Deck 15: Advertising, Publicity, and Sales Promotion

Question 1

International dimensions do not affect sales promotion decisions, because consumers throughout the world have the same responses to sales promotion methods.

Answer 1

False
Explanation: International dimensions impact sales promotion. Trade promotion may be difficult, or even impossible, to manage because consumers throughout the world have varying responses to sales promotion methods.

Question 2

Although advertising expenditures in the United States by 2013 were more than $220 billion, the major expense was for media time and space-not payroll expense to people who worked in the advertising industry.

Answer 2

True
Explanation: While total advertising expenditures are large, the advertising industry itself employs relatively few people. The major expense is for media time and space.

Question 3

Advertising in Europe accounts for roughly half of worldwide ad spending.

Answer 3

False
Explanation: Advertising in Europe accounts for about 30 percent of worldwide ad spending.

Question 4

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

Question 5

The U.S. has about 462,000 people working directly in the advertising industry, and half of them work for advertising agencies.

Question 6

Advertising objectives should be very specific, even more specific than personal selling objectives.

Question 7

Marketing managers should set overall advertising objectives, but then it's usually the advertising manager's job to set specific objectives for each ad.

Question 8

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

Question 9

By 2013, advertising expenditures in the United States were more than $220 billion.

Question 10

Eating places spend a higher percentage of their sales on advertising than do amusement parks.

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

Advertising in the U.S. accounts for about 35 percent of worldwide advertising spending.

Question 16

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

Question 17

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

Question 18

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 19

Total advertising spending in other countries is lower than in the U.S.

Question 20

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

Question 21

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

Question 22

Many countries forbid comparative advertising, but it is now legal in the U.S.

Question 23

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

Question 24

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

Question 25

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

Question 26

The basic job of pioneering advertising is to persuade, not inform.

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

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 32

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 33

Comparative advertising makes specific brand comparisons using actual product names.

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

Even though the cost per person may be higher and the number of persons reached may be smaller, specialized media is sometimes more effective than mass media.

Question 42

Many Internet users in the U.S. spend more time surfing the Web than they do watching television, listening to radio, or reading newspapers and magazines.

Question 43

The purpose of an Internet banner ad is to encourage the target market to visit the advertiser's website for more information.

Question 44

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

Question 45

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

Question 46

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

Question 47

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

Question 48

Social targeting involves analyzing customers' online activities to get detailed insight into their wants and needs.

Question 49

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

Question 50

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

Question 51

As opposed to behavioral targeting, social targeting is not characterized by the delivery of ads to consumers.

Question 52

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

Question 53

The largest share of total advertising expenditures in the United States goes for TV (including cable) advertising.

Question 54

Even with specialized media, consumers may selectively tune out ads that don't interest them.

Question 55

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

Question 56

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

Question 57

Institutional advertising is advertising aimed at business customers and intermediaries.

Question 58

If the objective of an ad is to inform, telling a detailed story and using precise pictures, then print advertising is right.

Question 59

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

Question 60

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

Question 61

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

Question 62

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

Question 63

Smartphones' embedded GPS works best for location-based retail outlets.

Question 64

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

Question 65

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 66

Most Internet ads seek a delayed response.

Question 67

The AIDA model can help plan messages for advertisements.

Question 68

Cookies give customers information about advertisers.

Question 69

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

Question 70

A lot more firms will put ads on websites if there is a direct relationship between costs and results.

Question 71

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

Question 72

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

Question 73

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 74

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

Question 75

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 76

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

Question 77

When measuring an advertising campaign, success depends on the total marketing mix.

Question 78

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

Question 79

Getting attention to a particular advertisement is always easy.

Question 80

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