Chapter 14

Question 1

The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.

Answer 1

Promotion mix (marketing communications mix)

Question 2

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Answer 2

advertising

Question 3

Short-term incentives to encourage the purchase or sale of a product or a service.

Answer 3

sales promotion

Question 4

Personal presentation by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships.

Answer 4

personal selling

Question 5

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, and events.

Answer 5

public relations

Question 6

Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.

Answer 6

Direct and digital marketing

Question 7

Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels.

Answer 7

content markeing

Question 8

Carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

Answer 8

Integrated marketing communications (IMC)

Question 9

The stages consumers normally pass through on their way to a purchase: awareness, knowledge, liking, preference, conviction, and, finally, the actual purchase.

Answer 9

Buyer-readiness stages

Question 10

Channels through which two or more people communicate directly with each other, including face-to-face, on the phone, via mail or email, or even through an internet “chat.”

Answer 10

Personal communication channels

Question 11

The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior.

Answer 11

Word-of-mouth influence

Question 12

Cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities.

Answer 12

buzz marketing

Question 13

Media that carry messages without personal contact or feedback, including major media, atmospheres, and events.

Answer 13

Nonpersonal communication channels

Question 14

Setting the promotion budget at the level management thinks the company can afford.

Answer 14

Affordable method

Question 15

Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.

Answer 15

Percentage-of-sales method

Question 16

Setting the promotion budget to match competitors’ outlays.

Answer 16

Competitive-parity method

Question 17

Developing the promotion budget
by (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.

Answer 17

Objective-and-task method

Question 18

A promotion strategy that calls for using the sales force and trade promotion to push the product through channels.
The producer promotes the product to channel members who in turn promote it to final consumers.

Answer 18

Push strategy

Question 19

A promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that “pulls” the product through the channel.

Answer 19

pull strategy