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Promotion  Marketing managers at Ryder Systems faced a real challenge as they developed their plan for 2000. Ryder's bright yellow move-it-yourself rental trucks were a familiar sight on the streets and highways of the United States, Canada, and the United Kingdom. However, demand for rental trucks was down. Consumers usually don't rent a truck unless they're moving,and in the weak economy of 2000 fewer people could afford to move. Further, most rental firms were lowering their prices一hoping for gains in market share to offset the shrinking market. That made things even tougher for Ryder. Its strategy had focused on providing quality trucks and service rather than bargain-basement prices. In this market, however, more consumers were just looking for the lowest price.  Ryder’s marketers decided that this competitive market environment called for a new promotion blend. They wanted to communicate with target customers and persuade them that Ryder's services were better than those offered by competing firms. But they didn't just want to communicate. They wanted to increase rentals and sales of supplies.To reach the target market一consumers who were considering a move-Ryder first turned to mass selling. Working with an ad agency, it developed attention-getting, 60-second TV ads. Ryder placed the ads on popular TV shows that appealed to audiences whose demographics best matched those of its target market. The ads didn't just focus on Ryder trucks but rather on what consumers should think about when planning a move. The ads also offered consumers a free home-moving guide and planning kit. All the consumers had to do to get the promotional brochure was call a toll-free telephone number.  The brochure provided a lot of useful information about moving-including persuasive details on how Ryder's comfortable trucks and helpful services could make the move easier. In addition, to promote action, the brochure included a discount coupon on all Ryder supplies-including furniture pads, dollies , hand trucks, boxes, tape, rope, and locks-that consumers could redeem at. any Ryder dealer.  The list of people who called for the brochure also provided a very target database of prospects for Ryder's telemarketing salespeople to call. When the salesperson identified a good prospect, the final personal selling job was turned over to one of Ryder's 4,800 dealers. Their personal attention helped to resolve consumer questions and get rental contracts.  Ryder’s blend of direct-response mass selling, sales promotion, and personal selling succeeded in increasing Ryders share of rentals even in a very sluggish market. And becausethe promotion was successful in differentiating Ryder’s quality services, Ryder was able to charge a higher price than competitors who relied on discounts alone to pull in customers.Several PromotionalMethods Are Available Promotion is communicating information between seller and potential buyer or others in the channel influence attitudes and behavior. The marketing manager's main promotion job is to tell target customers that :the right Product is available at the right Place at the right Price.  What the marketing manager communicates is determined by target customers' needs and attitudes How the messages are delivered depends on what blend of the various promotion methods the marketing manager chooses.As the Ryder example shows, a marketing manager can choose from several promotion methods-personal selling, and sales promotion.Personal selling involves direct spoken communication between sellers and potential customers.Face-to-face selling provides immediate feedback-which helps salespeople to adapt. Although salespeople are included in most marketing mixes, personal selling can be very expensive. So it's often to combine personal selling with mass selling and sales promotion.  Mass selling is communicating with large numbers of potential customers at the same time. It's less than personal selling, but when the target market is large and scattered,mass selling can be expensive.  Advertising is the main form of mass selling. Advertising is any paid form of non-personal presentation of idea,good, or services by an identified sponsor. It includes the use of suchmedia as magazines, newspaper,radio and TV, signs, and direct mail. While advertisingmust be paid for, another from of mass selling-publicity-is free.  Publicity is any unpaid form of non-personal presentation of ideas, goods, or services. Of course, publicity people are paid. But they try to attract attention to the firm and its offeringswithout having to pay media costs. For example, book publishers try to get authors on TV talk shows because this generates  a lot of interest-and book sales-without the publisher paying for TV time.  When Colevo introduced its Cabbage Patch dolls, it held press parties for reporters and their children. A number of reporters wrote human interesting stories about their kids "adopting"the cut dolls. Those stories prompted more media attention一and a very successful product introduction-without Coleco doing any introductory advertising.If a firm has a really new message, publicity may be more effective than advertising. Trade magazines, for example, may carry articles featuring the news-worthy products of regular advertisers-in part because they are regular advertisers. The firm’s publicity people write the basic copy and then try to convince magazine editors to print it. Each year, magazines print photos and stories about new cars and often the source of the information is the auto producers.A consumer might not pay any attention to an ad but carefully read a long magazine story with the same information.  Some companies prepare videotapes designed to get free publicity for their products on TV news shows. For example, one video -distributed to TV stations at Halloween-discussed agovernment recommendation that parents use makeup rather than masks for young children. The story was effectively tied to a new makeup product for children made by PAAS Products.  Sales promotion refers to promotion activities-other than advertising, publicity, and personal selling-that stimulate interest, trial, or purchase by final customers or others in the channel. Sales promotion may be aimed at consumers, at middlemen, or even at a firm’s own employees.  Many people think that most promotion money is spent on advertising-because advertising is all around them. The many ads you see in magazines and newspapers and on TV are impressive-and costly. But all the special sales promotions-coupons, sweepstakes, trade shows, sporting events sponsored by firms, and the like-add up to even more money. Similarly, salesclerks complete most retail sales. And behind the scenes, much personal selling goes on in the channels and in other business markets. In total, firms spend less money on advertising than on personal selling or sales promotion.    However, the amount of emphasis on each promotion method usually varies with each specific marketing strategy-depending on the target market and other elements of the marketing mix. When planning the overall strategy, it's important to plan a combination of promotion methods that will work together to achieve specific promotion objectives.Passage 4:The real challenge that marketing managers at Ryder Systems have to face is
Promotion  Marketing managers at Ryder Systems faced a real challenge as they developed their plan for 2000. Ryder's bright yellow move-it-yourself rental trucks were a familiar sight on the streets and highways of the United States, Canada, and the United Kingdom. However, demand for rental trucks was down. Consumers usually don't rent a truck unless they're moving,and in the weak economy of 2000 fewer people could afford to move. Further, most rental firms were lowering their prices一hoping for gains in market share to offset the shrinking market. That made things even tougher for Ryder. Its strategy had focused on providing quality trucks and service rather than bargain-basement prices. In this market, however, more consumers were just looking for the lowest price.  Ryder’s marketers decided that this competitive market environment called for a new promotion blend. They wanted to communicate with target customers and persuade them that Ryder's services were better than those offered by competing firms. But they didn't just want to communicate. They wanted to increase rentals and sales of supplies.To reach the target market一consumers who were considering a move-Ryder first turned to mass selling. Working with an ad agency, it developed attention-getting, 60-second TV ads. Ryder placed the ads on popular TV shows that appealed to audiences whose demographics best matched those of its target market. The ads didn't just focus on Ryder trucks but rather on what consumers should think about when planning a move. The ads also offered consumers a free home-moving guide and planning kit. All the consumers had to do to get the promotional brochure was call a toll-free telephone number.  The brochure provided a lot of useful information about moving-including persuasive details on how Ryder's comfortable trucks and helpful services could make the move easier. In addition, to promote action, the brochure included a discount coupon on all Ryder supplies-including furniture pads, dollies , hand trucks, boxes, tape, rope, and locks-that consumers could redeem at. any Ryder dealer.  The list of people who called for the brochure also provided a very target database of prospects for Ryder's telemarketing salespeople to call. When the salesperson identified a good prospect, the final personal selling job was turned over to one of Ryder's 4,800 dealers. Their personal attention helped to resolve consumer questions and get rental contracts.  Ryder’s blend of direct-response mass selling, sales promotion, and personal selling succeeded in increasing Ryders share of rentals even in a very sluggish market. And becausethe promotion was successful in differentiating Ryder’s quality services, Ryder was able to charge a higher price than competitors who relied on discounts alone to pull in customers.Several PromotionalMethods Are Available Promotion is communicating information between seller and potential buyer or others in the channel influence attitudes and behavior. The marketing manager's main promotion job is to tell target customers that :the right Product is available at the right Place at the right Price.  What the marketing manager communicates is determined by target customers' needs and attitudes How the messages are delivered depends on what blend of the various promotion methods the marketing manager chooses.As the Ryder example shows, a marketing manager can choose from several promotion methods-personal selling, and sales promotion.Personal selling involves direct spoken communication between sellers and potential customers.Face-to-face selling provides immediate feedback-which helps salespeople to adapt. Although salespeople are included in most marketing mixes, personal selling can be very expensive. So it's often to combine personal selling with mass selling and sales promotion.  Mass selling is communicating with large numbers of potential customers at the same time. It's less than personal selling, but when the target market is large and scattered,mass selling can be expensive.  Advertising is the main form of mass selling. Advertising is any paid form of non-personal presentation of idea,good, or services by an identified sponsor. It includes the use of suchmedia as magazines, newspaper,radio and TV, signs, and direct mail. While advertisingmust be paid for, another from of mass selling-publicity-is free.  Publicity is any unpaid form of non-personal presentation of ideas, goods, or services. Of course, publicity people are paid. But they try to attract attention to the firm and its offeringswithout having to pay media costs. For example, book publishers try to get authors on TV talk shows because this generates  a lot of interest-and book sales-without the publisher paying for TV time.  When Colevo introduced its Cabbage Patch dolls, it held press parties for reporters and their children. A number of reporters wrote human interesting stories about their kids "adopting"the cut dolls. Those stories prompted more media attention一and a very successful product introduction-without Coleco doing any introductory advertising.If a firm has a really new message, publicity may be more effective than advertising. Trade magazines, for example, may carry articles featuring the news-worthy products of regular advertisers-in part because they are regular advertisers. The firm’s publicity people write the basic copy and then try to convince magazine editors to print it. Each year, magazines print photos and stories about new cars and often the source of the information is the auto producers.A consumer might not pay any attention to an ad but carefully read a long magazine story with the same information.  Some companies prepare videotapes designed to get free publicity for their products on TV news shows. For example, one video -distributed to TV stations at Halloween-discussed agovernment recommendation that parents use makeup rather than masks for young children. The story was effectively tied to a new makeup product for children made by PAAS Products.  Sales promotion refers to promotion activities-other than advertising, publicity, and personal selling-that stimulate interest, trial, or purchase by final customers or others in the channel. Sales promotion may be aimed at consumers, at middlemen, or even at a firm’s own employees.  Many people think that most promotion money is spent on advertising-because advertising is all around them. The many ads you see in magazines and newspapers and on TV are impressive-and costly. But all the special sales promotions-coupons, sweepstakes, trade shows, sporting events sponsored by firms, and the like-add up to even more money. Similarly, salesclerks complete most retail sales. And behind the scenes, much personal selling goes on in the channels and in other business markets. In total, firms spend less money on advertising than on personal selling or sales promotion.    However, the amount of emphasis on each promotion method usually varies with each specific marketing strategy-depending on the target market and other elements of the marketing mix. When planning the overall strategy, it's important to plan a combination of promotion methods that will work together to achieve specific promotion objectives.Passage 4:Ryder Systems free brochures include everything BUT()
Promotion  Marketing managers at Ryder Systems faced a real challenge as they developed their plan for 2000. Ryder's bright yellow move-it-yourself rental trucks were a familiar sight on the streets and highways of the United States, Canada, and the United Kingdom. However, demand for rental trucks was down. Consumers usually don't rent a truck unless they're moving,and in the weak economy of 2000 fewer people could afford to move. Further, most rental firms were lowering their prices一hoping for gains in market share to offset the shrinking market. That made things even tougher for Ryder. Its strategy had focused on providing quality trucks and service rather than bargain-basement prices. In this market, however, more consumers were just looking for the lowest price.  Ryder’s marketers decided that this competitive market environment called for a new promotion blend. They wanted to communicate with target customers and persuade them that Ryder's services were better than those offered by competing firms. But they didn't just want to communicate. They wanted to increase rentals and sales of supplies.To reach the target market一consumers who were considering a move-Ryder first turned to mass selling. Working with an ad agency, it developed attention-getting, 60-second TV ads. Ryder placed the ads on popular TV shows that appealed to audiences whose demographics best matched those of its target market. The ads didn't just focus on Ryder trucks but rather on what consumers should think about when planning a move. The ads also offered consumers a free home-moving guide and planning kit. All the consumers had to do to get the promotional brochure was call a toll-free telephone number.  The brochure provided a lot of useful information about moving-including persuasive details on how Ryder's comfortable trucks and helpful services could make the move easier. In addition, to promote action, the brochure included a discount coupon on all Ryder supplies-including furniture pads, dollies , hand trucks, boxes, tape, rope, and locks-that consumers could redeem at. any Ryder dealer.  The list of people who called for the brochure also provided a very target database of prospects for Ryder's telemarketing salespeople to call. When the salesperson identified a good prospect, the final personal selling job was turned over to one of Ryder's 4,800 dealers. Their personal attention helped to resolve consumer questions and get rental contracts.  Ryder’s blend of direct-response mass selling, sales promotion, and personal selling succeeded in increasing Ryders share of rentals even in a very sluggish market. And becausethe promotion was successful in differentiating Ryder’s quality services, Ryder was able to charge a higher price than competitors who relied on discounts alone to pull in customers.Several PromotionalMethods Are Available Promotion is communicating information between seller and potential buyer or others in the channel influence attitudes and behavior. The marketing manager's main promotion job is to tell target customers that :the right Product is available at the right Place at the right Price.  What the marketing manager communicates is determined by target customers' needs and attitudes How the messages are delivered depends on what blend of the various promotion methods the marketing manager chooses.As the Ryder example shows, a marketing manager can choose from several promotion methods-personal selling, and sales promotion.Personal selling involves direct spoken communication between sellers and potential customers.Face-to-face selling provides immediate feedback-which helps salespeople to adapt. Although salespeople are included in most marketing mixes, personal selling can be very expensive. So it's often to combine personal selling with mass selling and sales promotion.  Mass selling is communicating with large numbers of potential customers at the same time. It's less than personal selling, but when the target market is large and scattered,mass selling can be expensive.  Advertising is the main form of mass selling. Advertising is any paid form of non-personal presentation of idea,good, or services by an identified sponsor. It includes the use of suchmedia as magazines, newspaper,radio and TV, signs, and direct mail. While advertisingmust be paid for, another from of mass selling-publicity-is free.  Publicity is any unpaid form of non-personal presentation of ideas, goods, or services. Of course, publicity people are paid. But they try to attract attention to the firm and its offeringswithout having to pay media costs. For example, book publishers try to get authors on TV talk shows because this generates  a lot of interest-and book sales-without the publisher paying for TV time.  When Colevo introduced its Cabbage Patch dolls, it held press parties for reporters and their children. A number of reporters wrote human interesting stories about their kids "adopting"the cut dolls. Those stories prompted more media attention一and a very successful product introduction-without Coleco doing any introductory advertising.If a firm has a really new message, publicity may be more effective than advertising. Trade magazines, for example, may carry articles featuring the news-worthy products of regular advertisers-in part because they are regular advertisers. The firm’s publicity people write the basic copy and then try to convince magazine editors to print it. Each year, magazines print photos and stories about new cars and often the source of the information is the auto producers.A consumer might not pay any attention to an ad but carefully read a long magazine story with the same information.  Some companies prepare videotapes designed to get free publicity for their products on TV news shows. For example, one video -distributed to TV stations at Halloween-discussed agovernment recommendation that parents use makeup rather than masks for young children. The story was effectively tied to a new makeup product for children made by PAAS Products.  Sales promotion refers to promotion activities-other than advertising, publicity, and personal selling-that stimulate interest, trial, or purchase by final customers or others in the channel. Sales promotion may be aimed at consumers, at middlemen, or even at a firm’s own employees.  Many people think that most promotion money is spent on advertising-because advertising is all around them. The many ads you see in magazines and newspapers and on TV are impressive-and costly. But all the special sales promotions-coupons, sweepstakes, trade shows, sporting events sponsored by firms, and the like-add up to even more money. Similarly, salesclerks complete most retail sales. And behind the scenes, much personal selling goes on in the channels and in other business markets. In total, firms spend less money on advertising than on personal selling or sales promotion.    However, the amount of emphasis on each promotion method usually varies with each specific marketing strategy-depending on the target market and other elements of the marketing mix. When planning the overall strategy, it's important to plan a combination of promotion methods that will work together to achieve specific promotion objectives.Passage 4:Which of the following is NOT true of publicity?
Promotion  Marketing managers at Ryder Systems faced a real challenge as they developed their plan for 2000. Ryder's bright yellow move-it-yourself rental trucks were a familiar sight on the streets and highways of the United States, Canada, and the United Kingdom. However, demand for rental trucks was down. Consumers usually don't rent a truck unless they're moving,and in the weak economy of 2000 fewer people could afford to move. Further, most rental firms were lowering their prices一hoping for gains in market share to offset the shrinking market. That made things even tougher for Ryder. Its strategy had focused on providing quality trucks and service rather than bargain-basement prices. In this market, however, more consumers were just looking for the lowest price.  Ryder’s marketers decided that this competitive market environment called for a new promotion blend. They wanted to communicate with target customers and persuade them that Ryder's services were better than those offered by competing firms. But they didn't just want to communicate. They wanted to increase rentals and sales of supplies.To reach the target market一consumers who were considering a move-Ryder first turned to mass selling. Working with an ad agency, it developed attention-getting, 60-second TV ads. Ryder placed the ads on popular TV shows that appealed to audiences whose demographics best matched those of its target market. The ads didn't just focus on Ryder trucks but rather on what consumers should think about when planning a move. The ads also offered consumers a free home-moving guide and planning kit. All the consumers had to do to get the promotional brochure was call a toll-free telephone number.  The brochure provided a lot of useful information about moving-including persuasive details on how Ryder's comfortable trucks and helpful services could make the move easier. In addition, to promote action, the brochure included a discount coupon on all Ryder supplies-including furniture pads, dollies , hand trucks, boxes, tape, rope, and locks-that consumers could redeem at. any Ryder dealer.  The list of people who called for the brochure also provided a very target database of prospects for Ryder's telemarketing salespeople to call. When the salesperson identified a good prospect, the final personal selling job was turned over to one of Ryder's 4,800 dealers. Their personal attention helped to resolve consumer questions and get rental contracts.  Ryder’s blend of direct-response mass selling, sales promotion, and personal selling succeeded in increasing Ryders share of rentals even in a very sluggish market. And becausethe promotion was successful in differentiating Ryder’s quality services, Ryder was able to charge a higher price than competitors who relied on discounts alone to pull in customers.Several PromotionalMethods Are Available Promotion is communicating information between seller and potential buyer or others in the channel influence attitudes and behavior. The marketing manager's main promotion job is to tell target customers that :the right Product is available at the right Place at the right Price.  What the marketing manager communicates is determined by target customers' needs and attitudes How the messages are delivered depends on what blend of the various promotion methods the marketing manager chooses.As the Ryder example shows, a marketing manager can choose from several promotion methods-personal selling, and sales promotion.Personal selling involves direct spoken communication between sellers and potential customers.Face-to-face selling provides immediate feedback-which helps salespeople to adapt. Although salespeople are included in most marketing mixes, personal selling can be very expensive. So it's often to combine personal selling with mass selling and sales promotion.  Mass selling is communicating with large numbers of potential customers at the same time. It's less than personal selling, but when the target market is large and scattered,mass selling can be expensive.  Advertising is the main form of mass selling. Advertising is any paid form of non-personal presentation of idea,good, or services by an identified sponsor. It includes the use of suchmedia as magazines, newspaper,radio and TV, signs, and direct mail. While advertisingmust be paid for, another from of mass selling-publicity-is free.  Publicity is any unpaid form of non-personal presentation of ideas, goods, or services. Of course, publicity people are paid. But they try to attract attention to the firm and its offeringswithout having to pay media costs. For example, book publishers try to get authors on TV talk shows because this generates  a lot of interest-and book sales-without the publisher paying for TV time.  When Colevo introduced its Cabbage Patch dolls, it held press parties for reporters and their children. A number of reporters wrote human interesting stories about their kids "adopting"the cut dolls. Those stories prompted more media attention一and a very successful product introduction-without Coleco doing any introductory advertising.If a firm has a really new message, publicity may be more effective than advertising. Trade magazines, for example, may carry articles featuring the news-worthy products of regular advertisers-in part because they are regular advertisers. The firm’s publicity people write the basic copy and then try to convince magazine editors to print it. Each year, magazines print photos and stories about new cars and often the source of the information is the auto producers.A consumer might not pay any attention to an ad but carefully read a long magazine story with the same information.  Some companies prepare videotapes designed to get free publicity for their products on TV news shows. For example, one video -distributed to TV stations at Halloween-discussed agovernment recommendation that parents use makeup rather than masks for young children. The story was effectively tied to a new makeup product for children made by PAAS Products.  Sales promotion refers to promotion activities-other than advertising, publicity, and personal selling-that stimulate interest, trial, or purchase by final customers or others in the channel. Sales promotion may be aimed at consumers, at middlemen, or even at a firm’s own employees.  Many people think that most promotion money is spent on advertising-because advertising is all around them. The many ads you see in magazines and newspapers and on TV are impressive-and costly. But all the special sales promotions-coupons, sweepstakes, trade shows, sporting events sponsored by firms, and the like-add up to even more money. Similarly, salesclerks complete most retail sales. And behind the scenes, much personal selling goes on in the channels and in other business markets. In total, firms spend less money on advertising than on personal selling or sales promotion.    However, the amount of emphasis on each promotion method usually varies with each specific marketing strategy-depending on the target market and other elements of the marketing mix. When planning the overall strategy, it's important to plan a combination of promotion methods that will work together to achieve specific promotion objectives.Passage 4:Bonuses, sales aids and training materials are all used in promotion activities. They are designed_.
Promotion  Marketing managers at Ryder Systems faced a real challenge as they developed their plan for 2000. Ryder's bright yellow move-it-yourself rental trucks were a familiar sight on the streets and highways of the United States, Canada, and the United Kingdom. However, demand for rental trucks was down. Consumers usually don't rent a truck unless they're moving,and in the weak economy of 2000 fewer people could afford to move. Further, most rental firms were lowering their prices一hoping for gains in market share to offset the shrinking market. That made things even tougher for Ryder. Its strategy had focused on providing quality trucks and service rather than bargain-basement prices. In this market, however, more consumers were just looking for the lowest price.  Ryder’s marketers decided that this competitive market environment called for a new promotion blend. They wanted to communicate with target customers and persuade them that Ryder's services were better than those offered by competing firms. But they didn't just want to communicate. They wanted to increase rentals and sales of supplies.To reach the target market一consumers who were considering a move-Ryder first turned to mass selling. Working with an ad agency, it developed attention-getting, 60-second TV ads. Ryder placed the ads on popular TV shows that appealed to audiences whose demographics best matched those of its target market. The ads didn't just focus on Ryder trucks but rather on what consumers should think about when planning a move. The ads also offered consumers a free home-moving guide and planning kit. All the consumers had to do to get the promotional brochure was call a toll-free telephone number.  The brochure provided a lot of useful information about moving-including persuasive details on how Ryder's comfortable trucks and helpful services could make the move easier. In addition, to promote action, the brochure included a discount coupon on all Ryder supplies-including furniture pads, dollies , hand trucks, boxes, tape, rope, and locks-that consumers could redeem at. any Ryder dealer.  The list of people who called for the brochure also provided a very target database of prospects for Ryder's telemarketing salespeople to call. When the salesperson identified a good prospect, the final personal selling job was turned over to one of Ryder's 4,800 dealers. Their personal attention helped to resolve consumer questions and get rental contracts.  Ryder’s blend of direct-response mass selling, sales promotion, and personal selling succeeded in increasing Ryders share of rentals even in a very sluggish market. And becausethe promotion was successful in differentiating Ryder’s quality services, Ryder was able to charge a higher price than competitors who relied on discounts alone to pull in customers.Several PromotionalMethods Are Available Promotion is communicating information between seller and potential buyer or others in the channel influence attitudes and behavior. The marketing manager's main promotion job is to tell target customers that :the right Product is available at the right Place at the right Price.  What the marketing manager communicates is determined by target customers' needs and attitudes How the messages are delivered depends on what blend of the various promotion methods the marketing manager chooses.As the Ryder example shows, a marketing manager can choose from several promotion methods-personal selling, and sales promotion.Personal selling involves direct spoken communication between sellers and potential customers.Face-to-face selling provides immediate feedback-which helps salespeople to adapt. Although salespeople are included in most marketing mixes, personal selling can be very expensive. So it's often to combine personal selling with mass selling and sales promotion.  Mass selling is communicating with large numbers of potential customers at the same time. It's less than personal selling, but when the target market is large and scattered,mass selling can be expensive.  Advertising is the main form of mass selling. Advertising is any paid form of non-personal presentation of idea,good, or services by an identified sponsor. It includes the use of suchmedia as magazines, newspaper,radio and TV, signs, and direct mail. While advertisingmust be paid for, another from of mass selling-publicity-is free.  Publicity is any unpaid form of non-personal presentation of ideas, goods, or services. Of course, publicity people are paid. But they try to attract attention to the firm and its offeringswithout having to pay media costs. For example, book publishers try to get authors on TV talk shows because this generates  a lot of interest-and book sales-without the publisher paying for TV time.  When Colevo introduced its Cabbage Patch dolls, it held press parties for reporters and their children. A number of reporters wrote human interesting stories about their kids "adopting"the cut dolls. Those stories prompted more media attention一and a very successful product introduction-without Coleco doing any introductory advertising.If a firm has a really new message, publicity may be more effective than advertising. Trade magazines, for example, may carry articles featuring the news-worthy products of regular advertisers-in part because they are regular advertisers. The firm’s publicity people write the basic copy and then try to convince magazine editors to print it. Each year, magazines print photos and stories about new cars and often the source of the information is the auto producers.A consumer might not pay any attention to an ad but carefully read a long magazine story with the same information.  Some companies prepare videotapes designed to get free publicity for their products on TV news shows. For example, one video -distributed to TV stations at Halloween-discussed agovernment recommendation that parents use makeup rather than masks for young children. The story was effectively tied to a new makeup product for children made by PAAS Products.  Sales promotion refers to promotion activities-other than advertising, publicity, and personal selling-that stimulate interest, trial, or purchase by final customers or others in the channel. Sales promotion may be aimed at consumers, at middlemen, or even at a firm’s own employees.  Many people think that most promotion money is spent on advertising-because advertising is all around them. The many ads you see in magazines and newspapers and on TV are impressive-and costly. But all the special sales promotions-coupons, sweepstakes, trade shows, sporting events sponsored by firms, and the like-add up to even more money. Similarly, salesclerks complete most retail sales. And behind the scenes, much personal selling goes on in the channels and in other business markets. In total, firms spend less money on advertising than on personal selling or sales promotion.    However, the amount of emphasis on each promotion method usually varies with each specific marketing strategy-depending on the target market and other elements of the marketing mix. When planning the overall strategy, it's important to plan a combination of promotion methods that will work together to achieve specific promotion objectives.Passage 4:Which of the following statements is TRUE?
Taking charge  The HUGO BOSS groupis represented in the fashion market by its brands BOSS, HUGO and BALDESSARINI. The collections behind these brands and their lines are designed to appeal to different target groups.  The core BOSS brand includes the BOSS Black, BOSS Selection, BOSS Orange and BOSS Green lines, along corresponding collections of accessories.  Combining creativity and individualism, the HUGO brand offers confident men and women a collection that to invent their own styles.  Designer label BALDESSARINI is all about luxury infused with a unique contemporary flair, for men who a less than the very best.  Besides offering ready-to-wear products, HUGO BOSS has rounded out its collections by integrating shoes and leather products into its business. Licensed products complement its outfits, including fragrances, cosmetics, watches and eye-wear. The company also has a comprehensive array of merchandising items, including jewelry and lifestyle accessories. With over 5,000retail in 102 countries, the German fashion giant sees China as one of the major driving forces behind its international business. This is why Chairman and BoardMember Bruno Saelzer has ambitious targets. The company plans to open 10 new stores in China every year.  HUGO BOSS does not simply see Beijing, Shanghai and Guangzhou as the only important cities in China. Its ambitions extend to comparatively poorer inland cities such as Hefei in East China’s Anhui Province. Taiyuan in North China’s Shanxi Province, and even Urumqi , capital of Northwest China's Xinjiang Uygur Autonomous Region.  This is a brave plan, compared with many other big luxury brands,most of which only have two or three outlets through out the country.  Saelzer says that HUGO BOSS wants to grow along with China’s economic development, adding that the company sees great potential in the country's luxury market. It is the market leader in China, with 65 shops in 37 major cities.  Lars Peter Larsen .managing director of HUGO BOSS Hong Kong, agrees with Saelzer. He says there will be more and more demand from the Chinese market for ready-to-wear items.  "The economy has shown strong growth, and there are positive indications that this strong growth will continue for the next few years. This will mean a relatively broader and wealthier group of customers."  Larsen says that the major task for all international luxury brands in China is to find prime retail space.  “Through constant meetings and discussions with developers and mall management companies, HUGO BOSS, together with other luxury brands, is able to secure better locations," Larsen says.  Market competition is not a huge concern for the company. HUGO BOSS has built up a strong customer base and high brand awareness throughout its 12 years in the Chinese market.Larsen admits that the company faces a challenge when fighting against fake products. It is working closely with local investors and the State Administration for Industry and Commerce to combat counterfeiters.  "It is also quite helpful that the authorities have recognized HUGO BOSS as a 'famous brand' in China,” he says. China’s Regulation for Evaluating and Managing Famous Trademarks reports that famous brands and trademarks refer to registered trademarks that are well known to certain groups of people and enjoy greater visibility on the market. They can therefore enjoy both administrative and judicial protection throughout the country.  HUGO BOSS released details from its annual report in January, posting a 23 per cent rise from last year's net income. This was driven by its booming women’s clothing line, which beat the average forecasts of both the company and analysts. Net income came in at 108 million euros (US $128.77 million) last year, up from 88 million euros (US $104.92 million) a year earlier.  “The BOSS Black collections were particularly successful, with sales growth of 38 per cent," Saelzer says. The company expects sales and earnings to continue to rise in 2006.Passage 5:Which of the following sentences is NOT true about the HUGO BOSS group?
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