Understanding Business 11th Edition by William Nickels -Test Bank

Understanding Business 11th Edition by William Nickels -Test Bank

16

Student: ___________________________________________________________________________

1. Jose is a salesperson for a firm that sells and leases heavy construction equipment. This equipment is very expensive, and is highly specialized. Jose spends a great deal of time learning about potential customers’ needs, then locates exact specifications of equipment offered by all the major producers in the industry. Armed with this information, Jose is able to identify the best equipment for each job. Jose has completed the preapproach stage of the selling process.

True False

2. As a component of the promotion mix, advertising includes each of the activities marketers use to inform people about products and persuade them to participate in an exchange.
True False

3. A firm’s promotion mix refers to the combination of different promotional tools used to persuade consumers to participate in an exchange.
True False

4. Integrated marketing communication simplifies the marketing process by replacing personal selling with extensive use of advertising to create a positive brand image.
True False

5. Integrated marketing communication combines all the promotional tools into one comprehensive, unified promotional strategy.
True False

6. Integrated marketing communication combines each element of the promotional effort to create a unique message for a product sold in different markets.
True False

7. Creating a unified positive image of a company in the public’s mind is the end result of effective integrated marketing communication.
True False

8. Combining a firm’s promotional tools and resources to create a positive brand image is the goal of integrated marketing communication.
True False

9. The promotional budget will clarify how much can be spent on advertising and personal selling. True False

10. The first step in creating a promotional campaign is to define the objectives for each element of the marketing mix.
True False

11. The last step in creating a promotional campaign is to evaluate the effectiveness of each element of the promotional mix.
True False

12. The development of a unified promotional strategy that uses each element of the promotion mix to create a favorable brand image is the goal of a primary promotional process.
True False

13. A firm’s promotion mix consists of its pricing and distribution strategies. True False

14. When developing the promotional campaign for a new product, the first step for a firm is to identify their target market.
True False

15. Marla has developed a new advertising message for one of her firm’s new products. She has sent copies of the ad to all of the salespeople in the firm and asked them to stress the benefits mentioned in the ad when they call on their customers. Finally, the ad includes a free sample coupon to encourage people to try this new product. She is attempting to create one positive, unified brand image for the new product. Marla is practicing brand communication.

True False

16. Phil’s activities as a salesperson for Marquette Publishing are part of Marquette’s promotion mix. True False

17. After adopting integrated marketing communication, Madison Furniture puts less emphasis on public relations, sales promotion, and personal selling, and concentrates on advertising designed to provide a uniform message to all markets.

True False

18. Depending upon the promotional campaign, advertising may include paid and nonpaid forms of nonpersonal communication.
True False

19. Trade advertising is advertising to consumers by manufacturers to encourage them to try their products.
True False

20. Institutional advertising creates an attractive image for an organization rather than for a product. True False

21. Advocacy advertising is advertising that supports a particular view of an issue such as gun control. True False

22. When a manufacturer advertises to wholesalers and retailers in an attempt to encourage them to carry its products, it is engaging in institutional advertising.
True False

23. The purpose of institutional advertising is to create an attractive image for an organization. True False

24. Advertising provides the public with free TV and radio programs. True False

25. Newspapers, radio, and directories are especially attractive to local advertisers. True False

26. Advertising helps to cover the production costs of newspapers and magazines. True False

27. The major complaint with advertising is that it provides no real benefits to the public. True False

28. Free TV and radio broadcasting is made possible by advertising. True False

29. Online advertising has become the number one medium and ranks ahead of newspapers and television, based on total advertising expenditures.
True False

30. Television and direct mail are the top two advertising media when ranked by total expenditures. True False

31. Online advertising is rapidly growing and now ranks third in terms of total advertising expenditures. True False

32. Direct mail, television, and newspapers are the top three advertising media when ranked by total expenditures.
True False

33. The number one advertising medium in terms of total dollar expenditures is newspapers. True False

34. Because TV advertising is so expensive, it is less popular than in the past, and it now ranks sixth in total advertising expenditures.
True False

35. Direct mail is usually the best advertising medium to reach specific target markets and ranks number two in overall advertising expenditures.
True False

36. Magazine advertising’s main strengths are high visibility, repeat exposures, and basically very low cost.
True False

37. One problem with newspaper advertisements is that they have a short life span. True False

38. Radio advertising has certain shortcomings but offers businesses an opportunity to reach a specific target market.
True False

39. A TV program made to look like a television show but devoted exclusively to promoting goods and services is called an infomercial.
True False

40. With the increase of digital advertising, infomercials are rarely shown on television. True False

41. When marketers advertise on a big online search engine like Bing or Google, they can reach the people they most want to reach.
True False

42. One of the benefits of advertising online is that it provides a way to link firms and customers so that they can learn more about each other.
True False

43. Interactive promotion allows customers and companies to work together to create mutually beneficial exchange relationships in an ongoing dialogue.
True False

44. Online advertising allows advertisers to see how many people have clicked on an advertisement and how much of it the potential customer has read or watched.
True False

45. The Internet has changed the emphasis of promotion from promoting to customers to working with customers.
True False

46. The Internet allows firms to listen to customers’ wants, track their purchases, provide them with better service, and give them more access to information.
True False

47. The purpose of interactive promotion is to create a monologue that convinces customers to act quickly.
True False

48. When it comes to reaching global markets, evidence supports the conclusion that the “one size fits all” approach to promotional mix design is best.
True False

49. Global advertising can save companies money in research and ad design. True False

50. The primary emphasis of advertising today is to move from a regional approach in global markets to a total globalist approach.
True False

51. When advertising in global markets it is important to remember that brand names and promotional campaigns can often be translated into a local language differently from what the marketer has attempted to say.

True False

52. Advertising reaches a national audience more effectively than it communicates with a local market. True False

53. Mailing ads to nearby residents helps grocery stores reach their target market with information about special sales. This represents direct mail advertising.
True False

54. Magazines such as People, Sports Illustrated, and Bloomberg Businessweek pay for much of the cost of producing their publications by selling advertising space in the magazines.
True False

55. Informing consumers about goods and services represents advertising’s only benefit to society. True False

56. The use of infomercials represents an effective use of advertising dollars. True False

57. It is important to design promotional efforts specifically for individual countries or cultures and also with great care, at risk of the brand’s not being appealing in the targeted market. For example, a Japanese company tried to use English words to name a popular drink and called it Pocari Sweat.

True False

58. According to the Making Ethical Decisions box, celebrities can earn thousands by tweeting their love for specific products and tag them #ad.
True False

59. As mentioned in the Reaching Beyond Our Borders box, though Kraft Foods knows that there are varying tastes around the world, they only sell their original Oreos worldwide.
True False

60. Green Space is an organization concerned about preserving forests and wilderness areas. They hope to raise the public’s awareness regarding this issue. Green Space can communicate their concern by utilizing advocacy advertising.

True False

61. Pat’s Pie Pantry generates significant “word of mouth” by delighting their customers with delicious pies. Word of mouth represents a kind of advertising.
True False

62. Businesses pay for product placement to have their products displayed in a TV episode of The Big Bang Theory or a feature movie.
True False

63. Personal selling involves the face-to-face presentation and promotion of products. True False

64. Persuading others to buy your product represents the only goal of effective selling. True False

65. Effective selling involves helping others to satisfy their wants and needs. True False

66. Since personal selling involves face-to-face contact with customers, salespeople make little if any use of technology in performing their jobs.
True False

67. Personal selling in the B2B market represents a relatively inexpensive method of promoting a firm’s products.
True False

68. The average cost of a single sales call to a potential B2B buyer is expensive, costing as much as $500.
True False

69. Personal selling involves more than presenting the product and closing the deal. Other activities include the search for new prospects and follow-up services after the sale.
True False

70. Closing the sale represents success for the salesperson and the final step in the selling process. True False

71. Validation refers to the process of determining whether a potential customer has the need for a product, the authority to buy, and the willingness to listen to a sales message.
True False

72. The first step in the selling process involves prospecting for potential customers and choosing those most likely to buy.
True False

73. The purpose of a trial close in the selling process is to learn as much as possible about customers and their wants and needs.
True False

74. The B2B selling process may take a long time before a deal is finalized; therefore, gathering information about the customer before you approach them is critical.
True False

75. B2C salespeople spend more time prospecting their customers than do B2B salespeople. True False

76. After-sale follow-up is an important but often neglected step in B2C sales. True False

77. The B2C selling process has fewer steps than the B2B selling process. True False

78. In evaluating personal selling it is safe to conclude that it represents a form of individualized advertising.
True False

79. The hallmark of an effective salesperson is the ability to make a sale as soon as the sales presentation is completed.
True False

80. Questions and objections from customers following a sales presentation indicate that a salesperson was poorly prepared for his/her presentation.
True False

81. To be successful, salespeople find that their job responsibilities extend far beyond just closing the sale.
True False

82. Effective salespeople push hard to finalize a sale as soon as they finish their presentation. Otherwise, the customer has time to come up with objections that will make the sale more difficult to close.
True False

83. Anita enjoys her job as a salesperson for a store that sells high-quality entertainment systems. As an effective salesperson, Anita is expected to help her customers resolve any doubts they might have before the sale, and follow up to ensure that the customer is satisfied after the sale.

True False

84. Bob is a salesperson for a firm that markets products in a B2B market. His wife, Sally, is a salesperson for a retail store selling top-quality electronics goods. While Bob is likely to be successful using follow-up after the sale, Sally should avoid this approach.

True False

85. After her sales presentation, Whitney asks her customers what color they prefer and if they would like to pay by credit card. She hopes that these questions will help the sales process move beyond the customer’s questions and objections. With limited time, Whitney is utilizing a trial close to help finalize the sale more quickly.

True False

86. As customers walk into Phat Pat’s clothing store, they are greeted by a salesperson who asks the question, “May I help you?” Studies indicate that this is an effective opening in the B2C sales process.

True False

87. As one of the tools included in a firm’s promotion mix, public relations is intended to earn public understanding and acceptance.
True False

88. Effective use of public relations includes an evaluation of public attitudes and the execution of a program to earn public acceptance.
True False

89. An effective public relations department regularly listens to and communicates with the public. True False

90. An effective public relations program informs the public that the firm is responsive to their needs. True False

91. To be effective and maintain its independence, the public relations department should avoid establishing close relationships with the media, community leaders, and other corporate stakeholders.
True False

92. Using effective public relations involves establishing a dialogue with customers so that information can be exchanged and trust can be developed.
True False