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Exam 16: Using Effective Promotions

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Question 71

Multiple Choice

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The primary purpose of a pull strategy is to:

A) offer rebates and discounts to retailers and wholesalers.
B) stimulate consumers to ask for a product,which then encourages retailers to stock it.
C) pull the distribution network together to minimize costs and maximize profits.
D) stimulate retailers to stock each product offered by a particular manufacturer.

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Question 72

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Sales promotion efforts such as trade shows aimed at distributors and dealers are intended to generate their enthusiasm for a firm's products.

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Question 73

Multiple Choice

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The effectiveness of magazine advertising is reduced by its:

Firms with a very limited advertising budget would be very unlikely to use ________ advertising.

________ advertising supports a particular view or position on an issue.

Advertising on the Internet has become the number one medium and ranks ahead of newspapers and network television,based on total advertising expenditures.

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

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:

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 aerobic 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:

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

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

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 aerobic 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. -Xer-Wise markets and promotes its products to consumers over the Internet.Melody and Tom are considering a more aggressive approach to generate enthusiasm for the MuscleMaster over the Internet.They have discussed offering young adults free T-shirts and special discounts on Xer-Wise equipment if they will agree to hype the benefits of the MuscleMaster in Internet chat rooms.They are even considering setting up a program in which customers get commissions for directing friends to the Xer-Wise website.If they adopt these strategies,Tom and Melody would be utilizing:

Consumer research indicates that the public is very concerned about underage drinking.In response,Texas Brewing Company has created a website providing parents with information to help avoid underage drinking in their families.The firm also provides materials to retailers to help train their employees to avoid sales to minors.Publicizing these efforts:

Television (broadcast and cable)and direct mail are the top two advertising media when ranked by total expenditures.

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

Nordic Track utilizes newspaper and TV ads designed to motivate potential buyers to seek out their product.This represents a push promotional strategy.

The Maryland Department of Travel and Tourism promotes tourism in the state by sending travel agents and bus tour companies information about the state's many attractions.The hope is that by stimulating interest in tour and travel agents,they will in turn encourage their customers to visit Maryland.This example represents a ________ promotional strategy.

Magazines such as People,Sports Illustrated,and Business Week pay for much of the cost of producing their publications by selling advertising space in the magazines.

__________ refers to any information about a product or an organization that is communicated to the public through the media and is not paid for or controlled by the sponsor.

Podcasting enables independent producers to create self-published,syndicated "radio shows."