Chapter 13 Promotion I: Advertising and Sales Promotion 1) The coordination of marketing communication efforts to influence attitudes or behavior is known as ________. A) promotion B) advertising C) marketing D) public relations E) the communication model Answer: A 2) Which of the following is NOT one of the four main roles performed by marketing communication? A) to inform B) to entertain C) to persuade D) to remind E) to build relationships Answer: B 3) ________ is a strategic business process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences. A) Integrated marketing communications (IMC) B) A push strategy C) A pull strategy D) Database marketing E) Experiential marketing Answer: A 4) Advertising, sales promotion, public relations, and buzz building activities are all ________. A) channels that should be integrated under the concept of integrated marketing communications B) channels focused more on interactive marketing than traditional marketing C) promotional tools used for push strategies but not pull strategies D) promotional tools used for pull strategies but not push strategies E) promotional tools adapted for use in mass marketing Answer: A 5) Which of the following is NOT a form of one-to-one marketing? A) social networking B) direct marketing C) database marketing D) trade sales promotion activities E) personal selling Answer: A 6) According to the communication model, ________ is the process of translating an idea into a form of communication that will convey the desired meaning. A) sourcing B) messaging C) encoding D) signifying E) sending Answer: C 7) According to the communication model, the ________ is an organization or individual that sends a message. A) medium B) source C) messenger D) feedback E) decoder Answer: B 8) Which of the following is NOT true about the message in the communication model? A) It may include both verbal and nonverbal elements. B) It is the actual communication going from sender to receiver. C) It must be carefully crafted to connect with a variety of people when it is delivered through advertising. D) It will be understood in the same way by all receivers. E) It is often individualized when it is delivered by a salesperson. Answer: D 9) In the communication model, the ________ can be any organization or individual that intercepts and interprets a message. A) medium B) receiver C) source D) encoder E) noise source Answer: B 10) In terms of the communication model, ________ is the process whereby a receiver assigns meaning to a message. A) sourcing B) encoding C) decoding D) feedback E) receiving Answer: C 11) The communication model acknowledges that messages can be blocked by ________, which is anything that interferes with effective communication. A) media B) feedback C) noise D) encoding E) decoding Answer: C 12) In terms of the communication model, ________ is a reaction to a message that helps the source gauge the effectiveness of the message. A) looping B) feedback C) translating D) encoding E) decoding Answer: B 13) A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. This is also called ________. A) direct marketing B) integrated marketing C) competitive marketing D) the promotion mix E) target marketing Answer: D 14) With which type of marketing communication does the marketer have the greatest level of control over the message? A) word-of-mouth communication B) advertising C) public relations D) direct marketing E) personal selling Answer: B 15) With which type of marketing communication does the marketer have the lowest level of control over the message? A) word-of-mouth communication B) advertising C) public relations D) direct marketing E) personal selling Answer: A 16) The use of short-term incentives to encourage the immediate purchase or sale of a product or service is called ________. A) indirect marketing B) sales promotion C) personal selling D) public relations E) advertising Answer: B 17) ________ is the element of the promotion mix that involves direct interaction between a company representative and a customer. A) Word-of-mouth communication B) Public relations C) Advertising D) Personal selling E) Sales promotion Answer: D 18) A company is implementing ________ when it airs a television commercial to millions. A) interactive marketing B) viral marketing C) mass communication D) personal communication E) buzz Answer: C 19) Which of the following statements about advertising is true? A) Advertising is personal communication from an identified sponsor using the mass media. B) Consumers perceive advertising as always having a high level of credibility. C) Advertising can be used to establish and reinforce a distinctive brand identity. D) Advertising tends to be comparatively inexpensive. E) Advertising always relies on factual information. Answer: C 20) ________ components of the promotion mix do not seek a short-term increase in sales. Instead, with these communication activities, the company tries to maintain a positive image of an organization and its products. A) Personal selling B) Sales promotion C) Public relations D) Word-of-mouth E) Direct marketing Answer: C 21) Delia's is a clothing retailer that targets teenage girls. It runs coordinated promotions for its catalogs, its website, and its retail outlets. Delia's works to make sure its public relations activities as well as its sales promotions harmonize with its advertising in all venues. From this information, you can infer that Delia's is using ________. A) viral marketing B) stealth marketing C) integrated marketing communication D) word-of-mouth marketing E) database marketing Answer: C 22) Tara Keegan owns Live Well, a small chain of health stores offering a variety of natural health products and related services. In order to implement integrated marketing communications, Tara has hired a marketing communications director, whose job it will be to ensure that each ________ will deliver a consistent and positive message to consumers about the company. A) public relations message B) touchpoint C) advertisement D) logo E) media vehicle Answer: B 23) The decision to use a genie to communicate the strength and power of Mr. Clean cleaning liquid is representative of the ________ process of the communication model. A) sourcing B) encoding C) feedback D) decoding E) messaging Answer: B 24) In terms of the communication model, the animated M&M candies in television commercials ________. A) are representatives of the source B) are feedback mechanisms C) are the medium D) introduce noise E) encode the message Answer: A 25) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup. In terms of the communication model, the source of this ad is ________. A) Melina Kanakaredes B) Ladies' Home Journal C) readers who redeem the $1-off coupon D) Maybelline E) the target market to whom Melina Kanakaredes appeals Answer: D 26) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup. In terms of the communication model, the medium of this ad is ________. A) Melina Kanakaredes B) Ladies' Home Journal C) readers who redeem the $1-off coupon D) Maybelline E) the target market to whom Melina Kanakaredes appeals Answer: B 27) Which of the following best explains why a 40-year-old woman and a 15-year-old boy would interpret an ad for an age-minimizing makeup differently? A) They respond in contrasting ways to different media. B) They are not equally susceptible to noise. C) They follow different communication models. D) They have different frames of reference. E) One is not as likely as the other to provide feedback. Answer: D 28) Chevrolet runs a promotion whereby consumers can redeem two free ski lift tickets at their local dealer through a test-drive promotion. According to the communication model, the people coming into the dealership to test-drive a vehicle are the ________. A) encoders B) message C) source D) medium E) feedback Answer: E 29) A new pizza restaurant is opening in town. The owners of this restaurant decide to place an advertisement in the town newspaper announcing the date of their big opening. The owners of the restaurant are using ________. A) mass communications B) a push strategy C) word-of-mouth communications D) public relations E) one-to-one marketing Answer: A 30) An email from Amazon.com offers free shipping on your next purchase of more than $35. This is an example of ________. A) sales promotion B) personal selling C) public relations D) stealth marketing E) viral marketing Answer: A 31) A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional salespeople to sell its products to wholesalers and cities. This is an example of ________. A) sales promotion B) personal selling C) public relations D) direct marketing E) advertising Answer: B 32) A newspaper article reported on a lawsuit in which independent coffee shops accused a national chain of coffee shops of engaging in an illegal conspiracy to drive them out of business. What promotion element would the national chain of coffee shops most likely use to improve its corporate image, which has been tarnished by these accusations? A) sales promotion B) personal selling C) public relations D) direct marketing E) stealth marketing Answer: C 33) Virtually everything an organization says and does is a form of marketing communication. Answer: True 34) Through word-of-mouth communication, consumers look to each other for product information and recommendations. Answer: True 35) In the communication model, the message is the actual communication that bounces back from the receiver to the sender. Answer: False 36) The communications model is an effective way to look at traditional marketing communications, but not new word-of-mouth communications. Answer: False 37) In the communication model, noise is anything that interferes with effective communication. Answer: True 38) Like sales promotion, public relations components of the promotion mix are used to create short-term increases in sales. Answer: False 39) By definition, personal selling takes place in person. Answer: False 40) Personal selling is less effective but more cost-efficient than advertising. Answer: False 41) Unlike direct marketing, personal selling focuses on direct communication with a consumer or business customer. Answer: False 42) The process of developing the Nike logo "Just Do It" as a way to communicate the power and capability of people who wear Nike shoes is an example of encoding, as defined by the communication model. Answer: True 43) What is integrated marketing communication (IMC)? Explain how it differs from more traditional marketing communication approaches. Answer: Integrated marketing communication (IMC) is the process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time with targeted audiences. With an IMC program, marketers focus on the information needs of the consumer and work to coordinate all of the communication from the firm using the best combination of available communication methods. This differs from traditional marketing communication approaches, which can offer a fragmented message to consumers, with different types of message conveyed through different promotional tools, often sending conflicting brand messages. 44) The background for a Benadryl allergy medication ad appearing in the magazine Better Homes and Gardens shows green grass and lovely flowers. The headline states "Benadryl is 54 percent more effective than the leading prescription." At the bottom of the ad, in small print, is an explanation of how the effectiveness of Benadryl was determined. The ad also shows a package of Benadryl so consumers can easily recognize it at the store. Identify the different components of the communication model for this advertisement. Answer: The marketers of Benadryl are the source. These marketers encoded their ideas into the actual message, which includes the images and text of the advertisement. The medium for this communication is the page in Better Homes and Gardens. The receiver is anyone reading the magazine who sees this page of advertising; the receiver may or may not decode the message in the way the marketers intended. Noise could pop up at any stage of the communication process. 45) In one section of the Sunday newspaper there are four-color, magazine-style advertisements for different stores. Each of these advertisements informs consumers of the products being marketed at sale prices during the coming week. How are these magazine-style advertisements examples of the implementation of sale promotions? Answer: Sale promotions are programs such as contests, coupons, or other incentives that marketers design to build interest in or encourage the purchase of a product during a specified time period. Unlike other forms of promotion, sales promotions are intended to stimulate immediate action rather than build long-term loyalty. The magazine advertisements are trying to entice consumers to go to the store during the week and buy the items that are being sold at lower than the original selling price. 46) Why should a company be concerned about integrating communications from different sources within the company? Answer: Customers won't separate conflicting or varying messages from different sources within a company, so failing to integrate communications could lead to blurred consumer brand perceptions. 47) A TV commercial shows an adult, whose face is hidden, speaking of the enjoyment he gets from having eaten the same breakfast cereal for the past 30 years. This cereal is not just for kids! What are the marketing communications messages presented in this TV commercial? Answer: The person who has enjoyed eating the same cereal for breakfast for the past thirty years is informing TV viewers of the enjoyment received from eating the cereal. The advertisement also reminds others how they may have felt eating the cereal as children and attempts to persuade people who used to eat this cereal to buy it again, no matter how old they are. 48) Explain why effective communication occurs only when the source and the receiver have a mutual frame of reference. Answer: For effective communication to occur, both the source and the receiver must have an understanding of the message. If the message cannot be decoded by the receiver in the way the sender intended it, then there will not be successful communication. 49) Why might a company address the issue of noise, as defined in the communication model, by purchasing a block of pages in a magazine to advertise its brand? Answer: Noise is anything that interferes with effective communication. The rationale for the purchase of a block of advertising is that the reader will not be distracted with other ads, particularly those of the competition. 50) After determining its communication objectives, the company's next step in developing a promotional plan is to ________. A) identify the target audiences B) determine its marketing communication budget C) design the promotion mix D) decide on a push or pull strategy E) identify its product's phase in the product life cycle Answer: B 51) The series of steps through which a marketer attempts to guide a consumer is called the ________. A) promotional mix B) marketing mix C) hierarchy of effects D) AIDA model E) push-pull model Answer: C 52) The ________ step in the hierarchy of effects calls for marketers to inform the target market that there is a new brand on the market using simple, repetitive advertising in a variety of media. A) awareness B) knowledge C) demand D) desire E) purchase Answer: A 53) Which of the following is NOT a step in the hierarchy of effects? A) create awareness B) inform the market C) create demand D) create desire E) build loyalty Answer: C 54) Which of the following is the last step in the hierarchy of effects? A) create demand B) create desire C) encourage purchase D) build loyalty E) establish a relationship Answer: D 55) In which step of the hierarchy of effects would a marketer most likely use celebrity endorsements and status appeals? A) create awareness B) inform the market C) create desire D) encourage purchase E) build loyalty Answer: C 56) In which step of the hierarchy of effects would a marketer most likely rely on samples and coupons? A) create awareness B) inform the market C) create desire D) encourage purchase E) build loyalty Answer: D 57) Which of the following is an example of a top-down budgeting technique used to determine how much a firm will allocate to its promotional activities? A) the objective-task method B) the percentage-of-sales method C) the push-pull method D) the AIDA method E) the price lining method Answer: B 58) Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result. A) percentage-of-sales B) competitive-parity C) bottom-up D) objective-task E) push-pull Answer: A 59) Which method of setting an advertising budget is based on analyzing competitors' spending? A) the percentage-of-sales method B) the top-down method C) the bottom-up method D) the objective-task method E) the competitive-parity method Answer: E 60) Which of the following statements about the competitive-parity method of budgeting is true? A) It is the most commonly used bottom-up method for budgeting. B) It works because it relies on dynamic market shares that change annually. C) It is the only top-down budgeting method used to determine promotional budgets. D) It is considered the most logical budgeting method. E) It mirrors the best thinking of others in the business. Answer: E 61) The ________ method of promotional budgeting is based on determining the level of spending necessary to accomplish specific promotion goals. A) percentage-of-sales B) competitive-parity C) top-down D) pull-push E) objective-task Answer: E 62) Which of the following is an example of a bottom-up technique for developing promotional budgets? A) the competitive-parity method B) the objective-task method C) the percentage-of-sales method D) the pull-push method E) the AIDA method Answer: B 63) Which promotional mix strategy directs marketing efforts toward final consumers? A) push B) pull C) flighting D) pulsing E) AIDA Answer: B 64) Which promotional mix strategy directs marketing efforts toward market channel members? A) push B) pull C) flighting D) pulsing E) AIDA Answer: A 65) A florist who decides to budget five percent of last year's sales for promotional activities is using which of the following budgeting techniques? A) bottom-up B) objective-task C) competitive-parity D) percentage-of-sales E) push-pull Answer: D 66) Toward the end of the fiscal year, the owner of a small company came back from lunch concerned because he had learned that a business targeting the same customers as his was planning on spending $150,000 on promotion. As soon as he arrived at the office, he called his financial manager and said, "I want to budget $150,000 for next year's promotion." Which method of promotional budgeting did the owner want to use? A) the objective-task method B) the percentage-of-sales method C) the competitive-parity method D) the bottom-up method E) the pull-push method Answer: C 67) Business-to-consumer companies are more likely to emphasize a ________ strategy, while business-to-business companies are more likely to emphasize a ________ strategy. A) pull; push B) push; pull C) push; pulse D) pulse; pull E) pulse; push Answer: A 68) An ad in a professional journal targeted to an audience of dentists asked dentists to recommend Crest toothpaste to their patients. It offered toothpaste samples that dentists could buy at cost to give to their patients to encourage patients to take better care of their teeth. The manufacturer of Crest toothpaste was using ________. A) viral marketing B) stealth marketing C) a push strategy D) a pull strategy E) public relations Answer: C 69) Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising consumers to request their body shops use Glasis paint is an example of how a company uses ________. A) viral marketing B) stealth marketing C) buzz marketing D) a push strategy E) a pull strategy Answer: E 70) The percentage-of-sales method of setting a communication budget wrongly treats sales as a cause of promotion rather than a result. Answer: True 71) If the pull strategy is effective, consumers will then demand the product from channel members, who will, in turn, demand it from producers. Answer: True 72) The objective-and-task method of setting a promotion budget is the most logical method because it forces management to articulate assumptions about the relationship between dollars spent and promotion results. Answer: True 73) Coca-Cola's Minute Maid unit is introducing a new premium fruit beverage. The primary promotional objective of marketing communications for the new product should be to create awareness. Answer: True 74) Allyson Godwin plans on setting up a small business where she will offer quilting lessons, sell material and quilting kits that she will create, and market her own creations. Last year her quilting skills earned her $2,000. She estimates that quilting as a full-time business will earn $10,000 during her first year. She has budgeted five percent of her sales estimate to be spent on promotion. What promotion method is Godwin using? What are the advantages and disadvantages of this method? Answer: Godwin is using the percentage-of-sales method. The advantage of this method is that it reinforces the idea that spending on promotion is related to profits. Unfortunately, this method can imply that sales caused promotional outlays rather than viewing sales as the outcome of promotional efforts. If sales are not as high as estimated, Godwin may be reluctant to spend more on promotion even though the decrease might be due to some environmental change that could be countered with increased promotion. 75) Marketers can choose from two basic strategies: push or pull. Compare these two strategies. Answer: Using the pull strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product; if the pull strategy is effective, consumers will then demand the product from channel members who will in turn demand it from producers. Using a push strategy, the producer focuses instead on the channel members, persuading them to carry the product and promote it to final consumers. 76) What promotional efforts would a marketer be likely to use if the communication objective was to increase awareness of the brand? Answer: If the marketer wants to increase awareness of the brand, he might use repetitive advertising, slogans, jingles, or publicity stunts. 77) What promotional efforts would a marketer be likely to employ if the communication objective was to create desire for the product? Answer: When the marketer's communication objective is to create desire for the product, he would probably use flashy advertising spreads in magazines, endorsements of well-known celebrities, and sex appeal to create positive attitudes toward the brand. 78) What promotional efforts would a marketer be likely to employ if the communication objective was to encourage purchase of the product? Answer: When the marketer's communication objective is to encourage purchase of the product, he would probably use samples, create elaborate displays in stores that dispense money-saving coupons, and sponsor contests. 79) Which of the following is defined as nonpersonal communication paid for by an identified sponsor using mass media? A) public relations B) direct marketing C) direct selling D) advertising E) sales promotion Answer: D 80) What type of advertising delivers a message that focuses on a specific good or service? A) retail advertising B) product advertising C) institutional advertising D) brand placement E) advocacy advertising Answer: B 81) Which of the following is true of institutional advertising? A) It is also known as public-service advertising. B) It describes products as customer services. C) It is primarily used to support sales promotion activities. D) It promotes the activities or point of view of an organization. E) It is used only by non-profit and government organizations. Answer: D 82) Which of the following is true of advocacy advertising? A) It is also known as public-service advertising. B) It is primarily used to support sales promotion activities. C) It is used only for non-profit causes. D) It is intended to inform customers about a new product. E) It is intended to influence public opinion. Answer: E 83) Which of the following is the type of advertising that the media run free of charge? A) product advertisements B) advocacy advertisements C) public service advertisements D) institutional advertisements E) local advertisements Answer: C 84) A(n) ________ is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in various media over a period of time. A) sales promotion B) advertising campaign C) mass marketing plan D) media schedule E) integrated marketing communication campaign Answer: B 85) A(n) ________ provides most or all of the services needed to mount an advertising campaign. A) institutional agency B) limited-service agency C) creative services agency D) in-house agency E) full-service agency Answer: E 86) Advertising account managers are typically responsible for which of the following? A) writing the advertising copy B) acting as liaison between the agency and client C) post-testing advertisements D) collecting data to make informed strategic decisions E) identifying the most effective communication vehicles for the advertising campaign Answer: B 87) Which advertising agency specialist is responsible for acting as the voice of the consumer in creating effective advertising? A) the account executive B) the account planner C) the creative director D) the media planner E) the art director Answer: B 88) An ad agency's copywriters are part of the agency's ________. A) creative services B) account management C) marketing services D) editorial department E) media planning Answer: A 89) Which of the following is the responsibility of an advertising agency's media planner? A) recruiting new clients through different media outlets B) deciding where, when, and how often an advertisement will appear C) crafting interesting messages that convey a client's marketing objectives D) analyzing research about consumers to develop sensible advertising objectives E) serving as the primary liaison between the client and its publics Answer: B 90) CGM, which stands for ________, includes online consumer comments, discussions, reviews, photos, images, videos, podcasts, and webcasts. A) crowd-generated media B) community-generated media C) consumer-generated media D) content-graded media E) consumer-generated messaging Answer: C 91) Do-it-yourself advertising is a type of ________. A) user-generated content B) advocacy advertising C) sales promotion D) corrective advertising E) public service advertising Answer: A 92) Puffery is a term for a(n)________. A) straightforward promotional message B) claim of superiority that cannot be proven or disproven C) emotional appeal to customers D) subliminal appeal to customers E) value-added promotion Answer: B 93) Which of the following should be the first step of developing an advertising campaign? A) set the budget objectives B) establish the advertising message C) understand the target audience D) draft the creative brief E) select the execution format Answer: C 94) ________ can be classified by primary purpose, such as to inform, persuade, or remind. A) Budget objectives B) Message objectives C) Creative strategies D) Advertising appeals E) Media plans Answer: B 95) The creative strategy for an advertising campaign is summarized in a(n) ________. A) agency contract B) account plan C) media plan D) creative brief E) message objective Answer: D 96) ________ is the execution format that depicts typical people using the product in an everyday setting. A) Lifestyle B) Fantasy C) Slice of life D) Testimonial E) Demonstration Answer: C 97) Apple recently ran ads featuring real people who had switched from Microsoft Windows PCs to Macs. When companies use people, actors, or sports celebrities to express the product's effectiveness, what kind of execution format is being used? A) testimonial B) lifestyle C) comparative D) unique selling proposition E) slice of life Answer: A 98) ________ refers to the mood or attitude an advertisement conveys. A) Creative technique B) Execution format C) Unique selling proposition D) Appeal E) Tonality Answer: E 99) ________ is a problem-solving process for getting an advertising message to a specific target audience in the most effective fashion. A) Pretesting B) Lobbying C) Media pulsing D) Media planning E) Sampling Answer: D 100) You are looking to advertise your new product, and you want good mass-marketing coverage and low cost per exposure. You should go with ________ as your advertising medium. A) directories B) place-based media C) branded entertainment D) advergaming E) television Answer: E 101) Which of the following statements about magazines as an advertising medium is true? A) Magazines have long lead times and deadlines that can reduce flexibility. B) Magazines have not benefited from advances in communication technologies. C) Magazines typically use a mass marketing strategy. D) Magazines do not accept local advertising. E) Magazines have poor reproduction quality of images. Answer: A 102) Which of the following statements about radio as an advertising medium is true? A) Radio advertising is typically quite expensive. B) National radio advertising opportunities are simple to purchase. C) One advantage of radio advertising is its flexibility. D) Radio prohibits the use of segmentation strategies. E) Radio is defined as a place-based medium. Answer: C 103) Which of the following would be the best medium for an advertisement encouraging customers to come to a local retailer's weekend sidewalk sale? A) magazine B) network television C) local newspaper D) directory E) advergaming Answer: C 104) Which of the following types of ads can users block with Internet access software applications? A) banners B) buttons C) pop-ups D) search engine listings E) directory listings Answer: C 105) Which of the following practices helps to protect consumers from spamming? A) puffery B) permission marketing C) pop-up blocking D) adware installation E) sampling Answer: B 106) Product placements in television programs and movies are examples of ________. A) advergaming B) branded entertainment C) augmented reality D) advertising exposure E) pulsing Answer: B 107) Ads on the sides of delivery trucks, ads on the fence around a baseball field, and ads that you see on interstate billboards are all examples of ________ media. A) out-of-home B) place-based C) branded entertainment D) banner E) pop-up Answer: A 108) ________ is a measure of the percentage of people in the target market who are exposed to the media vehicle at least once during a given time period. A) Reach B) Frequency C) Impression D) Exposure E) Gross rating Answer: A 109) Frequency is which of the following? A) the total number of people who will be exposed to an ad placed in one media vehicle B) the percentage of people who will be exposed to an ad more than once C) the percentage of people who will be exposed to the media vehicle D) the number of times a person in the target group will be exposed to an ad E) the total number of ads in one advertising campaign Answer: D 110) To compare the relative cost-effectiveness of different media and of spots run on different vehicles in the same medium, media planners use ________. A) cost per thousand (CPM) B) reach C) impressions D) gross rating points (GRPs) E) attitudinal measures Answer: A 111) Which of the following is a media schedule of short, intense bursts alternating with periods of little to no activity? A) a continuous schedule B) sequencing C) segmenting D) flighting E) hard hitting Answer: D 112) Which of the following is a technique for measuring the impact of an advertisement during the final step of developing an advertising campaign? A) pretesting B) attitudinal measures C) pulsing D) gross rating points (GRPs) E) cost per thousand (CPM) Answer: B 113) Which of the following is a post-testing technique used by telephone survey or personal interview to determine whether a person remembers seeing an ad during a specified period without giving the person the name of the brand? A) unaided recall B) attitudinal measure C) pulsing D) gross rating points (GRPs) E) corrective advertising Answer: A 114) A television commercial for Post Select cereal is an example of which of the following? A) product advertising B) institutional advertising C) sales promotion D) direct selling E) retail advertising Answer: A 115) An ad for Ford did not advertise any cars, but instead explained the meaning of the company's slogan, "no boundaries." This ad is an example of ________. A) product advertising B) a sales promotion C) institutional advertising D) advocacy advertising E) retail advertising Answer: C 116) Which of the following advertising situations would LEAST likely be considered puffery? A) a mouthwash that claims to make your mouth feel its freshest B) toned thighs and legs as a result of using the Thigh Master for only 15 minutes each day C) children growing into attractive adults as a result of drinking milk D) a retired couple drinking a vitamin and protein shake and then going bicycling E) a sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks out her window to see golden sunshine, beautiful flowers blooming, songbirds singing, and a rainbow on the horizon Answer: D 117) U-Frame-It is a small company that has hired a local ad agency to put together an advertising campaign. Which of the following questions should be addressed before the others? A) What percentage of the budget should be for U-Frame-It radio ads? B) Which type of media is most appropriate for U-Frame-It ads? C) What are the message objectives of U-Frame-It? D) How does U-Frame-It's competition advertise? E) What type of appeal will work best for U-Frame-It's products? Answer: C 118) Avis positioned itself against market-leading Hertz by claiming, "We're number two, so we try harder." This is an example of ________. A) reminder advertising B) comparative advertising C) demonstration advertising D) a slice-of-life appeal E) a lifestyle appeal Answer: B 119) An ad for Mongoose mountain bikes shows a serious biker traversing remote and rugged but beautiful terrain and states, "There are places that are so awesome and so killer that you'd like to tell the whole world about them. But please, don't." This ad uses the ________ appeal. A) slice-of-life B) lifestyle C) fear D) testimonial E) straight-forward Answer: B 120) Jell-O ads contain the phrase "Make some magic." All Ace Hardware store ads contain the statement "Life is an ongoing project." The American Dairy Farmers run ads that say, "Ahh, the power of cheese." These are all examples of ________. A) jingles B) testimonials C) unique selling propositions (USPs) D) slogans E) slice-of-life appeals Answer: D 121) The current event television shows that are specifically designed to be broadcast in U.S. high school classrooms contain some ads from sponsors of the educational program. The ads reach this captive audience through the use of ________ media. A) augmented reality B) out-of-home C) place-based D) mobile E) permission Answer: C 122) For which of the following products would a continuous advertising schedule be most appropriate? A) swimming pool chemicals B) snow goggles C) heaters D) mosquito repellent E) lightbulbs Answer: E 123) Advertising and marketing are interchangeable terms. Answer: False 124) In the United States, the advertising industry itself encourages honesty in advertising. Answer: True 125) In developing an advertising campaign, agencies do not use pretesting until they have determined the media types and media schedule. Answer: False 126) Banners are online ads that pop up between changes on a Web site. Answer: False 127) Gross rating points (GRPs) are a measure of the quantity of media included in a given media plan. Answer: True 128) To posttest an ad for Maytag appliances, interviewers could ask consumers what appliance ads they have seen in the last month. Answer: True 129) How are companies taking advantage of interactive technologies to tap consumers for message ideas and actual ads? What are the benefits and disadvantages of do-it-yourself advertising? Answer: Companies can now search existing video sites such as YouTube, monitor related blogs, and sponsor ad-creation contests. Several companies, such as Frito-Lay, MasterCard, and JetBlue, have used do-it-yourself ads in national campaigns. Consumer-generated content offers companies a way to gather new perspectives on their products and develop insights into how their products are used and seen by actual consumers. Also, consumer-generated content is very inexpensive. On the other hand, companies do not control consumer-generated material, which can lead to conflicting, or even negative, messages about a brand. 130) Briefly describe four main objections to advertising. Answer: Some people believe that advertising is manipulative, causing people to make purchases they would not make without having been exposed to the ads. Similarly, some criticize advertising for encouraging people to buy products they do not need. Advertisers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. In addition, some advertising has been accused of being offensive, and some advertising has been accused of perpetuating negative stereotypes of certain groups of consumers. 131) Identify the traditional mass media vehicles and identify some of the strengths and weaknesses of each type. Answer: Television: Advantages are good mass-marketing coverage, low cost per exposure, and appeals to the senses; weaknesses are high total costs and an increasingly fragmented audience. Newspapers: Strengths are timeliness, good local market coverage, and high believability; weaknesses are short life and poor reproduction quality. Magazines: Strengths are high audience selectivity, credibility, and good pass-along readership; weaknesses are high costs and reduced flexibility. Radio: Strengths are good local acceptance and low cost; weaknesses are low attention and fleeting exposure to messages. 132) What is the difference between institutional advertising and advocacy advertising? Answer: Institutional advertising promotes the activities, personality, or point of view of an organization or company; advocacy advertising is a type of institutional advertising used to sway public opinion. 133) What is a USP? When would a marketer use a USP strategy? Answer: USP stands for unique selling proposition, a strategy marketers use to emphasize the distinct advantages of a product that a customer can identify. 134) When might a marketer be most likely to use informative advertising? Answer: Informative ads might be used heavily when introducing new products or new product categories. This type of appeal tells consumers why they need the product. 135) When does a marketer use reminder ads? Answer: Reminder ads are important for mature products; they keep consumers thinking about the product. 136) When might a marketer be most likely to use a comparative ad? Answer: Comparative ads are best for brands that have a smaller share of the market and for firms that can focus on a specific feature that makes them superior to the competition. 137) What is a benefit of a demonstration ad for a product, and when is this type of execution format most useful? Answer: Demonstration ads show a product in action to prove it performs as the ad claims. Demonstration advertising is most useful when consumers are unable to identify important benefits except by seeing the product in use. 138) ________ is the promotional tool used to build interest in or encourage purchase of a good or service during a specified period. A) A patronage reward B) A segmented promotion C) Advertising D) Public relations E) Sales promotion Answer: E 139) ________ are the most common price promotion. A) Rebates B) Merchandising allowances C) Coupons D) Contests and sweepstakes E) Premiums Answer: C 140) An example of a ________ is an airline's practice of awarding customers points for miles traveled that can be turned in for free airline trips. A) price-off pack B) rebate C) special pack D) loyalty program E) premium Answer: D 141) ________ are goods offered either free or at low cost as an incentive to buy a product; they may be in-pack, on-pack, or delivered through the mail. A) Rebates B) Bonus packs C) Price-off packs D) Premiums E) Sweepstakes Answer: D 142) Which of the following types of sales promotions would NOT be offered to a final consumer? A) rebates B) push money C) bonus packs D) sweepstakes E) premiums Answer: B 143) Which of the following is a discount to the retailer or wholesaler based on the volume of product ordered? A) merchandising allowance B) case allowance C) forward buying allowance D) push money E) incentive program Answer: B 144) ________ involves a channel member purchasing large quantities of a product during a discount period, warehousing the product, and not buying the product again until another discount is offered. A) Hoarding B) Forward buying C) Rebating D) Co-op buying E) Discounting Answer: B 145) ________ involves a retailer buying a product at a discounted promotional price, warehousing it, and after the promotion has expired, selling the inventory to other retailers at a price that is lower than the manufacturer's non-discounted price but high enough to turn a profit for the retailer. A) Hoarding B) Forward buying C) Diverting D) Discounting E) Rebating Answer: C 146) A trade show is a way for a company to do all of the following EXCEPT which one? A) distribute literature about its product B) pay a bonus to members of its salesforce C) give away sample products D) establish new business contacts E) showcase its new products in elaborate exhibits Answer: B 147) Which of the following is a bonus paid by a manufacturer to a salesperson for selling its product? A) a rebate B) a merchandising allowance C) a premium D) a cross-promotion E) push money Answer: E 148) Toro ran a clever preseason promotion on some of its snow blower models, offering some money back if the snowfall in the buyer's market area turned out to be below average. This is an example of a ________. A) rebate B) premium C) price-off pack D) continuity program E) sweepstake Answer: A 149) Keely was invited to examine a free copy of a new magazine called Coastal Living. If she did not enjoy the magazine, she could write "Refused" on the invoice for her subscription, which would arrive about three weeks after the free magazine. The magazine's publisher was using ________. A) a continuity program B) a rebate C) a premium D) product placement E) sampling Answer: E 150) An example of a(n) ________ is a five-foot-high cardboard display of Cap'n Crunch next to Cap'n Crunch cereal boxes. A) point of purchase (POP) display B) incentive program C) promotional product D) co-op advertisement E) case allowance Answer: A 151) An office supply store that pays a discounted price when it orders more than 12 metal filing cabinets is receiving a(n) ________. A) merchandising allowance B) promotional product C) case allowance D) co-op promotion E) incentive program Answer: C 152) Declining brand loyalty has led marketers to place less of their total marketing communication budgets in sales promotions. Answer: False 153) A traditional advertising medium can be used to publicize a sales promotion. Answer: True 154) Most consumer sales promotions temporarily change the price/value relationship. Answer: True 155) A merchandising allowance is a discount to a wholesaler or retailer based on the order volume of a product. Answer: False 156) Quaker Oats inserted $5 million worth of gold and silver coins in Ken-L Ration dog food packages. This is an example of a contest. Answer: False 157) What are the basic differences between sales promotion and advertising? Answer: The main difference between sales promotion and advertising is the time frame associated with their objectives. Advertising campaigns are typically crafted to create long-term positive feelings about a brand, a company, or a store. Sales promotions focus on short-term objectives, such as an immediate boost in sales or the introduction of a new product. 158) Explain the difference between the practices of forward buying and diverting. Answer: Forward buying is the practice of purchasing and warehousing a large volume of product offered through a case allowance, drawing on the warehoused product until the manufacturer offers another discount. Diverting is similar. It involves selling the warehoused product after the manufacturer's discount has expired at a price below the manufacturer's regular price but high enough for the selling company to make a profit. 159) A customer has a piece of paper that states that he will receive five dollars off the selling price if he purchases a certain brand of teeth whitening strips. What sales promotion technique is being offered to this customer? Answer: This customer has a coupon. Coupons are certificates for money off on selected products, often with an expiration date, and are used to encourage product trial. 160) A retail salesperson at a department store cosmetics counter gets five dollars every time he sells a bottle of a certain brand of cologne. Explain the type of trade promotion that is being used in this instance. Answer: Push money is the promotion technique being used; it is an incentive program used by a manufacturer to pay a salesperson for selling, or "pushing," its product. Test Bank for Marketing: Real People, Real Choices Michael R. Solomon, Greg W. Marshall, Elnora W. Stuart 9780132948937, 9780135199893, 9780134292663, 9780135209929
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