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Exam 16: Using Effective Promotions

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Question 71

Multiple Choice

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Which of the following is a consumer sales promotion activity?

A) Contests
B) Advertising
C) Vending sales
D) Direct mail

E) B) and C)
F) A) and B)

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Question 72

Multiple Choice

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The total annual expenditures on advertising in the United States:

A) peaked last year at approximately $70 billion.
B) have declined significantly as firms utilize the promotional opportunities of the Internet.
C) is about $215 billion.
D) have been capped at $200 billion by the government stimulus package.

E) A) and B)
F) A) and C)

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Question 73

True/False

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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.

In the seven-step B2B selling process, the selection of potential customers is known as:

Sales promotion involves the long-term strategies firms use to enhance their image by listening to the public.

In evaluating the promotion mix, it's fair to say that large organizations are best reached through personal selling.

A review of the personal selling process indicates that selling is:

Sales promotion programs can be used as a means to generate employee enthusiasm.

Effective sales promotion efforts focus exclusively on external audiences such as dealers and consumers, since they ultimately decide the fate of a product.

Mini-Case The Xer-Wise Corporation manufactures and markets high quality home exercise equipment. The firm has just developed a new piece of equipment that top executives believe will be a big seller if promoted correctly. The new product uses a system of adjustable weights that can be arranged in various ways to allow the user to perform exercises that tone all major muscle groups. Additionally, unlike other strength building machines, this equipment also incorporates a recumbent bicycle to provide a complete cardio workout. The entire piece of equipment is easy to assemble, and when not in use it can be folded into a compact unit that is easy to store. A group of fitness experts have tested the equipment and have provided rave reviews. Company executives believe that this product, called the MuscleMaster, will appeal to busy young adults living in relatively small apartments. Melody Fitt and Tom Trym have been assigned the responsibility of developing a promotion mix for this product. The team of Fitt and Trym is convinced that they can develop a successful promotion mix for this outstanding product. -Tom and Melody have decided to work together to write a news release that describes the benefits of MuscleMaster and cites the rave reviews of the fitness experts who have already tried the equipment. They intend to send the release to a list of columnists who write in fitness magazines or have health and fitness columns in newspapers, hoping that some of these writers will include information about the MuscleMaster in their articles. Tom and Melody hope to utilize:

One way to see that publicity is handled well by the media is to:

Advertising the newest Hunger Games movie during Saturday Night Live on TV is an example of a pull strategy being used by the film's producers.

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.

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

Miss Kitty's Chocolate Corral is located in an out-of-the-way small shopping center. However, the company enjoys outstanding business because satisfied customers share their delightful experiences at Miss Kitty's with their friends and relatives. Miss Kitty's apparently benefits from positive:

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.

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.

A promotional campaign begins by:

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

Future promotional efforts will likely be: