Question 1

Which of the following slogans is an example of corporate advertising?

Accepted Answer

Corporate advertising focuses on promoting the company as a whole rather than a specific product. "Think creatively" by Helix phones is likely aimed at enhancing the overall brand image rather than advertising a specific product.

Question 2

Cryptic Inc., a literary publisher, has established offices in more than 20 states in Lentasia.Additionally, it has advertised in all states of the country.This is an example of advertising.

Accepted Answer

The fact that Cryptic Inc. has advertised in all states of the country indicates that it is a national advertising campaign, rather than local or regional. The establishment of offices in over 20 states suggests a national presence as well. While it is possible that Cryptic Inc. may have a presence in other countries, the information given only pertains to Lentasia, so it cannot be considered a global campaign.

Question 3

attempts to develop brand awareness and preference over time, as well as emphasize the benefits of using that brand.

Accepted Answer

Delayed response advertising, also known as brand advertising, is designed to create long-term brand awareness and preference among potential customers by emphasizing the benefits of using that brand over time. This type of advertising is often used by large corporations and brands with significant advertising budgets to build a strong brand identity and loyal customer base.

Question 4

Which of the following is true of inelasticity of demand?

Accepted Answer

Inelastic demand means that consumers are less sensitive to price changes, and therefore, the quantity demanded does not change much even if there is a change in price. This can be seen when basic necessities such as food and medicine experience price increases, and demand for these items remains relatively constant.

Question 5

is a type of advertising that communicates the specific features, values, and benefits of a product offered by a particular company.

Accepted Answer

Brand advertising focuses on promoting a particular product by highlighting its features, values, and benefits. This type of advertising aims to create a strong brand identity for the product, which in turn generates customer loyalty and trust. Brand advertising is often used by companies to differentiate their products from those of their competitors and to position them as superior in the minds of consumers.

Question 6

Sparkles Inc.has launched an advertisement on a local television channel.The ad promotes the new set of Acrylic paints and informs customers that the first five people who call in the next two days would receive a free sample.This is an example of .

Accepted Answer

This is an example of direct response advertising because it includes a call-to-action for viewers to call in and receive a free sample, promoting an immediate response.

Question 7

CoolNature, a manufacturer of mineral water, has recently launched its product in the market.It starts a rigorous advertising campaign to highlight the benefits of its product.This is an example of .

Accepted Answer

Primary demand stimulation refers to creating demand for an entire category of products. In this case, CoolNature is promoting the benefits of mineral water which falls under a category of beverages.

Question 8

is the process of creating a perceived distinction between an organization's brand and a competitor's brand.

Accepted Answer

The process of creating a perceived distinction between an organization's brand and a competitor's brand is known as differentiation. It involves highlighting the unique features and benefits of a brand to make it stand out in the market and appeal to customers. Market analysis, co-op advertising, and market segmentation are all important components of a comprehensive marketing strategy, but they are not specifically related to creating brand differentiation.

Question 9

RomTech, a cell phone manufacturer, displays in its advertisement that its products are better than others in the market because they are waterproof and scratch proof.This is an example of .

Accepted Answer

RomTech is using selective demand stimulation strategy by highlighting specific features of their product that differentiate them from their competitors in the market.

Question 10

CarlBerrys, a department store, has launched a series of advertisements inviting people to do their holiday shopping at their store.This is an example of .

Accepted Answer

Institutional advertising is advertising that is designed to promote a company or an organization as a whole rather than promoting an individual product or service. In this case, CarlBerrys is promoting their department store as a place for people to do their holiday shopping, which is an example of institutional advertising.

Question 11

If Caltec Corp., a computer manufacturer, increased the number of computers produced to twice the amount it used to, the economies of scale would:

Accepted Answer

Economies of scale are achieved when increasing production leads to lower costs per unit. This can occur through fixed costs being spread over a larger number of units, resulting in a lower fixed cost per unit. Therefore, choice A is the correct answer. The other options are not directly related to economies of scale.

Question 12

Which of the following is an example of a brand extension?

Accepted Answer

The launch of a new product category (biscuits) under an existing brand (Cocoa flakes) is an example of brand extension. The other options (A, B, and C) are related to advertising, collaborations, and sales promotions, but they do not involve brand extension.

Question 13

Effective internal positioning is accomplished by:

Accepted Answer

The answer of Effective internal positioning is accomplished by:
...

Question 14

When national companies and local merchants share advertising expenses, they are taking part in .

Accepted Answer

Cooperative advertising refers to the practice where two or more companies share the costs of advertising in order to gain mutual benefits. In this case, national companies and local merchants are joining hands to share advertising expenses, which can help both parties to increase their reach and exposure, while also reducing their individual advertising costs.

Question 15

The customers of TimeZone watches have high brand loyalty and although the watches are priced at high rates, TimeZone's customers are willing to pay the market price of the product.This is an example of .

Accepted Answer

The customers' willingness to pay the market price of the product despite its high price indicates inelasticity of demand. This means that the customers' demand for the product is not affected by its price, suggesting that they have a high level of loyalty to the brand and perceive it to have high value. This can lead to a higher profit margin for the company as they are able to charge a premium for their product due to customers' loyalty and the inelasticity of demand.

Question 16

WoodChuck Inc., a furniture retailer, establishes itself in the North-east state of Largonia and has spread to many other states within the country.It has conducted promotional activities in all of these states to create awareness among the public about its products.This is an example of advertising.

Accepted Answer

The promotional activities conducted by WoodChuck Inc. span across multiple states within the same region, making it a regional advertising campaign.

Question 17

Which of the following is one of the four areas of responsibility in the marketing mix?

Accepted Answer

Price is one of the four areas of responsibility in the marketing mix, which includes Product, Price, Place, and Promotion.

Question 18

A family-owned meat shop has expanded to four locations within the Preston area and suburbs, running regular promotions in the daily editions of The Preston City Star newspaper.These newspaper ads are forms of advertising.

Accepted Answer

The fact that the meat shop has expanded only within the Preston area and suburbs indicates that their target audience is local customers. Additionally, their choice of advertising through a local newspaper further supports the idea that their advertising is focused on the local market.

Question 19

Which of the following is a similarity between the market strategies, positioning and differentiation?

Accepted Answer

Both positioning and differentiation rely on conveying a certain image or perception of a product's features, whether tangible or intangible, in order to distinguish it from competitors' offerings. Standardization (choice A) and targeting a small market segment (choice D) may be elements of certain market strategies, but not necessarily of positioning and differentiation. Additionally, positioning and differentiation aim to set a product apart from competitors, rather than making it seem similar to them (choice C).

Question 20

Market segmentation is the process of:

Accepted Answer

Market segmentation involves breaking down a large, widely varied market into more similar sub-markets. This helps companies tailor their marketing strategies to specific groups of consumers who share similar needs and characteristics.

Quiz 1: The World of Advertising and Integrated Brand Promotion