When introducing a new vehicle targeted to the under-30 population, Toyota used several different methods of communication

 

Use the following to answer the questions.

When introducing a new vehicle targeted to the under-30 population, Toyota used several different methods of communication. First, it did research in several large cities to find out who the opinion leaders were in that age group. By visiting the local nightlife, one or two people in each city were selected and given a new vehicle to drive for two weeks. They were told to share information about this new vehicle with their friends. After a few weeks, then a television campaign was launched with commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas.

1. Refer to Scenario 16.1. Toyota’s act of giving the opinion leaders a new vehicle for two weeks is best described as an example of

a.	advertising.
b.	personal selling.
c.	sales promotion.
d.	buzz marketing.
e.	push marketing.

2. Refer to Scenario 16.1. Suppose Toyota also offered the dealership salespeople a trip to Hawaii for anyone who could sell ten of the new vehicles within the first month they were available? This tactic would be an example of ____ marketing, while the TV commercials described above would be an example of ____ marketing.

a.	pull; push
b.	personal selling; push
c.	pull; sales promotion
d.	push; pull
e.	personal selling; sales promotion

3. Refer to Scenario 16.1. Suppose that Toyota has decided to contract with the producer of the next James Bond 007 movie to use one of its new vehicles in a chase scene. This would best be an example of

a.	sales promotion.
b.	word-of-mouth promotion.
c.	product placement.
d.	viral marketing.
e.	publicity.

 

4.Refer to Scenario 16.1. Which of the following is not an integrated communications tactic used by Toyota?

a.	word-of-mouth communication
b.	advertising
c.	publicity
d.	personal selling
e.	sales promotion

Scenario 16.2

Use the following to answer the questions.

The manufacturers of Whizz, a new laundry detergent, are developing their promotional plan for the first year. They know they want to use an integrated communications strategy and are considering the use of advertising through TV and magazines, coupons, public relations, sales promotion, and viral marketing. They are not sure when to use each of these methods however, and have asked for your advice.

5. Refer to Scenario 16.2. Since Whizz is a new product, which of the following promotional methods would you least recommend?

a.	magazine ads.
b.	viral marketing.
c.	television commercials.
d.	a price-reduction sales promotion.
e.	public relations.

6. Refer to Scenario 16.2. If the manufacturers of Whizz were to partner with Whirlpool to place a bottle of Whizz in each new washer that is purchased during the first year, this would be an example of

a.	advertising.
b.	sales promotion.
c.	viral marketing.
d.	packaging.
e.	publicity-based public relations.

 

Scenario 17.1

Use the following to answer the questions.

The Toyota Corporation is developing its promotional plan for the coming year and is considering several types of advertising to communicate its messages. Toyota will likely advertise its new vehicle, the Venza, on TV and in major national magazines. It is possible that the ads could focus on the features of the Venza and its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the Toyota brands in a single ad, while mentioning only the Toyota brand and its company’s strengths. Finally, Toyota will probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs.

7. Refer to Scenario 17.1. Toyota’s television advertisements for the new Venza are examples of

a.	publicity.
b.	institutional advertising.
c.	product advertising.
d.	comparative advertising.
e.	pioneer advertising.

8. Refer to Scenario 17.1. If the ads include both the Venza and the Ford Edge, they would be examples of

a.	institutional advertising.
b.	public relations.
c.	product advertising.
d.	comparative advertising.
e.	competitive advertising.

9. Refer to Scenario 17.1. Advertisements such as the one proposed above for the Camry and hybrid SUVs, are most likely an example of

a.	product advertising.
b.	comparative advertising.
c.	competitive advertising.
d.	institutional advertising.
e.	reminder advertising.

10. Refer to Scenario 17.1. The advertising mentioned above in which Toyota features all brands of the company would be an example of

a.	competitive advertising.
b.	institutional advertising.
c.	comparative advertising.
d.	pioneer advertising.
e.	product advertising.

 

Scenario 17.2

Use the following to answer the questions.

The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm’s entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the internet. It currently serves over 1.9 million bank accounts.

11. Refer to Scenario 17.2. In 2008, Cal Ripken, Jr. and State Farm teamed up to promote State Farm’s national teen driver safety program. The marketing division at State Farm produced a one-page document that described the partnership, which was then published in several national newspapers and on the internet. The document from State Farm is an example of ____, while the publication in the newspapers is an example of ____.

a.	public relations; publicity
b.	public relations; a news release
c.	publicity; advocacy advertising
d.	a news release; publicity
e.	publicity; a news release

12. Refer to Scenario 17.2. When deciding on its advertising allocation for the coming year, State Farm Insurance could choose to spend the same amount as Safe Auto, another auto insurance company. This method of advertising appropriation is known as the ____ approach.

a.	competition-matching
b.	arbitrary
c.	objective-and-task
d.	goals
e.	percent-of-sales

13. Refer to Scenario 17.2. If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one problem with this method is that

a.	it makes the bookkeeping too difficult.
b.	it is tied too closely to sales forecasts.
c.	a sales decline leads to an increase in the advertising appropriation.
d.	a drop in sales would cause a drop in the advertising budget.
e.	competitors may have different advertising objectives.

 

14.Refer to Scenario 17.2. If State Farm Bank decided that it wanted to increase its number of bank customers by 10% in the coming year, it would most likely use the ____ approach to advertising allocation.

a.	arbitrary
b.	competition-matching
c.	objective-and-task
d.	percent-of-sales
e.	percent-of-customer

Scenario 18.1

Use the following to answer the questions.

Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores around the country. Jafrum doesnot manufacture these items, but sells them to other retailers and also sells its merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he has been given the sales objective from Jafrum’s management to increase sales dollars by 15% in the coming year by adding new customers. Sean’s current compensation is based on a $1,000 per month draw, plus 5% of all sales over $100,000. His salary last year totaled $42,000. Management has given Sean the choice of going to a compensation plan where he will earn 15% of all sales, but no draw.

15. Refer to Scenario 18.1. Sean is developing his list of potential new retail customers by accessing the yellow pages online. Here he finds the contact information for every motorcycle store in the 48 contiguous states, and eliminates those who currently are his customers. Sean is involved in which step of the personal selling process?

a.	Prospecting and evaluating
b.	Preapproach
c.	Overcoming objections
d.	Closing
e.	Following up

16. Refer to Scenario 18.1. Sean selects several motorcycle stores who are not currently his customers. He then obtains and analyzes information about the current brands of motorcycle accessories they stock, their sales trends, and credit history. Sean is engaged in which of the following?

a.	prospecting.
b.	the preapproach.
c.	approaching the customer.
d.	making the presentation.
e.	overcoming objections.

 

17.Refer to Scenario 18.1. Sean has narrowed his list and is preparing a packet of information about Jafrum and its products to send to the prospects. He also includes a letter of introduction and says he will contact them within the next two weeks to set up a sales visit. In this scenario, Sean is all of the following except

a.	a trade salesperson.
b.	a field order taker.
c.	a missionary salesperson.
d.	an order getter.
e.	a new business salesperson.

18. Refer to Scenario 18.1. Currently, Sean’s compensation is based on the ____ plan, however he is considering changing to the ____ plan.

a.	straight salary; salary plus commission
b.	straight commission; straight salary
c.	salary plus commission; straight commission
d.	salary plus bonus; straight bonus
e.	straight bonus; straight commission

Scenario 18.2

Use the following to answer the questions.

The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores such as Kohl’s, Macy’s, and J.C. Penney’s, through its own salesforce. Kerry Wilson is one of Presto’s salespeople, and is responsible for stores headquartered in Region 1 of the U.S. Kerry has just come from a monthly meeting where she has been informed about the new stovetop grill that will be part of next season’s lineup. Presto’s marketing department has developed a promotional plan for the new grill and outlined that plan for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials which demonstrate the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In addition, Kerry and other members of the salesforce will be given a free grill for their own home use so they can become more familiar with the product. Presto is also offering a free trip to New York City for their staff salesperson who has the highest dollar in sales to his or her stores. To encourage the retail stores to push this product, Presto will offer the retail store a $5 discount for each grill that the store purchases after the 60-day promotion is over.

19. Refer to Scenario 18.2. Kerry and the other salesforce members are best described as a ____ sales force.

a.	technical
b.	missionary
c.	trade
d.	field
e.	pioneer

 

20.Refer to Scenario 19.2. Presto appears to be using ____ to educate its sales force.

a.	formal sales training
b.	on-the-job training
c.	negative motivation
d.	territorial meetings
e.	recruiting training

21. Refer to Scenario 19.2. Which of the following are consumer sales promotion methods that Presto is using for the new stovetop grill?

a.	television commercials and the customer contest
b.	television commercials and the in-store rebate
c.	the customer contest and the in-store rebate
d.	the sales force contest and the in-store rebate
e.	the sales force contest and the customer contest

22. Refer to Scenario 19.2. Presto’s use of a free trip to New York is an example of ____, while the $5 discount to its retail stores is an example of ____.

a.	a trade allowance; a buy-back allowance
b.	a buying allowance; a dealer loader
c.	a dealer loader; a buy-back allowance
d.	a sales contest; a buy-back allowance
e.	a sales contest; a buying allowance

MULTIPLE CHOICE

23. The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines

a.	communication.
b.	integrated marketing communications.
c.	tactile communication.
d.	kinesic communication.
e.	proxemic communication.

24. Chris sees a television commercial for Arby’s promoting its roast beef sandwiches at 5 for $5.95. Later that day he goes to the nearest Arby’s for a roast beef feast, but is told that the special offer is not available at that location. Arby’s seems to lack

a.	communication.
b.	promotional efforts.
c.	integrated marketing communications.
d.	channel capacity.
e.	coordinated awareness.

 

25.Effective management of integrated marketing communications is based upon

a.	consumer attitudes towards promotion.
b.	information about customers.
c.	the communication process model.
d.	budgetary allowances.
e.	the firm’s organizational structure.

26. If FedEx-Kinko’s decided to outsource allof its marketing efforts to the MaxPro Company, which specializes in advertising, sales promotion activities, and public relations, FedEx-Kinko’s would likely be striving to practice

a.	one-stop shopping.
b.	more expertise.
c.	pioneer promotional efforts.
d.	competitive promotional programming.
e.	integrated marketing communications.

27. Advertising that encourages customers to send in reply cards for additional information aids salespeople in achieving which goal of personal selling?

a.	Convincing prospects to buy
b.	Finding prospects
c.	Keeping customers satisfied
d.	Making the presentation
e.	Following up the sale

28. Carlos generally makes cold calls on businesses to look for new prospects. He has many satisfied customers, but like many salespeople, he does not frequently utilize one of the best ways to find new prospects, which is through

a.	telephone directories.
b.	customer referrals.
c.	trade shows.
d.	local restaurants.
e.	other employees.

29. After compiling a list of potential customers, a salesperson must

a.	evaluate whether each prospect is able, willing, and authorized to buy the product.
b.	determine whether or not each prospect is really in his target market.
c.	find and analyze information about each prospect’s specific needs and current brand choices.
d.	develop a presentation for each of the potential customers on his list.
e.	contact each of the prospects to get an initial feel for how likely they are to purchase his products.

 

30.Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to

a.	approach.
b.	preapproach.
c.	make the presentation.
d.	prospect.
e.	overcome objections.