Advertising Procedure Roles of Advertising

Advertising Procedure Roles of Advertising 1) Another name for business convergence is: A) consolidation. B) computerization. C) conglomeration. D) constriction. E) compartmentalization. Answer: A 2) The primary expense for most communication companies that represents an opportunity for convergence is in: A) the business area. B) the content area. C) the technological area. D) the interactive area. E) the strategic area. Answer: B 3) The new relationship between advertisers and consumers that implies more control by users of communication rather than private providers is called: A) push-pull advertising. B) reverse media. C) citizen media. D) reverse dynamic advertising. E) converged media. Answer: C 4) Which of the following is an indication of just how much technological convergence can impact how advertising is delivered? A) use of CDs B) use of DVDs C) use of radios D) use of mobile technology E) use of TVs Answer: D 5) The fundamental objective of advertising is that it must: A) lead to a purchase. B) trigger an effective marketing plan. C) be cost effective. D) communicate. E) entertain. Answer: D 6) Which of the following aspects would NOT be considered in a comprehensive marketing plan? A) marketing objectives B) situational analysis C) problems and opportunities D) consumer motivation E) financial plan Answer: D 7) Which of the following is NOT a consideration for effective implementation of an advertising plan? A) consumer motivations B) advertising budget and allocation C) share of marketing budget D) prospect identification E) advertising execution Answer: C 8) Regarding the impact of advertising on profitability, which of the following statements is true? A) Evaluating the impact advertising expenses on profitability is relatively simple. B) Advertising increases the cost of goods sold leading to increased profit. C) Measuring profitability on the basis of message delivery is becoming easier. D) Advertising influences price that yields improvements that go to the bottom line. E) Decreasing advertising expenditures leads to increased profitability. Answer: D 9) The communication component in the marketing mix is divided into four primary categories. Which of the following is NOT one of them? A) personal selling B) interactivity C) sales promotion D) public relations E) advertising Answer: B 10) "Speaking with one voice" recognizes the: A) recent simplification of contemporary marketing communication plans. B) importance of communicating to disparate niches with a unique message. C) need to coordinate all marketing communications to demonstrate a consistent look and theme. D) need to increase individual brand management and control. E) reality that advertising has forever done this. Answer: C 11) Critics and proponents of advertising generally view it through its: A) impact on religion. B) role in product innovations. C) economic, and social and cultural roles. D) impact on democracy. E) ability to modify beliefs and values. Answer: C Page Ref: 43 12) Another term for the social role of advertising is its ________ role. A) behavioral B) symbolic C) public D) inadvertent E) consequential Answer: B Page Ref: 43 13) For consumers, the role of advertising is to: A) help launch new product offerings. B) help launch a new service. C) satisfy curiosity. D) satisfy needs. E) enhance their status. Answer: D Page Ref: 46 14) As a ________ of society, advertising has run into some serious opposition. A) promoter B) mirror and monitor C) messenger D) detractor E) contributor and benefactor Answer: B Page Ref: 47 15) Of the various publics a single advertisement might be directed at, rarely is it: A) employees. B) distribution channel members. C) stockholders. D) current customers. E) clergy. Answer: E Page Ref: 48 16) Brand names provide as much as ________ of the value of some companies. A) 33 percent to 50 percent B) 10 percent C) 25 percent D) 5 percent E) 65 percent Answer: A Page Ref: 49 17) In which of the product categories below would high brand recognition NOT be especially important? A) beer B) a people mover C) cigarettes D) soft drinks E) fast food Answer: B Page Ref: 49 18) When Coca-Cola Company wants to introduce a product such as Vanilla Coke, it is involved in: A) core branding. B) brand extension. C) product enhancement. D) evolutionary marketing. E) none of the above Answer: B Page Ref: 50 19) The major risk that companies run when they introduce an entirely new product is: A) cannibalizing sales of existing brands. B) damaging the core brand in the minds of consumers. C) allowing the advertising to carry the marketing burden. D) confusing consumers because there may be too many new product introductions. E) prompting consumers to question the value and benefits of the original brand. Answer: B Page Ref: 51 20) The most successful products are those that meet the needs of the: A) company. B) consumers. C) shareowner. D) employee. E) return-on-investment. Answer: B Page Ref: 51 21) The advantages of a successful brand-extension strategy include: A) adding equity to an existing brand name. B) modifying the core brand in the minds of loyal consumers. C) reducing advertising expenditures to build awareness for the brand. D) reducing costs of marketing efforts for the brand. E) limiting damage done by competing brands. Answer: A Page Ref: 51 22) The disadvantages of a brand-extension strategy include: A) thinking the extension can carry the brand. B) reinforcing the core brand in the minds of new customers. C) diverting marketing focus from the existing brand. D) enhancing brand equity after a successful introduction. E) saving money on maintaining the brand. Answer: C Page Ref: 51 23) One of the driving forces in modern advertising is: A) development, protection, and maintenance of brand value. B) creative brand extensions. C) the dilution of niches. D) the absolute need for humor and sexual images to break through clutter. E) always looking for a new brand extension. Answer: A Page Ref: 51 24) A trip to ________ provides sobering evidence of just how difficult it is to introduce successful new products. A) WalMart B) Best Buy C) Dollar Tree D) Big Lots E) Costco Answer: D Page Ref: 51 25) Based on the advice of the late Theodore Levitt, a marketer's fundamental task is to: A) understand the customer. B) understand jobs customers need to do. C) understand how customers' education impacts their purchases. D) understand how customers' gender influences their purchases. E) understand customers' media habits. Answer: B Page Ref: 52 26) One of the fundamental challenges in product development is: A) lack of consumer awareness of product benefits. B) moving too fast without thorough understanding of consumer needs. C) ignoring the impact of customer perception. D) ignoring the downside of offering brand extensions. E) quality control for the new product. Answer: C Page Ref: 53 27) The research technique known as conjoint analysis is utilized in marketing to: A) weigh diverse consumer demographics. B) weigh diverse consumer psychographics. C) determine what consumers perceive as the product's most important characteristics. D) temper the exuberance of product designers. E) find an objective standard. Answer: C Page Ref: 53 28) Which of the following companies has been identified as adopting a bottom-up, consumer centric model of product development and maintenance? A) Procter & Gamble B) Mercedes Benz C) Volkswagen D) Kentucky Fried Chicken E) Haier Group Answer: A Page Ref: 54 29) Which of the following is NOT a major approach used by established companies to achieve long-term revenues and profits? A) developing and expanding new-product niches to reach current customers B) emphasizing sales volume over profits C) emphasizing short-term market share rather than profitability D) consumer tracking and analysis based on a consumer's value to the company E) protracted cost-cutting measures Answer: B Page Ref: 54-56 30) From a strategic standpoint, advertising timing involves interaction between the probability of marketplace acceptance and: A) seasonality of the product. B) trendiness of the product. C) the stages of product development. D) the strength of the existing brand and its extensions. E) long-term market trends. Answer: C Page Ref: 56-57 31) When a product is in its introductory and growth phase: A) businesses advertise to reinforce brand equity. B) businesses advertise to gain a level of awareness and establish a beachhead against competition. C) businesses advertise with a broader perspective in mind. D) businesses advertise to constantly evaluate their brand base. E) businesses take on a longer perspective and focus on brand equity. Answer: B Page Ref: 57 32) Kimberly-Clark Corporation, maker of Huggies disposable diapers, used which market timing strategy when it spent $7 million for an expanded Internet presence? A) seasonal purchasing B) capturing a fad C) spotting trends D) matching product lifecycle to consumer needs E) doing something first rather than doing something different Answer: E Page Ref: 58 33) This circumstance is only meaningful when a target audience regards the product as being distinctly better than other products. A) objective product comparisons B) subjective product comparisons C) product diversification D) product differentiation E) demand-driven pricing Answer: D Page Ref: 58 34) The key motivation in the product-differentiation strategy is: A) to improve product function. B) to set the brand apart from the competition. C) to decrease the price premium. D) to modify the entire bundle of benefits. E) to broaden the potential customer base. Answer: B Page Ref: 58 35) Which of the following does NOT pertain to the significance of price? A) It is closely related to product differentiation. B) It is a safe way to establish a long-term, competitive advantage. C) It can dictate the tone of an advertising message. D) It can dictate the content of the message. E) It is not a safe way to establish a long-term, competitive advantage. Answer: B Page Ref: 61 36) The wider the value gap of a given product, A) the greater the price competition. B) the weaker the overall brand structure. C) the more insulated the product is from price competition. D) the smaller the product differentiation that exists. E) the less critical the size of the niche becomes. Answer: C Page Ref: 61 37) When marketers have wanted to even out supply and demand, they have used this strategy. A) digitally dynamic pricing B) dynamic yield pricing C) value gap pricing D) yield management E) variable cost pricing Answer: D Page Ref: 61 38) The retail strategy that offers each customer a different price at a different point in time is known as: A) individualized pricing. B) variable pricing. C) fixed and variable pricing. D) marginal pricing. E) differentiated pricing. Answer: B Page Ref: 62 39) When it comes to preferences corporations have for a channel of communication, it is becoming more apparent that many are: A) staying with the traditional advertising media. B) choosing product placement. C) supplementing or replacing traditional media. D) using snail mail. E) shying away from new media approaches. Answer: C Page Ref: 63 40) In a well-managed company, the role advertising plays in the company's promotional strategy should NOT depend on which of the following? A) preferences for communication channels B) sales volume C) number of competing firms D) product category E) need to satisfy the CEO's philosophy of promotion Answer: E Page Ref: 63-64 41) The traditional marketing channel has been changing recently due to: A) the cost of doing business. B) the economic downturn. C) the introduction of new technology. D) the growth in demand for better service. E) the growth in demand for lower prices. Answer: C Page Ref: 65 42) When evaluating advertising's role in the marketing process, it is often easiest to determine: A) the directness and timing of the effort. B) the cost and timing of the effort. C) the directness and cost of the effort. D) the action and frequency of the effort. E) the action and timing of the effort. Answer: A Page Ref: 65 43) The type of advertising used by the owner of a trademarked product (brand) or service sold through different distributors or stores is called: A) retail. B) end-product. C) national. D) regional. E) none of the above Answer: C Page Ref: 66 44) Which of the following is a characteristic of national advertising? A) includes general product information B) includes price information C) includes hours of operation D) includes service policies E) includes store locations Answer: A Page Ref: 66 45) Which of the following is no longer a characteristic of retailing? A) dramatic move from regional stores to national chains B) Many historic retail practices have been altered. C) advertising for it is referred to as local D) goes directly to customers with personalized messages E) Customers now can do one-stop shopping. Answer: D Page Ref: 66-67 46) The slogan "Intel inside," employed by the manufacturer of an ingredient used in computers, is an example of: A) end-unit advertising. B) end-product advertising. C) component advertising. D) interior branding advertising. E) co-branding. Answer: B 47) Who among the following is credited with creating the first direct-sales catalog? A) Benjamin Franklin B) John Sears Roebuck C) J. Walter Thompson D) M. Weber Shandwick E) L. L. Bean Answer: A 48) This provides advertisers a way to reach consumers with personal messages and offers designed to meet their specific needs and may utilize all types of media. A) end-product advertising B) infomercial advertising C) direct-response advertising D) segmented advertising E) niche advertising Answer: C 49) Which of the following is NOT a major difference between B2B and consumer advertising? A) the nature of the target audience B) the types of message used C) The expenditures for telemarketing and the Internet are lower. D) the different buying processes used E) the different overall strategy required Answer: C Page Ref: 69 50) Which type of advertising emphasizes product profitability and the consumer advertising support retailers will receive from manufacturers? A) point-of-purchase B) image C) trade D) retail E) B2C Answer: C Page Ref: 69 51) Advertising used by companies selling to manufacturers is called: A) personal selling. B) industrial. C) direct response. D) telemarketing. E) national. Answer: B Page Ref: 72 52) If you were in an agency that focused on creating advertising to help doctors, lawyers and bankers do their jobs even better, your agency would be practicing: A) professional advertising. B) corporate advertising. C) industrial advertising. D) self-employed advertising. E) image advertising. Answer: A Page Ref: 76 53) Conglomerates have been doing more and more of what kind of advertising to make the public aware of their products and brand names? A) industrial B) institutional C) professional D) B2B E) trade Answer: B Page Ref: 72 54) Which of the following is NOT characteristic of idea advertising? A) uses emotionalism B) will benefit in the future because of the ability of media to target audiences C) Messages are too long. D) Topics range from abortion to gun control, to the environment. E) Proponents say advertising is the only way to put out their message before a mass audience. Answer: C Page Ref: 73 55) To be more effective, service advertising should: A) use testimonials. B) avoid use of testimonials. C) use models or actors as employees of the service company. D) keep introducing new themes. E) periodically introduce a new slogan. Answer: A Page Ref: 73-74 56) Which of the following is NOT likely to be a subject the federal government would include in its advertising? A) need for volunteers in the armed forces B) consumer-protection programs C) health initiatives D) savings plans for higher education E) brand-specific energy efficient products Answer: E Page Ref: 78 57) In mass communications, the term convergence has come to refer to two different, though related, areas: technological convergence and business convergence. Answer: FALSE 58) Citizen media is another name for user-generated media or participatory media. Answer: TRUE 59) The situational analysis is a statement of the product benefits as well as data concerning sales trends, competitive environment, and industry forecasts. Answer: TRUE Page Ref: 36 60) Developing the overall creative themes and media plans to effectively deliver messages that set the brand apart from its competition is known as advertising execution. Answer: TRUE Page Ref: 37 61) Market share has not been shown to be one of the primary contributors to return on investment. Answer: FALSE Page Ref: 37 62) Brand building is about sustaining price premiums: advertising influences price more than it influences sales. Answer: TRUE Page Ref: 37 63) Clients are demanding media and advertising agencies measure advertising success on the basis of effective audience exposure. Answer: FALSE Page Ref: 37 64) Personal selling techniques are becoming important factors in many selling tactics that go across various media platforms. Answer: TRUE Page Ref: 38 65) Advertising people need to realize that public relations can complement and not compete with their efforts. Answer: TRUE Page Ref: 41 66) In IMC, there is less concern about how a message is delivered and more emphasis on the effectiveness of the total marketing communication plan. Answer: TRUE Page Ref: 42 67) Because of the scrutiny that advertising receives, it must recognize not only its economic role but also societal and cultural roles. Answer: TRUE Page Ref: 43 68) Advertising mirrors the society in which it functions, and likely contributes to subtle changes in the mores and behavior of the public that is exposed to it. Answer: TRUE Page Ref: 45 69) Advertising for prospective buyers should provide information as economically and efficiently as possible. Answer: TRUE Page Ref: 46 70) Simply put, advertising is supposed to help a business create awareness of useful products so the business can builds shareholder value by profitably moving inventory. Answer: TRUE Page Ref: 46 71) Consumer privacy and the potentially intrusive nature of advertising are issues that have become more prominent because of new technology and sophisticated research methods. Answer: TRUE Page Ref: 47 72) In the advertising process, messages communicated to various publics are in turn interpreted in the context of their own interests. Answer: TRUE Page Ref: 48 73) Evidence indicates that high-brand awareness and a company's positive reputation can be factors in keeping its stock price high. Answer: TRUE Page Ref: 48 74) A major downside of a failed brand extension is the bad perception it creates in the mind of loyal consumers. Answer: FALSE Page Ref: 54-51 75) According to the late Theodore Levitt, the real task of advertising is to convey to prospective customers what a product can do for them. Answer: TRUE Page Ref: 52 76) Adapting a top-down model that provides customers products a company hopes they want is the way a successful company like Procter & Gamble operates. Answer: FALSE Page Ref: 54 77) Sound advertising proposals depend on knowing the level of product maturity and its marketplace acceptance. Answer: TRUE Page Ref: 58 78) The consumer's perception that your product delivers something better than a competitor's product does is at the heart of product differentiation. Answer: TRUE Page Ref: 58 79) The greater a product's value gap, the more insulated the product is from price competition. Answer: TRUE Page Ref: 61 80) Yield management offers "each customer a different price at a different point in time." Answer: TRUE Page Ref: 61 81) Crucial to market channel efficiency is effective advertising. Answer: TRUE Page Ref: 64 82) The only difference between retail and local advertising is the need of retail to focus on service and return policies while local focuses on store location and operation hours. Answer: FALSE Page Ref: 66 83) If you produce a new food offering or a new over-the counter medication, you might choose to do trade advertising that you could place in Progressive Grocer and Drug Topics. Answer: FALSE Page Ref: 69 84) Recently, institutional advertising–a long-term, image-building technique–has assumed a decided sales orientation in terms of audiences targeted and intent of communication. Answer: TRUE Page Ref: 72 85) Idea advertising and service advertising are major categories of non-product advertising. Answer: TRUE Page Ref: 72-73 Match the lettered item below with the appropriate numbered item. Some of the items may not be used. A) public relations B) trade promotions C) product differentiation D) retail advertising E) on-demand F) conjoint analysis G) prospect identification H) corporate advertising I) brand extensions J) problem-solving function K) B2B L) service advertising M) brand name N) trade advertising O) ROI P) marketing strategy 86) This is a primary factor in a typical marketing plan; it outlines the general course of action for achieving goals and objectives. Page Ref: 36 Objective: LO 2-1 87) The guiding principle of an advertising plan, it looks at basic demographic data as well as the social, cultural, and psychological characteristics that predict purchase behavior. Page Ref: 37 Objective: LO 2-1 88) The circumstance in which unique product attributes are regarded by the target audience as different from others in the category. Page Ref: 64 Objective: LO 2-5 89) The role of advertising that focuses on providing information prospective customers about products and services that will satisfy their utilitarian and hedonistic needs and wants. Page Ref: 58 90) One of fastest growing categories of advertising, this is often not seen by the average person. Page Ref: 69 91) Because some industries are so similar (and often legally regulated), it is difficult to differentiate between competitors without using this type of advertising. Page Ref: 73 92) A research technique that addresses the various ways a consumer perceives a product when making a purchase and considers the many individual elements that, together, determine consumer preference. Page Ref: 53 93) Rarely seen by consumers because it is directed at wholesalers and retailers, this marketing technique can damage brand equity because of the emphasis on price. Page Ref: 38 94) This type of advertising speaks to an organization's work views and problems in order to gain public goodwill and support rather than to sell a specific product. Page Ref: 72 95) Perceived as having higher audience credibility than traditional advertising, this type of communication is directed at various internal and external audiences to create an image for a corporation. Page Ref: 40 96) Diet Vanilla Coke and Bic lighters are examples of this. Page Ref: 49-50 97) Manufacturers use this type of business communication to promote products to wholesalers and retailers. Page Ref: 69 98) Also referred to by the term local, it has been strongly affected by the move from local and regional stores to national chains operating throughout the country. Page Ref: 66 99) Measures revenues against expenditure of resources, or how many dollars are produced for every dollar spent. Page Ref: 37 100) One of the most valued assets of the company, this is what customers recognize and respect. Page Ref: 49 Answers: 86) P 87) G 88) C 89) K 90) J 91) L 92) F 93) B 94) H 95) A 96) I 97) N 98) D 99) O 100) M 101) The coming together, or intersecting, of different components in a related system is known as ________; in mass communication, it refers to the three distinct areas of content, business, or technology. Answer: convergence 102) The value of a particular marketing function is often expressed as ________, that is, how many dollars are produced for every dollar spent. Answer: return-on-investment (ROI) Page Ref: 37 103) Developing messages that effectively set one company's brand apart from its competition–utilizing both the message and the medium–is called ________. Answer: execution Page Ref: 37 104) Special sales prices, a cents-off coupon, a POP display, or a chance to win a trip to Niagara Falls in a sweepstakes are all examples of ________. Answer: sales promotion Page Ref: 38 105) Advertising can play both a(n) ________ role in the ways it impacts society, Answer: economic and social/cultural Page Ref: 43 106) ________ are sometimes like the hunter chasing two rabbits. Answer: Brand extensions Page Ref: 50 107) ________ is a research technique that has been developed to address the numerous ways a consumer considers a product, and provide insight into which product benefits are thought to be most important by consumers. Answer: Conjoint analysis Page Ref: 53 108) Called the ________, it is the positive difference between the price of a product and the value an average consumer assigns to that particular product. Answer: value gap Page Ref: 61 109) One of the fastest growing categories of advertising, ________ is aimed not at typical consumers but rather at those who operate at various stages of the marketing channel, such as homebuilders, doctors, and wholesalers. Answer: business-to-business Page Ref: 69 110) Because the firms that utilize this type of marketing communication are basically people enterprises, ________ almost always has a strong institutional component, keeping the same slogan, theme, or identifying mark over long periods of time to increase consumer awareness. Answer: service advertising Page Ref: 73 111) The term convergence can refer to several distinct though related areas in advertising. List and explain them. 112) Describe some of the difficulties inherent in linking advertising expenses with profitability. Page Ref: 37-38 113) List and discuss the four primary categories in the communication phase of the marketing mix, and explain how they relate to one another in the concept of integrated marketing communication Page Ref: 38-42 114) Describe the two perspectives from which advertising is viewed in the institutional approach. 115) Advertising's role as an institution has been studied by both critics and proponents from three perspectives. List and explain them. 116) Discuss why large companies with multiple locations throughout the country should respect the community at large as an important public. 117) Explain the notion of a brand name and its value to a company. 118) List and discuss the primary factors that create strong brands. 119) Describe the distinct differences encountered when advertising to businesses and professions versus consumer advertising. 120) Define idea advertising and discuss why it is a controversial practice.