Question 1

A product in the maturity stage will often require ________ advertising.
A)informative
B)comparative
C)persuasive
D)reminder
E)cooperative

Accepted Answer

A product in the maturity stage is well-established in the market, and its target audience is familiar with it. Therefore, the primary goal of advertising at this stage is to remind consumers of the product's benefits and encourage repurchase. Reminder advertising aims to maintain a product's top-of-mind awareness among consumers, and this is best suited for products in the maturity stage.

Question 2

A company decides on its promotion budget by using four common methods to set the total budget for advertising.What is NOT one of these methods?
A)the affordable method
B)the percentage-of-sales method
C)the integrated budgeting method
D)the competitive-parity method
E)the objective-and-task method

Accepted Answer

The four common methods to set the total budget for advertising are the affordable method, the percentage-of-sales method, the competitive-parity method, and the objective-and-task method. The integrated budgeting method is not one of these methods.

Question 3

A method of budgeting for advertising that views sales as the cause of promotion rather than as the result is known as ________.
A)affordable
B)competitive-parity
C)objective-and-task
D)percentage-of-sales
E)None of the above.

Accepted Answer

The percentage-of-sales method of budgeting for advertising views sales as the cause of promotion rather than as the result. This approach sets the advertising budget based on a fixed percentage of past or anticipated sales.

Question 4

All of the following are important decisions during the process of developing an advertising program EXCEPT which one?
A)setting advertising objectives
B)setting the advertising budget
C)developing advertising strategy
D)selecting a target market
E)evaluating advertising campaigns

Accepted Answer

Selecting a target market is not a decision during the process of developing an advertising program. It is a decision made prior to starting the program, during the market segmentation process. The other options are important decisions in the development of an advertising program. Setting advertising objectives, setting the advertising budget, developing the advertising strategy, and evaluating advertising campaigns are all integral parts of creating an effective and successful advertising program.

Question 5

Using the ________ method for setting an advertising budget,the company starts with total revenues,deducts operating expenses and capital outlays,and then devotes some portion of the remaining funds to advertising.
A)percentage-of-sales
B)affordable
C)competitive-parity
D)objective-and-task
E)moving-average

Accepted Answer

The method described in the question is the affordable method, where the company determines the amount it can afford to allocate to advertising after deducting all necessary expenses from their revenue.

Question 6

If the pull strategy is effective,consumers will then demand the product from channel members,who will in turn demand it from producers.

Accepted Answer

This is true, as the pull strategy focuses on creating demand from consumers, which then leads to the demand for the product from channel members and producers.

Question 7

________ becomes more important as competition increases.The company's objective is to build selective demand.
A)Persuasive advertising
B)Informative advertising
C)POP promotion advertising
D)Patronage advertising
E)Reminder-oriented advertising

Accepted Answer

Persuasive advertising becomes more important as competition increases because it aims to persuade customers to choose the company's product or service over its competitors' offerings. The objective of persuasive advertising is to build selective demand by creating a preference for the company's products or services.

Question 8

Coupons,contests,cents-off deals and premiums are all examples of ________ ________.

Accepted Answer

The answer of Coupons,contests,cents-off deals and premiums are all examples...

Question 9

Which of the following factors should a company consider when designing its promotional mix strategies?
A)type of product
B)the market
C)the stage of the product life-cycle
D)All of the above.
E)None of the above.

Accepted Answer

A company should consider all of the above factors when designing its promotional mix strategies. The type of product will affect which promotional tools are most effective, the market will determine the target audience and how they should be reached, and the stage of the product life-cycle will determine the appropriate mix of advertising, sales promotions, personal selling, and public relations.

Question 10

Persuasive advertising becomes comparative advertising,also known as ________,when a company directly or indirectly compares its brand with one or more other brands.
A)informative advertising
B)reminder advertising
C)attack advertising
D)POP promotion advertising
E)institutional advertising

Accepted Answer

Comparative advertising is also known as attack advertising where a company directly or indirectly compares its brand with one or more other brands. The purpose is to persuade customers to choose their brand over the competitor's brand.

Question 11

After determining its advertising objectives,the company's next step in developing an advertising program is to ________.
A)set its advertising budget
B)evaluate ad campaigns
C)develop an ad strategy
D)make message decisions
E)make media decisions

Accepted Answer

Setting the advertising budget is the next logical step after determining the advertising objectives, as it will determine the resources available for developing the ad campaign, making message and media decisions, and carrying out the ad strategy.

Question 12

Advertising ________ can be classified by primary purpose-whether the aim is to inform,persuade or remind.
A)objectives
B)budgets
C)evaluations
D)campaigns
E)logos

Accepted Answer

Advertising objectives refer to the intended purpose or goal of an advertising campaign. These goals can be to inform the target audience, persuade them to take a particular action, or remind them about a product or service.

Question 13

A consequence of the rise of new media is that many companies are now doing less broadcasting and more ________.

Accepted Answer

The answer of A consequence of the rise of new...

Question 14

Advertising ________ define the task that advertising must do with a specific target audience during a specific period of time.
A)objectives
B)budgets
C)strategies
D)campaigns
E)evaluations

Accepted Answer

Advertising objectives define the goals and targets that advertising needs to achieve within a specific period of time for a particular audience. The objectives help in creating effective advertising strategies and campaigns to reach the goals set for the advertising campaign. Budgets refer to the amount of money allocated for advertising, strategies refer to the approach and tactics used to achieve the objectives, campaigns refer to the specific set of activities undertaken during a particular period, and evaluations refer to the measurement and analysis of the effectiveness of the advertising campaign.

Question 15

A television advertisement for Herron pain relief tablets claims that all common brands of analgesic are made from the same active ingredients but that Herron is the only brand that is Australian made and owned.In the background,viewers can see a collection of other brands,some of which are identifiable from the shape of their distinctive packaging.These other brands include Panadol.This is an example of ________ advertising.
A)informative
B)persuasive
C)lifestyle
D)comparative
E)instructive

Accepted Answer

This advertisement is making a comparison between Herron pain relief tablets and other common brands of analgesic, including the identifiable packaging of Panadol. Therefore, it is an example of comparative advertising.

Question 16

Advertisers should use comparative advertising appeals cautiously.Which of the following is NOT one of the dangers of comparative advertising?
A)It has the potential to invite negative or unwanted competitive responses.
B)It can upset competitors.
C)It can lead to litigation,especially when comparisons are unfounded or unfair.
D)It is not legal in Australia or New Zealand.
E)It has the potential to lead to an advertising war.

Accepted Answer

This option is not a danger of comparative advertising, but rather a legal restriction in Australia and New Zealand.

Question 17

Suave ran ads featuring a woman with beautiful hair questioning 'Suave or Matrix? Can You Tell?' This is an example of ________.
A)informative advertising
B)reminder advertising
C)comparative advertising
D)secondary advertising
E)buzz marketing

Accepted Answer

This is an example of comparative advertising because Suave is comparing itself to another brand, Matrix.

Question 18

The owner of an independent gift store is developing an advertising budget,and has totalled his company's revenues and deducted operating expenses and capital outlays.He intends to use a percentage of the remaining funds for advertising.Which budget setting method is he using?
A)affordable method
B)integrated method
C)percentage-of-sales method
D)competitive-parity method
E)objective-and-task method

Accepted Answer

The answer of The owner of an independent gift store...

Question 19

When Proctor & Gamble developed the Mr.Clean Magic Eraser,the company needed to explain how the product cleans grime from walls without removing paint.What type of campaign was most likely used by Proctor & Gamble for the Mr.Clean Magic Eraser to introduce the new product to the market?
A)informative advertising
B)persuasive advertising
C)reminder advertising
D)developmental advertising
E)comparative advertising

Accepted Answer

Proctor & Gamble needed to educate consumers on how the Mr.Clean Magic Eraser works without damaging paint. Therefore, informative advertising, which aims to educate consumers about a product's features, benefits, and uses, is the most likely type of campaign used for this product introduction.

Question 20

________ is used heavily when introducing a new product category.The objective is to build primary demand.
A)Persuasive advertising
B)Informative advertising
C)Comparative advertising
D)Patronage advertising
E)Institutional advertising

Accepted Answer

When introducing a new product category, the objective of advertising is to educate potential customers about the product's benefits and build primary demand. Informative advertising is therefore the best choice as it focuses on providing information about the product that will help customers understand its features and benefits. This type of advertising is particularly effective when introducing new products as it can help to overcome resistance to adoption and drive initial sales.

Quiz 11: Additional Pricing Considerations

A product in the maturity stage will often require ________ advertising.

A company decides on its promotion budget by using four common methods to set the total budget for advertising.What is NOT one of these methods?

A method of budgeting for advertising that views sales as the cause of promotion rather than as the result is known as ________.

All of the following are important decisions during the process of developing an advertising program EXCEPT which one?

Using the ________ method for setting an advertising budget,the company starts with total revenues,deducts operating expenses and capital outlays,and then devotes some portion of the remaining funds to advertising.

If the pull strategy is effective,consumers will then demand the product from channel members,who will in turn demand it from producers.

________ becomes more important as competition increases.The company's objective is to build selective demand.

Coupons,contests,cents-off deals and premiums are all examples of .

Which of the following factors should a company consider when designing its promotional mix strategies?

Persuasive advertising becomes comparative advertising,also known as ________,when a company directly or indirectly compares its brand with one or more other brands.

After determining its advertising objectives,the company's next step in developing an advertising program is to ________.

Advertising ________ can be classified by primary purpose-whether the aim is to inform,persuade or remind.

A consequence of the rise of new media is that many companies are now doing less broadcasting and more ________.

Advertising ________ define the task that advertising must do with a specific target audience during a specific period of time.

Advertisers should use comparative advertising appeals cautiously.Which of the following is NOT one of the dangers of comparative advertising?

Suave ran ads featuring a woman with beautiful hair questioning 'Suave or Matrix? Can You Tell?' This is an example of ________.

The owner of an independent gift store is developing an advertising budget,and has totalled his company's revenues and deducted operating expenses and capital outlays.He intends to use a percentage of the remaining funds for advertising.Which budget setting method is he using?

When Proctor & Gamble developed the Mr.Clean Magic Eraser,the company needed to explain how the product cleans grime from walls without removing paint.What type of campaign was most likely used by Proctor & Gamble for the Mr.Clean Magic Eraser to introduce the new product to the market?

________ is used heavily when introducing a new product category.The objective is to build primary demand.