Global Marketing, 6E (Keegan/Green)

Global Marketing, 6e (Keegan/Green)

Chapter 14 Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication

1) Sweepstakes, rebates, and other promotional tools may require consumers to divulge personal information that companies can add to their databases.

Answer: TRUE

Diff: 2 Page Ref: 427

AACSB: Reflective Thinking

2) Sales promotion can be defined as a short-term, paid marketing communication program that adds tangible value to a product.

Answer: TRUE

Diff: 1 Page Ref: 427

3) Sales promotion programs can be designed to target consumers as well as distributors and retailers.

Answer: TRUE

Diff: 2 Page Ref: 427

AACSB: Reflective Thinking

4) A marketer of fine French cognac offers a fancy cigar ashtray to persons who correctly solve a crossword puzzle and mail it in. This is an example of a trade promotion.

Answer: FALSE

Diff: 2 Page Ref: 427

AACSB: Reflective Thinking

5) The Coca-Cola Company recently offered each McDonald's UK franchisees several hundreds of gallons of free soft drink syrup if they agreed to serve only Coca-Cola beverages. This action is an example of a trade promotion.

Answer: TRUE

Diff: 2 Page Ref: 427

AACSB: Reflective Thinking

6) Overall, sales promotion tools, such as coupons, are used less frequently as consumer products companies increase budget allocations for media advertising.

Answer: FALSE

Diff: 2 Page Ref: 427-428

AACSB: Reflective Thinking

7) Kashani and Quelch note that mergers and acquisitions have resulted in increased concentration in the retailing industry. One implication of this trend is increased reliance on centralized control of promotional program formulation.

Answer: TRUE

Diff: 3 Page Ref: 428-429

AACSB: Reflective Thinking

8) In a low-income country, free samples are likely to be a more effective promotional tool than coupons or on-pack premiums.

Answer: TRUE

Diff: 2 Page Ref: 429

AACSB: Reflective Thinking

9) When designing sales promotion programs, marketers should keep in mind that the most fundamental thing consumers want to do is try before they buy.

Answer: TRUE

Diff: 2 Page Ref: 430

AACSB: Reflective Thinking

10) In 2002 Unilever hired attractive female models to offer samples of Axe deodorant body spray to male shoppers at Wal-Mart and Costco stores in the United States.

Answer: TRUE

Diff: 2 Page Ref: 430

AACSB: Reflective Thinking

11) Japanese consumers are avid users of yen-off coupons.

Answer: FALSE

Diff: 2 Page Ref: 432-433

AACSB: Reflective Thinking

12) In China, consumers are reluctant to buy full-sized packages of unfamiliar imported products. In such a marketing environment, sampling is an appropriate promotional strategy.

Answer: TRUE

Diff: 2 Page Ref: 430

AACSB: Reflective Thinking

13) As a sales promotion technique, couponing is equally popular in Malaysia and the United States.

Answer: FALSE

Diff: 2 Page Ref: 431-432

AACSB: Reflective Thinking

14) Compared with other marketing promotion techniques, sampling is more likely to result in actual product trial.

Answer: TRUE

Diff: 2 Page Ref: 430

AACSB: Reflective Thinking

15) "Point of use" product sampling is gaining in popularity among marketers.

Answer: TRUE

Diff: 2 Page Ref: 430

AACSB: Reflective Thinking

16) Taiwan, Thailand, and Malaysia are regarded as collectivist according to Hofstede's social values. It was found that positive attitude of family members and society influence individual's positive attitude toward coupons and coupon usage.

Answer: TRUE

Diff: 2 Page Ref: 432-433

AACSB: Reflective Thinking

17) When MCI Communications first entered Latin America, it did so by utilizing low-cost local sales personnel.

Answer: TRUE

Diff: 2 Page Ref: 433-434

AACSB: Reflective Thinking

18) When MCI Communications first entered Latin America, it utilized expatriate Americans despite the high cost of doing so.

Answer: FALSE

Diff: 2 Page Ref: 433-434

AACSB: Reflective Thinking

19) Relationship marketing – i.e., an emphasis on developing long-term relationships with customers – has been embraced by many U.S. companies.

Answer: TRUE

Diff: 2 Page Ref: 435

AACSB: Reflective Thinking

20) The U.S.-style "I'll do whatever it takes to get your business" has proven to be a successful selling approach throughout the world.

Answer: FALSE

Diff: 2 Page Ref: 435-436

AACSB: Reflective Thinking

21) Building rapport and trust with customers is part of a sales representative's relationship strategy.

Answer: TRUE

Diff: 2 Page Ref: 435-436

AACSB: Analytic Skills

22) A commitment to the marketing concept and a desire to serve as a problem solver when helping customers is part of a sales representative's personal selling philosophy.

Answer: TRUE

Diff: 2 Page Ref: 435-436

AACSB: Reflective Thinking

23) In personal selling, the goal of negotiation should be to ensure that both the customer and the salesperson come away from the presentation as winners.

Answer: TRUE

Diff: 2 Page Ref: 435-436

AACSB: Reflective Thinking

24) The final step in the 6-step sales presentation plan is closing the sale.

Answer: FALSE

Diff: 2 Page Ref: 436-437

AACSB: Reflective Thinking

25) The most crucial element of the last step of the sales presentation plan is to completely understand the decision-making process.

Answer: TRUE

Diff: 2 Page Ref: 437

26) Ethnocentric companies are likely to use an expatriate sales force in countries at all levels of economic development.

Answer: TRUE

Diff: 2 Page Ref: 440-441

AACSB: Multicultural and Diversity

27) In companies where a polycentric management orientation prevails, host-country nationals will be used in most selling situations with the exception of high-tech products sold in developed countries.

Answer: TRUE

Diff: 3 Page Ref: 440-441

AACSB: Multicultural and Diversity

28) A company with a regiocentric orientation is likely to utilize third-country nationals for its sales force in less developed countries.

Answer: TRUE

Diff: 3 Page Ref: 440-441

AACSB: Multicultural and Diversity

29) "High cost" and "high turnover" are two disadvantages to using an expatriate sales force.

Answer: TRUE

Diff: 3 Page Ref: 440-441

AACSB: Multicultural and Diversity

30) Sales agents are more expensive than full-time, in-country national sales representatives.

Answer: FALSE

Diff: 2 Page Ref: 442

AACSB: Reflective Thinking

31) Generally speaking, consumers view direct marketing as entailing a higher level of risk than traditional mass marketing.

Answer: TRUE

Diff: 2 Page Ref: 443

AACSB: Reflective Thinking

32) Direct marketing does not work well as a global marketing tool because it is not well suited to the task of addressing cultural differences among consumers.

Answer: FALSE

Diff: 1 Page Ref: 443-444

AACSB: Reflective Thinking

33) Germany leads the world in terms of amount of direct mail received per capita.

Answer: TRUE

Diff: 2 Page Ref: 444

AACSB: Reflective Thinking

34) Following the economic crisis in Asia, many companies in that region have turned to direct mail in order to save costs.

Answer: TRUE

Diff: 2 Page Ref: 444

AACSB: Reflective Thinking

35) Nestlé uses direct mail in Asia for its Friskies brand cat food.

Answer: TRUE

Diff: 1 Page Ref: 445

AACSB: Reflective Thinking

36) Industry observers expect the popularity of home shopping to decrease during next few years as interactive television technology is introduced into more households.

Answer: FALSE

Diff: 2 Page Ref: 447

AACSB: Use of IT

37) France is leading in the rankings showing expenditures for outdoor advertising as percentage of total ad spending.

Answer: TRUE

Diff: 2 Page Ref: 448

AACSB: Reflective Thinking

38) In Indonesia ads cannot show cigarettes or people in the act of smoking.

Answer: TRUE

Diff: 2 Page Ref: 449

39) Sometimes referred to as "branded entertainment," the effective integration of products and brands with entertainment can be seen on the popular TV hit American Idol.

Answer: TRUE

Diff: 2 Page Ref: 452

AACSB: Reflective Thinking

40) The more an audience suspiciously distrusts the content of promotional programs or suspect a hidden agenda, the less likely that they will be responsive to the message.

Answer: TRUE

Diff: 2 Page Ref: 453

AACSB: Reflective Thinking

41) A marketer of fine French cognac offers fancy cigar ashtrays as prizes to consumers who correctly solve a crossword puzzle. Which of the following most accurately describes this offer?

A) price promotion

B) non-price promotion

C) trade sales promotion

D) sweepstakes promotion

E) sampling

Answer: B

Diff: 2 Page Ref: 427-428

AACSB: Reflective Thinking

42) Which of the following is NOT an advantage of using sales promotions?

A) provides a tangible incentive to buyers

B) provides accountability to marketing managers

C) enables company to build its database

D) builds long-term brand awareness

E) develops relationship with customers

Answer: C

Diff: 2 Page Ref: 427-428

AACSB: Reflective Thinking

43) Which of the following trends is consistent with a relatively high level of headquarters involvement in sales promotions?

A) higher proportion of marketing budget allocated to sales promotion activities

B) need for managerial skills with promotion formulation and implementation

C) strong global brand

D) increased retail concentration and consolidation

E) all of the above

Answer: E

Diff: 2 Page Ref: 428-429

AACSB: Reflective Thinking

44) Which promotional technique is best suited to a situation in which a company wants consumers to actually try its product or service at no cost?

A) sampling

B) sweepstakes

C) couponing

D) free-standing inserts

E) personal selling

Answer: A

Diff: 2 Page Ref: 430

AACSB: Reflective Thinking

45) Coupons are not a favorite promotion tool for use in:

A) the United Kingdom.

B) Belgium.

C) the United States.

D) Italy.

E) Malaysia.

Answer: E

Diff: 2 Page Ref: 431-432

46) A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents when purchasing a Crest toothbrush. What type of sales promotion does this represent?

A) cross coupon

B) product placement coupon

C) trade promotion coupon

D) free-standing coupon

E) on-line coupon

Answer: A

Diff: 2 Page Ref: 431-432

47) Consumers in the United States redeem approximately what percentage of coupons issued each year?

A) less than 5 percent

B) 10-15 percent

C) 25-30 percent

D) 45-50 percent

E) more than 60 percent

Answer: A

Diff: 2 Page Ref: 432

AACSB: Reflective Thinking

48) Unilever hired a promotional marketing firm to pass out Lever2000 hand wipes in food courts and petting zoos. This is an example of:

A) point-of-use sampling.

B) point-of-sale sampling.

C) point-of-dirt sampling.

D) point-of-event sampling.

E) point-of-work sampling.

Answer: C

Diff: 2 Page Ref: 430

AACSB: Reflective Thinking

49) Environmental issues and challenges faced by a company which is in the initial stages of implementing a personal selling strategy include all of the following except:

A) political risks.

B) regulatory hurdles.

C) product innovation.

D) currency fluctuations.

E) market unknowns.

Answer: C

Diff: 2 Page Ref: 434-435

AACSB: Reflective Thinking

50) Which of the following is not one of the steps in the Strategic/Consultative Selling Model?

A) develop personal selling philosophy

B) develop relationship strategy

C) develop product strategy

D) develop ethnocentric policy

E) develop customer strategy

Answer: D

Diff: 2 Page Ref: 435-439

AACSB: Reflective Thinking

51) Which of the following is not a step in the strategic/consultative selling model?

A) develop a marketing mix

B) develop a personal selling philosophy

C) develop a product strategy

D) develop a relationship strategy

E) develop a presentation strategy

Answer: A

Diff: 2 Page Ref: 435-439

AACSB: Reflective Thinking

52) Building a prospect base is typically part of which step of the strategic/consultative selling model?

A) development of a customer strategy

B) development of a personal selling philosophy

C) development of a product strategy

D) development of a relationship strategy

E) development of a presentation strategy

Answer: A

Diff: 2 Page Ref: 435-439

AACSB: Reflective Thinking

53) In the six-step presentation plan the first and last steps are respectively:

A) presentation; demonstration.

B) approach; close.

C) presentation; negotiation.

D) approach; presentation.

E) approach; servicing the sale.

Answer: E

Diff: 2 Page Ref: 437-438

AACSB: Reflective Thinking

54) A company in which an ethnocentric orientation prevails is likely to utilize primarily ______in its sales force.

A) host-country nationals

B) third-country nationals

C) expatriates

D) agents of any nationality

E) agents of host-country

Answer: C

Diff: 2 Page Ref: 440-441

55) A company with a polycentric orientation is likely to employ host-country nationals in all but which of the following selling situations?

A) selling high-tech products in developed countries

B) selling high-tech products in less-developed countries

C) selling low-tech products in developed countries

D) selling low-tech products in less-developed countries

E) none of the above

Answer: A

Diff: 3 Page Ref: 440-441

AACSB: Reflective Thinking

56) Which type of sales person is best suited to selling technologically-sophisticated products in developed countries?

A) expatriates

B) third-country nationals

C) host-country nationals

D) agents of any nationality

E) none of the above

Answer: A

Diff: 3 Page Ref: 440-442

AACSB: Reflective Thinking

57) Which of the following is an advantage of using an expatriate sales force?

A) superior product and company knowledge

B) headquarters can maintain greater control

C) those achieving success abroad gain valuable experience that can enhance promotion prospects

D) can be trained for promotion

E) all of the above are advantages

Answer: A

Diff: 2 Page Ref: 440-442

AACSB: Reflective Thinking

58) When a company must decide on the composition of its foreign sales force, which alternative is generally the most expensive?

A) expatriates

B) third-country nationals

C) host-country nationals

D) agents of any nationality

E) agents of host-country

Answer: A

Diff: 2 Page Ref: 440-442

AACSB: Reflective Thinking

59) Assuming a company is not characterized by an ethnocentric orientation, in which global selling situation would it be most likely to utilize sales agents?

A) developed country/high tech product

B) developed country/low tech product

C) less developed country/high tech product

D) less developed country/low tech product

E) none of the above

Answer: D

Diff: 3 Page Ref: 440-442

AACSB: Reflective Thinking

60) In which global selling situation would a company be most likely to utilize host country sales agents?

A) developed country/high tech product

B) developed country/low tech product