The manufacturers of Whizz, a new laundry detergent, are
developing their promotional plan for the first year. They know they want to use an integrated
communications strategy and are considering the use of advertising through TV
and magazines, coupons, public relations, sales promotion, and viral
marketing. They are not sure when to use
each of these methods however, and have asked for your advice.

137. Since Whizz
is a new product, which of the following promotional methods would you least
recommend?
a) magazine
ads.
b) viral
marketing.
c) television
commercials.
d) a
price-reduction sales promotion.
e) public relations.

138. If the
manufacturers of Whizz were to partner with Whirlpool to place a bottle of
Whizz in each new washer that is purchased during the first year, this would be
an example of
a) advertising.
b) sales
promotion.
c) viral
marketing.
d) packaging.
e) publicity-based
public relations.

139. The makers
of Whizz considered a new promotional method for their product. A small box of Whizz was placed in the
mailbox of college students as they came on campus in the fall. Along with the Whizz, the students received a
coupon for $1.00 off their next purchase.
They could receive another coupon for $3.00 off if they went online and
emailed five friends at another college, telling them about Whizz. The friends could then go to a website and
print a coupon for $2.00 off their next purchase. The sample boxes given to the college
students are an example of ______, while the emails to the five friends are an
example of _____.
a) sales
promotion; advertising
b) sales
promotion; personal selling
c) publicity;
sales promotion
d) viral
marketing; sales promotion
e) sales
promotion; viral marketing

140. The makers
of Whizz have decided to go to several different colleges and have a contest
for the dirtiest shirt. While at the
colleges, they will set up several washing machines near the campus bookstore,
demonstrating the power of Whizz to get these dirty shirts clean. Each contestant in the dirtiest shirt contest
will receive a coupon for a free bottle of Whizz. The winner of the contest will receive a $50
gift card for the college bookstore.
This method of promotion is an example of _____, and is used to
stimulate _______ demand.
a) viral
advertising; primary
b) sales
promotion; selective
c) sales
promotion; primary
d) product
placement; selective
e) product
placement; primary

141. T F
Today, technology is allowing marketers to be more precise in targeting
individual customers.

142. T F
If integrated marketing communications works as intended, customers
should receive
143. T F While
the specific communication vehicles employed in promotion have not changed, the
fundamental role of promotion is changing.

144. T F
Communication is a sharing of meaning.

145. T F
When encoding a message, the source should use signs or symbols that are
new to the audience.

146. T F
Encoding is the process by which a receiver takes the coded message
received from the source and converts it into ideas and concepts.

147. T F
Signs and symbols that can have more than one meaning should be avoided.

148. T F
The receiver’s response to the decoded message is called noise.

149. T F
Interference on one’s television set during a commercial is an example
of noise.

150. T F
When feedback occurs, the source becomes the receiver.

151. T F
Rapid feedback enables communicators to quickly improve the
effectiveness of their communication.
152. T F
When an individual goes out and buys a product after having seen or read
an advertisement for it, feedback is occurring.
153. T F
A communications channel is the vehicle used to transmit the coded
message from the source to the receiver.

154. T F
When a firm uses mass communication, feedback is rapid.

155. T F
Feedback does not exist for mass communication.

156. T F
The capacity of a communication channel is determined by the least
efficient component of the communication process.

157. T F
Channel capacity is determined by the most efficient component of the
communication process.

158. T F
A television advertisement that transmits several types of audio
messages and visual materials may be ineffective.
159. T F
The role of promotion is to communicate.

160. T F
Firms that link the purchase of their product to philanthropic efforts
practice cause-related marketing.
161. T F
Effective promotional programs require management efforts such as
planning, organization, implementation, and control.
162. T F
Promotion that focuses on creating awareness is only important when
introducing a new product to the market.
163. T F
A marketer uses pioneer promotion in the introductory stage of the
product life cycle, when there are many competitive brands.

164. T F
Demand for a product category rather than for a specific brand is called
primary demand.

165. T F
Pioneer promotion neither emphasizes brand names nor compares brands.
166. T F
Selective demand is demand for a certain brand.
167. T F
Promotion to encourage trial use attempts to retain loyal customers.

168. T F
Promotion can assist salespeople in finding likely sales prospects.

169. T F
A business usually cannot operate at peak efficiency when sales
fluctuate significantly.
170. T F
A reseller advertising a manufacturer’s products is viewed as strong
manufacturer support.
171. T F
A promotion mix is a blend of four possible ingredients, which are
advertising, personal selling, public relations, and sales promotion.
172. T F
Advertising is a paid form of nonpersonal communication.

173. T F
Advertising is an inflexible promotional method.
174. T F
Several forms of promotion can be used to complement personal selling
efforts.

175. T F
The absolute dollar outlay for advertising is usually low.

176. T F
Measuring the effect of advertising on sales is difficult.

177. T F
Personal selling makes possible immediate feedback from consumers.

178. T F
Proxemic communication is communication through touching.
179. T F
Tactile communication is communication through the movement of head,
eyes, arms, hands, legs, or torso.

180. T F
The phrase, purchase products, includes the acceptance of ideas and
issues.
181. T F
Public relations is a broad set of communication efforts used to create
and maintain favorable relationships between the organizations and its
stakeholders.
182. T F
Public relations is nonpersonal communication in news story form about
an organization, or its products, or both, transmitted through a mass medium at
no charge.

183. T F
Public relations is a set of tools to be used primarily during crises.

184. T F
A news story about a product is an example of sales promotion.

185. T F
Coupons are a form of sales promotion.

186. T F
Sales promotion activity occurs more during peak selling periods than in
off-peak selling periods.
187. T F
An organization’s promotion mix is viewed as an unchanging part of the
marketing mix.
188. T F
If an organization is large and has a large promotional budget, it
should utilize all four promotional methods.

189. T F
If a company has very limited promotional resources, it is most likely
to use mainly personal selling.
190. T F
The geographic distribution of a firm’s customers can affect the
combination of promotional methods used.
191. T F
The price of a product influences the promotion mix to be used by the
producer.
192. T F
The promotional method most commonly used for highly personal items is
personal selling.

193. T F
A breakfast cereal maker most likely will not use personal selling to
promote its product.

194. T F
Marketers usually decrease expenditures in advertising for products in
the decline stage.
195. T F
Advertising is one element of the promotion mix that is too expensive
for small business firms.
196. T F
When a push policy is used in promotion of a particular product, the
producer promotes the product only to the next channel member.
197. T F
If a pull policy is used in promoting a product, the producer promotes
the product only to the next marketing institution down the channel.

198. T F
When a push policy is used in promoting a particular product, the
producer promotes the product directly to consumers.
199. T F
Word-of-mouth communication is not especially important when people are
choosing restaurants and automotive, medical, and personal services such as
hair care.

200. T F
Successful marketers that understand the significance of word-of-mouth
communication seek out opinion leaders and try to encourage them to try their
products in the hope they will spread favorable word about them.

201. T F
Viral marketing is an attempt to create a trend or acceptance of a
product through word-of-mouth communications.

202. T F
Product placement is a form of advertising that strategically locates
products or product promotions within entertainment media to reach the
product’s target market(s).
203. T F
One reason that promotion suffers from widespread criticism is that
promotional efforts are highly visible and affect our everyday lives.
204. T F
During the nineteenth and early twentieth centuries, promotion was about
as accurate as it is today.

205. T F
A small percentage of promotion efforts are fraudulent.
206. T F
Deceptive promotional practices today are common because of a lack of
regulation.
207. T F
If promotion is successful at stimulating demand, it will tend to
increase prices.
208. T F One truth about promotion is that it raises
prices.

209. T F
Certain types of promotion facilitate price competition.

210. T F
Promotion of products tends to keep their prices high.

211. T F
While promotion does not create needs, it does capitalize on them.
212. T F
One positive aspect of promotion is that it informs consumers about
product uses, features, benefits, prices, and locations where the products can
be bought.

213. T F
Because we are exposed to so much promotion in our daily lives, and the
purpose of promoting goods is to persuade people to buy them, a common
criticism is that promotion encourages materialism.