Deck 2: Roles of Advertising

Question 1

As a ________ of society, advertising has run into some serious opposition.

A)promoter
B)mirror and monitor
C)messenger
D)detractor
E)contributor and benefactor

Answer 1

B

Question 2

Another name for business convergence is:

A)consolidation.
B)computerization.
C)conglomeration.
D)constriction.
E)compartmentalization.

Answer 2

A

Question 3

Regarding the impact of advertising on profitability, which of the following statements is true?

A)Evaluating the impact advertising expenses on profitability is relatively simple.
B)Advertising increases the cost of goods sold leading to increased profit.
C)Measuring profitability on the basis of message delivery is becoming easier.
D)Advertising influences price that yields improvements that go to the bottom line.
E)Decreasing advertising expenditures leads to increased profitability.

Answer 3

D

Question 4

The fundamental objective of advertising is that it must:

A)lead to a purchase.
B)trigger an effective marketing plan.
C)be cost effective.
D)communicate.
E)entertain.

Question 5

The primary expense for most communication companies that represents an opportunity for convergence is in:

A)the business area.
B)the content area.
C)the technological area.
D)the interactive area.
E)the strategic area.

Question 6

The most successful products are those that meet the needs of the:

A)company.
B)consumers.
C)shareowner.
D)employee.
E)return-on-investment.

Question 7

Another term for the social role of advertising is its ________ role.

A)behavioral
B)symbolic
C)public
D)inadvertent
E)consequential

Question 8

Brand names provide as much as ________ of the value of some companies.

A)33 percent to 50 percent
B)10 percent
C)25 percent
D)5 percent
E)65 percent

Question 9

When Coca-Cola Company wants to introduce a product such as Vanilla Coke, it is involved in:

A)core branding.
B)brand extension.
C)product enhancement.
D)evolutionary marketing.
E)none of the above

Question 10

Of the various publics a single advertisement might be directed at, rarely is it:

A)employees.
B)distribution channel members.
C)stockholders.
D)current customers.
E)clergy.

Question 11

Which of the following aspects would NOT be considered in a comprehensive marketing plan?

A)marketing objectives
B)situational analysis
C)problems and opportunities
D)consumer motivation
E)financial plan

Question 12

Critics and proponents of advertising generally view it through its:

A)impact on religion.
B)role in product innovations.
C)economic, and social and cultural roles.
D)impact on democracy.
E)ability to modify beliefs and values.

Question 13

The communication component in the marketing mix is divided into four primary categories. Which of the following is NOT one of them?

A)personal selling
B)interactivity
C)sales promotion
D)public relations
E)advertising

Question 14

Which of the following is an indication of just how much technological convergence can impact how advertising is delivered?

A)use of CDs
B)use of DVDs
C)use of radios
D)use of mobile technology
E)use of TVs

Question 15

The new relationship between advertisers and consumers that implies more control by users of communication rather than private providers is called:

A)push-pull advertising.
B)reverse media.
C)citizen media.
D)reverse dynamic advertising.
E)converged media.

Question 16

The major risk that companies run when they introduce an entirely new product is:

A)cannibalizing sales of existing brands.
B)damaging the core brand in the minds of consumers.
C)allowing the advertising to carry the marketing burden.
D)confusing consumers because there may be too many new product introductions.
E)prompting consumers to question the value and benefits of the original brand.

Question 17

In which of the product categories below would high brand recognition NOT be especially important?

A)beer
B)a people mover
C)cigarettes
D)soft drinks
E)fast food

Question 18

Which of the following is NOT a consideration for effective implementation of an advertising plan?

A)consumer motivations
B)advertising budget and allocation
C)share of marketing budget
D)prospect identification
E)advertising execution

Question 19

"Speaking with one voice" recognizes the:

A)recent simplification of contemporary marketing communication plans.
B)importance of communicating to disparate niches with a unique message.
C)need to coordinate all marketing communications to demonstrate a consistent look and theme.
D)need to increase individual brand management and control.
E)reality that advertising has forever done this.

Question 20

For consumers, the role of advertising is to:

A)help launch new product offerings.
B)help launch a new service.
C)satisfy curiosity.
D)satisfy needs.
E)enhance their status.

Question 21

The retail strategy that offers each customer a different price at a different point in time is known as:

A)individualized pricing.
B)variable pricing.
C)fixed and variable pricing.
D)marginal pricing.
E)differentiated pricing.

Question 22

Based on the advice of the late Theodore Levitt, a marketer's fundamental task is to:

A)understand the customer.
B)understand jobs customers need to do.
C)understand how customers' education impacts their purchases.
D)understand how customers' gender influences their purchases.
E)understand customers' media habits.

Question 23

Which of the following does NOT pertain to the significance of price?

A)It is closely related to product differentiation.
B)It is a safe way to establish a long-term, competitive advantage.
C)It can dictate the tone of an advertising message.
D)It can dictate the content of the message.
E)It is not a safe way to establish a long-term, competitive advantage.

Question 24

In a well-managed company, the role advertising plays in the company's promotional strategy should NOT depend on which of the following?

A)preferences for communication channels
B)sales volume
C)number of competing firms
D)product category
E)need to satisfy the CEO's philosophy of promotion

Question 25

One of the driving forces in modern advertising is:

A)development, protection, and maintenance of brand value.
B)creative brand extensions.
C)the dilution of niches.
D)the absolute need for humor and sexual images to break through clutter.
E)always looking for a new brand extension.

Question 26

When it comes to preferences corporations have for a channel of communication, it is becoming more apparent that many are:

A)staying with the traditional advertising media.
B)choosing product placement.
C)supplementing or replacing traditional media.
D)using snail mail.
E)shying away from new media approaches.

Question 27

When marketers have wanted to even out supply and demand, they have used this strategy.

A)digitally dynamic pricing
B)dynamic yield pricing
C)value gap pricing
D)yield management
E)variable cost pricing

Question 28

Kimberly-Clark Corporation, maker of Huggies disposable diapers, used which market timing strategy when it spent $7 million for an expanded Internet presence?

A)seasonal purchasing
B)capturing a fad
C)spotting trends
D)matching product lifecycle to consumer needs
E)doing something first rather than doing something different

Question 29

One of the fundamental challenges in product development is:

A)lack of consumer awareness of product benefits.
B)moving too fast without thorough understanding of consumer needs.
C)ignoring the impact of customer perception.
D)ignoring the downside of offering brand extensions.
E)quality control for the new product.

Question 30

Which of the following is NOT a major approach used by established companies to achieve long-term revenues and profits?

A)developing and expanding new-product niches to reach current customers
B)emphasizing sales volume over profits
C)emphasizing short-term market share rather than profitability
D)consumer tracking and analysis based on a consumer's value to the company
E)protracted cost-cutting measures

Question 31

When a product is in its introductory and growth phase:

A)businesses advertise to reinforce brand equity.
B)businesses advertise to gain a level of awareness and establish a beachhead against competition.
C)businesses advertise with a broader perspective in mind.
D)businesses advertise to constantly evaluate their brand base.
E)businesses take on a longer perspective and focus on brand equity.

Question 32

The key motivation in the product-differentiation strategy is:

A)to improve product function.
B)to set the brand apart from the competition.
C)to decrease the price premium.
D)to modify the entire bundle of benefits.
E)to broaden the potential customer base.

Question 33

A trip to ________ provides sobering evidence of just how difficult it is to introduce successful new products.

A)WalMart
B)Best Buy
C)Dollar Tree
D)Big Lots
E)Costco

Question 34

From a strategic standpoint, advertising timing involves interaction between the probability of marketplace acceptance and:

A)seasonality of the product.
B)trendiness of the product.
C)the stages of product development.
D)the strength of the existing brand and its extensions.
E)long-term market trends.

Question 35

The research technique known as conjoint analysis is utilized in marketing to:

A)weigh diverse consumer demographics.
B)weigh diverse consumer psychographics.
C)determine what consumers perceive as the product's most important characteristics.
D)temper the exuberance of product designers.
E)find an objective standard.

Question 36

The wider the value gap of a given product,

A)the greater the price competition.
B)the weaker the overall brand structure.
C)the more insulated the product is from price competition.
D)the smaller the product differentiation that exists.
E)the less critical the size of the niche becomes.

Question 37

This circumstance is only meaningful when a target audience regards the product as being distinctly better than other products.

A)objective product comparisons
B)subjective product comparisons
C)product diversification
D)product differentiation
E)demand-driven pricing

Question 38

The disadvantages of a brand-extension strategy include:

A)thinking the extension can carry the brand.
B)reinforcing the core brand in the minds of new customers.
C)diverting marketing focus from the existing brand.
D)enhancing brand equity after a successful introduction.
E)saving money on maintaining the brand.

Question 39

The advantages of a successful brand-extension strategy include:

A)adding equity to an existing brand name.
B)modifying the core brand in the minds of loyal consumers.
C)reducing advertising expenditures to build awareness for the brand.
D)reducing costs of marketing efforts for the brand.
E)limiting damage done by competing brands.

Question 40

Which of the following companies has been identified as adopting a bottom-up, consumer centric model of product development and maintenance?

A)Procter & Gamble
B)Mercedes Benz
C)Volkswagen
D)Kentucky Fried Chicken
E)Haier Group

Question 41

This provides advertisers a way to reach consumers with personal messages and offers designed to meet their specific needs and may utilize all types of media.

A)end-product advertising
B)infomercial advertising
C)direct-response advertising
D)segmented advertising
E)niche advertising

Question 42

Which type of advertising emphasizes product profitability and the consumer advertising support retailers will receive from manufacturers?

A)point-of-purchase
B)image
C)trade
D)retail
E)B2C

Question 43

To be more effective, service advertising should:

A)use testimonials.
B)avoid use of testimonials.
C)use models or actors as employees of the service company.
D)keep introducing new themes.
E)periodically introduce a new slogan.

Question 44

Which of the following is NOT a major difference between B2B and consumer advertising?

A)the nature of the target audience
B)the types of message used
C)The expenditures for telemarketing and the Internet are lower.
D)the different buying processes used
E)the different overall strategy required

Question 45

The situational analysis is a statement of the product benefits as well as data concerning sales trends, competitive environment, and industry forecasts.

Question 46

When evaluating advertising's role in the marketing process, it is often easiest to determine:

A)the directness and timing of the effort.
B)the cost and timing of the effort.
C)the directness and cost of the effort.
D)the action and frequency of the effort.
E)the action and timing of the effort.

Question 47

Advertising used by companies selling to manufacturers is called:

A)personal selling.
B)industrial.
C)direct response.
D)telemarketing.
E)national.

Question 48

Which of the following is no longer a characteristic of retailing?

A)dramatic move from regional stores to national chains
B)Many historic retail practices have been altered.
C)advertising for it is referred to as local
D)goes directly to customers with personalized messages
E)Customers now can do one-stop shopping.

Question 49

Which of the following is NOT characteristic of idea advertising?

A)uses emotionalism
B)will benefit in the future because of the ability of media to target audiences
C)Messages are too long.
D)Topics range from abortion to gun control, to the environment.
E)Proponents say advertising is the only way to put out their message before a mass audience.

Question 50

Which of the following is NOT likely to be a subject the federal government would include in its advertising?

A)need for volunteers in the armed forces
B)consumer-protection programs
C)health initiatives
D)savings plans for higher education
E)brand-specific energy efficient products

Question 51

The slogan "Intel inside," employed by the manufacturer of an ingredient used in computers, is an example of:

A)end-unit advertising.
B)end-product advertising.
C)component advertising.
D)interior branding advertising.
E)co-branding.

Question 52

In mass communications, the term convergence has come to refer to two different, though related, areas: technological convergence and business convergence.

Question 53

Which of the following is a characteristic of national advertising?

A)includes general product information
B)includes price information
C)includes hours of operation
D)includes service policies
E)includes store locations

Question 54

The traditional marketing channel has been changing recently due to:

A)the cost of doing business.
B)the economic downturn.
C)the introduction of new technology.
D)the growth in demand for better service.
E)the growth in demand for lower prices.

Question 55

The type of advertising used by the owner of a trademarked product (brand)or service sold through different distributors or stores is called:

A)retail.
B)end-product.
C)national.
D)regional.
E)none of the above

Question 56

Developing the overall creative themes and media plans to effectively deliver messages that set the brand apart from its competition is known as advertising execution.

Question 57

Conglomerates have been doing more and more of what kind of advertising to make the public aware of their products and brand names?

A)industrial
B)institutional
C)professional
D)B2B
E)trade

Question 58

If you were in an agency that focused on creating advertising to help doctors, lawyers and bankers do their jobs even better, your agency would be practicing:

A)professional advertising.
B)corporate advertising.
C)industrial advertising.
D)self-employed advertising.
E)image advertising.

Question 59

Citizen media is another name for user-generated media or participatory media.

Question 60

Who among the following is credited with creating the first direct-sales catalog?

A)Benjamin Franklin
B)John Sears Roebuck
C)J. Walter Thompson
D)M. Weber Shandwick
E)L. L. Bean

Question 61

Advertising people need to realize that public relations can complement and not compete with their efforts.

Question 62

In the advertising process, messages communicated to various publics are in turn interpreted in the context of their own interests.

Question 63

Adapting a top-down model that provides customers products a company hopes they want is the way a successful company like Procter & Gamble operates.

Question 64

The greater a product's value gap, the more insulated the product is from price competition.

Question 65

Personal selling techniques are becoming important factors in many selling tactics that go across various media platforms.

Question 66

Yield management offers "each customer a different price at a different point in time."

Question 67

Advertising for prospective buyers should provide information as economically and efficiently as possible.

Question 68

Because of the scrutiny that advertising receives, it must recognize not only its economic role but also societal and cultural roles.

Question 69

Evidence indicates that high-brand awareness and a company's positive reputation can be factors in keeping its stock price high.

Question 70

The consumer's perception that your product delivers something better than a competitor's product does is at the heart of product differentiation.

Question 71

Sound advertising proposals depend on knowing the level of product maturity and its marketplace acceptance.

Question 72

According to the late Theodore Levitt, the real task of advertising is to convey to prospective customers what a product can do for them.

Question 73

Simply put, advertising is supposed to help a business create awareness of useful products so the business can builds shareholder value by profitably moving inventory.

Question 74

Market share has not been shown to be one of the primary contributors to return on investment.

Question 75

Brand building is about sustaining price premiums: advertising influences price more than it influences sales.

Question 76

Clients are demanding media and advertising agencies measure advertising success on the basis of effective audience exposure.

Question 77

A major downside of a failed brand extension is the bad perception it creates in the mind of loyal consumers.

Question 78

Advertising mirrors the society in which it functions, and likely contributes to subtle changes in the mores and behavior of the public that is exposed to it.

Question 79

Consumer privacy and the potentially intrusive nature of advertising are issues that have become more prominent because of new technology and sophisticated research methods.

Question 80

In IMC, there is less concern about how a message is delivered and more emphasis on the effectiveness of the total marketing communication plan.