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Exam 11: Product and Promotion: Creating and Communicating Value

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Question 51

Multiple Choice

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Which of the following stimulates immediate sales activity through specific short-term programs aimed at either consumers or distributors?

A) public relations
B) sales promotion
C) trade shows
D) publicity

E) A) and C)
F) All of the above

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Question 52

True/False

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Convenience products are goods or services that reduce the work consumers must do and make their life more convenient. Examples include household cleaning services and lawn-care services.

A) True
B) False

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Question 53

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Promotion is communication designed to influence consumer purchase decisions.

When marketers in the clothing business create private brands, what are they attempting to do?

Products fall into two broad categories: consumer products and business products.

Healthmode, a personal health care company, has just developed a new type of skin lotion that it claims is much more effective than competing brands at healing dry skin. One way it could improve the rate of diffusion of this new product is to allow consumers to try out small samples.

A product can increase its sales at the expense of competitors only once it enters which stage of the product life cycle?

As it becomes more difficult for consumers to grasp what a product does and how it works, which of the following becomes slower?

One reason so many firms favour funny ads is that using humorous messages involves very little risk.

Changing the marketing mix or finding new uses for the product can often extend the period of time a product remains in the profitable stages of the product life cycle.

Which aspect of a service means that it can't be stored?

Copy machines, fax machines, and printers would be classified as maintenance, repair, and operating products.

Advertising is paid, nonpersonal communication designed to influence a target audience with regard to a product, service, organization, or idea.

The best promotion creates a bond with consumers that encourages future purchases.

A positioning statement is the non-paid message found in a news article.

What is promotion? Name and describe two major types of emerging promotional tools that might be used to influence consumers to purchase products and services.

Billboards are one of the most effective ways to reach specific target markets.

Product placement is the paid integration of branded products in television shows and movies.

Ivan has decided to start a business installing voice over Internet protocol (VOIP) software on computers, which allows individuals to make phone calls via the Internet. To get his business up and running, Ivan has decided to place an ad in the paper. He does not have any money, so he has to put the cost of the ad on his credit card. Ivan will spend more money than he will make in the first three months. Which stage of its life cycle is his VOIP business is in?

A meal at a family restaurant is an example of a pure service.