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Exam 16: Using Effective Promotions

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Question 101

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Public relations departments work closely with media, avoiding the time consuming effort of interacting with individual customers.

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Question 102

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Effective use of public relations includes an evaluation of public attitudes and the execution of a program to earn public acceptance.

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Question 103

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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:

Marla 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. Marla is practicing brand communication.

A firm's promotion mix refers to the combination of different promotional tools used to persuade consumers to participate in an exchange.

Sampling represents a quick and effective way to demonstrate a product's superiority at the time when consumers are making a purchase decision.

A is an endorsement from a customer praising a firm's product.

Mailing ads to nearby residents helps grocery stores reach their target market with information of special sales. This represents direct mail advertising.

Which of the following helps explain the popularity of infomercials?

The popularity of the Internet has severely reduced the importance and effectiveness of word-of-mouth promotion.

Gardening.com is an online retailer of garden products. By allowing communication between gardeners and experts via its website, Gardening.com is using:

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

After prospects have been identified and qualified, the next step in the selling process is . This step requires the salesperson to learn as much as possible about the potential customers' wants and needs.

Combining a firm's promotional tools and resources to create a positive brand image is the goal of integrated marketing communication.

The effectiveness of direct mail advertising suffers from:

CarGo uses its Web page to target car parts stores and car owners and tell them of the benefits of using their long lasting spark plugs. CarGo apparently uses the Internet:

Using effective public relations involves establishing a dialogue with customers so that information can be exchanged and trust can be developed.

Sampling, coupons, discounts and other sales promotion efforts are promotional tools used to motivate people to buy now rather than later.

The traditional promotion mix for a firm consists of the:

The final step of the selling process involves: