Question 1

Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation comedy about empty nesters. The conditions of the agreement state that the situation comedy will feature only the Starbucks brand of coffee. What kind of advertising technique is being used in this example?
A) advertainment
B) vertical integration
C) product placement
D) subliminal advertising
E) geofencing

Accepted Answer

This example is an instance of product placement, where a brand is featured within the content of a television show or movie.

Question 2

The objective of advertising is to build primary demand.
A) informative
B) comparative
C) persuasive
D) personal
E) reminder

Accepted Answer

Informative advertising is used to build primary demand by educating consumers about a new product or service, its features, and benefits.

Question 3

A consumer demanding a product from a retailer after watching an ad on television has responded to a pull promotional advertising strategy.

Accepted Answer

Pull promotional advertising strategy is aimed at generating demand from consumers by creating awareness and interest in the product through advertising and other marketing techniques. The consumer's response to the ad by demanding the product from the retailer is a clear example of a pull strategy.

Question 4

Which of the following is an example of branded entertainment?
A) a company using an acclaimed movie director to film an advertisement
B) a company using a celebrity to endorse a product
C) a company placing its product in a movie scene
D) a company using a famous song in its advertisement
E) a company airing its advertisements in movie theaters

Accepted Answer

Branded entertainment involves integrating a brand or product into entertainment content, such as placing a product in a movie scene.

Question 5

Which statement is most likely true about the affordable method of setting an advertising budget?
A) Spending on advertising is based on a competitor's advertising outlays.
B) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year.
C) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish.
D) Spending on advertising is calculated after operating expenses and capital outlays are deducted from total revenues.
E) Spending on advertising is calculated as a percentage of the unit sales price.

Accepted Answer

The affordable method involves setting the advertising budget based on what the company can afford after covering operating expenses and capital outlays.

Question 6

Which of the following is the first step in developing an advertising program?
A) setting the advertising budget
B) setting advertising objectives
C) developing an advertising strategy
D) developing a brand message
E) evaluating advertising campaigns

Accepted Answer

The first step in developing an advertising program is setting advertising objectives, which define what the company aims to achieve with the advertisement.

Question 7

Which of the following best describes the term "Madison and Vine"?
A) merging advertising with entertainment
B) voicing social concerns through advertising
C) emphasizing reach over impact in advertising
D) utilizing the slice of life style of advertising
E) using social media for advertising a brand

Accepted Answer

"Madison and Vine" refers to the convergence of advertising and entertainment, where brands integrate their messages into entertainment content to engage consumers more effectively.

Question 8

advertising primarily maintains brand relationships and is important for mature products.
A) Reminder
B) Comparative
C) Persuasive
D) Classified
E) Personalized

Accepted Answer

Reminder advertising is used to maintain brand relationships and is particularly important for mature products to keep them in the minds of consumers.

Question 9

Pepsi Cola has long used this form of advertising in an attempt to take market share from their primary rival, Coca Cola.
A) personal
B) reminder
C) informative
D) comparative
E) classified

Accepted Answer

Pepsi Cola has historically used comparative advertising to highlight differences and advantages over its primary rival, Coca Cola, in an effort to gain market share.

Question 10

Explain the use of sales promotions as a promotion mix tool.

Accepted Answer

The answer of Explain the use of sales promotions as...

Question 11

The method of setting an advertising budget typically overlooks how promotion affects sales.
A) competitive parity
B) affordable
C) objective-and-task
D) percentage-of-sales
E) adaptive-control

Accepted Answer

The affordable method sets the budget based on what the company thinks it can afford, often ignoring the relationship between promotion and sales.

Question 12

The early manufacturers of electric vehicles (EVs) first had to invest in _ advertising to make the market aware of the economic and performance benefits.
A) reminder
B) comparative
C) switching
D) informative
E) persuasive

Accepted Answer

The answer of The early manufacturers of electric vehicles (EVs)...

Question 13

Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit?
A) adaptive-control method
B) percentage-of-sales method
C) competitive-parity method
D) objective-and-task method
E) affordable method

Accepted Answer

The answer of Which method of setting advertising budgets best...

Question 14

According to the text, the most logical budget-setting method in advertising is the method.
A) percentage-of-sales
B) competitive-parity
C) affordable
D) adaptive-control
E) objective-and-task

Accepted Answer

The objective-and-task method is considered the most logical because it involves setting a budget based on specific objectives and the tasks required to achieve them, ensuring alignment with the company's goals.

Question 15

John Deere's sales force working with Lowe's, Home Depot, Home Hardware, and other independent dealers, and other channel members to promote their products to final consumers is an example of a push promotion strategy.

Accepted Answer

A push promotion strategy involves promoting products through the distribution channels to the final consumers, which is what John Deere is doing by working with retailers and dealers.

Question 16

The aim of _ is to make ads and brand content so engaging or useful that people want to watch them.
A) advertainment
B) subliminal advertising
C) social advertising
D) branded entertainment
E) infotainment advertising

Accepted Answer

Advertainment refers to the creation of entertaining content that is designed to engage audiences while subtly promoting a brand or product.

Question 17

The primary objective of advertising is to build selective demand.
A) personal
B) reminder
C) classified
D) informative
E) persuasive

Accepted Answer

The primary objective of advertising to build selective demand is persuasive advertising, which aims to create preference for a specific brand over competitors.

Question 18

Inglast, a chocolate producer, is faced with a class action suit when customers found pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used?
A) comparative
B) reminder
C) classified
D) personalized
E) informative

Accepted Answer

Inglast's advertisement is likely informative because it aims to inform customers about the new and improved safety seals, addressing concerns raised by the lawsuit.

Question 19

In the competitive-parity method of setting an advertising budget, the budget is set based on _ .
A) the total revenues that a company makes
B) a percentage of current sales
C) objectives set by the company and the cost required to accomplish them
D) a percentage of future sales
E) the amount spent by similar companies in the same industry

Accepted Answer

The competitive-parity method involves setting the advertising budget based on the amount spent by similar companies in the same industry, ensuring that a company remains competitive in its advertising efforts.

Question 20

Trendy Appliances has introduced a new product, Minute Yogurt, into the yogurt maker appliance market. Minute Yogurt differs from competitive offerings because it takes a minute to blend and a minute to clean.
Which type of advertising would be best for promoting Minute Yogurt?
A) classified advertising
B) personalized advertising
C) reminder advertising
D) comparative advertising
E) informative advertising

Accepted Answer

Informative advertising is best for promoting Minute Yogurt as it highlights the unique features of the product, such as its quick blending and cleaning time, to educate potential customers about its benefits.

Quiz 12: Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

The objective of advertising is to build primary demand.

A consumer demanding a product from a retailer after watching an ad on television has responded to a pull promotional advertising strategy.

Which of the following is an example of branded entertainment?

Which statement is most likely true about the affordable method of setting an advertising budget?

Which of the following is the first step in developing an advertising program?

Which of the following best describes the term "Madison and Vine"?

advertising primarily maintains brand relationships and is important for mature products.

Pepsi Cola has long used this form of advertising in an attempt to take market share from their primary rival, Coca Cola.

Explain the use of sales promotions as a promotion mix tool.

The method of setting an advertising budget typically overlooks how promotion affects sales.

The early manufacturers of electric vehicles (EVs) first had to invest in _ advertising to make the market aware of the economic and performance benefits.

Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit?

According to the text, the most logical budget-setting method in advertising is the method.

John Deere's sales force working with Lowe's, Home Depot, Home Hardware, and other independent dealers, and other channel members to promote their products to final consumers is an example of a push promotion strategy.

The aim of _ is to make ads and brand content so engaging or useful that people want to watch them.

The primary objective of advertising is to build selective demand.

In the competitive-parity method of setting an advertising budget, the budget is set based on _ .

Trendy Appliances has introduced a new product, Minute Yogurt, into the yogurt maker appliance market. Minute Yogurt differs from competitive offerings because it takes a minute to blend and a minute to clean. Which type of advertising would be best for promoting Minute Yogurt?