Deck 15: Advertising and Sales Promotion

Question 1

It's a common belief that half the money spent on advertising and sales promotion is wasted.

Answer 1

True
Explanation: Unfortunately,the results that marketers actually achieve with advertising,publicity,and sales promotion are very uneven.It's often said that half of the money spent on these activities is wasted.

Question 2

The main problem with advertising is that it costs so much-on average about one third of sales dollars for U.S.companies.

Answer 2

False
Explanation: While total spending on advertising seems high,U.S.corporations spend an average of only about 2.5 percent of their sales dollars on advertising.

Question 3

Product advertising tries to sell a specific product,while institutional advertising tries to promote an organization rather than a specific product.

Answer 3

True
Explanation: Product advertising tries to sell a product while institutional advertising promotes an organization's image,reputation,or ideas rather than a specific product.

Question 4

Motor vehicles producers spend a higher percentage of their sales on advertising than do perfumes and cosmetics producers.

Question 5

Furniture stores spend a higher percentage of their sales on advertising than do grocery stores.

Question 6

Advertising allowances are price reductions given to firms further along in the channel to encourage them to advertise or promote a producer's products locally.

Question 7

During the last decade,the rate of advertising spending has increased in the United States,but it has decreased in the rest of the world.

Question 8

Although advertising expenditures in the United States were more than $200 billion in 2017,the major expense was for media time and space-not the payroll expense of people who worked in the advertising industry.

Question 9

Eating places spend a higher percentage of their sales on advertising than do department stores.

Question 10

Competitive advertising tries to develop selective demand for a specific brand.

Question 11

The basic strategy planning decisions for advertising,publicity,and sales promotion are the same regardless of where in the world the target market is located.

Question 12

A cooperative advertising program can help a producer achieve coordination and integration of ad messages in the channel of distribution.

Question 13

The basic job of pioneering advertising is to develop specific demand for a specific brand.

Question 14

By 2017,advertising expenditures in the United States were more than $200 billion.

Question 15

Games and toys producers spend a higher percentage of their sales on advertising than do footwear producers.

Question 16

Cooperative advertising involves intermediaries and producers sharing in the cost of ads.

Question 17

Competitive advertising is typically used in the market introduction stage of the product life cycle-to develop primary demand.

Question 18

On average,U.S.corporations spend only about 2.5 percent of their sales on advertising.

Question 19

Producers of business products generally spend a larger percentage on advertising than do producers of consumer products.

Question 20

Cooperative advertising is not very economical,because media rate structures usually require local firms to pay more for local advertising than the same ad would cost a national advertiser.

Question 21

Comparative advertising has been banned by the Federal Trade Commission because it is considered very effective in winning sales from competing products named in ads.

Question 22

An insurance company might use institutional ads to highlight its concern for safe driving.

Question 23

When a retailer advertises a "special 24-hour sale on GE brand air conditioners," direct competitive advertising is being used.

Question 24

The effectiveness of an advertising medium depends on how well it fits with the rest of a particular marketing strategy.

Question 25

Many countries forbid comparative advertising,but it is legal in the United States.

Question 26

In general,advertising media are becoming more targeted,in that they aim for more narrowly defined market segments.

Question 27

Product advertising is aimed at final consumers; institutional advertising is aimed at intermediaries.

Question 28

Reminder advertising is likely to be most useful in the market growth stage of the product life cycle.

Question 29

Comparative advertising tries to keep the product's name before the public.

Question 30

Comparative advertising makes specific brand comparisons using actual product names.

Question 31

The largest share of total advertising expenditures in the United States goes for newspaper advertising.

Question 32

A chemical company might use institutional ads to highlight its concern for the environment.

Question 33

Institutional advertising may try to inform,persuade,or remind,but it usually focuses on the name and prestige of an organization or industry.

Question 34

The largest share of total advertising expenditures in the United States goes for TV advertising.

Question 35

The direct type of competitive advertising tries to obtain immediate buying action.

Question 36

Institutional advertising is advertising aimed at business customers and intermediaries.

Question 37

Institutional advertising emphasizes a particular product and plays down the name of the company.

Question 38

Reminder advertising is most likely to be useful in the market maturity or sales decline stages of the product life cycle-especially when the product has achieved brand insistence or brand preference.

Question 39

When a firm's advertising says "Our motorcycles will outperform any other brand," it is using competitive advertising to develop selective demand.

Question 40

Indirect competitive advertising aims for immediate buying action,while direct competitive advertising aims for future buying action.

Question 41

The AIDA model can help plan messages for advertisements.

Question 42

Copy thrust is what the words and illustrations of an advertisement should communicate.

Question 43

When "action" and a sale are important,then TV advertising is the right advertising choice.

Question 44

Pay-per-click is based on the number of people who click on an ad divided by the number of people to whom the ad is presented.

Question 45

Advertising can be useful in a marketing strategy for getting attention,holding interest,arousing desire,and obtaining action.

Question 46

Most online advertisers seek a delayed response.

Question 47

The best advertising medium is television,but some advertisers must use other media because they do not have enough money for TV.

Question 48

Pay-per-click advertising means advertisers pay only if the customer clicks on the ad and links to the advertiser's website.

Question 49

Through the use of big data,cable television has the ability to deliver specific ads to each household instead of advertising to everyone watching a particular show.

Question 50

Because of cookies,some advertisers already know where customers have been on the web and what they did there.

Question 51

To guarantee good media selection,the advertiser first must clearly specify its target market.

Question 52

To guarantee good media selection,the advertiser must specify its target market and then choose media that will reach these target customers.

Question 53

Cookies give customers information about advertisers.

Question 54

Mobile devices track customers' whereabouts through GPS,and the segmenting dimension of physical location at a specific time can be added to target marketing.

Question 55

Cookies are a cost-effective way for advertisers to target ads and boost online sales.

Question 56

On some websites,Internet ads are free if the ads don't get results.

Question 57

Copy thrust refers to the choice of media to deliver a message to the target audience.

Question 58

Pay-per-click allows firms the ability to directly track the cost of advertising and the resulting sales.

Question 59

Considering that only a small percentage of cell phone users in many developed countries have smartphones,advertisers are wary about the effectiveness of delivering online ads on smartphones.

Question 60

One advantage of the major mass media is that the advertiser does not have to pay for the whole audience to whom the media deliver,but instead just pays based on the number of potential customers in the audience.

Question 61

Looking at sales volume is usually the easiest and best method of determining the degree of success for an advertising campaign.

Question 62

The growth of mega-agencies has been prompted by large corporations who need to advertise worldwide.

Question 63

Advertisers often decline to work with agencies who handle competing accounts.

Question 64

Advertising effectiveness is usually very difficult to measure because sales result from the total marketing mix,not just from advertising.

Question 65

The vast majority of advertising agencies are small,with 10 or fewer employees.

Question 66

On average,the 500,000 advertising agencies in the United States are large,employing about 200 people each.

Question 67

Sales promotion is generally used instead of other promotion methods.

Question 68

Getting attention to a particular advertisement is always easy.

Question 69

The vast majority of advertising agencies are large (20 or more employees),but the smaller,more creative agencies account for most of the billings.

Question 70

In general,sales promotion tries to spark immediate interest,trial,or purchase.

Question 71

One of the big problems with using an advertising agency is that the advertiser must stick with the agency for a long time-at least two years-even if the agency's work is not satisfactory.

Question 72

In the United States,the regulation of "deceptive" and "unfair" advertising is the responsibility of the Federal Trade Commission.

Question 73

The Federal Trade Commission can require firms to use "corrective advertising" or "affirmative disclosures" if it decides a particular advertisement is unfair or deceptive.

Question 74

The effectiveness of advertising is best measured by relying on the judgment of creative people and advertising experts.

Question 75

Because of different advertising rules in different countries,it's best for a marketing manager to get help from local advertising experts.

Question 76

The United States is one of only a few countries in the world where the government takes an active role in deciding what kinds of advertising are allowable,fair,or appropriate.

Question 77

To evaluate the effectiveness of advertising,it's better to rely on the judgment of the creative people in ad agencies than to rely on the results of advertising research.

Question 78

Though it is common in the United States to use cartoon characters in advertising to children,both Japan and France limit that practice,and Canada bans any advertising targeted directly at children.

Question 79

The success of an advertising campaign can be easily measured by looking at the sales result.

Question 80

Corrective advertising corrects deceptive advertising.