Question 1

When Coca-Cola was accused of deliberately trying to poison consumers in India by selling them soft drinks allegedly containing 27 times the maximum amount of pesticide that is permissible, Coke ran ads in national newspapers describing how much care it takes to guarantee the safety of the products it produces. What were these ads examples of?

Accepted Answer

The ads run by Coca-Cola can be classified as advocacy advertising, which is a type of advertising that aims to defend an organization or product against negative criticism and accusations. In this case, Coca-Cola was trying to counter the accusations of selling contaminated products by emphasizing the company's commitment to safety and quality control.

Question 2

How does advertising affect consumers?

Accepted Answer

Advertising has the power to influence consumers' attitudes and perceptions. It can shift negative attitudes to positive ones by presenting a product or service in a desirable light, highlighting its benefits and unique features. This can lead consumers to consider purchasing the product or service, ultimately impacting their decision-making process.

Question 3

Instead of sending artfully arranged flower bouquets, an entrepreneur has developed fresh fruit bouquets and is marketing them under the name Edible Arrangements. The premium fruit is cut to mimic flowers and is arranged in a basket. One of the problems is convincing people that it is an attractive way to show how you feel about someone. Which type of advertising is Edible Arrangements using to promote its fruit bouquets?

Accepted Answer

Pioneering advertising is used to build primary demand for a new product or category, which is what Edible Arrangements is doing by introducing and promoting the concept of fresh fruit bouquets as an alternative to traditional flower bouquets.

Question 4

During the recession that started in 2008, companies such as Ford Motor Company produced television commercials that promoted the image of the company itself but did not promote a specific vehicle. What type of advertising was this?

Accepted Answer

Institutional advertising is designed to create a favorable image for the company, rather than promoting a specific product or service. The example given of Ford Motor Company promoting its image during the recession is a clear example of institutional advertising.

Question 5

Clothing retailer Lululemon often has displays in their front window that try to raise awareness on specific issues such as the dangers of HIV/AIDS. Which form of institutional advertising is?

Accepted Answer

Advocacy advertising is used when a company wants to influence public opinion on particular issues or causes, such as raising awareness about the dangers of HIV/AIDS, which is what Lululemon is doing with their displays.

Question 6

Why do many brands with a large market share spend proportionally less on advertising compared to brands with small market share?

Accepted Answer

Brands with a larger market share already have a strong presence and name recognition among consumers, so they can reach a larger audience with less advertising. Additionally, there may be a saturation point where additional advertising does not lead to a significant increase in sales, resulting in diminishing returns on advertising investment.

Question 7

Unlike advertising that establishes or maintains a company's identity, which type of advertising touts the benefits of a specific good or service?

Accepted Answer

Product advertising specifically promotes a certain product or service and highlights its benefits, rather than focusing on the overall brand or company identity.

Question 8

The advertising response function helps marketers to do which of the following?

Accepted Answer

The advertising response function helps marketers to determine how much they should spend on advertising to achieve their desired level of sales. This allows them to allocate their advertising budget wisely by investing in advertising that is efficient and effective. It also helps marketers to optimize their advertising spend by identifying the point of diminishing returns, beyond which additional advertising spending would result in little or no increase in sales.

Question 9

Procter & Gamble's marketing efforts for its L'Oreal Men Expert Hydra Sensitive shaving gel product includes television commercials, billboards, magazine inserts, and radio spots. What are all these activities associated with?

Accepted Answer

All of the mentioned marketing efforts are associated with advertising, which is the use of various mediums to promote a product or service to a target audience.

Question 10

Procter & Gamble has run ads that promote its Children's Safe Drinking Water program in which it shows its employees teaching people around the world how to purify their water. The program was instituted because 5,000 children die every day from diseases caused by unsafe water. These ads are examples of which type of advertising?

Accepted Answer

The ads promote Procter & Gamble's Children's Safe Drinking Water program, which is a corporate social responsibility initiative. Therefore, the ads are institutional advertising that aims to build the company's reputation and demonstrate its commitment to a cause.

Question 11

People who drink Coca-Cola are extremely loyal to this product. Which of the following statements best describes how increased advertising of Coca-Cola would affect brand loyal users of Coca-Cola?

Accepted Answer

Increased advertising could reinforce brand loyalty and encourage loyal Coca-Cola users to purchase more of the product.

Question 12

Procter & Gamble's ads for Head & Shoulders Intensive Solutions system designed to treat the symptoms of dandruff that emphasize the brand name and how effectively it heals the scalp. In addition, the ads demonstrate how easy it is to use the system, which looks complicated but isn't. Which type of advertising is this?

Accepted Answer

This is competitive advertising as it focuses on promoting the brand's product by highlighting its effectiveness and ease of use compared to other products, without directly comparing it to a specific competitor.

Question 13

When launching the iPhone 6, Apple used advertising via television and the web to stimulate demand for its new cell phone. What type of advertising is this?

Accepted Answer

Pioneering advertising is used when introducing a new product to the market to inform potential customers about its existence and benefits, which is what Apple was doing with the iPhone 6.

Question 14

DuPont has an advertisement that shows police officers describing how they were shot at close range in the line of duty. The advertisement explains that the lives of these public servants were saved by Kevlar bullet-proof vests and that Kevlar was invented by DuPont. Which type of advertising is being used?

Accepted Answer

The answer of DuPont has an advertisement that shows police...

Question 15

When Gillette introduced its Venus razor for women, it spent several million dollars on advertising and other promotions and successfully boosted its market share. As an advertising consultant, what would you advise that Gillette do in terms of its advertising budget?

Accepted Answer

Typically, as a product matures, the amount spent on advertising should decrease as the costs of acquisition for each unit sold will likely increase. Additionally, with Gillette already having a strong brand awareness and market share, there may be little room for substantial gains through increased advertising spend. Therefore, it would be best for Gillette to focus on maintaining its current market position and adjust its advertising budget accordingly.

Question 16

Cranium, a toy company, has recently introduced Giggle Gear, a toy designed to let kids' imaginations run wild. With the face and headpieces that make up Giggle Gear, kids can change themselves into aliens, fairies, bugs, and robots. Which type of advertising should be used to promote this new toy?

Accepted Answer

Pioneering advertising is most suitable for introducing a new product like Giggle Gear to the market, as it focuses on building awareness and educating potential customers about the product and its benefits.

Question 17

Why do companies with new brands that have a small market share tend to spend proportionately more for advertising and sales promotions compared to those with a large market share for existing products?

Accepted Answer

Companies with new brands that have a small market share need to spend proportionately more on advertising and sales promotions to achieve a certain minimum level of exposure to measurably affect purchase habits. This is because customers are less likely to be aware of the new product, and thus, more advertising is needed to create awareness and trial. Additionally, sales promotions can help incentivize trial and encourage customers to switch from established brands to the new brand. Once the brand gains a larger market share, less advertising and sales promotion may be needed to maintain market share and prevent product cannibalization.

Question 18

General Motors runs magazine advertisements that encourage the purchase of Cadillac automobiles. Which type of advertising is being used?

Accepted Answer

Product advertising promotes or sells a specific product, such as the Cadillac automobile in this case. Pioneering advertising introduces a new product or category, circumstantial advertising associates a product with a particular occasion or circumstance, and comparative advertising compares a product to its competitors.

Question 19

What is the term for any form of impersonal, sponsor-paid, one-way mass communication?

Accepted Answer

Advertising is the term used for any form of impersonal, sponsor-paid, one-way mass communication. Publicity may be one-way, but it is not always paid for by the sponsor. Public relations often involves two-way communication and may not always be sponsor-paid. Direct marketing is more personalized and targeted, involving two-way communication.

Question 20

The goal of one type of advertising is to influence demand for a specific brand of good or service. Such advertising is less informational and more emotional; the emphasis is on brand name, recall, and favourable attitude toward the brand. What is the type of advertising being described?

Accepted Answer

This type of advertising is competitive advertising, as its goal is to influence demand for a specific brand over its competitors by creating emotional connections and favourable attitudes towards the brand. Pioneering advertising focuses on introducing a new product or category to the market, objective-specific advertising aims to achieve a specific goal such as increasing sales, and comparative advertising directly compares a brand to its competitors.

Quiz 17: Advertising, Public Relations, and Direct Response