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Caroline 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. Caroline is practicing brand communication.

A) True
B) False

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Even though advances in mobile media present some interesting opportunities, marketers expect that traditional promotions such as television advertising will dominate promotional efforts over the long term.

A) True
B) False

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Despite its name, Choco Central is located in a small shopping center far from customers. However, the company enjoys outstanding business because satisfied customers share their enjoyable experiences at Choco Central with their friends and relatives. Choco Central apparently benefits from positive


A) trade advertising.
B) word of mouth.
C) sales promotion.
D) public relations.

E) C) and D)
F) A) and D)

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Newspapers, radio, and directories are usually attractive to local advertisers.

A) True
B) False

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

A) True
B) False

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Interactive promotion


A) attempts to create a dialogue between buyers and sellers.
B) transforms the approach from "working with" to "promoting to" customers.
C) fails to build long-term relationships with customers.
D) is an increasingly important element of the personal selling mix.

E) C) and D)
F) B) and D)

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

A) True
B) False

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Compared to advertising, publicity offers a firm greater control over when and how often the message is communicated.

A) True
B) False

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The approach step of the selling process attempts to


A) qualify potential customers who are willing and able to buy.
B) build credibility and establish rapport.
C) close the sale.
D) learn about potential customers and their wants and needs.

E) A) and B)
F) All of the above

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Coupons, contests, and sampling are examples of sales promotion activities.

A) True
B) False

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Which of the following statements is the most accurate?


A) Advertising helps pay for production costs of newspapers and magazines.
B) Word of mouth is the most effective form of advertising.
C) Advertising does not really provide information to consumers; it merely persuades consumers to buy advertised products.
D) Consumers don't remember good advertisements.

E) C) and D)
F) B) and C)

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Compared to other promotional tools, publicity


A) costs more.
B) offers the firm little control over the message.
C) prevents a response from competitive firms.
D) is the easiest to manage.

E) None of the above
F) All of the above

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Trade shows represent sales promotion programs designed to create product enthusiasm from distributors and dealers.

A) True
B) False

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Mobile technology allows marketers to promote products to consumers through smartphones using text alerts.

A) True
B) False

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

A) True
B) False

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

A) True
B) False

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

A) True
B) False

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When an organization uses advertising to create an attractive image for itself, this type of advertising is called


A) retail advertising.
B) trade advertising.
C) comparison advertising.
D) institutional advertising.

E) A) and C)
F) None of the above

Correct Answer

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

A) True
B) False

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A testimonial represents communication from a customer that praises a firm's products.

A) True
B) False

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