Marketing Public Relations Marketing Communications Mix

Marketing Public Relations Marketing Public Relations and the Marketing Communications Mix 1) Disney is known for getting people to talk about its products because the firm A) is the oldest mass media organization in the U.S. B) controls most media outlets either directly or indirectly. C) is a master at cross-promoting. D) uses only public relations and does not advertise. E) prefers to launch products without first performing market research. Answer: C 2) The success of Hannah Montana provides an excellent example of A) a single-tactic marketing campaign. B) pop culture adaptations of historical documents. C) a government-funded effort to promote tourism in the U.S. D) promotion embracing public relations and consumer-generated marketing. E) the ways public television is reaching out to adolescent girls. Answer: D 3) Which of the following best describes marketing? A) It typically only involves traditional transactions of goods, services, and money. B) It is an indirect and unmeasurable process used to sell goods and services. C) It relies increasingly on advertising through mass media. D) It is used exclusively by firms selling goods and services to consumer audiences. E) It encompasses efforts to change or maintain behavior relative to a product. Answer: E 4) According to Professor David Robinson of the University of California-Berkeley's Haas School of Business, MPR A) directly and measurably results in sales of goods and services. B) is a technique used to foster communication between a firm and its constituencies. C) demonstrates the persuasive power of advertising. D) is traditionally the basis for all exchange transactions. E) was first developed by a nineteenth-century, British economist. Answer: B 5) Word-of-mouth and media mentions A) are integral to paid, promotional efforts. B) are unintended effects of MPR. C) ideally generate positive perceptions of a firm and its brands. D) further blur the line between goods and services. E) are examples of the synergy between broadcasting and advertising. Answer: C 6) Nineteenth-century economist William Stanley Jevon provided an explanation for A) the act of exchange. B) public relations tactics. C) how physics works. D) organizational complexity. E) the value of advertising. Answer: A 7) MPR is best described as A) a marketing measurement system. B) an element in the marketing communications mix. C) synonymous with traditional public relations. D) often directly responsible for sales of goods and services. E) the theoretical basis of all marketing efforts. Answer: B 8) The purpose of the promotional mix is to A) inform, persuade, and remind consumers about products. B) help manufacturers design product packaging. C) provide pricing information to sales outlets. D) permit marketers to establish channels of distribution. E) allow advertisers to bypass product research and development. Answer: A 9) Advertising, sales promotion, personal selling, direct marketing, and public relations are A) elements in the price matrix. B) marketing communication activities. C) essential to product distribution logistics. D) initial stages in the product development process. E) all dependent on mass media. Answer: B -17 10) According to Armstrong and Kotler, the five elements of integrated marketing communication are A) product, place, price, promotion and position. B) word-of-mouth, media mentions, consumer-generated marketing, public relations and advertising. C) advertising, sales promotion, personal selling, direct marketing and public relations. D) goods, services, exchange, transactions and money. E) ideas, information, brand preferences, status and group acceptance. Answer: C -17 11) Advertising is A) identical to public relations. B) a non-marketing tool in the promotional mix. C) used specifically to promote goods, but not services. D) a paid form of nonpersonal promotion by a sponsor. E) a form of direct-response marketing. Answer: D 12) Which of the following best describes sales promotion? A) building good relations with a firm's various publics by obtaining positive publicity B) targeting individual consumers in an attempt to gain immediate responses C) using direct mail and e-mail to communicate with specific customers D) using a marketer's sales force to deliver personal presentations E) encouraging the purchase or sale of products through short-term incentives Answer: E Page Ref: 17 13) The purpose of personal selling is to A) provide short-term incentives to encourage the purchase or sale of goods and services. B) help a firm to make sales and build customer relationships. C) cultivate long-term customer relationships by employing direct-response techniques. D) obtain favorable publicity in order to build relationships with a firm's publics. E) reach large audiences efficiently through the mass media. Answer: B Page Ref: 17 14) Direct marketing A) is used most often to head off unfavorable rumors, stories, and events. B) spreads information by word-of-mouth from person to person. C) communicates directly with carefully targeted individual consumers. D) relies on a sales force with good presentation skills. E) places greater emphasis on public relations tactics. Answer: C Page Ref: 17 15) Public relations builds good relations with a firm's publics by A) offering consumers sales incentives to buy products. B) creating advertising messages on behalf of sponsors. C) researching and developing products consumers really want. D) communicating only when unfavorable news surfaces. E) obtaining favorable publicity and developing a positive corporate image. Answer: E Page Ref: 17 16) Traditionally, advertising and public relations were A) exactly the same. B) employed only in sports marketing. C) not part of the promotional mix. D) both delivered through mass media. E) used solely by businesses selling to other businesses. Answer: D Page Ref: 18 17) Word-of-mouth and consumer-generated marketing A) have blurred the line between advertising and public relations. B) are both paid forms of promotion. C) provide limited visibility for most organizations. D) work best using traditional broadcast outlets. E) are effective only in connection with major events, like the Super Bowl. Answer: A Page Ref: 18 18) Coupons, point-of-purchase displays, and special distribution deals are tools used in A) sales promotion. B) word-of-mouth marketing. C) consumer advertising. D) public relations tactics. E) product development. Answer: A Page Ref: 18 19) Event marketing, special offers, and publicity stunts are examples of A) mass-media advertising messages. B) the overlap between MPR and sales promotion. C) face-to-face personal selling tools. D) the introduction of direct sales into consumer marketing. E) differentiated marketing strategies. Answer: B Page Ref: 18 20) In what way did MPR enhance Wal-Mart's sales promotion of prescription medications? A) Using MPR allowed Wal-Mart to halt all of its television advertising. B) Wal-Mart averted a public image crisis over high pharmaceutical prices. C) Doctors could once again prescribe generic drugs instead of brand-names. D) MPR and sales promotion together proved more valuable than sales promotion alone. E) Wal-Mart became the number one online dispenser of prescription medications. Answer: D Page Ref: 18 21) Media mentions and word-of-mouth A) have generally replaced advertising as the major means of product promotion. B) allow direct marketers to better target specific demographic groups. C) generally only work well in geographic areas underserved by online service providers. D) require a company's sales force to spend more time making cold calls. E) are nonthreatening means by which consumers become aware of their need for products. Answer: E 22) In what way does MPR enhance personal selling? A) MPR increases the emphasis on targeted advertising in the mass media. B) MPR bridges the gap between the seller and the buyer's need for a good or service. C) Corporate sales forces are now composed mainly of former public relations practitioners. D) Personal selling is not part of the promotional mix, so MPR provides the marketing tools. E) MPR experts accompany sales people as they call on prospects. Answer: B 23) What is the effect of MPR on both personal selling and direct marketing? A) MPR invests heavily in national broadcast advertising. B) MPR creates an excessive amount of unsolicited e-mail messages. C) MPR emphasizes short-term relationships with consumers. D) MPR generates awareness and fosters consumer need. E) MPR involves aggressive sales techniques. Answer: D 24) Office Max's "Elf Yourself" campaign is an example of A) a successful in-store coupon program. B) a traditional advertising strategy. C) an unsuccessful MPR effort. D) a personal selling tactic. E) viral marketing. Answer: E 25) In most cases, MPR starts off a marketing campaign and then A) provides long-term support for other elements of the marketing communication mix. B) leaves remaining details to other elements of the marketing communication mix. C) eliminates the need for including any other elements of the marketing communication mix. D) quickly transforms into a conventional mass media advertising effort. E) becomes the most expensive element of the marketing communication mix to maintain. Answer: A 26) A primary goal of a marketing effort is to A) withhold the supply of a product in order to overstimulate demand and boost prices. B) defend a firm's product lines against consumer activism. C) differentiate a product from its competition in the minds of consumers. D) train salespeople in ways to appear more credible. E) launch products without conducting research and development. Answer: C 27) Some research suggests that advertising and MPR A) are incompatible marketing techniques. B) both require enormous financial investment to be successful. C) help increase short-term sales but remain ineffective in the long-run. D) stimulate growth in newspaper readership. E) are equally effective techniques for building product awareness. Answer: E 28) Advertising and MPR efforts tend to work equally well, therefore A) firms can choose one or the other, since they cost the same. B) organizations have a financial incentive to shift resources from advertising into MPR. C) companies can safely abandon other elements in the marketing communication mix. D) their effects will cancel each other out if used simultaneously. E) exposure levels are exactly the same among all media outlets. Answer: B 29) Positioning can be interpreted as A) the location in a store where customers can find a product. B) whether a promotional message is political or not. C) where an advertiser is on the waiting list to have its commercials aired. D) consumer perceptions of a product relative to the market. E) the body language salespeople use in personal selling. Answer: D Page Ref: 23 30) A good positioning statement should help marketers A) find the best distribution channels for their products. B) conduct effective interviews of new sales personnel. C) understand what consumers think and will learn about their products. D) determine which department public relations reports to in an organization. E) avoid using promotion to sell their products. Answer: C Page Ref: 24 31) The classical model refers to A) the way automotive companies position their vehicles. B) the procedure advertising agencies use to select media outlets. C) public relations guidelines first developed by Edward Bernays. D) pre-electronic communications theory developed in the 18th century. E) the communication process most promotional tools employ. Answer: E Page Ref: 25 LO: 4 32) In MPR, marketers refer to the media and groups who influence others as A) positioners B) advertisers C) publicists D) connectors E) ultimate audiences Answer: D Page Ref: 25 LO: 5 33) Gatekeeping mostly involves which of the following? A) keeping public relations and advertising efforts separate from each other B) making decisions over the presentation, content, and exposure of a message C) making sure that no noise interferes with the sending of a message D) segmenting audiences according to the likelihood they will be persuaded by a message E) finding sufficient media outlets that will disseminate a promotional message Answer: B LO: 5 34) The medium through which a consumer receives a message gives the message its context. As a result, A) the content of the message is largely unimportant. B) advertising messages are far more effective than public relations messages. C) the meaning varies depending upon the channel through which the message is delivered. D) consumers rarely take price into account during product purchase decisions. E) the media are not a reliable source of news and information. Answer: C LO: 5 35) Which of the following stated, "The medium is the message"? A) Al Reis B) Mitchell Friedman C) William Stanley Jevon D) Marshall McLuhan E) Rupert Murdoch Answer: D LO: 5 36) Which of the following terms refers to the intended receivers of a promotional message? A) audience B) connectors C) media D) marketers E) messengers Answer: A 37) What are the two audiences of an MPR campaigns? A) ordinary consumers and businesses B) public sector and private sector C) internal and external stakeholders D) advertising creatives and sales people E) intended receivers and connectors Answer: E 38) A major challenge in MPR is A) knowing precisely how much advertising to purchase for a promotional campaign. B) managing relationships with connectors in an effort to reach intended audiences. C) understanding when a marketer's message is inappropriate for consumer audiences. D) finding practitioners adequately trained in assembling online campaigns. E) building relationships with product resellers. Answer: B 39) Which of the following is most likely to occur when connectors feel that the messages provided by marketing professionals are important? A) Connectors refuse to share such messages publicly without extensive verification. B) Marketers invest in radio and television-based advertising campaigns. C) Marketers obtain positive media mentions and word-of-mouth. D) Marketers test the message impact on small, sample groups. E) Connectors fail to communicate with marketers in the future. Answer: C 40) The more an organization knows about a media outlet, the A) more successful the organization will be in receiving coverage by that outlet. B) more likely the organization will purchase advertising time through that outlet. C) less the organization will have to rely on its public relations staff. D) less effective the organization will be in cultivating the outlet as a connector. E) more likely the outlet will ignore communications issuing from the organization. Answer: A LO: 4 41) MPR activities do not directly result in the sale of a good. Answer: TRUE 42) The notion of exchange includes the adoption or modification of ideas, changes in behavior, and spreading of information. Answer: TRUE 43) Integrated marketing communications (IMC) generally includes public relations but not advertising, sales promotion, personal selling, and direct marketing activities. Answer: FALSE 44) Public relations deals with building corporate image and positive relations with an organization's publics. Answer: TRUE Page Ref: 17 45) Traditionally, public relations and advertising were differentiated by the fact that organizations paid for public relations but not for advertising. Answer: FALSE Page Ref: 18 46) The buzz generated by television commercials aired during the Super Bowl shows how the lines between advertising and MPR can become blurred. Answer: TRUE Page Ref: 18 47) The combination of sales promotion and MPR is far less valuable to an organization than either technique used alone. Answer: FALSE 48) Media mentions and word-of-mouth are non-threatening means for consumers to gain awareness of products and to recognize their need for them. Answer: TRUE 49) Direct marketing and personal selling interface with MPR in similar manners. Answer: TRUE 50) MPR is often the last element of the marketing mix to be used in a marketing campaign. Answer: FALSE 51) MPR typically is the unexpected and unintentional effect of public relations on the rest of the marketing mix. Answer: FALSE 52) Viral marketing is a phenomenon that facilitates and encourages the spread of a marketing message. Answer: TRUE 53) Organizations most often use MPR alone, rarely incorporating it with other elements of the marketing communication mix. Answer: FALSE 54) Positioning refers to consumers' perceptions about a product relative to competing products. Answer: TRUE 55) MPR, unlike advertising, is designed to maximize exposure by reaching out to multiple media outlets, consumer groups, and experts who can connect with the target consumer in a variety of ways. Answer: TRUE Page Ref: 23, 24 56) A positioning statement generally does not concern itself with either what consumers think about a product or how consumers will learn about the product. Answer: FALSE Page Ref: 24 57) The activities that are conducted within the promotions segment of the marketing mix are types of communication. Answer: TRUE Page Ref: 25 LO: 4 58) One means to reduce uncertainty in business communication is to increase the number of competing messages in the environment. Answer: FALSE Page Ref: 25 LO: 4 59) The media, groups and individuals that influence others in the MPR process are known as connectors. Answer: TRUE LO: 5 60) The intended receivers of a promotional message are commonly known as the outlet. Answer: FALSE 61) What online danger does intense fan interest in the Hannah Montana brand pose for Disney? Answer: Fans have spawned numerous fan sites and blogs. The buzz created by these unofficial sites comes about from non-Disney sources manipulating the image surrounding the product. However, this danger is outweighed by the ways these sites tend to advance the brand and link to sites where fans can buy Hannah Montana products. 62) What are two typical ways MPR techniques foster communication between a firm and its publics? Answer: MPR promotes communication between a firm and its constituents by cultivating word-of-mouth efforts and increasing media mentions, which, ideally, generate positive perceptions of the firm and its products. Word-of-mouth refers to information consumers spread intentionally about a brand. Media mentions are references to products usually communicated through the mass media. 63) Briefly describe the concept of integrated marketing communications (IMC). Answer: The objective of the marketing communication mix is to inform, persuade, and remind consumers about products. It typically includes advertising activities, sales promotion efforts, personal selling, direct marketing and public relations campaigns. When organizations employ these tools in combination in order to achieve their marketing goals, they are said to be utilizing the five elements of integrated marketing communications (IMC). ,17 64) Explain why Wal-Mart's prescription medication promotion is an example of the intersection between MPR and sales promotion. Answer: Certain types of event marketing, special offers, and publicity stunts are examples of the overlap between sales promotion and MPR. In 2006 and 2007, Wal-Mart introduced a sales promotion of prescription medication, increasing consumer's positive perception of the organization and the pharmacies' sales volume substantially. The special offer also generated considerable news about Wal-Mart's initiative, which in turn spawned significant word-of-mouth about the sales promotion. 65) Explain how MPR is able to bridge the gap between a seller and prospective buyer. Answer: Conventional sales management emphasizes earning the personal trust of the buyer, identifying the buyer's needs, and offering solutions that help the buyer make a purchase decision. Consumers tend to resist efforts to gain their trust and learn their needs. MPR supports personal selling activities by initiating a relationship with consumers that sales people can continue. Media mentions and word-of-mouth are non-threatening means firms can use to raise consumers' awareness of their products and illustrate the ways these products can meet consumer needs. 66) What is positioning? How does positioning affect all MPR efforts? Answer: Positioning refers to consumers' perceptions of a product relative to its competitors. Positioning has a significant effect upon MPR and the manner MPR efforts interact with other elements of the marketing communication mix. A product's position, for example, can influence the choice of media outlets for public relations and advertising campaigns, the targeting of groups and individuals for word-of-mouth communications, the selection of celebrity endorsers for particular promotions, a campaign's communication style, and the types of promotional events surrounding the product. 67) What is a positioning statement? What information should be included in a positioning statement? Answer: A positioning statement outlines the way marketers wish consumers to perceive their products relative to competitors' products. Successful marketing plans generally include a positioning statement. The statement identifies potential consumers of a product and the various ways they may be influenced by the product. A useful positioning statement should be able to answer such questions as (1) what do consumers think of the product; and (2) how will consumers learn about the product? A workable positioning statement should run between four and six sentences and serve as a planning tool for a marketing campaign. 68) What is the role of noise in the communication process? How is noise relevant to marketing? Answer: Noise is anything that might interfere with the transmission of a message from a sender to a receiver. Noise can also interfere with the receiver's comprehension of the message. In business communication, there are thousands of competing messages, which, by themselves, generate considerable noise. This noise creates uncertainty as to whether a message has reached and been understood by its intended receiver. 69) In what ways do connectors affect the context of a MPR messages? Answer: In the MPR process, messages are filtered through connectors - media, groups and individuals who influence others. These connectors will often alter a message when putting it in the context of their specific medium and sometimes offer their opinion of the message. The medium through which a consumer receives a message lends that message its context. The meaning of the message will change depending on the channel through which it is delivered. Therefore, marketers need to be selective of the connectors they rely on to disseminate a message. 70) Why do marketers refer to two audiences within the MPR process? Answer: Audiences are the intended receivers of a promotional message. However, in MPR the ultimate audience - the intended receivers - are differentiated from the connectors - media, groups and individuals who communicate with the intended receivers. The challenge in MPR is to manage the relationship with the connectors in order to reach the ultimate audience and maintain relationships with its members. 71) Explain in detail why Disney's promotion of Hannah Montana is an excellent example of an organization embracing public relations and consumer-generated marketing. Answer: Disney has long been known for its marketing mastery based on high-quality products coupled with assertive cross-promotions. The Hannah Montana brand is a case-in-point. Getting its start as a strong product, the brand achieved its blockbuster status through the skillful implementation of marketing public relations (MPR). Disney had already demonstrated its ability to reach pre-teen and teen audiences. In the case of Hannah Montana, the firm relied on the convergence of Web and the television show to draw fans into the Hannah Montana reality. Disney used televised promotion of the show's Web site, online video clips, photos, downloads and information on the stars of the show to develop interest in the brand. Fans could also e-mail the show and possibly see their message in a screen-crawl during airing of the show. All of this orchestrated activity had an unintended benefit - fans began to create their own blogs and unofficial Web sites, which further spurred interest in Hannah Montana products. Disney was also able to earn the trust of parents through coverage of Hannah Montana in consumer and business publications. 72) Describe how anticipation for the commercials aired during the Super Bowl demonstrates the blend of advertising and MPR. Answer: A popular example of the synergy between advertising and MPR can be found in the frenzy of publicity that precedes the airing of commercials during broadcast of the Super Bowl. Both the media and consuming public generate considerable buzz over the Super Bowl's sponsors in the weeks leading up to broadcast of the game. Much conversation centers on the exorbitant cost of a thirty-second spot, who the advertisers will be, and rumors surrounding specific commercials. Post-game analysis also includes review and criticism of the commercials by national and local newspapers, trade publications, Web sites and blogs. There is even an interactive Web site housing a partial archive of past Super Bowl advertising. From a commercial perspective, advertisers are quite willing to part with upwards of $2 million for 30 seconds of visibility because of the millions of potential viewers tuning into the game and all the post-game publicity surrounding their commercials. Without the MPR component, the impact and value of the spots would be greatly curtailed - advertisers would not experience the long-lasting effects of the collaboration between marketers, media and consumers. 73) According to Armstrong and Kotler, what are the five elements of integrated marketing communication? How do organizations employ these elements to achieve their marketing goals? Answer: Organizations that use the tools of the promotional mix in combination with each other in order to inform, persuade and remind consumers about products are said to be utilizing integrated marketing communication or IMC. IMC, according to Armstrong and Kotler, comprises five elements: (1) advertising, which is any paid form of nonpersonal promotion of ideas, goods or services by an identified sponsor; (2) sales promotion or the use of short term incentives to encourage the purchase of sale of a good or service; (3) personal selling, whose purpose is to make sales and build customer relationships through personal presentations by members of a firm's sales force; (4) direct marketing, which is the utilization of such techniques as direct mail, telephone, direct-response television, the Internet and other tools to communicate directly with carefully selected target groups of consumers in order to obtain an immediate response and foster enduring customer relationships; and (5) public relations, which cultivates and maintains good relationships with a firm's various publics by generating positive publicity, enhancing corporate image, and managing crises and unfavorable communication about the organization. 74) Describe how viral marketing works and discuss its relationship to MPR. Answer: Viral marketing is a marketing phenomenon that facilitates and encourages people to pass along a marketing message. This type of marketing is called "viral" because the way consumers are exposed to the message metaphorically resembles the passing of a disease from one person to another. Traditionally, direct marketing has included direct mail, direct response television and radio commercials, infomercials and catalogs. In the early days of online communication, direct marketing has relied on the use of e-mail messages. However, consumers are generally reluctant to open and read unsolicited e-mail communication received over the Internet. Moreover, recent anti-spam legislation and consumer fatigue have rendered the online environment more difficult for direct marketing efforts. As a result, marketers have been looking at other methods to leverage the benefits of e-mail, such as MPR. MPR campaigns generally increase consumer awareness of products through word-of-mouth and media mentions, leading to a more receptive audience for direct marketing messages. MPR generates awareness and fosters needs in the minds of consumers, while direct marketing messages are intended to complete the product sale. 75) What are connectors and what is their role in the MPR process? Answer: Connectors are media, groups or individuals who act as a channel for a marketing message resulting in media mentions or the creation of word-of-mouth. The means of making contact with a connector depends on the goal of the MPR effort, which in turn has a bearing on the type of connectors used in a campaign. Once connectors receive a promotional message, they control the communication from that point. Media outlets, influential groups and individuals can choose either to ignore the message or convey it via the mass media in the form of media mentions or personally in the form of word-of-mouth. Connectors also determine the degree of exposure they will devote to a message, the way they will present the message and the timing of their communication. Connectors often repackage these messages and present them in ways that suit their own needs and their understanding of what their audiences need. Media theorists call this process gatekeeping. Consumers and business customers - the ultimate audience - then assimilate these packaged messages and act on them, either by exhibiting some sort of purchasing behavior or a change in attitude. Consumers tend to trust the filtered messages more than such conventional promotional communication as advertising and direct selling.