CH-18 Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations – Marketing Management : Exam Guide

Chapter 18 1. An ________ is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time. A) advertising medium B) advertising objective C) advertising channel D) advertising budget E) advertising copy Answer: B Rationale: Advertising objectives refer to the specific goals that an advertising campaign aims to achieve within a defined timeframe and with a particular target audience. This includes objectives such as increasing brand awareness, generating sales leads, or promoting product features. The other options are not directly related to defining the purpose or goal of an advertising campaign. 2. ________ aims to create brand awareness and knowledge of new products or new features of existing products. A) Informative advertising B) Corporate advertising C) Reinforcement advertising D) Persuasive advertising E) Reminder advertising Answer: A Rationale: Informative advertising focuses on providing information about a product or service, educating consumers about its features, benefits, or new additions. Creating brand awareness and knowledge about new products or features aligns with the purpose of informative advertising. The other options serve different purposes in advertising campaigns. 3. Which of the following is an example of informational advertising? A) Volkswagen famed "Drivers Wanted" campaign B) Pringles campaign with the tagline "Once You Pop, the Fun Don't Stop" C) KFC's fast-food range that it claims to be "Finger Lickin' Good" D) The California Milk Processor Board's famous "Got Milk" campaign E) Excedrin's ads that claim it stops the toughest headache Answer: E Rationale: Excedrin's ads that claim it stops the toughest headache provide information about the product's effectiveness in relieving headaches, making it an example of informational advertising. The other options focus on different aspects such as brand image, slogan, or emotional appeal. 4. ________ aims to create liking, preference, conviction, and purchase of a product or service. A) Corporate advertising B) Reminder advertising C) Persuasive advertising D) Reinforcement advertising E) Informational advertising Answer: C Rationale: Persuasive advertising aims to persuade consumers to like, prefer, believe in, and ultimately purchase a product or service. It often employs techniques such as emotional appeals, endorsements, or persuasive messaging to influence consumer behavior. The other options serve different purposes in advertising. 5. Comparative advertising works best when ________. A) it elicits cognitive and behavioral motivations simultaneously B) the firm is trying to minimize brand dilution C) consumers are processing advertising in a detailed, analytical mode D) it elicits affective motivation, followed by cognitive motivation E) the advertising message uses negative fear appeals Answer: C Rationale: Comparative advertising is most effective when consumers are processing advertising in a detailed, analytical mode, as it involves directly comparing the advertised product with competitors' offerings. This mode of processing allows consumers to critically evaluate the comparative claims made in the advertisement. The other options do not accurately describe the conditions under which comparative advertising works best. 6. ________ aims to stimulate repeat purchase of products and services. A) Reinforcement advertising B) Comparative advertising C) Persuasive advertising D) Informational advertising E) Reminder advertising Answer: E Rationale: Reminder advertising aims to stimulate repeat purchases by keeping the brand or product in the minds of consumers. It often targets existing customers to remind them of the product's availability or benefits, encouraging them to make repeat purchases. The other options serve different purposes in advertising campaigns. 7. The "Got Milk" campaign was intended to boost the sagging milk consumption among Californians in the 1990s. The campaign ads highlighted the inconvenience of running out of milk when intended to be used with certain foods, such as cookies or muffins, advising consumers to stock up on milk to avoid such inconveniences. The "Got Milk?" campaign an example of ________. A) informational advertising B) reminder advertising C) institutional advertising D) comparative advertising E) reinforcement advertising Answer: B Rationale: The "Got Milk?" campaign serves as an example of reminder advertising because it aimed to remind consumers about the importance of having milk on hand and encourage them to purchase milk when needed. It targeted existing consumers to stimulate repeat purchases, which is the primary goal of reminder advertising. The other options do not accurately describe the purpose or nature of the campaign. 8. ________ aims to convince current purchasers that they made the right choice. A) Persuasive advertising B) Informational advertising C) Reinforcement advertising D) Reminder advertising E) Comparative advertising Answer: C Rationale: Reinforcement advertising aims to reassure current purchasers that they made the right choice by buying the advertised product or service. It emphasizes the benefits, satisfaction, or positive outcomes associated with the product, reinforcing consumers' decision to purchase it. The other options serve different purposes in advertising campaigns. 9. Which of the following conditions necessitates that the objective of advertising should be to stimulate more usage of a product? A) the advertised product belongs to a nascent product category B) the company is not the market leader C) the advertised brand is superior to the market leader D) the product class is mature E) brand usage for the product is very high Answer: D Rationale: When the product class is mature, and brand usage is already high, the primary objective of advertising would be to stimulate more usage of the product rather than simply creating awareness or attracting new customers. In a mature market, the focus shifts from acquiring new customers to increasing consumption among existing customers. The other options describe different scenarios where advertising objectives may vary. 10. Which of the following statements is true of the factors that affect an advertising budget? A) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share. B) Brands in less-differentiated or commodity-like product classes require very less advertising to establish a unique image. C) New products typically merit large advertising budgets to build awareness and to gain consumer trial. D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard. E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales. Answer: C Rationale: New products typically merit large advertising budgets to build awareness and encourage consumer trial, as they need to establish themselves in the market and differentiate from existing offerings. Investing in advertising helps new products gain visibility and attract initial customers. The other options either inaccurately describe the relationship between advertising budget and market conditions or focus on different aspects of advertising strategy. 11. Marketers often cut the cost of advertising dramatically by using consumers as their creative team. This strategy is known as ________. A) disintermediation B) public relations C) vertical integration D) reintermediation E) crowdsourcing Answer: E Rationale: Crowdsourcing involves outsourcing tasks traditionally performed by employees or contractors to a large group of people or community (a crowd) through an open call, typically via the internet. In advertising, crowdsourcing can involve using consumers to generate creative ideas, designs, or content for ad campaigns, thereby reducing costs and tapping into diverse perspectives. 12. Which of the following is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure? A) television B) radio C) newspapers D) magazines E) billboards Answer: A Rationale: Television is generally considered the most powerful advertising medium because it can reach a broad spectrum of consumers with both visual and auditory stimuli. Additionally, television advertising often offers a relatively low cost per exposure compared to other traditional mediums, making it an attractive option for advertisers seeking wide-reaching campaigns. 13. TV advertising is considered to be particularly advantageous because ________. A) the low volume of nonprogramming material on television makes it difficult for consumers to ignore or forget ads B) it provides detailed product information and effectively communicates user and usage imagery C) it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits D) TV channels are very targeted, ads are relatively inexpensive to produce and place, and short closings allow for quick response E) it lets companies achieve a balance between broad and localized market coverage Answer: C Rationale: TV advertising is advantageous because it can vividly demonstrate product attributes through audiovisual means, allowing for persuasive communication of consumer benefits. The combination of sight and sound in television ads enables advertisers to create engaging narratives and showcase product features effectively. 14. According to researchers, which of the following is the correct order in which content of print advertisements matter? A) picture-headline-copy B) copy-picture-headline C) headline-copy-picture D) picture-copy-headline E) copy-headline-picture Answer: A Rationale: Research suggests that the most effective order of content in print advertisements is pictureheadline-copy. This sequence begins with a visually compelling image to capture attention, followed by a headline to provide context or intrigue, and finally, the body copy to convey detailed information or persuasive messaging. 15. Which of the following is the main advantage of radio as an advertising medium? A) low competition B) more attention than television C) longer duration of ad exposure D) flexibility E) standardized rate structures Answer: D Rationale: The main advantage of radio as an advertising medium is its flexibility. Radio advertisements can be easily tailored to specific time slots, audiences, or geographic regions, allowing advertisers to reach target demographics with relevant messages. Additionally, radio offers flexibility in terms of ad length and format, accommodating various advertising goals and budgets. 16. ________ refers to simple exaggerations in advertisements that are not meant to be believed and that are permitted by law. A) Puffery B) Boosterism C) Astroturfing D) Doublethink E) Subliminal advertising Answer: A Rationale: Puffery refers to exaggerated or extravagant claims made in advertising that are not intended to be taken literally by consumers. These claims often involve subjective opinions or statements of superiority that are not factually verifiable. Puffery is legal in advertising and is commonly used to attract attention or create a favorable impression of a product or brand. 17. Which of the following organizations uses top-notch industry talent to produce and distribute public service announcements for nonprofits and government agencies? A) the Association of National Advertisers B) the International Advertising Association C) the Ad Council D) the National Advertising Review Council E) the Advertising Research Foundation Answer: C Rationale: The Ad Council is an organization that uses top-notch industry talent to produce and distribute public service announcements (PSAs) for nonprofits and government agencies. These PSAs address various social issues such as health, safety, education, and community well-being, aiming to raise awareness and inspire positive action among the public. 18. ________ is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience. A) Media scheduling B) Content analysis C) Media selection D) Communication design E) Copy testing Answer: C Rationale: Media selection involves finding the most cost-effective media channels to deliver the desired number and type of exposures to the target audience. It considers factors such as audience demographics, reach, frequency, cost per exposure, and media effectiveness in achieving advertising objectives. 19. The number of different persons or households exposed to a particular media schedule at least once during a specified time period is known as ________. A) range B) impact C) intensity D) reach E) frequency Answer: D Rationale: Reach refers to the number of different individuals or households exposed to a particular media schedule at least once during a specified time period, typically measured over a week or month. It indicates the breadth of exposure and represents the potential audience reached by an advertising campaign. 20. The number of times within a specified time period that an average person or household is exposed to an advertising message is known as ________. A) impact B) frequency C) amplitude D) reach E) depth Answer: B Rationale: Frequency refers to the number of times within a specified time period that an average person or household is exposed to an advertising message. It measures the repetition or intensity of exposure to the ad campaign and plays a crucial role in reinforcing brand messages and influencing consumer behavior. 21. The qualitative value of an exposure through a given medium is known as ________. A) frequency B) reach C) amplitude D) impact E) range Answer: D Rationale: Impact refers to the qualitative value or effectiveness of an exposure through a given medium. It measures the depth of influence or impression that an advertising message has on the audience, considering factors such as attention, engagement, and persuasion. 22. Which of the following equations accurately describes the total number of exposures (E) of an advertising message through a given medium? A) E = reach * frequency B) E = (reach * frequency) / impact C) E = reach * frequency * impact D) E = (reach + frequency) / impact E) E = frequency / reach Answer: A Rationale: The equation E = reach * frequency represents the total number of exposures of an advertising message through a given medium. It calculates the cumulative impact of reaching a certain percentage of the target audience (reach) a specified number of times (frequency). 23. The weighted number of exposures (WE) of an advertising message over a given medium is given by ________. A) WE = reach * frequency B) WE = (reach * frequency) / impact C) WE = reach * frequency * impact D) WE = (reach + frequency) / impact E) WE = frequency / reach Answer: C Rationale: The weighted number of exposures (WE) takes into account both the reach and frequency of an advertising message, as well as its qualitative impact. The formula WE = reach * frequency * impact calculates the total impact of the advertising campaign within a specific medium. 24. Under which of the following conditions is the reach of media the most important factor in media selection? A) when introducing frequently purchased brands B) when going into a defined target market C) when launching extensions of well-known brands D) when there are strong competitors to a brand E) when there is high consumer resistance to the product Answer: C Rationale: When launching extensions of well-known brands, the reach of media becomes the most important factor in media selection. This is because the goal is to reach as many consumers as possible, particularly those who are already familiar with the parent brand, in order to promote awareness and acceptance of the brand extension. 25. Under which of the following conditions is the frequency the most important factor in media selection? A) when introducing flanker brands B) when launching infrequently purchased brands C) when going into undefined target markets D) when there is high consumer resistance to the product E) when there is modest competition to the brand in the market Answer: D Rationale: When there is high consumer resistance to the product, frequency becomes the most important factor in media selection. High frequency helps to overcome consumer resistance by reinforcing the advertising message and breaking through barriers of skepticism or indifference. 26. What is the gross rating points (GRP) for a media schedule that reaches 60 percent of homes with an average exposure frequency of 4 and impact of 1.5? A) 15 B) 160 C) 360 D) 240 E) 10 Answer: D Rationale: Gross rating points (GRP) are calculated by multiplying the reach (%) by the frequency of exposure. In this case, GRP = 60% * 4 = 240. 27. What is the weighted number of exposures of a media schedule that reaches 80 percent of the target audience, with an exposure frequency of 4 and impact value of 2? A) 320 B) 10 C) 640 D) 160 E) 240 Answer: C Rationale: The weighted number of exposures (WE) is calculated by multiplying the reach (%), frequency, and impact. In this case, WE = 80% * 4 * 2 = 640. 28. Which of the following is an advantage of using newspapers as an advertising medium? A) long lifespan B) high reproduction quality C) huge "pass-along" audience D) high level of targeting E) good local market coverage Answer: E Rationale: Newspapers offer good local market coverage, making them advantageous for advertisers looking to target specific geographic regions or communities. They are effective for reaching local audiences with relevant advertising messages. 29. Which of the following is a disadvantage of using newspapers as an advertising medium? A) lack of flexibility B) high costs of advertisement space C) poor reproduction quality D) low believability E) absence of local market coverage Answer: C Rationale: One disadvantage of using newspapers as an advertising medium is poor reproduction quality. Compared to other mediums like magazines or digital platforms, newspapers may offer lower-quality printing, which can impact the visual appeal and effectiveness of advertisements. 30. Which of the following is an advantage of using television as an advertising medium? A) high attention and reach B) low absolute cost C) absence of clutter D) long duration of ad exposure E) high audience selectivity Answer: A Rationale: Television offers high attention and reach as an advertising medium. It reaches a wide audience with both visual and auditory stimuli, making it effective for capturing attention and delivering advertising messages to mass audiences. Additionally, television advertising often offers high impact due to its combination of sight, sound, and motion. 31. Which of the following is a disadvantage of using television as an advertising medium? A) high absolute cost B) low audience attention C) lack of reach among audience D) high audience selectivity E) absence of clutter Answer: A Rationale: One disadvantage of using television as an advertising medium is the high absolute cost associated with producing and airing commercials. Television advertising can be expensive due to factors such as production costs, airtime rates, and the need for high-quality production to compete effectively with other ads. 32. Which of the following is an advantage of using radio as an advertising medium? A) higher attention than television B) standardized rate structures C) long duration of ad exposure D) high quality reproduction E) high geographic selectivity Answer: E Rationale: An advantage of using radio as an advertising medium is its high geographic selectivity. Radio stations can target specific geographic areas or regions, allowing advertisers to reach local audiences effectively. This level of geographic targeting can be valuable for businesses with localized marketing objectives. 33. Which of the following is a disadvantage of using direct mail as an advertising medium? A) low audience selectivity B) lack of flexibility C) high competition within the same medium D) relatively high cost E) lack of personalization of advertising message Answer: D Rationale: A disadvantage of using direct mail as an advertising medium is its relatively high cost compared to other advertising channels. Direct mail campaigns incur expenses related to printing, postage, and mailing lists, which can contribute to higher overall costs for advertisers. 34. Which of the following is an advantage of using magazines as an advertising medium? A) high-quality reproduction B) short ad purchase lead time C) high efficiency in circulation D) no ad competition in the same medium E) low cost of advertising Answer: A Rationale: An advantage of using magazines as an advertising medium is the high-quality reproduction of advertisements. Magazines typically offer superior printing quality, allowing for visually appealing and detailed advertisements that can effectively showcase products or services. 35. Which of the following is a disadvantage of using magazines as an advertising medium? A) low geographic and demographic selectivity B) long ad purchase lead time C) low-quality reproduction D) small "pass-along" readership E) lack of credibility Answer: B Rationale: A disadvantage of using magazines as an advertising medium is the long ad purchase lead time. Magazine advertising often requires advance planning and booking of ad space, which can result in longer lead times compared to other media channels. This can limit the flexibility of advertisers in responding to changing market conditions or opportunities. 36. Which of the following is a disadvantage of using outdoor media for advertising? A) low flexibility B) low repeat exposure C) limited audience selectivity D) high costs E) greater competition Answer: C Rationale: A disadvantage of using outdoor media for advertising is limited audience selectivity. While outdoor advertising can reach a broad audience in high-traffic areas, it may lack the ability to target specific demographic segments or consumer groups effectively. This can result in less precise targeting compared to other advertising channels. 37. Which of the following is an advantage of using Yellow Pages as an advertising medium? A) low competition B) high believability C) short ad purchase lead time D) greater scope for creativity E) lack of clutter Answer: B Rationale: An advantage of using Yellow Pages as an advertising medium is the high believability of advertisements. Consumers often trust information found in Yellow Pages directories when seeking local businesses or services, making it a reliable source for advertisers to connect with potential customers. 38. Which of the following is a disadvantage of using Yellow Pages as an advertising medium? A) high competition B) poor local market coverage C) low believability D) lack of adequate reach E) high total costs Answer: A Rationale: A disadvantage of using Yellow Pages as an advertising medium is high competition within the directory. Businesses in the same industry or category may compete for visibility within the same directory, leading to clutter and making it challenging for individual ads to stand out to consumers. 39. Which of the following is a disadvantage of using the Internet as an advertising medium? A) limited audience selectivity B) increasing clutter C) lack of interactive possibilities D) relatively high costs involved E) fleeting ad exposure time Answer: B Rationale: A disadvantage of using the Internet as an advertising medium is increasing clutter. The proliferation of online content and advertisements has led to a crowded digital landscape, making it difficult for individual ads to capture and maintain the attention of consumers amidst competing messages. 40. Which of the following is a disadvantage of using newsletters as an advertising medium? A) low audience selectivity B) high chances of runaway costs C) lack of adequate control D) relatively high costs E) lack of interactive possibilities Answer: B Rationale: A disadvantage of using newsletters as an advertising medium is the high chances of runaway costs. Newsletters often involve ongoing production and distribution expenses, and there may be unexpected costs associated with content creation, printing, and mailing. This can lead to higher-than-anticipated advertising expenses for businesses utilizing newsletters as part of their marketing strategy. 41. Pepe Homes manufactures a range of bathroom accessories and fittings that include bathtubs, shower stalls, etc. While deciding on an effective advertising media vehicle for its planned advertising campaign, the marketing department decides that its advertising objectives would be best achieved if they used a medium that would portray their brand as prestigious and a symbol of luxury. To this effect, the medium should offer the marketers a high degree of audience selectivity and high-quality reproduction. Which of the following advertising media would best serve the advertising purposes of Pepe Homes? A) outdoor media B) radio C) magazines D) television E) newspapers Answer: C Rationale: Magazines offer high audience selectivity and high-quality reproduction, making them suitable for portraying a brand as prestigious and luxurious. Magazines often cater to specific demographics and interests, allowing Pepe Homes to target affluent consumers interested in home improvement and luxury lifestyle. 42. Moonburst is a newly-launched brand of energy drinks, one among many other recently introduced competing brands. The advertising agency handling Moonburst's account decides that to promote Moonburst better, it has to zero in on an advertising medium that would offer immunity from the clutter of other brands, flexibility to alter its advertising message, and fit in with the modest advertising budget. Also, the medium has to provide a high repeat exposure of the advertising message to the target audience. The advertising agency would be happy to trade-off audience selectivity and creative possibilities, if the medium satisfies the above criteria. Which of the following would be the best option for Moonburst? A) outdoor media B) radio C) magazines D) television E) Yellow Pages Answer: A Rationale: Outdoor media, such as billboards and transit ads, offer immunity from the clutter of other brands and provide high repeat exposure to the target audience. They allow for flexibility in altering the advertising message and can accommodate Moonburst's modest advertising budget. 43. Which of the following advertising practices involves advertisers paying filmmakers to have their products make cameo appearances in movies and television shows? A) brand extension B) flyposting C) co-branding D) product placement E) ambush marketing Answer: D Rationale: Product placement involves advertisers paying filmmakers or producers to feature their products or brands in movies, television shows, or other forms of media content. This practice allows advertisers to integrate their products seamlessly into the storyline or scene, providing exposure to audiences without the appearance of traditional advertising. 44. The popular music talent show, American Idol, has been generally acknowledged as the most profitable TV series in U.S. history, in terms of advertising and merchandising revenue. Major sponsors of the show include Coca-Cola, AT&T Wireless, and iTunes, among many others. Cups bearing the logo of Coca-Cola were a prominent prop found on the show's judges' tables. The show also urged viewers to vote for contestants using AT&T sms services. Contestants were routinely shown rehearsing for their performances with the help of Apple iPods. Which of the following advertising practices is apparent in this example? A) ambush advertising B) product placement C) angel dusting D) co-branding E) subliminal advertising Answer: B Rationale: The scenario described involves product placement, as various brands like Coca-Cola, AT&T, and Apple are featured prominently within the content of the TV show "American Idol." These brands are integrated into the show's storyline or scenes, providing exposure to the audience in a non-traditional advertising format. 45. Which of the following media timing factors expresses the rate at which new customers enter the market? A) buyer turnover B) purchase frequency C) media reach D) weighted number of exposures E) advertising impressions Answer: A Rationale: Buyer turnover expresses the rate at which new customers enter the market. It measures the inflow of new consumers into a market or product category over a specific period, indicating the potential growth or expansion of the customer base. 46. ________ is the number of times the average buyer buys a product during the period. A) Buyer turnover B) Purchase frequency C) Customer retention rate D) Advertising impressions E) Total number of exposures Answer: B Rationale: Purchase frequency is the number of times, on average, that a buyer purchases a product during a specified period, such as a week, month, or year. It measures the rate of repeat purchases and indicates the level of loyalty or engagement among consumers. 47. In which of the following types of advertising timing patterns do exposures appear evenly throughout a given period? A) concentration B) pulsing C) flighting D) continuity E) frequency capping Answer: D Rationale: In continuity advertising timing pattern, exposures appear evenly throughout a given period. This pattern involves maintaining a steady level of advertising activity over time, rather than concentrating or pulsing advertising efforts at specific intervals. 48. Which of the following types of advertising timing patterns calls for spending all the advertising dollars in a single period? A) frequency capping B) flighting C) concentration D) pulsing E) continuity Answer: C Rationale: Concentration advertising timing pattern calls for spending all the advertising dollars in a single period. This approach involves concentrating advertising efforts within a specific timeframe, often to coincide with events, promotions, or seasonal peaks in demand. 49. Ted is a media buyer with Shelvey Partners, an ad agency in San Francisco. He is currently working on charting a media plan for a departmental store chain's ads that are targeted at the upcoming Thanksgiving weekend. Which of the following advertising timing patterns is best suited for running these ads? A) continuity B) flighting C) pulsing D) concentration E) frequency capping Answer: D Rationale: Concentration advertising timing pattern is best suited for running ads targeted at specific events or time-sensitive promotions, such as the Thanksgiving weekend. Concentrating advertising efforts within a single period allows advertisers to maximize impact and capitalize on heightened consumer interest or activity during that time. 50. Advertisements for which of the following products categories would merit a continuous advertising timing pattern the most? A) air conditioners B) life insurance C) breakfast cereal D) automobiles E) holiday package tours Answer: C Rationale: Breakfast cereal would merit a continuous advertising timing pattern the most. Continuous advertising is suitable for products with consistent and ongoing demand, such as everyday consumer goods like breakfast cereal. By maintaining a steady level of advertising presence over time, cereal brands can reinforce their position in the market and sustain consumer interest and purchase behavior. 51. ________ is an advertising timing pattern that calls for advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity. A) Pulsing B) Continuity C) Flighting D) Concentration E) Frequency capping Answer: C Rationale: Flighting is an advertising timing pattern characterized by alternating periods of advertising activity and inactivity. This pattern is often used when advertising needs to be concentrated during specific times or seasons, followed by periods of reduced or no advertising. 52. Flighting as an advertising timing pattern is most useful when ________. A) purchase cycle is rather frequent B) substantial advertising budget is available C) items are seasonal D) tightly defined buyer categories exist E) there are expanding market situations Answer: C Rationale: Flighting is most useful when items are seasonal. This pattern allows advertisers to concentrate advertising efforts during peak seasons or times of increased demand, maximizing the impact of advertising while minimizing costs during off-peak periods. 53. Advertisements for which of the following product categories would be most effective when used with a flighting pattern? A) breakfast cereal B) detergents C) beer D) electric bulbs E) refrigerator Answer: E Rationale: Advertisements for refrigerators would be most effective when used with a flighting pattern. Refrigerators are considered seasonal items, with peak demand typically occurring during specific times of the year, such as around holidays or during the summer months. Flighting allows advertisers to concentrate advertising efforts during these peak periods to maximize impact. 54. ________ is continuous advertising at low-weight levels, reinforced periodically by waves of heavier activity. A) Flighting B) Frequency capping C) Pulsing D) Concentration E) Session capping Answer: C Rationale: Pulsing is continuous advertising at low-weight levels, reinforced periodically by waves of heavier activity. This approach maintains a presence in the market at all times but intensifies advertising efforts during specific periods to capitalize on opportunities or address seasonal fluctuations in demand. 55. ________ seeks to determine whether an ad is communicating effectively. A) Copy testing B) Flighting C) Pulsing D) Frequency capping E) Square inch analysis Answer: A Rationale: Copy testing seeks to determine whether an ad is communicating effectively by evaluating its impact on target audiences. This process involves testing different elements of the ad, such as its message, visuals, and tone, to assess its effectiveness in achieving advertising objectives. 56. ________ represents the proportion of company advertising of a product to all advertising of that product. A) Share of wallet B) Share of mind C) Share of voice D) Share of market E) Share of cost Answer: C Rationale: Share of voice represents the proportion of company advertising of a product to all advertising of that product within a given market or industry. It indicates the relative presence or visibility of a brand's advertising compared to its competitors. 57. Which of the following elements of the marketing communications mix consists of a collection of incentive tools, mostly short-term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade? A) advertising B) public relations C) sales promotion D) events and experiences E) personal selling Answer: C Rationale: Sales promotion consists of a collection of incentive tools, mostly short-term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Sales promotion activities include coupons, discounts, contests, and other promotional offers. 58. Which of the following is an example of a trade promotion? A) free samples B) discount coupons C) display allowances D) contests for sales reps E) premiums Answer: C Rationale: Display allowances are an example of a trade promotion. Trade promotions are incentives offered to retailers or other members of the distribution channel to encourage product visibility, stocking, or promotion. Display allowances provide retailers with financial incentives to feature a product prominently in-store. 59. Which of the following is an example of a business and sales force promotion? A) advertising allowance B) free samples C) contests for sales reps D) display allowance E) discount coupons Answer: C Rationale: Contests for sales reps are an example of a business and sales force promotion. These promotions are designed to motivate and incentivize sales representatives or employees to achieve specific sales targets or objectives through contests, bonuses, or rewards. 60. Sales promotion expenditures increased as a percentage of budget expenditure for a number of years, although its growth has recently slowed. Which of the following is a factor that has contributed to the growth of sales promotion expenditures? A) many brands have come to be seen as dissimilar B) the efficiency of advertising as a promotion has improved C) the trade demands more deals from manufacturers D) consumers have become less price-oriented E) the number of brands in the market has decreased Answer: C Rationale: The trade demanding more deals from manufacturers has contributed to the growth of sales promotion expenditures. As retailers and other members of the distribution channel seek greater value or incentives from manufacturers, companies have increased their investment in sales promotions to meet these demands and maintain competitive positioning in the market. 61. According to consumer-packaged goods companies, which of the following effects is attributed to the heavy use of sales promotion? A) increased brand loyalty B) focus on long-run marketing planning C) improved brand-quality image D) increased price sensitivity E) greater coupon redemption rates Answer: D Rationale: Heavy use of sales promotion is attributed to increased price sensitivity among consumers. Sales promotions, such as discounts, coupons, and special offers, often encourage consumers to make purchasing decisions based on price rather than brand loyalty or perceived quality. 62. Which of the following is an example of a manufacturer promotion? A) price cuts B) feature advertising C) retailer coupons D) high-value trade-in credit E) retailer contests or premiums Answer: D Rationale: High-value trade-in credit is an example of a manufacturer promotion. Manufacturer promotions are incentives offered by the manufacturer to encourage sales or brand preference. In this case, offering a high-value trade-in credit incentivizes consumers to purchase the manufacturer's product by providing a substantial discount or benefit. 63. Which of the following is a sales promotion tool that is consumer franchise building in nature? A) price-off packs B) contests and sweepstakes C) consumer refund offers D) trade allowances E) frequency awards Answer: E Rationale: Frequency awards are consumer promotion tools that are consumer franchise building in nature. These awards reward consumers based on their frequency and intensity of purchasing the company's products or services, encouraging repeat purchases and building long-term brand loyalty. 64. Which of the following is a sales promotion tool that typically does not build brand image? A) consumer refund offers B) free samples C) premiums related to the product D) frequency awards E) coupons that include a selling message Answer: A Rationale: Consumer refund offers typically do not build brand image. While they may incentivize purchase, consumer refund offers are primarily focused on providing a monetary incentive after purchase rather than enhancing brand image or perception. 65. Which of the following consumer promotion tools offers a free amount of a product or service delivered door-to-door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer? A) coupons B) rebates C) premiums D) samples E) price packs Answer: D Rationale: Samples offer a free amount of a product or service for consumers to try, and they can be delivered in various ways, such as door-to-door, by mail, in-store pickups, or attached to other products. 66. ________ are certificates that entitle the bearer to a stated saving on the purchase of a specific product. A) Samples B) Coupons C) Rebates D) Price packs E) Premiums Answer: B Rationale: Coupons are certificates that entitle the bearer to a stated saving on the purchase of a specific product. Consumers can redeem coupons to receive discounts on specified products. 67. ________ are consumer promotion tools that provide a price reduction after purchase rather than at the retail shop. A) Rebates B) Cents-off deals C) Price packs D) Coupons E) Premiums Answer: A Rationale: Rebates are consumer promotion tools that provide a price reduction after purchase rather than at the retail shop. Consumers can receive a refund or discount on a product by submitting proof of purchase to the manufacturer or retailer. 68. ________ are consumer promotion offers to consumers of savings off the regular price of a product, flagged on the label or package. A) Coupons B) Rebates C) Price packs D) Premiums E) Samples Answer: C Rationale: Price packs are consumer promotion offers to consumers of savings off the regular price of a product, flagged on the label or package. These promotions typically involve offering multiple units of a product at a reduced price. 69. Premiums, as a consumer promotion tool, are defined as ________. A) offers to consumers of savings off the regular price of a product, flagged on the label or package B) certificates entitling the bearer to a stated saving on the purchase of a specific product C) programs providing rewards related to the consumer's frequency and intensity in purchasing the company's products or services D) merchandise offered at a relatively low cost or free as an incentive to purchase a particular product E) values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors Answer: D Rationale: Premiums, as a consumer promotion tool, are defined as merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. These incentives can include items such as toys, gadgets, or other products offered alongside a purchase to encourage consumer participation. 70. ________ is a consumer promotion tool that involves inviting prospective purchasers to try the product without cost in the hope that they will buy. A) Sampling B) Premium C) Cross-promotion D) Free trial E) Rebate Answer: D Rationale: Free trial is a consumer promotion tool that involves inviting prospective purchasers to try the product without cost in the hope that they will buy. This strategy allows consumers to experience the product firsthand, potentially leading to future purchases. 71. Which of the following consumer promotion tools involves using one brand to advertise another noncompeting brand? A) tie-in promotion B) frequency programs C) specialty advertising D) cross-promotion E) patronage awards Answer: D Rationale: Cross-promotion involves using one brand to advertise another noncompeting brand. This strategy allows brands to leverage each other's customer bases and increase exposure to new audiences. 72. Which of the following consumer promotion tools refers to explicit or implicit promises by sellers that the product will perform as specified or that the seller will fix it or refund the customer's money during a specified period? A) product warranties B) coupons C) free trials D) rebates E) patronage awards Answer: A Rationale: Product warranties refer to explicit or implicit promises by sellers that the product will perform as specified or that the seller will fix it or refund the customer's money during a specified period. Warranties provide consumers with assurance about the quality and reliability of the product. 73. Which of the following terms describes the practice of retailers purchasing a greater quantity during a sales promotion period than they can immediately sell? A) diverting B) panic buying C) straight rebuy D) buyout E) forward buying Answer: E Rationale: Forward buying describes the practice of retailers purchasing a greater quantity during a sales promotion period than they can immediately sell. Retailers may stockpile products to take advantage of promotional deals, leading to temporary surpluses in inventory. 74. Which of the following retailer practices involves buying more units than needed of a product under a sales promotion in a region where the manufacturer offers a promotion deal and shipping the surplus to their stores in nondeal regions? A) diverting B) panic buying C) hoarding D) stockpiling E) forward buying Answer: A Rationale: Diverting involves buying more units than needed of a product under a sales promotion in a region where the manufacturer offers a promotion deal and shipping the surplus to their stores in nondeal regions. This practice can disrupt the manufacturer's intended distribution strategy. 75. A ________ is a salesforce promotion tool that aims at inducing the sales force or dealers to increase their sales results over a stated period, with prizes (money, trips, gifts, or points) going to those who succeed. A) trade show B) frequency program C) sales contest D) sweepstake E) patronage award Answer: C Rationale: A sales contest is a salesforce promotion tool that aims at inducing the sales force or dealers to increase their sales results over a stated period. Prizes such as money, trips, gifts, or points are awarded to those who succeed, providing incentives for improved performance. 76. ________ is the time necessary to prepare a promotional program prior to launching it. A) Sell-in time B) Link time C) Setup time D) Lead time E) Hold time Answer: D Rationale: Lead time is the time necessary to prepare a promotional program prior to launching it. It involves the planning, development, and coordination of promotional activities before they are implemented. 77. ________ begins with the promotional launch and ends when approximately 95 percent of the deal merchandise is in the hands of consumers. A) Lead time B) Hold time C) Setup time D) Link time E) Sell-in time Answer: E Rationale: Sell-in time begins with the promotional launch and ends when approximately 95 percent of the deal merchandise is in the hands of consumers. It represents the duration of the promotional campaign and the distribution of promotional offers. 78. Becoming part of a personally relevant moment in consumers' lives through ________ can broaden and deepen a company or brand's relationship with the target market. A) advertisements B) events and experiences C) sales promotions D) public relations E) direct marketing efforts Answer: B Rationale: Becoming part of a personally relevant moment in consumers' lives through events and experiences can broaden and deepen a company or brand's relationship with the target market. Events and experiences create memorable interactions with the brand, fostering emotional connections and loyalty. 79. Rolex calls itself the "Official Timekeeper" of the Wimbledon and Australian Open lawn tennis championships, by virtue of its sponsorships of the marquee events. What is the most likely objective for Rolex's sponsorship deal with these events? A) to permit merchandising or promotional opportunities B) to express commitment to the community or on social issues C) to create experiences and evoke feelings D) to identify with a particular target market or lifestyle E) to increase salience of company or product name Answer: E Rationale: The most likely objective for Rolex's sponsorship deal with events like Wimbledon and the Australian Open is to increase the salience of the company or product name. By associating with prestigious sporting events, Rolex aims to enhance brand visibility and recognition among its target audience. 80. Mountain Dew is a brand known for sponsorships of adventure events such as snowboarding and skateboarding competitions. What is the most likely objective of Mountain Dew's sponsorship of these events? A) to enhance corporate image B) to express commitment to the community or on social issues C) to entertain key clients or reward key employees D) to create perceptions of key brand image associations E) to become part of a personally relevant moment in consumers' lives Answer: D Rationale: The most likely objective of Mountain Dew's sponsorship of adventure events such as snowboarding and skateboarding competitions is to create perceptions of key brand image associations. By associating with extreme sports, Mountain Dew aims to position itself as a brand that embodies adventure, excitement, and youthful energy. 81. Audi models featured prominently in the 2010 blockbuster Iron Man 2, including main character Tony Stark's personal R8 Spyder. Which of the following is the most rational explanation for Audi's decision to associate itself with the movie? A) to express commitment to the community or on social issues B) to identify with a particular target market or lifestyle C) to create experiences and evoke feelings D) to become part of a personally relevant moment in consumers' lives E) to entertain key clients or reward key employees Answer: C Rationale: Audi's decision to associate itself with the movie Iron Man 2 is likely aimed at creating experiences and evoking feelings. By featuring its models prominently in a popular blockbuster, Audi seeks to leverage the excitement and positive emotions associated with the film to enhance its brand image and appeal to consumers. 82. JBJ Sports is a leading sports goods maker from Atlanta. It has recently initiated a program in association with the Children of God Foundation, which bids to raise funds to promote nutritional awareness and education of young children from Bangladesh. The company plans to donate $1 for every item it sells in the North American market. Also, JBJ has roped in professional sports teams associated with it to wear the Children of God logo on their team gear. Which of the following best describes the motivation for JBJ's involvement in the program? A) entertaining key clients or rewarding key employees B) expressing commitment to the community or on social issues C) permitting merchandising or promotional opportunities D) stimulating quicker or greater purchase of particular brands E) identifying with a particular target market or lifestyle Answer: B Rationale: JBJ Sports' involvement in the program with the Children of God Foundation is best described as expressing commitment to the community or on social issues. By aligning itself with a charitable cause aimed at promoting nutritional awareness and education for disadvantaged children, JBJ Sports demonstrates its commitment to social responsibility and community welfare. 83. Which of the following factors forms the basis of assessing sponsorship activities through supply-side methods? A) consumers' brand knowledge B) impact on sponsor's bottom line C) extent of media coverage D) brand exposure reported by consumers E) sales pattern of sponsored products Answer: C Rationale: The extent of media coverage forms the basis of assessing sponsorship activities through supply-side methods. Supply-side methods focus on evaluating the exposure and visibility of the sponsor's brand or logo through various media channels, such as television, print, and online platforms. 84. Which of the following parameters forms the basis for measuring sponsorship effectiveness using demand-side methods? A) impact on market share of sponsor B) amount of time a brand is clearly visible on a television screen C) amount of relevant newsprint mentioning the sponsor D) influence on consumers' brand knowledge of the sponsor E) net impact on the sponsor's bottom line Answer: D Rationale: The influence on consumers' brand knowledge of the sponsor forms the basis for measuring sponsorship effectiveness using demand-side methods. Demand-side methods focus on evaluating the impact of sponsorship activities on consumers' awareness, perceptions, attitudes, and behavior toward the sponsor's brand. 85. ________ is a marketing communications tool that includes a variety of programs to promote or protect a company's image or individual products. A) Public relations B) Advertising C) Sales promotion D) Personal selling E) Direct marketing Answer: A Rationale: Public relations is a marketing communications tool that includes a variety of programs to promote or protect a company's image or individual products. Public relations activities often involve managing relationships with various stakeholders, including the media, customers, employees, investors, and the community. 86. Which of the following functions of public relations departments involves presenting news and information about the organization in the most positive light? A) corporate communications B) product publicity C) lobbying D) counseling E) press relations Answer: E Rationale: Press relations involves presenting news and information about the organization in the most positive light. This function of public relations departments focuses on managing relationships with the media to ensure favorable coverage and portray the organization in a positive manner. 87. Which of the following describes the public relations function of lobbying? A) sponsoring efforts to publicize specific products B) advising management about public issues, and company positions and image during good times and bad C) presenting news and information about the organization in the most positive light D) dealing with legislators and government officials to promote or defeat legislation and regulation E) promoting understanding of the organization through internal and external communications Answer: D Rationale: Lobbying describes the public relations function of dealing with legislators and government officials to promote or defeat legislation and regulation. Public relations professionals engage in lobbying activities to influence public policy decisions that affect their organization's interests. 88. What function does a company's public relations department perform when it promotes understanding of the organization through internal and external communications? A) lobbying B) corporate communications C) press relations D) product publicity E) counseling Answer: B Rationale: Corporate communications is the function performed by a company's public relations department when it promotes understanding of the organization through internal and external communications. This involves disseminating information about the company's mission, values, activities, and achievements to both internal stakeholders (employees) and external stakeholders (customers, investors, the public). 89. When a public relations department of a company advises management about public issues, and company positions and image during good times and bad, it is performing the function of ________. A) counseling B) corporate communications C) product publicity D) lobbying E) press relations Answer: A Rationale: When a public relations department advises management about public issues, and company positions and image during good times and bad, it is performing the function of counseling. Public relations professionals provide strategic guidance and advice to help organizations navigate complex public relations challenges and opportunities. 90. ________ refers to the task of securing editorial space—as opposed to paid space—in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization. A) Advertising B) Media planning C) Communication design D) Publicity E) Copy testing Answer: D Rationale: Publicity refers to the task of securing editorial space—as opposed to paid space—in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization. Unlike advertising, publicity relies on the news value or newsworthiness of a story to attract media attention and coverage. 91. Which of the following is a medium of visual identity for a company? A) annual reports B) dress codes C) press releases D) seminars E) trade shows Answer: B Rationale: Dress codes are a medium of visual identity for a company because they reflect the organization's culture and values. By specifying what employees should wear, a company can establish a consistent visual representation that aligns with its brand image. This visual identity can help reinforce brand recognition and create a professional atmosphere both internally and externally. 92. The easiest measure of marketing public relations effectiveness is ________. A) the resultant effect on the company's sales figures B) the effect it has on its market capitalization C) the number of exposures carried by the media D) the changes observed in consumers' brand knowledge E) the impact it has on the company's market share Answer: C Rationale: The easiest measure of marketing public relations effectiveness is the number of exposures carried by the media. This measure is straightforward and quantifiable, as it directly reflects the reach and visibility of the PR efforts. By tracking the number of times a company or its messages are mentioned or featured in the media, it's possible to gauge the extent of the PR campaign's impact and effectiveness in terms of generating exposure and raising awareness. 93. An advertising objective is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time. Answer: True Rationale: This statement is true. Advertising objectives are indeed specific tasks set to be achieved through communication efforts within a defined audience and timeframe. These objectives serve as benchmarks to measure the effectiveness of advertising campaigns. 94. Persuasive advertising aims to create brand awareness and knowledge of new products or new features of existing products. Answer: False Rationale: Persuasive advertising is aimed at persuading consumers to purchase a product or service, rather than solely focusing on creating brand awareness or introducing new features. Its primary goal is to influence consumer behavior rather than simply informing them. 95. Reinforcement advertising aims to stimulate repeat purchase of products and services. Answer: False Rationale: Reinforcement advertising is designed to reinforce existing attitudes and behaviors towards a product or service, rather than stimulating repeat purchases. Its purpose is to remind consumers of the benefits or satisfaction they derive from the product, aiming to maintain brand loyalty. 96. If the product class is mature, then the advertising objective is to convince the market of the brand's superiority. Answer: False Rationale: In a mature product class, where competition is often intense, the advertising objective typically revolves around maintaining market share, reinforcing brand loyalty, or stimulating switching behavior rather than solely convincing the market of the brand's superiority. The goal may also include differentiation and highlighting unique selling propositions rather than superiority. 97. Established brands usually are supported with lower advertising budgets, measured as a ratio to sales. Answer: True Rationale: Established brands often benefit from economies of scale and already have established market presence and brand recognition. As a result, they may require lower advertising budgets relative to their sales to maintain their position compared to new or lesser-known brands that need to invest more in building awareness and gaining market share. 98. Brands in highly-differentiated product classes require heavy advertising to establish a unique image. Answer: False Rationale: In highly-differentiated product classes, brands often already have distinct identities or attributes that set them apart from competitors. While advertising may still play a role in reinforcing these differences or communicating specific benefits, heavy advertising may not be necessary as the differentiation is already apparent to consumers. 99. Print advertising (newspapers and magazines) is generally acknowledged as the most powerful advertising medium. Answer: False Rationale: While print advertising can be effective for certain purposes, it is not universally regarded as the most powerful advertising medium. The effectiveness of advertising mediums depends on various factors such as target audience, message, and campaign objectives. Other mediums like television, digital advertising, and social media can also be powerful depending on the context. 100. Although newspapers are timely and pervasive, magazines are typically more effective at building user and usage imagery. Answer: True Rationale: Magazines often provide a more conducive environment for in-depth content and imagery, allowing advertisers to convey a brand's story, benefits, and usage scenarios more effectively. This can contribute to building user and usage imagery, which may be harder to achieve in newspapers due to their more time-sensitive and brief nature. 101. Researchers studying print advertisements report that the picture, headline, and copy matter in that order. Answer: True Rationale: Studies on print advertisements have consistently shown that the visual elements such as the picture or imagery, followed by the headline, and then the body copy, tend to have the most impact on readers' attention and comprehension. A visually appealing image or illustration coupled with a compelling headline is often crucial in grabbing attention and communicating the main message effectively. 102. Puffery refers to simple exaggerations in advertisements that are not meant to be believed and are considered illegal. Answer: False Rationale: Puffery refers to exaggerated or extravagant claims or statements that are not meant to be taken literally and are unlikely to deceive consumers. While puffery is not illegal, false advertising that misleads consumers can be subject to legal action. 103. Reach of an advertising message is most important when launching new products, flanker brands, extensions of well-known brands, or infrequently purchased brands. Answer: True Rationale: Reach refers to the total number of different individuals or households exposed, at least once, to a particular advertisement within a given period. For products or brands that are new, extensions of well-known brands, or infrequently purchased, achieving broad reach is crucial to generate awareness and consideration among the target audience. 104. The higher the forgetting rate associated with a brand, product category, or message, the lower the warranted level of repetition. Answer: False Rationale: The statement is false. A higher forgetting rate implies that consumers are more likely to forget about the brand or message over time, necessitating higher levels of repetition to counteract this effect and maintain brand awareness or message retention. Therefore, a higher forgetting rate typically warrants a higher level of repetition in advertising efforts. 105. The rationale behind place advertising is that marketers are better off reaching people where they work, play, and shop. Answer: True Rationale: Place advertising, also known as location-based advertising, aims to target consumers at specific locations where they spend time, such as workplaces, recreational areas, or retail outlets. By reaching consumers in these environments, marketers can increase the relevance and effectiveness of their advertising messages, as they are more likely to capture consumers' attention when they are already engaged in activities related to the advertised products or services. 106. Outdoor advertising is more effective at creating new brand associations than enhancing brand awareness or brand image. Answer: False Rationale: Outdoor advertising, such as billboards or transit ads, can be effective for both creating new brand associations and enhancing brand awareness or image. While outdoor advertising is particularly well-suited for increasing brand exposure and visibility, it can also convey brand messages, values, and imagery effectively, contributing to brand building efforts. 107. The macroscheduling decision calls for allocating advertising expenditures within a short period to obtain maximum impact. Answer: False Rationale: The macroscheduling decision involves determining the timing and duration of advertising campaigns over a more extended period, often spanning months or even years. It aims to optimize the allocation of advertising expenditures to achieve the desired communication objectives and reach the target audience effectively over time, rather than focusing solely on short-term impact within a brief period. 108. The forgetting rate is the rate at which the buyer forgets the brand; the higher the forgetting rate, the more continuous the advertising should be. Answer: True Rationale: The forgetting rate refers to how quickly consumers forget about a brand or message after exposure to advertising. A higher forgetting rate indicates that advertising effects diminish more rapidly over time, necessitating more continuous advertising efforts to maintain brand awareness and message retention among consumers. 109. Concentrated advertising is well-suited for products with one selling season or related holiday. Answer: True Rationale: Concentrated advertising involves focusing advertising efforts on a specific time period or geographic area. It is well-suited for products with seasonal demand or those associated with particular holidays, as it allows marketers to concentrate their resources when consumer interest and purchasing behavior are highest, maximizing the effectiveness of the advertising campaign. 110. An advertiser makes "local buys" when it buys TV time in just a few markets or in regional editions of magazines. Answer: False Rationale: "Local buys" refer to purchasing advertising time or space in specific local markets or regions rather than nationwide or globally. Therefore, the statement is false, as it accurately describes the practice of localizing advertising efforts to target specific geographic areas rather than broader national or international campaigns. 111. Sales promotion consists of a collection of incentive tools designed to mainly stimulate long-term brand associations of products or services with consumers or the trade. Answer: False Rationale: Sales promotion tools are primarily aimed at short-term stimulation of demand rather than long-term brand association building. While sales promotions can contribute to brand awareness and trial, their main focus is on encouraging immediate sales or action, such as discounts, coupons, or contests, rather than cultivating long-term brand associations. 112. Sales promotions often attract brand switchers, who are primarily looking for low price, good value, or premiums. Answer: True Rationale: Sales promotions tend to attract consumers who are price-sensitive or seeking additional value for their purchases. These consumers may be less loyal to specific brands and more likely to switch based on promotional offers such as discounts, coupons, or premiums. 113. Sales promotions in markets of high brand similarity can produce a high sales response in the short run but little permanent gain in brand preference over the longer term. Answer: True Rationale: In markets where brands are highly similar, sales promotions may lead to a short-term increase in sales as consumers take advantage of the promotional offers. However, since the promotions do not typically differentiate the brands significantly, they may not lead to lasting changes in brand preference or loyalty over the long term. 114. Incessant price reductions, coupons, deals, and premiums can devalue a product in buyers' minds. Answer: True Rationale: Continuous or excessive use of price reductions, coupons, deals, and premiums can lead consumers to perceive the product as lower in value or quality, thereby devaluing it in their minds. This perception may undermine the brand's positioning and erode brand equity over time. 115. The historical approach correlates past sales to past advertising expenditures using advanced statistical techniques. Answer: True Rationale: The historical approach to advertising budgeting involves analyzing past sales data and corresponding advertising expenditures to determine the relationship between the two. Advanced statistical techniques such as regression analysis may be used to identify patterns and correlations between advertising spending and sales performance, informing future budget allocation decisions. 116. Loyal brand buyers tend to change their buying patterns as a result of competitive promotions. Answer: False Rationale: Loyal brand buyers are less likely to be swayed by competitive promotions compared to brand switchers. Their loyalty to the brand is often based on factors beyond price or promotional offers, such as product quality, brand reputation, or emotional connection, making them less susceptible to switching based on promotional incentives. 117. Dominant brands offer sales promotion deals less frequently, because most deals subsidize only current users. Answer: True Rationale: Dominant brands often have a large base of loyal customers who purchase the brand regularly at full price. Offering frequent sales promotion deals may not be financially beneficial for dominant brands, as these deals primarily benefit current users rather than attracting new customers. Therefore, dominant brands may offer sales promotions less frequently compared to less established brands. 118. Examples of manufacturer promotions include price cuts and feature advertising. Answer: False Rationale: Manufacturer promotions typically involve activities such as advertising, trade shows, and sales incentives aimed at promoting products to wholesalers, retailers, and consumers. Price cuts and feature advertising are examples of retailer promotions, as they are often implemented at the retail level to stimulate consumer demand and increase sales. 119. Sales promotion tools that typically are not brand building include price-off packs, contests and sweepstakes, consumer refund offers, and trade allowances. Answer: True Rationale: While sales promotions can contribute to short-term sales increases, certain types of promotions, such as price-off packs, contests and sweepstakes, consumer refund offers, and trade allowances, may not necessarily enhance long-term brand equity or association. These promotions often focus on immediate incentives rather than building enduring brand relationships. 120. Manufacturers handle forward buying and diverting by producing and delivering less than the full order in an effort to smooth production. Answer: True Rationale: Forward buying and diverting refer to the practices of purchasing products in large quantities during promotional periods and reselling them later or in different markets at higher prices. Manufacturers may manage these practices by limiting the availability of promotional products or adjusting production and delivery schedules to prevent excess inventory buildup and maintain stable pricing. Producing and delivering less than the full order can help mitigate the risk of forward buying and diverting. 121. Additional costs beyond the cost of specific promotions include the risk that promotions might decrease long-run brand loyalty. Answer: True Rationale: While promotions can stimulate short-term sales, there are additional costs to consider, such as potential long-term effects on brand loyalty. Promotions that focus solely on price discounts or giveaways may attract deal-seeking customers who are less loyal to the brand, leading to a decrease in long-term brand loyalty among consumers. 122. An ideal event is also unique but not encumbered with many sponsors, lends itself to ancillary marketing activities, and reflects or enhances the sponsor's brand or corporate image. Answer: True Rationale: An ideal event for sponsorship is one that offers uniqueness, allowing the sponsor to stand out without being overshadowed by numerous other sponsors. It should also provide opportunities for ancillary marketing activities to engage with attendees beyond the event itself. Moreover, the event should align with the sponsor's brand or corporate image, enhancing brand perception and association. 123. The supply-side method identifies the effect sponsorship has on consumers' brand knowledge. Answer: False Rationale: The supply-side method in sponsorship evaluation focuses on assessing the exposure and visibility of the sponsor's brand through various channels, such as media coverage, signage, and mentions. It does not directly measure the effect on consumers' brand knowledge. This is typically evaluated through other methods such as surveys or consumer studies, which fall under the demand-side approach. 124. Although supply-side exposure methods provide quantifiable measures, equating media coverage with advertising exposure ignores the content of the respective communications. Answer: True Rationale: While supply-side exposure methods can provide quantifiable metrics such as media impressions or mentions, they may not capture the quality or context of the exposure accurately. Equating media coverage with advertising exposure overlooks the content of the communications, which can significantly influence how the brand is perceived by consumers. 125. Media coverage and telecasts only expose the brand and don't necessarily embellish its meaning in any direct way. Answer: True Rationale: Media coverage and telecasts primarily expose the brand to audiences but may not directly enhance or embellish its meaning. While exposure through media channels can increase brand visibility, the interpretation and perception of the brand's meaning depend on various factors such as the content of the coverage, audience reactions, and brand associations. 126. The supply-side measurement method focuses on potential exposure to the brand by assessing the extent of media coverage, and the demand-side method focuses on exposure reported by consumers. Answer: True Rationale: The supply-side measurement method evaluates the exposure of the brand by analyzing media coverage, sponsor mentions, and other forms of visibility. In contrast, the demand-side method relies on consumer-reported exposure through surveys, recall tests, or other feedback mechanisms. Both approaches provide valuable insights into the effectiveness of sponsorship activities from different perspectives. 127. A public is any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives. Answer: True Rationale: In the context of public relations, a "public" refers to any group or audience with a stake in or influence on an organization's goals, activities, or reputation. This can include customers, employees, shareholders, media, government agencies, communities, and other stakeholders who may have an interest in or be affected by the organization's actions. 128. The public relations function of lobbying involves advising management about public issues, and company positions and image during good times and bad. Answer: False Rationale: The function of lobbying in public relations involves engaging with government officials, policymakers, and legislators to influence public policy, regulations, or legislation in favor of the organization's interests. It is not primarily focused on advising management about public issues or maintaining the company's image, although these may be related activities within the broader scope of public relations. 129. The main objective of marketing public relations is to secure editorial space in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization. Answer: False Rationale: While securing editorial space in media outlets is one aspect of marketing public relations, its main objective is broader. Marketing public relations aims to use strategic communication and relationship-building activities to enhance the reputation, visibility, and credibility of a brand or organization among its target audience, ultimately contributing to marketing and business goals. 130. Creative public relations can affect public awareness at a fraction of the cost of advertising. Answer: True Rationale: Public relations activities such as media relations, events, sponsorships, and social media engagement can effectively raise public awareness and shape perceptions of a brand or organization at a lower cost compared to traditional advertising. Through creative storytelling and strategic communication efforts, public relations can generate significant visibility and impact without the high expenses associated with advertising campaigns. 131. MPR can hold down promotion cost because it costs less than direct-mail and media advertising. Answer: True Rationale: MPR (Marketing Public Relations) often costs less than traditional advertising methods such as direct mail or media advertising. This is because MPR strategies often involve leveraging relationships with media outlets, engaging in public relations activities, and creating buzz through earned media coverage, which can be more cost-effective compared to paid advertising campaigns. 132. MPR can build credibility by placing stories in the media to bring attention to a product, service, person, organization, or idea. Answer: False Rationale: MPR (Marketing Public Relations) is indeed effective in building credibility by securing media coverage for a product, service, person, organization, or idea. When stories are placed in the media through MPR efforts, they are seen as more credible because they are presented in a news format rather than as paid advertising. Therefore, the statement is false. 133. MPR is effective in blanketing local communities and reaching specific groups and hence has to be planned separately from the less cost-effective advertising. Answer: False Rationale: MPR (Marketing Public Relations) is often integrated into the overall promotional mix along with other marketing communication tools such as advertising. While MPR can effectively reach specific groups and communities through media coverage and events, it is typically planned in conjunction with advertising efforts to ensure a comprehensive and coordinated approach to promotion. 134. MPR's contribution to a company's bottom line is the easiest to measure among all the available promotion tools. Answer: False Rationale: Measuring the contribution of MPR (Marketing Public Relations) to a company's bottom line can be challenging because its impact is often indirect and difficult to quantify. While MPR efforts can enhance brand reputation, increase visibility, and generate goodwill, attributing these outcomes directly to financial performance may require complex measurement models or qualitative assessments. Therefore, MPR's contribution to the bottom line is not necessarily the easiest to measure compared to other promotion tools with more direct and measurable outcomes, such as sales promotions or digital advertising campaigns. 135. In developing an advertising program, marketing managers can make the five major decisions known as the five Ms. List and explain each of these Ms. Answer: (1) Mission—sales goals and advertising objectives; (2) Money—factors to consider: stage in PLC, market share and consumer base, competition and clutter, advertising frequency, and product substitutability; (3) Message—message generation, message evaluation and selection, message execution, and social-responsibility review; (4) Media— reach, frequency, impact, major media types, specific media vehicles, media timing, and geographical media allocation; and (5) Measurement—communication impact and sales impact. 136. Explain the classification of advertising objectives. Answer: (1) Informative advertising aims to create brand awareness and knowledge of new products or new features of existing products. (2) Persuasive advertising aims to create liking, preference, conviction, and purchase of a product or service. Some persuasive advertising uses comparative advertising, which makes an explicit comparison of the attributes of two or more brands. Comparative advertising works best when it elicits cognitive and affective motivations simultaneously, and when consumers are processing advertising in a detailed, analytical mode. (3) Reminder advertising aims to stimulate repeat purchase of products and services. (4) Reinforcement advertising aims to convince current purchasers that they made the right choice. 137. Describe how advertising objectives are set to reflect the product class. Answer: The advertising objective should emerge from a thorough analysis of the current marketing situation. If the product class is mature, the company is the market leader, and brand usage is low, the objective is to stimulate more usage. If the product class is new, the company is not the market leader, but the brand is superior to the leader, then the objective is to convince the market of the brand's superiority. 138. Give a brief description of the various factors that affect advertising budget decisions. Answer: 1. Stage in the product life cycle — New products typically merit large advertising budgets to build awareness and to gain consumer trial. Established brands usually are supported with lower advertising budgets, measured as a ratio to sales. 2. Market share and consumer base — High-market-share brands usually require less advertising expenditure as a percentage of sales to maintain share. To build share by increasing market size requires larger expenditures. 3. Competition and clutter — In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard. Even simple clutter from advertisements not directly competitive to the brand creates a need for heavier advertising. 4. Advertising frequency — The number of repetitions needed to put the brand's message across to consumers has an obvious impact on the advertising budget. 5. Product substitutability — Brands in less-differentiated or commodity-like product classes (beer, soft drinks, banks, and airlines) require heavy advertising to establish a unique image. 139. Write a brief note on the role of television as an advertising medium. Answer: Television is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure. TV advertising has two particularly important strengths. First, it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits. Second, it can dramatically portray user and usage imagery, brand personality, and other intangibles. Because of the fleeting nature of the ad, however, and the distracting creative elements often found in it, product-related messages and the brand itself can be overlooked. Moreover, the high volume of nonprogramming material on television creates clutter that makes it easy for consumers to ignore or forget ads. 140. What is the role of print media in advertising? What are the major advantages and disadvantages associated with print advertising media? Answer: Print media offer a stark contrast to broadcast media. Because readers consume them at their own pace, magazines and newspapers can provide detailed product information and effectively communicate user and usage imagery. At the same time, the static nature of the visual images in print media makes dynamic presentations or demonstrations difficult, and print media can be fairly passive. The two main print media—magazines and newspapers—share many advantages and disadvantages. Although newspapers are timely and pervasive, magazines are typically more effective at building user and usage imagery. Newspapers are popular for local—especially retailer—advertising. Although advertisers have some flexibility in designing and placing newspaper ads, relatively poor reproduction quality and short shelf life can diminish the ads' impact. 141. What are the legal and social issues associated with advertising? Answer: To break through clutter, some advertisers believe they have to be edgy and push the boundaries of what consumers are used to seeing in advertising. In doing so, marketers must be sure advertising does not overstep social and legal norms or offend the general public, ethnic groups, racial minorities, or special-interest groups. A substantial body of laws and regulations governs advertising. Under U.S. law, advertisers must not make false claims, such as stating that a product cures something when it does not. They must avoid false demonstrations, such as using sand-covered Plexiglas instead of sandpaper to demonstrate that a razor blade can shave sandpaper. It is illegal in the United States to create ads that have the capacity to deceive, even though no one may actually be deceived. The challenge is telling the difference between deception and "puffery"—simple exaggerations that are not meant to be believed and that are permitted by law. Sellers in the United States are legally obligated to avoid bait-and-switch advertising that attracts buyers under false pretenses. Advertising can play a more positive broader social role. The Ad Council is a nonprofit organization that uses top-notch industry talent to produce and distribute public service announcements for nonprofits and government agencies. From its early origins with "Buy War Bonds" posters, the Ad Council has tackled innumerable pressing social issues through the years. One of its recent efforts featured beloved Sesame Street stars Elmo and Gordon exhorting children to wash their hands in the face of the H1N1 flu virus. 142. What are the adjustments that marketers need to apply to the cost-per thousand measure when selecting specific media vehicles? Answer: Marketers need to apply several adjustments to the cost-per-thousand measure. First, they should adjust for audience quality. For a baby lotion ad, a magazine read by 1 million young mothers has an exposure value of 1 million; if read by 1 million teenagers, it has an exposure value of almost zero. Second, adjust the exposure value for the audience-attention probability. Readers of Vogue may pay more attention to ads than do readers of Newsweek. Third, adjust for the medium's editorial quality (prestige and believability. People are more likely to believe a TV or radio ad and to become more positively disposed toward the brand when the ad is placed within a program they like. Fourth, consider ad placement policies and extra services (such as regional or occupational editions and lead-time requirements for magazines. 143. Describe the adjustments that a advertiser of high-end laptops has to make to the costper-thousand measure. Answer: The advertiser needs to apply several adjustments to the cost-per-thousand measure. First, they should adjust for audience quality. The product being high-end laptops, it is better advertised in a magazine read by 1 million college-going kids rather than 2 million housewives, in which case it would have an exposure value of almost zero. Second, the exposure value for the audience-attention probability must be accounted for. Readers of Chip or Digit may pay more attention to gadget ads than do readers of Newsweek. Third, the medium's editorial quality (prestige and believability) should be considered. People are more likely to believe a TV or radio ad and to become more positively disposed toward the brand when the ad is placed within a program they like. To this effect, the ads can be placed within a program like Big Bang Theory. The fourth adjustment should be made in relation to ad placement policies and extra services (such as regional or occupational editions and lead-time requirements for magazines. Laptop ads would be better received and responded in magazines that have greater circulation in urban areas with an office-going population or university towns with sizable student populations. 144. What are the four types of advertising timing patterns available to marketers when launching a new product? Answer: In launching a new product, the advertiser must choose among continuity, concentration, flighting, and pulsing. • Continuity means exposures appear evenly throughout a given period. Generally, advertisers use continuous advertising in expanding market situations, with frequently purchased items, and in tightly defined buyer categories. • Concentration calls for spending all the advertising dollars in a single period. This makes sense for products with one selling season or related holiday. • Flighting calls for advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity. It is useful when funding is limited, the purchase cycle is relatively infrequent, or items are seasonal. • Pulsing is continuous advertising at low-weight levels, reinforced periodically by waves of heavier activity. It draws on the strength of continuous advertising and flights to create a compromise scheduling strategy. Those who favor pulsing believe the audience will learn the message more thoroughly, and at a lower cost to the firm. 145. Describe the communication-effect research method of evaluating advertising effectiveness. Answer: Communication-effect research, called copy testing, seeks to determine whether an ad is communicating effectively. Marketers should perform this test both before an ad is put into media and after it is printed or broadcast. Pretest critics maintain that agencies can design ads that test well but may not necessarily perform well in the marketplace. Proponents maintain that useful diagnostic information can emerge and that pretests should not be used as the sole decision criterion anyway. Many advertisers use posttests to assess the overall impact of a completed campaign. If a company hoped to increase brand awareness from 20 percent to 50 percent and succeeded in increasing it to only 30 percent, then the company is not spending enough, its ads are poor, or it has overlooked some other factor. 146. Compare and contrast advertising and sales promotion as marketing communication tools. Answer: Sales promotion expenditures increased as a percentage of budget expenditure for a number of years, although its growth has recently slowed. Several factors contributed to this growth, particularly in consumer markets. Promotion became more accepted by top management as an effective sales tool, the number of brands increased, competitors used promotions frequently, many brands were seen as similar, consumers became more priceoriented, the trade demanded more deals from manufacturers, and advertising efficiency declined. But the rapid growth of sales promotion created clutter. Loyal brand buyers tend not to change their buying patterns as a result of competitive promotions. Advertising appears to be more effective at deepening brand loyalty, although we can distinguish added-value promotions from price promotions. Price promotions may not build permanent total-category volume. Small-share competitors may find it advantageous to use sales promotion, because they cannot afford to match the market leaders' large advertising budgets, nor can they obtain shelf space without offering trade allowances or stimulate consumer trial without offering incentives. Dominant brands offer deals less frequently, because most deals subsidize only current users. 147. What challenges do marketers face in managing trade promotions? Answer: The growing power of large retailers has increased their ability to demand trade promotion at the expense of consumer promotion and advertising. The company's sales force and its brand managers are often at odds over trade promotion. The sales force says local retailers will not keep the company's products on the shelf unless they receive more trade promotion money, whereas brand managers want to spend their limited funds on consumer promotion and advertising. Manufacturers face several challenges in managing trade promotions. First, they often find it difficult to police retailers to make sure they are doing what they agreed to do. Manufacturers increasingly insist on proof of performance before paying any allowances. Second, some retailers are doing forward buying—that is, buying a greater quantity during the deal period than they can immediately sell. Retailers might respond to a 10 percent-off-case allowance by buying a 12-week or longer supply. The manufacturer must then schedule more production than planned and bear the costs of extra work shifts and overtime. Third, some retailers are diverting, buying more cases than needed in a region where the manufacturer offers a deal and shipping the surplus to their stores in nondeal regions. Manufacturers handle forward buying and diverting by limiting the amount they will sell at a discount, or by producing and delivering less than the full order in an effort to smooth production. Ultimately, many manufacturers feel trade promotion has become a nightmare. It contains layers of deals, is complex to administer, and often leads to lost revenues. 148. List the major objectives of events and experiences as promotion tools. Answer: 1. To identify with a particular target market or lifestyle 2. To increase salience of company or product name 3. To create or reinforce perceptions of key brand image associations 4. To enhance corporate image 5. To create experiences and evoke feelings 6. To express commitment to the community or on social issues 7. To entertain key clients or reward key employees 8. To permit merchandising or promotional opportunities 149. Describe the methods used to measure sponsorship activities. Answer: It's a challenge to measure the success of events. The supply-side measurement method focuses on potential exposure to the brand by assessing the extent of media coverage, and the demand-side method focuses on exposure reported by consumers. Supply-side methods approximate the amount of time or space devoted to media coverage of an event, for example, the number of seconds the brand is clearly visible on a television screen or the column inches of press clippings that mention it. These potential "impressions" translate into a value equivalent to the dollar cost of actually advertising in the particular media vehicle. Although supply-side exposure methods provide quantifiable measures, equating media coverage with advertising exposure ignores the content of the respective communications. The advertiser uses media space and time to communicate a strategically designed message. Media coverage and telecasts only expose the brand and don't necessarily embellish its meaning in any direct way. Although some public relations professionals maintain that positive editorial coverage can be worth 5 to 10 times the equivalent advertising value, sponsorship rarely provides such favorable treatment. The demand-side method identifies the effect sponsorship has on consumers' brand knowledge. Marketers can survey event spectators to measure recall of the event as well as resulting attitudes and intentions toward the sponsor. 150. What are the major functions performed by marketing public relations? Illustrate with examples. Answer: MPR goes beyond simple publicity and plays an important role in the following tasks: • Launching new products: The amazing commercial success of toys such as LeapFrog, Beanie Babies, and even the latest kids' craze, Silly Bandz, owes a great deal to strong publicity. • Repositioning a mature product: In a classic PR case study, New York City had extremely bad press in the 1970s until the "I Love New York" campaign. • Building interest in a product category: Companies and trade associations have used MPR to rebuild interest in declining commodities such as eggs, milk, beef, and potatoes and to expand consumption of such products as tea, pork, and orange juice. • Influencing specific target groups: McDonald's sponsors special neighborhood events in Latino and African American communities to build goodwill. • Defending products that have encountered public problems: PR professionals must be adept at managing crises, such as those weathered by such well-established brands as Tylenol, Toyota, and BP in 2010. • Building the corporate image in a way that reflects favorably on its products: Steve Jobs's heavily anticipated Macworld keynote speeches have helped to create an innovative, iconoclastic image for Apple Corporation. Test Bank for Marketing Management Philip T Kotler, Kevin Lane Keller 9780132102926, 9780273753360, 9781292092621, 9780133856460, 9789332587403, 9780136009986