chapter 8

Question 1

Advertising

Answer 1

Nonpersonal promotional communication about goods, services, or ideas that is paid for by the firm identified in the communication.

Question 2

Advertising campaign

Answer 2

A collection of coordinated advertisements that share a single theme.

Question 3

Affordable Method

Answer 3

A promotion mix budgeting strategy in which firms set their promotion budget based on what they believe they can afford.

Question 4

Aided recall tests

Answer 4

A performance metric in which respondents are asked to recall advertisements based on clues they receive to help stimulate their memory.

Question 5

Allowances

Answer 5

Trade promotions that typically involve paying retailers for financial losses associated with consumer sales promotions or reimbursing a retailer for an in-store or local expense to promote a specific product.

Question 6

Approach

Answer 6

A part of the personal-selling process that involves meeting the prospect and learning more about his or her needs and wants.

Question 7

Click-through Rate (CTR)

Answer 7

A ratio showing how often people who see an ad end up clicking on it.

Question 8

Contests

Answer 8

Sales promotions in which consumers compete against one another and must demonstrate skill to win

Question 9

Coupons

Answer 9

Documents that entitle the customers who carry them to a discount on a product

Question 10

Direct Marketing

Answer 10

Advertising that communicates directly with consumers and organizations in an effort to provoke a response

Question 11

Frequency

Answer 11

A measure of how often the target market has been exposed to a promotional message during a specific time period

Question 12

Informative advertising

Answer 12

a type of advertising that attempts to develop initial demand for a product

Question 13

Integrated marketing communications (IMC)

Answer 13

a promotional strategy that involves coordinating the various promotion mix elements to provide customer with a clear and consistent message about a firm’s products

Question 14

Loyalty programs

Answer 14

sales promotions that allow consumers to accumulate points or other benefits for doing business with the same company

Question 15

mobile advertising

Answer 15

a form of advertising that is communicated to the consumer via a handheld device

Question 16

narrowcasting

Answer 16

the dissemination of information to a fairly small, select audience that is defined by its shared values, preferences, or demographic attributes

Question 17

objections

Answer 17

the concerns or reasons customers offer for not buying a product

Question 18

objective-and-task method

Answer 18

a promotion mix budgeting strategy in which a firm defines specific objectives, determines the tasks required to achieve those objectives, and then estimates how much each task will cost

Question 19

percentage-of-sales method

Answer 19

a promotion mix budgeting strategy which firms allocate a specific percentage of a period’s total sales to the promotional budget for that period

Question 20

Personal selling

Answer 20

The two-way flow of communication between a salesperson and a customer that is paid for by the firm and seeks to influence the customer’s purchase decision.

Question 21

Persuasive advertising

Answer 21

A type of advertising that attempts to increase demand for an existing product.

Question 22

Posttest

Answer 22

An evaluation of advertisements after the ad campaign is launched by a sample of targeted consumers.

Question 23

Preapproach

Answer 23

A part of the personal-selling process that involves identifying key decision makers, reviewing account histories, identifying product needs, and preparing sales presentations.

Question 24

Premium

Answer 24

A promotional item that is given as an incentive for performing a particular act, typically buying a product.

Question 25

Pretest

Answer 25

An evaluation of advertisements by a sample of targeted consumers before an ad campaign begins.

Question 26

Product placement

Answer 26

An advertising technique in which a company promotes its products through appearances on television shows, movies, or other media.

Question 27

Promotion

Answer 27

All the activities that communicate the value of a product and persuade customers to buy it.

Question 28

Promotion mix

Answer 28

A subset of the marketing mix that includes four main elements of marketing communication: advertising, sales promotion, personal selling, and public relations.

Question 29

Prospecting

Answer 29

The search for potential customers – those who need or want a product and fit into a firm’s target market.

Question 30

Publicity

Answer 30

Disseminating unpaid news items through some form of media (e.g., television story, newspaper article, etc.) to gain attention or support.

Question 31

Public relations

Answer 31

No personal communication focused on promoting positive relations between a firm and its stakeholders.

Question 32

Qualifying

Answer 32

A part of the personal-selling process that involves identifying which potential customers within the firm’s target market have not only a desire for the product but also the authority to purchase it and the resources to pay for it.

Question 33

Reach

Answer 33

A measure of the percentage of the target market that has been exposed to a promotional message at least once during a specific time period.

Question 34

Rebates

Answer 34

Sales promotions that allow consumers to recoup a specified amount of money after making a single purchase.

Question 35

Relationship selling

Answer 35

Building a trusting relationship with a customer over a long period of time.

Question 36

Recognition test

Answer 36

A performance metric that involves showing consumers an advertisement and asking if they recognize it.

Question 37

Reminder advertising

Answer 37

A type of advertising that seeks to keep the product before the public in an effort to reinforce previous promotional activity.

Question 38

Revenue per ad dollar

Answer 38

A performance metric that is calculated by comparing total revenue to the amount of money spent on advertising.

Question 39

Sales presentation

Answer 39

A forum to convey the organization’s marketing message to the prospect.

Question 40

Sales promotion

Answer 40

A set of nonpersonal communication tools designed to stimulate quicker and more frequent purchases of a product.

Question 41

Sweepstakes

Answer 41

Sales promotions based on chance such that entry is the only requirement to win.

Question 42

Trade sales promotions

Answer 42

Sales promotions directed to B2B firms, including wholesalers, retailers, and distributors – rather than individual consumers.

Question 43

Unaided recall tests

Answer 43

A performance metric that requires consumers to recall advertisements from memory, without any clues.