Marketing Objective 3.03A Review

Which of the following is an overall goal of the promotional mix:

• To decrease operating expenses

• To convey a message inexpensively

• To persuade consumers to buy

• To have the right goods available

Answer explanation

Businesses combine or mix the different elements of
promotion to create the most effective promotional mix. These elements are advertising, personal selling, publicity, and sales promotion. It is not always possible to convey
promotional messages inexpensively. Reducing the business’s operating expenses is not
an overall goal of the promotional mix. Having the right goods available is a responsibility of product/service management rather than promotion.

Which of the following statements best defines the term promotional mix:

• The way in which businesses combine promotional methods

• The “magic formula” used in developing promotional plans

• The confusion of too many promotional techniques

• The rotation technique used for promoting employees

Answer explanation

The kinds of promotion used and the proportions will vary from business to business. Since it is very hard to
determine the relative effectiveness of the different promotional methods, there is
no magic formula that managers can use. Promotional techniques that are combined
effectively will not create confusion. The promotion of employees is referred to as
promotion or advancement. 

Any paid form of nonpersonal presentation of ideas, images, goods, or services is known as

• sales promotion.

• personal selling.

• publicity.

• advertising.

Answer explanation

Advertising is usually the most expensive element of the promotional mix. Personal selling is the form of promotion that responds to customer needs and wants through planned, personalized communication to influence purchase decisions and to enhance future business opportunities. Sales promotion consists of promotional
activities other than advertising, personal selling, and publicity that stimulate customer purchases. Publicity is a nonpersonal form of promotion that is not paid for by the
company or the individual that benefits from it.

VISA pays to promote its services on other companies’ websites. These promotions are examples of

• publicity.

• sales promotion.

• advertising.

• personal selling.

Answer explanation

VISA pays to have its promotions appear on other companies’ websites.
These promotions are nonpersonal and delivered through a mass medium. Personal
selling responds to customer needs and wants through planned, personalized
communication. Publicity is any unpaid form of nonpersonal presentation of ideas,
goods, or services. Sales promotion consists of promotional activities other than
advertising, personal selling, and publicity that stimulate customer purchases.     

Which of the following is an example of personal selling:

• A salesperson places an ad in a local newspaper.

• A business manager holds a press conference to explain a new product.

• A financial planner discusses retirement plans with a group of teachers.

• An employee hands out coupons to customers who are attending a trade show.

Answer explanation

Personal selling uses personalized communication to influence purchase decisions and enhance
future business opportunities. It involves interaction between the client or customer and the salesperson. It can take place between individuals or between an individual and a group. Placing an ad in the newspaper is advertising. Holding a press conference is an
example of publicity. Passing out coupons is a form of sales promotion

Which of the following would be a reason a business uses personal selling rather than advertising:

• Immediate feedback

• Less cost per contact

• Less flexible

• No face-to-face contact

Answer explanation

In personal selling, the salesperson is able to learn immediately
what the customer likes or dislikes about a product, whether the salesperson is helping
the customer in person, over the telephone, or electronically. This enables the salesperson to be flexible and to tailor the presentation to meet the needs of the particular customer. Personal selling is costlier on a per-contact basis than advertising.                                                   (4 points)

On a per-contact basis, which of the following elements of the promotional mix is most expensive:

• Advertising

• Publicity

• Sales promotion

• Personal selling

Answer explanation

On a per-contact basis, personal selling is the costliest promotional
mix element. Trends indicate that this cost will continue to rise. While the cost of an
advertisement may be high, advertising costs less on a per-contact basis. Sales promotion includes promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases. Examples include coupons, fashion shows, and displays. Publicity is free.        

Which of the following characteristics is shared by advertising and publicity:

• is impersonal

• Must be paid for

• Receives close attention

• Presents the same message

Answer explanation

Like advertising, publicity is impersonal. There is no interaction between
the customer and the company or individual when the promotional message is received. All of the other alternatives are points of difference between advertising and publicity.    

Which of the following is an example of publicity?

• Free samples are given to customers entering a business.

• An author appears on a talk show to discuss their new book.

• A fashion show is held highlighting the latest in bridal fashions.

• A radio announcer delivers a paid message about the grand opening of a business.

Answer explanation

 Publicity is a nonpersonal form of promotion that is not paid for by the company or individual that benefits from it.
A radio announcer delivering a paid nonpersonal message is an example of advertising. Free samples and a fashion show are examples of sales promotion activities designed to stimulate consumer purchases.

Contests, samples, and coupons are all examples of

• premiums

• personal selling

• novelty items

• sales promotion

Answer explanation

Sales promotion includes promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases. Premiums and novelty items are other examples of sales promotion. Personal selling is the form of promotion that uses planned, personalized communication to influence purchase decisions and enhance future business opportunities.