Chapter 02 The Role of IMC in the Marketing Process

91. How does strong brand equity benefit the
seller?
A. Product quality becomes completely irrelevant.
B. It allows the seller to use undifferentiated marketing.
C. It enables the seller to hide product success from its competition.
D. It allows the seller to achieve higher sales volume and/or profit.
E. It allows the seller to stop all promotional activities and redirect
its funds to other areas of operation.

92. _____ is the intangible asset of added value or
goodwill that results from the favorable image, impressions, differentiation,
and/or strength of a consumer’s attachment to a company’s name or
trademark.
A. Product affiliation
B. Product symbolism
C. Brand equity
D. Brand symbolism
E. Trademark recognition

93. The marketing mix variable that deals with what a
consumer must give up to purchase a product or service is:
A. product.
B. price.
C. promotion.
D. distribution.
E. production.

94. When developing a _____, costs, competition,
demand factors, and perceived value must be taken into consideration.
A. target market
B. channel of distribution
C. promotional mix
D. pricing strategy
E. segmentation strategy

95. Promotional expenditures on advertising, sales
promotion, and personal selling:
A. are not relevant when determining a pricing structure.
B. are incomes that must be covered in a firm’s pricing structure.
C. contribute to a product’s cost and price and thus make it harder to
sell.
D. are expenses that must be covered but can also help reduce costs by
creating demand for a product.
E. are examples of fixed costs on an organization’s income statement.

96. Which of the following statements about the
interaction of pricing with advertising and promotion is true?
A. The positive relationship between high relative advertising and price
levels is weakest for products in the introductory stage of the product life
cycle.
B. The positive relationship between high relative advertising and price
levels is weakest for products that are market leaders.
C. Companies with high-quality products are damaged the least, in terms of
return on investment, by inconsistent advertising and pricing strategies.
D. Brands with low relative advertising budgets are able to charge premium
prices.
E. High relative ad expenditures should accompany premium prices, and low
relative ad expenditures should be tailored to low prices.

97. Marketing _____ are the set of interdependent
organizations involved in the process of making a product or service available
for consumption.
A. channels
B. hierarchies
C. facilitators
D. consumers
E. programs

98. Doncaster is a company that sells fashionable
women’s clothing through wardrobe parties. It targets women who are too busy to
go to stores to shop. Doncaster is utilizing a(n):
A. direct channel of distribution.
B. indirect channel of distribution.
C. marketing intermediary.
D. direct-response advertising medium.
E. reseller channel.

99. Hunter ceiling fans are sold to retailers who then
sell them to ultimate consumer. The manufacturer of Hunter ceiling fans is
using a(n):
A. direct channel of distribution.
B. indirect channel of distribution.
C. multiple-level channel.
D. direct-response advertising medium.
E. reseller channel.

100. ______ are programs designed to persuade the
retailer to promote a manufacturer’s products.
A. Promotional pull strategies
B. Spot television campaigns
C. Spot radio campaigns
D. Promotional push strategies
E. Progressive adherence policies

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