Chapter 16 - Advertising and Public Relations 1. Describe the major types of advertising. Discuss the differences among them. Answer: Advertising can be classified as institutional or product advertising. Institutional advertising promotes organizational images, ideas, and political issues. It can be used to create or maintain an organizational image. Institutional advertisements may deal with broad image issues, such as organizational strengths or the friendliness of employees. They may also aim to create a more favourable view of the organization in the eyes of noncustomer groups, such as shareholders, consumer advocacy groups, potential shareholders, or the general public. When a company promotes its position on a public issue, institutional advertising is referred to as advocacy advertising. There are two types of product advertising: pioneer and competitive. Pioneer advertising focuses on stimulating demand for a product category by informing potential customers about the product’s features, uses, and benefits. Competitive advertising attempts to stimulate demand for a specific brand by promoting the brand’s features, uses, and advantages, sometimes through indirect or direct comparisons with competing brands. Other forms of competitive advertising include reminder and reinforcement advertising. Reminder advertising tells customers that an established brand is still around and still offers certain characteristics, uses, and advantages. 2. What are the important issues that need to be considered in the process of developing advertising objectives? Answer: Advertising objectives guide campaign development, and therefore advertisers should define objectives carefully. Advertising objectives should be stated clearly, precisely, and in measurable terms. Precision and measurability allow advertisers to evaluate advertising success at the end of the campaign in terms of whether objectives have been met. To provide precision and measurability, advertising objectives should contain benchmarks and indicate how far the advertiser wishes to move from these standards. If the goal is to increase sales, the advertiser should state the current sales level (the benchmark) and the amount of sales increase sought through advertising. An advertising objective should also specify a time frame so that advertisers know exactly how long they have to accomplish the objective. 3. What are the major differences between sales-based and communications-based advertising objectives? Answer: If an advertiser defines objectives on the basis of sales, the objectives focus on increasing absolute dollar sales or unit sales, increasing sales by a certain percentage, or increasing the firm’s market share. Even though an advertiser’s long-run goal is to increase sales, not all campaigns are designed to produce immediate sales. Some campaigns aim to increase product or brand awareness, make consumers’ attitudes more favourable, heighten consumers’ knowledge of product features, or create awareness of positive, healthy consumer behavior, such as nonsmoking. If the goal is to increase product awareness, the objectives are stated in terms of communication. A specific communication objective might be to increase new product feature awareness, such as increased travel point rewards on a credit card from 0 to 40 percent in the target audience by the end of six months. 4. What is an advertising platform? What is the best way to develop a platform? Answer: An advertising platform consists of the basic issues or selling points that an advertiser wishes to include in the advertising campaign. A single advertisement in an advertising campaign may contain one or several issues from the platform. Although the platform sets forth the basic issues, it does not indicate how to present them. An advertising platform should consist of issues important to customers. One of the best ways to determine those issues is to survey customers about what they consider most important in the selection and use of the product involved. Selling features must not only be important to customers, they should also be strongly competitive features of the advertised brand. Research is the most effective method for determining what issues to include in an advertising platform, but customer research can be expensive. Because the advertising platform is a base on which to build the advertising message, marketers should analyse this stage carefully. It has been found that, if the message is viewed as useful, it will create greater brand trust. Campaigns will ultimately fail if the advertisements communicate information that consumers do not deem important when selecting and using the product. 5. Compare the competition-matching approach with the arbitrary approach in determining an advertising appropriation. Which method might more easily lead to overspending or under-spending on the appropriation? Answer: The competition-matching approach is one of the ways to determine advertising appropriation. Marketers following this approach try to match their major competitors’ appropriations in absolute dollars or to allocate the same percentage of sales for advertising that their competitors do. Although a marketer should be aware of what competitors spend on advertising, this technique should not be used alone because the firm’s competitors probably have different advertising objectives and different resources available for advertising. Many companies and advertising agencies review competitive spending on a quarterly basis, comparing competitors’ dollar expenditures on print, radio, and television with their own spending levels. Competitive tracking of this nature occurs at both the national and regional levels. For example, AT&T spends 2.4 percent of sales on advertising, while Verizon spends 2.3 percent of sales. At times, marketers use the arbitrary approach, which usually means a high-level executive in the firm states how much to spend on advertising for a certain period. The arbitrary approach often leads to under spending or overspending. Although hardly a scientific budgeting technique, it is expedient. 6. What are the major components of a media plan? What limitations must be considered as the media plan is implemented? Answer: A media plan sets forth the exact media vehicles to be used and the dates and times the advertisements will appear. The plan determines how many people in the target audience will be exposed to the message. The method also determines, to some degree, the effects of the message on those specific target markets. To formulate a media plan, the planners select the media for the campaign and prepare a time schedule for each medium. The media planner’s primary goal is to reach the largest number of people in the advertising target that the budget will allow. A secondary goal is to achieve the appropriate message reach and frequency for the target audience while staying within budget. Reach refers to the percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period. Frequency is the number of times these targeted consumers are exposed to the advertisement. The content of the message sometimes affects media choice. The cost of media is an important but troublesome consideration. Planners try to obtain the best coverage possible for each dollar spent. Media are selected by weighing the various advantages and disadvantages of each. Like media selection decisions, media scheduling decisions are affected by numerous factors, such as target audience characteristics, product attributes, product seasonality, customer media behavior, and size of the advertising budget. 7. What are the components of a print ad? What are the functions of each component? Answer: Components of a print ad include a headline, a sub headline, body copy, signature, and illustration. Copy is the verbal portion of an advertisement and may include headlines, subhead lines, body copy, and a signature. Not all advertising contains all of these copy elements. The headline is critical because often it is the only part of the copy that people read. It should attract readers’ attention and create enough interest to make them want to read the body copy or visit the website. The sub headline, if there is one, links the headline to the body copy and sometimes serves to explain the headline. Body copy for most advertisements consists of an introductory statement or paragraph, several explanatory paragraphs, and a closing paragraph. The signature identifies the advertisement’s sponsor. It may contain several elements, including the firm’s trademark, logo, name, and address. The signature should be attractive, legible, distinctive, and easy to identify in a variety of sizes. Illustrations are often photographs but can also be drawings, graphs, charts, and tables. Illustrations are used to draw attention, encourage audiences to read or listen to the copy, communicate an idea quickly, or convey ideas that are difficult to express. Illustrations can be more important in capturing attention than text or brand elements, independent of size. They are especially important, because consumers tend to recall the visual portions of advertisements better than the verbal portions. 8. Describe the various methods used to evaluate the advertising effectiveness after a campaign. Answer: Evaluation of advertising effectiveness after the campaign is called a post-test. Advertising objectives often determine what kind of posttest is appropriate. If the objectives’ focus is on communication—to increase awareness of product features or brands or to create more favorable customer attitudes—the posttest should measure changes in these dimensions. Advertisers sometimes use consumer surveys or experiments to evaluate a campaign based on communication objectives. These methods are costly, however. In posttests, generalizations can be made about why advertising is failing or why media vehicles are not delivering the desired results. Posttest methods based on memory include recognition and recall tests. Such tests are usually performed by research organizations through surveys. In a recognition test, respondents are shown the actual advertisement and asked whether they recognize it. If they do, the interviewer asks additional questions to determine how much of the advertisement each respondent read. When recall is evaluated, respondents are not shown the actual advertisement but instead are asked about what they have seen or heard recently. Recall can be measured through either unaided or aided recall methods. In an unaided recall test, respondents identify advertisements they have seen recently but are not shown any clues to help them remember. A similar procedure is used with an aided recall test, but respondents are shown a list of products, brands, company names, or trademarks to jog their memories. 9. What are the advantages of using an advertising agency to develop an advertising campaign? Answer: Most large corporations employ an advertising agency to develop advertising campaigns. When an organization uses an advertising agency, the firm and the agency usually develop the advertising campaign jointly. How much each participates in the campaign’s total development depends on the working relationship between the firm and the agency. Ordinarily, a firm relies on the agency for copywriting, artwork, technical production, and formulation of the media plan. Advertising agencies assist businesses in several ways. An agency, especially a large one, can supply the services of highly skilled specialists—not only copywriters, artists, and production coordinators but also media experts, researchers, and legal advisers. Agency personnel often have broad advertising experience and are usually more objective than a firm’s employees about the organization’s products. Because an agency traditionally receives most of its compensation from a 15 percent commission paid by the media from which it makes purchases, firms can obtain some agency services at low or moderate costs. 10. What is meant by public relations? Discuss its purposes. Answer: Public relations is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. An organization communicates with various stakeholders, both internal and external, and public relations efforts can be directed toward any and all of them. A firm’s stakeholders can include customers, suppliers, employees, shareholders, the media, educators, potential investors, government officials, and society in general. The response to a PR blunder is also important. Organizations that delay their response or that are dishonest with stakeholders are likely to make a bad situation worse. Public relations can be used to promote people, places, ideas, activities, and even countries. It is often used by nonprofit organizations to achieve their goals. Public relations focuses on enhancing the image of the total organization. Assessing public attitudes and creating a favorable image are no less important than direct promotion of the organization’s products. Because the public’s attitudes toward a firm are likely to affect the sales of its products, it is very important for firms to maintain positive public perceptions. In addition, employee morale is strengthened if the public perceives the firm positively. Although public relations can make people aware of a company’s products, brands, or activities, it can also create specific company images, such as innovativeness or dependability. By getting the media to report on a firm’s accomplishments, public relations helps the company maintain positive public visibility. Some firms use public relations for a single purpose; others use it for several purposes. 11. Discuss how event sponsorship can be used as a public relations tool. Answer: Event sponsorship, in which a company pays for part or all of a special event, like a benefit concert or a tennis tournament, is another public relations tool. Examples are CocaCola’s sponsorship of the FIFA World Cup and Special Olympics. Sponsoring special events can be an effective means of increasing company or brand recognition with relatively minimal investment. Event sponsorship can gain companies considerable amounts of free media coverage. An organization tries to ensure that its product and the sponsored event target a similar audience and that the two are easily associated in customers’ minds. 12. Discuss four publicity-based public relations tools. Answer: Publicity is a part of public relations. Publicity is communication in news-story form about the organization, its products, or both, transmitted through a mass medium at no charge. Publicity is a very important aspect of public relations. Publicity can be used to provide information about goods or services; to announce expansions or contractions, acquisitions, research, or new-product launches; or to enhance a company’s image. The most common publicity-based public relations tool is the news release, sometimes called a press release, which is usually a single page of typewritten copy containing fewer than 300 words and describing a company event or product. A news release gives the firm’s or agency’s name, address, phone number, and contact person. Companies sometimes use news releases when introducing new products or making significant announcements. A feature article is a manuscript of up to 3,000 words prepared for a specific publication. A captioned photograph is a photograph with a brief description explaining its contents. Captioned photographs are effective for illustrating new or improved products with highly visible features. There are several other kinds of publicity-based public relations tools. For example, a press conference is a meeting called to announce major news events. Media personnel are invited to a press conference and are usually supplied with various written materials and photographs. 13. What approaches can be used to evaluate the effectiveness of public relations programs? Answer: A public relations audit is used to assess an organization’s image among the public or to evaluate the effect of a specific public relations program. A communications audit may include a content analysis of messages, a readability study, or a readership survey. One approach to measuring the effectiveness of publicity-based public relations is to count the number of exposures in the media. To determine which releases are published in print media and how often, an organization can hire a clipping service, a firm that clips and sends news releases to client companies. Counting the number of media exposures does not reveal how many people have actually read or heard the company’s message or what they thought about the message afterward. However, measuring changes in product awareness, knowledge, and attitudes resulting from the publicity campaign helps yield this information. To assess these changes, companies must measure these levels before and after public relations campaigns. Although precise measures are difficult to obtain, a firm’s marketers should attempt to assess the impact of public relations efforts on the organization’s sales. For example, critics’ reviews of films can affect the films’ box office performance. 14. What steps should an organization take to be able to deal effectively with negative public relations? Answer: To protect its image, an organization needs to prevent unfavorable public relations or at least lessen its effect if it occurs. First and foremost, the organization should try to prevent negative incidents and events through safety programs, inspections, training, and effective quality control procedures. Experts insist that sending consistent brand messages and images throughout all communications at all times can help a brand maintain its strength even during a crisis. However, because negative events can strike even the most cautious firms, an organization should have plans in place to handle them when they do occur. Firms need to establish policies and procedures for reducing the adverse impact of news coverage of a crisis or controversy. In most cases, organizations should expedite news coverage of negative events rather than try to discourage or block them. If news coverage is suppressed, rumors and other misinformation may replace facts and create public scrutiny. 15. Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is called ________ advertising. A. institutional B. product C. organizational D. pioneer E. advocacy Answer: A 16. Parisian Dry Cleaners airs a series of radio ads that claim, "We are the fastest dry cleaners in town." This campaign would best be described as ________ advertising. A. pioneer B. target C. product D. institutional E. advocacy Answer: D 17. The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. This type of promotion would best be characterized as ________. A. public relations B. product advertising C. advocacy advertising D. institutional advertising E. comparative advertising Answer: D 18. When a company promotes its position on a public issue, this is specifically referred to as ________ advertising. A. institutional B. product C. advocacy D. issue E. competitive Answer: C 19. When Anheuser-Busch ran an advertising campaign featuring the slogan, "Know when to say when," it was using: A. competitive advertising. B. public relations. C. product advertising. D. public service awareness. E. advocacy advertising. Answer: E 20. Tropicana orange juice has a television commercial where a young boy is drinking orange juice at dinner. He remarks that he likes the great taste of Tropicana anytime. The element of the commercial that focuses on drinking orange juice at dinner would be best classified as ________, while the focus on the great taste of Tropicana would be best classified as ________. A. comparative advertising; informative advertising B. pioneer advertising; competitive advertising C. institutional advertising; stimulating primary demand D. product advertising; institutional E. comparative advertising; competitive advertising Answer: B 21. The two major types of product advertising are: A. institutional advertising and advocacy advertising. B. pioneer advertising and competitive advertising. C. competitive advertising and comparative advertising. D. advocacy advertising and competitive advertising. E. informative advertising and comparative advertising. Answer: B 22. The “Got milk?” print campaign is advertising that stimulates demand for a(n) ________, known as ________ advertising. A. product category; pioneer B. product brand; competitive C. product category; institutional D. brand category; pioneer E. product; comparative Answer: A 23. Which of the following lists forms of competitive advertising? A. Pioneer, comparative, and reminder advertising B. Reminder, repetitive, and reinforcement advertising C. Comparative, reminder, and reinforcement advertising D. Institutional, product, and comparative advertising E. Product, pioneer, and reminder advertising Answer: C 24. When Volvo’s advertising campaign mentions that the Volvo CX60 has the highest safety rating of any European sedan, it is using ________ advertising. A. advocacy B. comparative C. competitive D. defensive E. institutional Answer: C 25. Coors Inc. advertises that its beer is the only one that is kept cold from the brewery to the store. This type of advertising is called ________. A. advocacy advertising B. competitive advertising C. comparative advertising D. defensive advertising E. institutional advertising Answer: B 26. Tercile Products Company advertises a specific product heavily, and Carbone Products Company wants to offset the effects of that advertising. In this case, Carbone would most likely employ ________ advertising. A. competitive B. pioneer C. institutional D. primary E. target Answer: A 27. Soft drink companies advertise that their products beat the competition in national "taste tests," and they refer to the rival brands by name. This type of advertising is best described as ________. A. pioneer B. advocacy C. comparative D. defensive E. selective Answer: C 28. Brands that are promoted through comparative advertising are most likely to be ________. A. market leaders B. brands that are attempting to compete with market leaders C. primarily services rather than tangible goods D. attempting to compete on a non-price basis E. competing in a less competitive market Answer: B 29. The advertising campaign for Crest toothpaste lets consumers know about its newest flavor, and also mentions its history as an established brand. The ad also mentions Crest’s advantages and benefits. Crest’s advertising would be classified as ________. A. repetitive advertising B. reminder advertising C. pioneer advertising D. advocacy advertising E. reinforcement advertising Answer: B 30. An advertisement for a multivitamin that claims, "We still bring you everything you need to get through your day in one pill," would most likely be considered as ________ advertising. A. reinforcement B. advocacy C. comparative D. reminder E. institutional Answer: D 31. Reinforcement advertising is primarily targeted at: A. new potential target markets. B. users of competitors' brands and products. C. anyone who uses that type of product. D. all the stakeholders of an organization. E. the current users of a particular product. Answer: E 32. Dial Soap's advertising slogan "Aren't you glad you use Dial? Don't you wish everybody did?" exemplifies the use of ________ advertising. A. reinforcement B. offensive C. comparative D. institutional E. defensive Answer: A 33. The target audience for an advertising campaign is the: A. information base on which to develop the campaign. B. geographic distribution of persons. C. people at whom advertisements are aimed. D. overall goal of the advertising campaign. E. sales objective to be achieved by the campaign. Answer: C 34. The first stage in the development of any advertising campaign is: A. creating the message. B. setting the budget. C. identifying the advertising target audience. D. defining the advertising objectives. E. creating the advertising platform. Answer: C 35. The last stage in the development of any advertising campaign is: A. creating the advertising platform. B. developing the media plan. C. creating the advertising message. D. evaluating the effectiveness of advertising. E. defining the advertising objectives. Answer: D 36. After the target audience for an advertising campaign has been identified and analyzed, marketers should then proceed by: A. creating the advertising platform. B. determining the financial resources available. C. defining the advertising objectives. D. developing a media plan. E. creating an advertising message. Answer: C 37. After the advertising budget is determined, the next step in creating an advertising campaign is: A. creating the advertising message. B. creating the advertising platform. C. evaluating the advertising objectives. D. executing the campaign. E. developing the media plan. Answer: E 38. The step in developing an advertising campaign that directly precedes campaign execution is: A. defining advertising objectives. B. creating the advertising platform. C. evaluating advertising effectiveness. D. developing a media plan. E. creating the advertising message. Answer: E 39. Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance by 10 percent by the end of the fiscal year." This would be considered a(n) ________. A. target audience goal B. advertising platform C. percent-of-sales approach D. advertising objective E. media plan goal Answer: D 40. When developing an advertising campaign, benchmarks need to be included in the ________. A. campaign platform. B. evaluation of the advertising effectiveness. C. statement of advertising objectives. D. media plan. E. budget. Answer: C 41. Why should a benchmark statement be included in advertising objectives? A. Shareholders want to see where a company is in relation to competition. B. It is useful in determining whether retailers have increased their sales over the year. C. It gives an indication of how the advertising message is best presented. D. Without a reference point, it is difficult to determine to what degree objectives have been accomplished. E. Objectives become more easily attainable when such a statement is included. Answer: D 42. The owner of a professional baseball team asks the account representative of an advertising agency to develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account representative logically begins to discuss establishing ________ for the campaign. A. the target audience B. a budget C. a media plan D. objectives E. advertising directives Answer: A 43. Dan is responsible for developing the promotional campaign for Under Armour’s new line of footwear for teens. He will be writing advertising campaign objectives that are aimed at making the target customers' attitudes more favorable toward Under Armour, which should be stated in terms of ________. A. communication B. sales C. demand D. market E. survey Answer: A 44. If an advertising campaign is aimed at increasing brand awareness and consumers' knowledge of a product's features, the advertising objective should be stated in terms of ________. A. market share B. dollar sales C. unit sales D. communication E. long-run goals Answer: D 45. An advertising platform is the: A. basic issue or selling point that an advertiser wishes to include in an advertising campaign. B. objective of the advertising campaign stated in precise and measurable terms. C. form in which the basic issues of the campaign should be presented. D. broad objectives of the advertising campaign. E. group of customers on whom research is conducted regarding the use of the product being advertised. Answer: A 46. The basic issues or selling points that an advertiser wants to include in an advertising campaign form the: A. advertising objectives. B. target audience objectives. C. media plan. D. advertising message. E. advertising platform. Answer: E 47. Before launching a new advertising campaign, marketers for Healthy Choice frozen dinners must determine the selling points that they want to include in the advertisements. The identification and organization of these selling points is called the ________. A. advertising appropriation B. objective-and-task approach C. advertising platform D. advertising objective E. advertising budget Answer: C 48. Frederick Griffith of Griffith's department stores tells his marketing director that he is tired of the constant pricecentered advertising by the firm's agency. "We have the best customer service in town, and I feel that is what we should be hanging our hats on," he states. This statement is most appropriate for use in which of the following stages of campaign development? A. Determining the appropriations B. Creating the platform C. Identifying the target D. Defining objectives E. Developing the media plan Answer: B 49. An advertising platform should consist of issues that are important to consumers. Selling features should be important to consumers and should be features that: A. competitive products lack. B. can be seen easily in a photograph. C. are familiar concepts to those in the target market. D. competitive products have as well. E. are reasonably inexpensive to develop. Answer: D 50. Chloe is employed by an advertising agency and is currently working on the advertising platform for a client. The most effective method of determining platform issues is to use ________. A. opinions of personnel within the firm B. opinions of advertising experts C. a survey of customers D. opinions of expert marketers in the industry E. a chart that compares the issues addressed by the advertising campaign of a competing brand with that of the brand to be advertised Answer: C 51. What is an advertising platform most commonly based upon? A. The opinions of employees within the firm or the advertising agency B. Data collected from past marketing research about the brand C. Customer surveys about what they consider the most important issues D. Retailer information about potential consumers of the product E. The advertising appropriation for that particular ad campaign Answer: C 52. The total amount of money a marketer allocates for advertising for a specific time period is the ________. A. media plan B. advertising appropriation C. objective-and-task approach D. promotion grant E. advertising platform Answer: B 53. Advertising appropriations are largest for ________. A. business products B. convenience goods C. high-priced products D. specialty goods E. books Answer: B 54. Sony Corporation has a particular approach for determining its advertising appropriation. A problem with this technique, however, is that the people in the marketing department have difficulty estimating the level of effort needed to achieve certain goals. This problem is characteristic of the ________ approach. A. reliable-appropriation B. match-competition C. arbitrary D. objective-and-task E. percent-of-sales Answer: D 55. The main problem with using the objective-and-task approach to setting an advertising budget is that: A. it is based on the idea that sales create advertising rather than advertising creates sales. B. it often results in overspending or underspending of the firm's resources. C. it does not achieve full potential in terms of stimulating demand. D. the marketer may experience difficulty when trying to estimate accurately the level of effort needed to achieve goals. E. it is difficult to determine the objectives of the campaign. Answer: D 56. Danielle Robinson, account representative for Experts Advertising, tells D'Orazio Tile Products that she is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an increase in consumer and builder inquiries of 15 percent. This approach is an example of ________ method of determining advertising expenditure levels. A. competitive parity B. percent of sales C. arbitrary D. affordability E. objective-and-task Answer: E 57. To determine how much money to spend on advertising, marketers for a new brand of caffeinated energy drink decided that they wanted the advertising to create awareness of the new flavor in 80 percent of the energy drink market within one month of introduction. The marketers then determined how much it would cost to reach this goal. This is an example of ________ approach toward determining advertising budgets. A. objective-and-task B. percent of sales C. competition matching D. arbitrary allocation E. past-year comparison Answer: A 58. When using the percentage-of-sales approach for determining the advertising appropriation, marketers: A. base their funding on a percentage of the competitors' sales. B. multiply the firm's past sales by a set percentage they want to spend. C. set sales objectives for the upcoming period and base appropriations on these goals. D. multiply the firm's past sales, plus a factor for expected changes in sales by a standard percentage. E. use an industry standard to determine what percentage of their profits they want to allocate to advertising. Answer: D 59. If Target were to base its advertising appropriation on the amount that Walmart spends, it would be using the ________ approach. A. objective-and-task B. percent-of-sales C. industry-standard D. arbitrary E. competition-matching Answer: E 60. Colin McKinney, director of marketing for Greenwald Industrial Products, complains to his advertising director that the continuing slump in orders has apparently been perpetuated by the firm's failure to have the necessary advertising expenditures. Based on this information, Greenwald is most likely using the ________ approach to determine its advertising expenditures. A. percent-of-sales B. objective-and-task C. competition-matching D. arbitrary E. judgmental Answer: A 61. Alan is the CEO of Greenspring Landscaping Corp. At the recent budget planning meeting, Alan stated that last year’s sales were down from the previous period. He then went on to say that Greenspring’s would have a budget of $100,000 for advertising in the coming year. In this instance, Alan was using the ________. A. arbitrary approach B. executive decision process C. objective-and-task approach D. percentage-of-sales approach E. competition-matching approach Answer: A 62. An advantage of the percent-of-sales approach for determining the advertising appropriation is that ________. A. it is objective B. marketers can accurately estimate the level of effort needed to attain certain objectives. C. it is scientific D. it is logical and inexpensive E. it is easy to implement Answer: E 63. After developing the budget for advertising the Kia Soul automobile, marketing managers at Kia Inc. determined what proportion of that budget would be spent on television, radio, and magazine advertisements based on the cost effectiveness of each. This subsequent allocation of the budget is known as a(n) ________ plan. A. advertisement-allocation B. media C. arbitrary allocation D. objective-and-task E. percent-of-sales Answer: B 64. A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n) ________. A. advertising plan B. media plan C. advertising message D. advertising appropriation E. media platform Answer: B 65. The primary goal of a media planner is to: A. choose the best commercial spots available. B. develop a message that works well with the firm's target market. C. achieve the appropriate message reach and frequency. D. use a wide variety of media to ensure the entire target audience is exposed. E. reach the largest number of people in the target market within the budget constraints. Answer: E 66. The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of ________. A. frequency B. exposure C. reach D. targeting E. push Answer: C 67. The maker of Huggies diapers is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. This is advertising ________. A. reach B. repetition C. frequency D. targeting E. exposure Answer: C 68. Which of the following statements applies to media planning? A. Characteristics of the product are the most important consideration in selecting the media for a campaign. B. The message content affects the types of media used for an advertising campaign. C. The location of the advertising target is irrelevant in media planning. D. Total media dollars spent on advertising have decreased over the last 30 years. E. Regardless of the message to be conveyed, newspapers are one medium that is appropriate for almost any circumstances. Answer: B 69. A tool that allows an advertiser to compare the costs of several media vehicles within a specific medium relative to the number of persons reached by each vehicle is called a(n) ________. A. cost comparison indicator B. media comparison selector C. unit-price selector D. cost/person index E. vehicle/price indicator Answer: A 70. Dominos is looking into magazine advertising for its pizza. The company wants to reach as many people as possible, but due to budget constraints Dominos must reach consumers as efficiently as possible. What can Domino's use to evaluate various magazines? A. A cost comparison indicator B. The total circulation of the magazines C. A list of the costs of a one-page ad in various magazines D. The advertising appropriations for each magazine E. An index of advertisement exposure Answer: A 71. The cost per thousand impressions (CPM) indicator shows: A. the cost to expose 1,000 people to a television commercial. B. the cost to expose 1,000 people to a one-page magazine advertisement. C. the return on investment marketers get for their advertising dollar. D. the cost to expose a million people to any type of advertisement. E. how one media source compares to a different source for reaching target markets. Answer: B 72. The three general types of media schedules are: A. pulsing, beating, and continuous. B. short, medium, and long-term. C. morning, afternoon, and evening. D. pulsing, continuous, and flighting. E. light, heavy, and alternating. Answer: D 73. A schedule in which advertisements run for set periods of time, alternating with periods in which no ads run is known as ________ schedule. A. continuous B. skipping C. pulsing D. flighting E. alternating Answer: D 74. Disney decided to run its new commercials for all of its theme parks several times a day for three weeks and then not at all for two weeks. It will then run the commercials again for three more weeks. Disney is using a ________ schedule for its advertising. A. flighting B. varying C. continuous D. pulsing E. beating Answer: A 75. If during an advertising campaign a certain portion of advertising runs continuously, and then during specific periods additional advertising is used to intensify the level of communication, a(n) ________ media schedule is being used. A. beating B. alternating C. flighting D. continuous with emphasis E. pulsing Answer: E 76. During the duration of an advertising campaign, Verizon Wireless ran television advertisements at a steady rate throughout the week and intensified its message with newspaper advertising in many major newspapers in the Sunday paper. Verizon Wireless used a(n)________ media schedule. A. flighting B. continuous C. pulsing D. alternating E. multimedia Answer: C 77. Brian and Tiffany are discussing the media plan for the opening of their new laundromat called Soap and Suds. While talking to Tiffany, Brian agrees that ________ has a tremendous impact. However, he feel that the upfront costs for such a campaign cannot be covered, at present, in their modest budget. A. radio B. outdoor C. television D. the Internet E. newspaper Answer: C 78. As Oscar Meyer puts together its advertising campaign for the summer, it will need to keep in mind that its desire to use outdoor advertising will have strong effects on its selection of the advertising ________. A. message B. budget C. platform D. audience analysis E. objectives Answer: A 79. A marketer who wants to include detailed information in advertisements would most likely use ________. A. radio B. television C. outdoor displays D. magazines E. mass transit Answer: D 80. The verbal portion of an advertisement, including headlines, body, and signature, is called the ________. A. artwork B. copy C. storyboard D. layout E. script Answer: B 81. An ad's ________ is designed to attract readers' attention and develop interest so that they will read the entire advertisement. A. signature B. layout C. headline D. artwork E. sub headline Answer: C 82. Todd is developing a print advertisement for Afflac. He knows that the ________ is a critical component of the copy because ________. A. headline; it determines the final layout design B. headline; it is often the only part of the advertisement that is read C. artwork; it takes up the most space D. tag line; it links the copy to the signature E. slogan; it links the artwork to the signature Answer: B 83. As Will reads the copy for South Beach Hotel's upcoming magazine ad in Southern Living, he worries that no one will spend the time to read all the details of the facilities his resort has to offer. Wanting to have the greatest impact, Will focuses his creative efforts on the ________. A. copy B. body C. text D. signature E. headline Answer: E 84. The identification of an advertisement's sponsor is the ________. A. copy B. signature C. trademark D. layout E. sub headline Answer: B 85. The advertising department for the Pennzoil Corporation is working on a print advertisement for a new product. At this point, the layout contains a phrase to attract attention, an additional phrase to provide an explanation, an illustration to show the product, and a paragraph to explain the advantages and benefits of the product. What other important element should be included? A. Headline B. Subhead line C. Signature D. Artwork E. Body copy Answer: C 86. Rachel is considering advertising her new restaurant on the radio to attract more customers. She knows that in order to attract listeners' attention on the radio it will be important for her to: A. use a high level of repetition. B. buy a really long time slot to get all the information in. C. be both informal and conversational in tone. D. use a quick speaker to attract attention to the commercial. E. say the restaurant's name and location three separate times. Answer: C 87. Steve is aware of the growth in digital media advertising, particularly to certain target markets. The use of advertising on digital devices can alienate some consumers. Steve has uncovered recent research stating that young consumers are more likely to be receptive to advertising appearing on their digital devices if the source is ________; ________ is been given, and the messages are ________. A. known; a coupon; exciting. B. trusted; permission; entertaining. C. liked; permission; with a monetary benefit. D. trusted; a discount; educational. E. known; a discount; humorous. Answer: B 88. When a copywriter and an artist combine the copy with the visual material for a television commercial, it usually is done through use of a ________. A. parallel format B. commercial layout C. layout procedure D. storyboard E. visual-impact process Answer: D 89. Artwork, a major part of most advertisements, consists of the: A. illustration and the signature. B. illustration and the layout. C. illustration and type of print used in the headlines. D. layout and the signature. E. method by which all the components are put together. Answer: B 90. The ________ design element of an advertisement is used to attract attention, communicate an idea quickly, or communicate ideas that are difficult to put into words; the ________ is the physical arrangement of the illustration, headline, sub headline, body copy, and the signature. A. illustration; layout B. headline; layout C. layout; design D. layout; storyboard E. signature; layout Answer: A 91. Brittany is choosing the type of media for a new promotional campaign for Halls cough drops. She knows that each type of media has both benefits and disadvantages. She is considering the Internet as a form of media. Which of the following is NOT a disadvantage of the Internet as a promotional medium? A. The costs of precise targeting are high. B. The effects of promotion can be difficult to measure. C. There are concerns about privacy. D. The message must be short and simple. E. There are concerns about security. Answer: D 92. Julie Reese is working on developing a magazine advertisement for Planet Fitness, a health and fitness club. She knows what she wants the advertisement to say and the illustrations she wants to use, but she is having a tough time putting it all together. Julie is having trouble determining the ________. A. storyboard B. artwork C. copy D. presentation E. layout Answer: E 93. The effectiveness of an advertising campaign can be measured: A. only after the campaign has been carried out completely and results have been tabulated. B. only before the campaign begins, to prevent unnecessary expenditures. C. during the campaign to determine whether more or less funds should be allocated, but not after the campaign. D. several weeks after the beginning of the campaign to determine whether the campaign is headed in the right direction. E. before, during, and after the campaign through the use of pretests, inquiries, and posttests. Answer: E 94. An evaluation performed before an advertising campaign begins is a ________. A. consumer exam B. posttest C. recognition test D. pretest E. recall test Answer: D 95. Mike Stevens wonders whether the creative idea of using the character "Tom T. Turtle" as an image for marketing a new line of running shoes will be successful. He should suggest to his account representative that a(n) ________ be used to pretest the campaign. A. storyboard B. survey C. experiment D. GSR test E. consumer jury Answer: E 96. A consumer jury is a: A. group of consumers who have purchased the product before they evaluate its effectiveness. B. panel of potential buyers of the advertised product brought together to pretest an advertising message. C. panel of buyers who review and evaluate an advertising message after it has been circulated in certain regions. D. group of consumers who determine whether or not consumers have been treated fairly by companies. E. marketing research firm which ranks the effectiveness of advertisements. Answer: B 97. General Mills used a panel of consumers to evaluate its Cheerios campaign featuring children who read the cereal box and try to persuade their parents to watch their cholesterol. These consumers judged the advertisements prior to the execution of the advertising campaign. This is an example of a(n) ________. A. pretest B. inquiry C. recognition test D. recall test E. posttest Answer: A 98. Matt was in a group considered to be actual or potential purchasers of a new mountain bike produced by Specialized Sports. He and the other consumers were shown three different advertisements and asked to judge several dimensions of each one. Matt was part of a(n) ________. A. posttest consumer group B. panel of advertising experts C. consumer jury D. customer ad panel E. ad preview group Answer: C 99. Measuring effectiveness during a campaign is usually accomplished by using ________. A. pretests B. posttests C. consumer juries D. inquiries E. sales force surveys Answer: D 100. Recognition and recall tests are posttest methods based on ________. A. mail surveys B. memory C. inquiries D. preferences E. in-depth interviews Answer: B 101. Some of the posttest methods for measuring advertising effectiveness are based on how well consumers remember advertising and include (1) recognition tests and (2) recall tests. What is the basic difference between these two approaches? A. The actual ads are shown in the former but not in the latter. B. The former method relies on memory alone, and the latter shows the actual ads. C. One uses a consumer jury; the other uses random individuals. D. The respondents are given class clues in the latter but not in the former. E. One is used primarily by the government, and the other is used by private businesses. Answer: A 102. Carla is stopped by a researcher at a shopping mall and asked which was the last television commercial she remembers seeing. This is an example of a(n) ________. A. unaided recall test B. pretest C. recognition test D. aided recall test E. memory test Answer: A 103. When respondents are shown a list of various products, brands, and company names and then asked about advertisements they have seen lately, researchers are conducting a(n) ________. A. unaided recall test B. pretest C. recognition test D. aided recognition test E. aided recall test Answer: E 104. What is the primary justification marketers use for conducting recognition and recall tests? A. Researchers find that recalling an advertisement has a strong link to purchasing a product. B. People have unfavorable views of advertising and are unlikely to purchase advertised products. C. Consumers tend to enjoy participating in these tests and are likely to purchase the products as a result. D. People are more likely to buy a product they have seen advertised than one they have not seen advertised. E. There is a strong link between advertisement recall/recognition and word-of-mouth communication. Answer: A 105. When individuals' behaviors are tracked from television sets to checkout counters using equipment provided by the marketer, this is known as ________. A. family behavior recording B. single-source data C. individual consumer jury D. advertisement exposure data E. detailed market research Answer: B 106. Darcy presents an identification card at the supermarket checkout and has a microcomputer attached to her TV. Information from both of these is sent to a research facility. Darcy is providing: A. family behavior recording. B. individual consumer opinion. C. single-source data. D. advertisement exposure data. E. detailed market research. Answer: C 107. An advertising campaign is typically developed by an individual or a few persons within the firm, an advertising department within the organization, or ________. A. an advertising agency B. a group of media specialists C. a group of multi-skilled managers D. a "special projects" group E. freelance advertising consultants Answer: A 108. Grant is responsible for the marketing promotions of a small firm of consultants. It is most likely that his firm will use ________ to create and implement its advertising campaigns. A. an advertising agency B. a group of multi-skilled managers C. an advertising department D. a freelance specialist E. one or two individuals Answer: E 109. When an organization uses an advertising agency, ________ develops the advertising campaign. A. the agency's specialists B. the firm and the agency working jointly C. the firm suggests ideas and the agency chooses among them D. the advertising department within an organization E. an individual or a few persons within the firm Answer: B 110. ________ provide businesses with copywriters, artists, production coordinators, media experts, researchers, and other highly skilled specialists. A. Public relation firms B. Media companies C. Advertising agencies D. Production companies E. Promotion experts Answer: C 111. Advertising agencies typically receive: A. large fees from the companies whose ads they develop and place. B. a 15 percent commission from the company whose product they are helping advertise. C. a 10 percent commission from the advertising company and 10 percent from the media they use. D. a 25 percent commission paid by the media from which it makes purchases. E. a 15 percent commission paid by the media from which it makes purchases. Answer: E 112. The Bentley Agency places $2,500 in radio spots and $17,500 in television spots for Darnell Insurance in June. For its efforts this month, the agency "traditionally" would receive ________ in compensation from the two media. A. $2,500 B. $10,000 C. $1,000 D. $5,500 E. $3,000 Answer: E 113. ________ is a broad set of communication activities used to create and maintain favorable relations between the organization and its stakeholders. A. Advertising B. Trade relations C. A press strategy D. Public relations E. Publicity Answer: D 114. Monroe works for NASCAR where his responsibilities include maintaining favorable relationships between the organization and its stakeholders. Monroe is most likely employed in ________. A. sales B. advertising C. human resources D. public relations E. digital media marketing Answer: D 115. Which of the following is not a public relations tool? A. Feature article B. Company magazine C. News release D. Annual report E. Product sample Answer: E 116. Toyota's sponsorship of a major Professional Golf Association tournament would be an example of a(n) ________ tool. A. advertising B. public relations C. sales promotion D. publicity E. personal selling Answer: B 117. A major benefit of using event sponsorship is that it: A. enhances personal selling efforts. B. provides excellent support for advertisements. C. can provide large amounts of free media coverage. D. is cost-free. E. neutralizes the effects of unfavorable public relations. Answer: C 118. Which of the following is the most important consideration when choosing an event to sponsor? A. Reasonable association between the event and the company's product B. The length of the event C. When the event occurs D. Whether or not the event is a national or an international event E. The specific name of the event Answer: A 119. Recently the local television station communicated a news story about the new specialized medical mart opened by Cleveland Clinic. The story provided information about the various services that the new medical mart would offer and how to get in touch with the service providers. This story is most likely an example of ________. A. institutional advertising B. publicity C. public announcement D. sales promotion E. direct marketing Answer: B 120. Kohl's, a department store featuring clothing and houseware, communicates in news story form about its organization and its efforts to support local children's hospitals. This information is transmitted through mass media at no charge and is therefore called ________. A. news reporting B. public announcement C. mass communications D. free advertising E. publicity Answer: E 121. Which of the following is the most commonly used type of publicity-based public relations tool? A. News release B. Captioned photograph C. Feature article D. Press conference E. Letter to the editor Answer: A 122. A single page of typewritten copy that has 300 words or less and describes a company event or product is called a ________. A. press story B. feature article C. captioned paragraph D. news release E. publicity bulletin Answer: D 123. The public relations department at Lowe's Home Improvement submits one page of typewritten copy to national newspapers and news web sites to announce its one-day, nationwide clean-up-local-parks event. This is an example of a ________. A. feature article B. public update C. news release D. media bulletin E. publicity stunt Answer: C 124. If a company calls a meeting to announce a major news event, this is known as a ________. A. media call B. press conference C. news release D. press release E. public service announcement Answer: B 125. To announce its development of a solid fuel titanium rocket for the U.S. missile defense system, Unijet management feels it needs to get wide media coverage. Under these circumstances, which of the following would be its best alternative? A. Captioned photograph B. Feature article C. Editorial letters D. Television advertisement E. Press conference Answer: E 126. If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the public and get wide media coverage would be through a: A. captioned paragraph. B. press release. C. feature article. D. sponsorship. E. press conference. Answer: E 127. Brian is responsible for the promotions and public relations of his firm, which produces rubber tires. A recent development in technology may change the way in which the rubber for tires is produced, allowing it to be sourced from the roots of dandelion plants. Brian would like to have a story run on the evening news or in the local newspaper about this development, but he knows that this story is likely to be rejected by media personnel because the material is: A. too long. B. written at too high a reading level. C. submitted by an organization that the media does not like. D. not persuasive enough. E. not newsworthy. Answer: E 128. The limitations in using publicity-based public relations tools stem primarily from the fact that: A. marketers alter the length of publicity releases. B. publicity is never properly managed by media personnel. C. media personnel consider only unfavorable messages as newsworthy. D. it is time-consuming to convince media personnel that the information is newsworthy. E. media personnel control the content of the communication. Answer: E 129. Which of the following is not an advantage of using publicity-based public relations tools? A. Control by media personnel of the content and timing of messages B. Credibility C. Strong news value D. Follow-up word-of-mouth communications E. A favorable perception of being endorsed by the media Answer: A 130. A firm can identify changes in public opinion that affect it by conducting ________. A. environmental monitoring B. consumer polling C. a consumer jury D. a communications audit E. a press conference Answer: A 131. A content analysis of an organization's messages, readability studies, and readership surveys are all tools used to conduct a(n) ________. A. consumer survey B. public relations audit C. environmental audit D. communications audit E. social audit Answer: D 132. Home Depot is interested in knowing how its efforts to act in a socially responsible manner through its Habitat for Humanity and disaster relief efforts have affected stakeholders' views of the company. Home Depot should conduct a(n) ________. A. social audit B. publicity audit C. environmental audit D. communications audit E. environmental impact study Answer: A 133. One way for a company to measure the effectiveness of its publicity-based public relations efforts is to: A. tabulate the equivalent in advertising dollars if the time and space were purchased. B. ask for return of reply cards. C. calculate market share increase. D. count the number of exposures in the media. E. conduct an environmental audit of media alternatives. Answer: D 134. In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations is to: A. discourage news coverage of the event. B. deny that the event occurred. C. facilitate news coverage of the event. D. hire a public relations firm. E. refrain from publicity that reports the event. Answer: C Scenario 18.1 Use the following to answer the questions. The Toyota Corporation is developing its promotional plan for the coming year and is considering several types of advertising to communicate its messages. Toyota will likely advertise its new vehicle, the Venza, on TV, on its website, in major national magazines, and through Facebook. It is possible that the ads could focus on the features of the Venza and its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs. 135. Refer to Scenario 18.1. Toyota's television advertisements for the new Venza are examples of ________, while its Facebook ads are examples of ________ advertising. A. publicity; product B. institutional advertising; comparative C. product advertising; social media D. comparative advertising; social media E. pioneer advertising; social media Answer: C 136. Refer to Scenario 18.1. If the ads include both the Venza and the Ford Edge, they would be examples of ________. A. institutional advertising B. public relations C. product advertising D. comparative advertising E. reminder advertising Answer: D 137. Refer to Scenario 18.1. Advertisements such as the one proposed above for the Camry and hybrid SUVs, are most likely an example of ________. A. product advertising B. comparative advertising C. competitive advertising D. institutional advertising E. reminder advertising Answer: E 138. Refer to Scenario 18.1. The advertising mentioned above in which Toyota features all brands of the company would be an example of ________. A. competitive advertising B. institutional advertising C. comparative advertising D. pioneer advertising E. product advertising Answer: B Scenario 18.2 Use the following to answer the questions. The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance Company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves over 1.9 million bank accounts. 139. Refer to Scenario 18.2. In 2008, Cal Ripken, Jr. and State Farm teamed up to promote State Farm's national teen driver safety program. The marketing division at State Farm produced a one-page document that described the partnership, which was then published in several national newspapers and on the Internet. The document from State Farm is an example of ________, while the publication in the newspapers is an example of ________. A. public relations; publicity B. public relations; a news release C. publicity; advocacy advertising D. a news release; publicity E. publicity; a news release Answer: D 140. Refer to Scenario 18.2. When deciding on its advertising allocation for the coming year, State Farm Insurance could choose to spend the same amount as Safe Auto, another auto insurance company, or it could allocate an amount that is 10% of last year’s premiums. If State Farm uses the same amount as Safe Auto, this method of advertising appropriation is known as the ________ approach; if State Farm uses the amount based on last year’s premiums, the method would be ________. A. competition-matching; percent-of-sales B. arbitrary; competition-matching C. competition-matching; objective-and-task D. arbitrary; objective-and-task E. objective-and-task; percent-of-sales Answer: A 141. Refer to Scenario 18.2. If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one problem with this method is that: A. it makes the bookkeeping too difficult. B. it is tied too closely to sales forecasts. C. a sales decline leads to an increase in the advertising appropriation. D. a drop in sales would cause a drop in the advertising budget. E. competitors may have different advertising objectives. Answer: D 142. Refer to Scenario 18.2. If State Farm Bank decided that it wanted to increase its number of bank customers by 10% in the coming year, it would most likely use the ________ approach to advertising allocation. A. arbitrary B. competition-matching C. objective-and-task D. percent-of-sales E. percent-of-customer Answer: C 143. Advertising is paid, nonpersonal communication transmitted through mass media. A. True B. False Answer: True 144. Business organizations are the only major users of advertising. A. True B. False Answer: False 145. Institutional advertising and promotional advertising are the two basic categories of advertising. A. True B. False Answer: False 146. Advertisements that promote goods and services are called advocacy advertisements. A. True B. False Answer: False 147. Product advertising is often used to stimulate demand directly. A. True B. False Answer: True 148. If a commercial advertisement compares one brand of laundry detergent to another brand, this is a type of competitive advertising. A. True B. False Answer: True 149. Pioneer advertising involves describing the features and benefits of a product in contrast to a direct competitor. A. True B. False Answer: False 150. If a restaurant, known for its delicious food and fun entertainment, does not serve alcohol, it is displaying advocacy advertising. A. True B. False Answer: False 151. In a comparative advertisement, advertisers point out that their brand has characteristics that are superior to those of competing brands, but they do not actually mention the brand names of competitors. A. True B. False Answer: False 152. Comparative advertisements mention the actual names of competing brands. A. True B. False Answer: True 153. Reinforcement advertising tells current users how to get the most satisfaction from the brand they have chosen. A. True B. False Answer: True 154. Reminder advertising is not applicable to new products. A. True B. False Answer: True 155. Almost all advertising campaigns are aimed at producing immediate sales. A. True B. False Answer: False 156. Advertising objectives should be stated in clear, precise, and measurable terms. A. True B. False Answer: True 157. The statement of advertising objectives should include a benchmark such as the current sales level and indicate how much improvement is sought. A. True B. False Answer: True 158. A marketer's advertising platform should consist of issues that are important to consumers. A. True B. False Answer: True 159. The advertising platform consists of the basic issues and selling points that an advertiser wishes to include in the campaign. A. True B. False Answer: True 160. The advertising platform is the foundation on which campaign messages are built. A. True B. False Answer: True 161. The advertising budgets for industrial products are usually large relative to the sales of the products. A. True B. False Answer: False 162. When sales go up, advertising should be increased; when sales decline, advertising should be decreased. A. True B. False Answer: False 163. To assume that sales create advertising is incorrect. A. True B. False Answer: True 164. The arbitrary approach to setting an advertising budget often results in inappropriate spending of the firm's resources. A. True B. False Answer: True 165. The choice of media influences the content and form of the message. A. True B. False Answer: True 166. A cost comparison indicator (such as CPM) should not be used to compare the cost and impact of a television commercial with the cost and impact of a newspaper advertisement. A. True B. False Answer: True 167. The signature is not part of the verbal portion of an advertisement. A. True B. False Answer: False 168. Radio copy should consist of short, familiar terms. A. True B. False Answer: True 169. A layout includes only the illustrations used in an advertisement. A. True B. False Answer: False 170. To be unbiased, a member of a consumer jury should not be a present user of the advertised product. A. True B. False Answer: False 171. The effectiveness of an advertising campaign can be measured only after the completion of the campaign, when results are tabulated. A. True B. False Answer: False 172. The type of posttest an advertiser uses is affected by the type of advertising objectives set by the advertiser. A. True B. False Answer: True 173. In recall post-testing, respondents are shown the actual advertisement and are asked whether they recognize it. A. True B. False Answer: False 174. Small firms generally depend on local newspapers and radio stations for assistance with advertising efforts. A. True B. False Answer: True 175. Advertising departments may use independent research organizations or freelance specialists for some of their projects. A. True B. False Answer: True 176. Ad agencies work jointly with their client firms to develop the ad campaigns. A. True B. False Answer: True 177. Because ad agency personnel are outsiders to their client firms, they may not judge the firm's product objectively. A. True B. False Answer: False 178. Ad agencies and firms usually work together when creating an ad campaign because the agencies would act too subjectively on their own. A. True B. False Answer: False 179. Because ad agencies often get commissions on media purchases, firms can obtain some agency services at moderate prices. A. True B. False Answer: True 180. Jobs such as specialists, copywriters, artists, media buyers, and technical production coordinators are included in the public relations department of a large organization. A. True B. False Answer: False 181. One way an advertising agency assists a firm is by taking care of all the grunt work in order to give its clients time to do the creative work on the campaign. A. True B. False Answer: False 182. Advertising agencies often have more highly skilled people than the advertising departments of firms. A. True B. False Answer: True 183. Small and medium-sized firms never use advertising agencies to produce campaigns for them. A. True B. False Answer: False 184. Public relations, unlike advertising, is not particularly useful for promoting an organization's image. A. True B. False Answer: False 185. If a company is perceived positively by the public, employee morale is often higher. A. True B. False Answer: True 186. Public relations is communication in news story form about an organization, its products, or both that is transmitted through a mass medium at no charge. A. True B. False Answer: False 187. Event sponsorship can provide companies with a considerable amount of advertising. A. True B. False Answer: False 188. Publicity is a subset or part of public relations. A. True B. False Answer: True 189. To announce a major news event, an organization should use a news release. A. True B. False Answer: False 190. A feature article is longer than a news release and is written for a particular publication. A. True B. False Answer: True 191. Lack of control over the content and timing of public relations is a limitation in using publicity-based public relations tools. A. True B. False Answer: True 192. A public relations audit is used to assess an organization's image among the public or to evaluate the effect of a specific public relations program. A. True B. False Answer: True 193. The effectiveness of a public relations program is usually measured in terms of sales. A. True B. False Answer: False 194. A major way to reduce unfavorable public relations is to reduce the number of negative events. A. True B. False Answer: True 195. An effective approach for dealing with potential unfavorable public relations resulting from a negative event is to discourage news coverage. A. True B. False Answer: False Test Bank for Foundations of Marketing William M. Pride, O. C. Ferrell 9781285429779, 9781439039441
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