Deck 13: Global Marketing Communications Decisions I: Advertising and Public Relations

Question 1

The globalization of coffee culture has created market opportunities for companies such as Starbucks.

Answer 1

True

Question 2

Some of the world's most memorable advertising campaigns originate from "big" ideas with an unlimited number of new executions.Such a campaign is said to have "legs."

Answer 2

True

Question 3

In April 2010, 30,000 barrels of oil leaked from the stricken well belonging to BP.BP is the oil company that had earlier implemented an ecology-themed corporate identity campaign under the theme "Beyond Petroleum."

Answer 3

True

Question 4

A German agency devised McDonald's "I'm lovin' it" tagline.

Question 5

If the product needs a strong local identification, it would be best to select an international agency.

Question 6

The potential for effective global advertising decreases as companies recognize and embrace new concepts such as "product cultures."

Question 7

The "extension versus adaptation" debate is essentially a debate over "standardized versus localized" advertising.

Question 8

Western advertising agencies still find markets such as China and Japan to be very complex, as Asian agencies find it just as difficult to establish local agency presence in Western markets.

Question 9

According to data published by Advertising Age in 2009, Proctor & Gamble ranks # 1 in worldwide advertisement spending.

Question 10

As a practical matter, marketing managers may choose to run both global and local ads rather than adopt an "either/or" stance.

Question 11

In 1994, the Chinese government banned tobacco advertising from television, radio, newspaper, magazine, and cinema ads.

Question 12

Standardized print campaigns can be used for industrial products or for technology- oriented consumer products such as Apple iPhone and iPad.

Question 13

The "localized" versus "standardized" debate pertaining to global advertising has finally been resolved in favor of standardization.

Question 14

When creating global advertising, it is important to remember that the "advertising appeal" should be based on the agency's understanding of the target audience's buying motives.

Question 15

Recently, global companies have embraced a technique known as "pattern advertising" which is analogous to the concept of global product platforms.

Question 16

Despite an unmistakable trend toward using global advertising agencies to support global marketing efforts, companies with geocentric orientations will adapt to the global market requirements and select the best agency or agencies accordingly.

Question 17

The advertising agencies can be thought of as "idea factories."

Question 18

According to the worldwide revenue figures for 2010, Omnicom Group is the world's largest advertising organization.

Question 19

In the advertising industry, "creative strategy" is a statement of what a particular message or campaign will say.

Question 20

McDonald's "I'm lovin' it" and De Beers "A diamond is forever" are themes which are good examples of global advertising.

Question 21

Partial nudity and same-sex couples are frequently seen in ads in Latin America and Europe.

Question 22

Consumer products companies typically use advocacy advertising to give the public reasons to buy their products.

Question 23

Copywriters are specialists who check advertisements to see that they meet copyright regulations in different countries.

Question 24

Revlon has used a French producer to develop television commercials in English and Spanish for use in international markets.

Question 25

Benetton's striking print and outdoor advantage campaigns keyed to the "United Colors of Benetton" generated both controversy and wide media attention.

Question 26

Ads that strike viewers in some countries as humorous or irritating may not necessarily be perceived that way by viewers in other countries.

Question 27

In China, McDonald's is careful not to advertise prices with multiple occurrences of the number four since, in Cantonese, the pronunciation of the word four sounds similar to that of the word death.

Question 28

Publicity is similar to advertising in that companies pay the media for placement of stories and news items.

Question 29

The way a product's appeal or proposition is presented is called the "creative execution."

Question 30

The challenge of encoding and decoding slogans and taglines in different national and cultural contexts can lead to unintentional errors.

Question 31

In Germany, expenditures for newspaper advertising are greater than those for television advertising.

Question 32

Advocacy advertising enhances the public's perception of a company, creates goodwill, or announces a major change.

Question 33

Any company that is increasing its activities outside the home country can utilize PR personnel as boundary spanners between the company and employees, unions, stockholders, customers, the media, financial analysts, governments, or suppliers.

Question 34

"United Colors of Benetton" generated both controversy and wide media attention, which executives consider as an opportunity to generate publicity.

Question 35

Image advertising is used by global companies to present themselves as good corporate citizens in foreign countries.

Question 36

Many companies utilize corporate advertising which, despite the name, is generally considered part of the PR function.

Question 37

In China, a humorous TV ad showing a student humiliating a teacher in the classroom would be an effective execution for a soft drink brand.

Question 38

In Japan, intimate scenes between men and women are in bad taste, and in Saudi Arabia such ads are outlawed.

Question 39

A company that is ethnocentric in its approach to PR will not extend home-country PR activities into host countries.

Question 40

The U.S.online advertising market is much bigger than Europe's.

Question 41

A recent global campaign for IKEA, the Swedish home furnishings retailer, positioned houses as homes a place for love, memories, and laughter.This is a classic example of:

A)emotional appeal.
B)rational appeal.
C)selling proposition.
D)advertising appeal.
E)creative appeal.

Question 42

Tobacco companies in Central Europe face the prospect of tougher marketing and advertisement regulations due to:

A)the growing concern about health hazards associated with smoking.
B)a dislike of global brands crowding out local brands.
C)a desire to return to communist-era policies.
D)a desire to comply with EU entry requirements.
E)the pressure from neighboring countries.

Question 43

Which company ranks number one in terms of worldwide ad spending for the year 2009?

A)General Motors
B)Philip Morris
C)Unilever
D)Procter & Gamble
E)Coca-Cola

Question 44

Landor Associates, a company specializing in brand identity and design, recently determined that ________ has the number one brand-awareness and esteem position in the United States, number two in Japan, and number six in Europe.

A)McDonald's
B)Toyota
C)Sony
D)Pepsi
E)Coke

Question 45

As companies recognize and embrace new concepts such as the globalization of coffee culture, the potential for effective global advertising:

A)decreases.
B)increases.
C)remains the same.
D)becomes evident.
E)is ignored.

Question 46

Which of the following product category/company pairings best illustrates the concept of "product cultures"?

A)earth-moving equipment/Caterpillar
B)personal hygiene/Procter & Gamble
C)coffee bars/Starbucks
D)batteries/Duracell
E)automobiles/Ford

Question 47

In selecting an advertising agency, all but one of the following issues should be taken into consideration.

A)company organization
B)national responsiveness
C)area coverage
D)buyer perception
E)franchise or company owned status

Question 48

When the subheads and body copy of an advertisement are localized, not simply translated, is an example of:

A)local advertising.
B)global advertising.
C)pattern advertising.
D)advocacy advertising.
E)stereotype advertising.

Question 49

A ________ company possesses a critical marketing advantage with respect to marketing communications.

A)domestic
B)local
C)global
D)glocal
E)multinational

Question 50

________ is the phrase global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets.

A)"Pattern advertising"
B)"Template advertising"
C)"Cookie-cutter advertising"
D)"Model advertising"
E)"Stereotype advertising"

Question 51

The choice between demonstration, slice-of-life, straight sell, and other advertising forms is a matter of:

A)the creative strategy.
B)the advertising appeal.
C)the selling proposition.
D)the creative execution.
E)the big idea.

Question 52

The advertising promise that captures the reason that people buy products is known as:

A)creative strategy.
B)the advertising appeal.
C)the selling proposition.
D)the creative execution.
E)the big idea.

Question 53

According to data published by Advertising Age (2010), which of the following is the largest global advertising organization based on worldwide revenues?

A)WPP Group
B)Interpublic Group
C)Omnicom Group
D)Dentsu Inc.
E)Havas

Question 54

In the language of global marketing, ________ is the phrase used to describe advertising that represents a middle ground between 100% standardization and 100% localization.

A)"stereotype advertising"
B)"template advertising"
C)"cookie-cutter advertising"
D)"compromise advertising"
E)"pattern advertising"

Question 55

In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children.Such advertising utilizes:

A)rational appeals.
B)emotional appeals.
C)SRC appeals.
D)melodramatic appeals.
E)localized appeal.

Question 56

A company's efforts to effectively communicate with customers is very important.All of the following are major difficulties which can compromise an organization's attempt to communicate with customers except:

A)the message does not reach the intended recipient.
B)the message reaches the intended recipient but is misunderstood.
C)the message reaches the intended recipient and is understood, but the recipient may fail to take action.
D)the message is distorted by noise.
E)the message is only in one language.

Question 57

In advertising, a(n)________ is an agent who chooses graphics, pictures, type styles, and other visual elements and has general responsibility for the overall look of an advertisement.

A)art director
B)copywriter
C)IMC manager
D)PR practitioner
E)stylist

Question 58

What do Unilever and Procter & Gamble have in common?

A)Revenues at both companies have been hurt by regulations concerning tobacco advertising and promotion.
B)Both companies utilize extension approaches to advertising.
C)Both companies rank high in terms of non-U.S.ad spending.
D)Both companies use a great deal of corporate advertising.
E)Both companies use the same advertising agency.

Question 59

Which company ranks number one in terms of ad spending in Europe (2009)?

A)General Motors
B)Philip Morris
C)Unilever
D)Procter & Gamble
E)Coca-Cola

Question 60

Some of the world's most memorable advertising campaigns have achieved success because they originate from an idea that is so big that the campaign offers opportunities for a seemingly unlimited number of new executions.Such a campaign is said to have:

A)"life."
B)"legs."
C)"love."
D)"fun."
E)"toes."

Question 61

The United States and ________ are the two top-ranked countries in terms of ad spending across all measured media in 2010.

A)UK
B)France
C)Canada
D)Japan
E)Germany

Question 62

Generally speaking, a company has little control over media.To compensate for this lack of control, many companies utilize:

A)image advertising.
B)advocacy advertising.
C)corporate advertising.
D)TV advertising.
E)radio advertising.

Question 63

In Southern China, McDonald's is careful not to advertise prices with multiple occurrences of the number four because:

A)prices ending in odd numbers are preferred in China.
B)there is no number four in the Chinese language.
C)the word four is pronounced similar to the word death in Cantonese.
D)multiple occurrences are considered as unlucky in China.
E)prices are not included on menus in China.

Question 64

A company adopting a(n)________ approach to worldwide PR activities gives the host-country practitioner maximum leeway to incorporate local customs and practices into the PR effort.

A)ethnocentric
B)regiocentric
C)local
D)polycentric
E)publicity

Question 65

What do Ford Motor Company, Coca-Cola, Nike, and McDonald's all have in common?

A)They are all consumer packaged-goods companies.
B)They all have foreign CEOs.
C)They have all received a great deal of negative publicity in recent years.
D)They all rely exclusively on TV advertising.
E)They spend more in advertising in foreign markets than home markets.

Question 66

U.S.advertisements contain more ________ information, and are more likely to include comparative appeals than Arabic ads.

A)people
B)process
C)price
D)sex
E)context

Question 67

A company that is ________ in its approach to public relations will extend home-country PR activities into host countries.

A)regiocentric
B)polycentric
C)ethnocentric
D)domestic
E)hostile

Question 68

Which of the following marketing mix elements was at the heart of the problems Ford Motor Company and Bridgestone/Firestone faced in 2000?

A)pricing problems
B)distribution problems
C)sales promotion problems
D)public relations problems
E)advertising problems

Question 69

Even in the face of such tough and growing competition, Adidas still enjoys high brand loyalty among older Europeans.The company recruits young people and pays them to wear Adidas shoes in public.This is an example of:

A)local advertising.
B)pattern advertising.
C)global advertising.
D)advocacy advertising.
E)image advertising.

Question 70

Which of the following most accurately describes the state of global public relations (PR)today?

A)Expenditures on PR are dropping.
B)Expenditures on PR are increasing.
C)PR practices are standardized worldwide.
D)PR is not important in emerging markets like India.
E)Foreign investments are increasing.

Question 71

In the summer of 1999, Coca-Cola faced a major marketing problem in Europe.Which of the following was at the heart of the problem?

A)pricing problems
B)advertising problems
C)sales promotion problems
D)public relations problems
E)distribution problems

Question 72

Hackers attacked the PlayStation online gaming network, thereby comprising user data in which country?

A)Japan
B)United States
C)Germany
D)Great Britain
E)China

Question 73

One task of the ________ department is to generate nonpaid forms of communication to foster goodwill among customers and others.

A)sales promotion
B)global marketing
C)headquarters
D)public relations
E)advertising

Question 74

Japan's Fuji Photo Film asked its advertising agency to develop an advocacy campaign for the United States targeted to appeal both to Wal-Mart and to its customers.This is an example of ________.

A)local advertising
B)pattern advertising
C)global advertising
D)advocacy advertising
E)image advertising

Question 75

Which of the following is true about advertising expenditures in Germany and Brazil?

A)Television is the leading medium in both Germany and Brazil.
B)Newspapers are the leading medium in both Germany and Brazil.
C)Television is the leading medium in Brazil; newspapers are the leading medium in Germany.
D)Television is the leading medium in Germany; newspapers are the leading medium in Brazil.
E)Magazines are the leading medium in Brazil and Germany.

Question 76

Which promotional mix element is most closely associated with activities designed to foster goodwill and understanding with various constituents both inside and outside the company?

A)personal selling
B)advertising
C)public relations
D)sales promotion
E)publicity

Question 77

In developing countries, such as Ghana, the best way to communicate with market segments may be through:

A)mass media.
B)written word.
C)magazine ads.
D)TV ads.
E)dance, songs, and storytelling.

Question 78

The words that are the spoken or written communication elements in advertisements are known as:

A)copy.
B)manuscript.
C)idea.
D)script.
E)writings.

Question 79

China's ongoing trade-related friction with the United States highlights the need for:

A)a better distribution system.
B)a better PR effort.
C)sales promotion.
D)a better transportation system.
E)pattern advertising.

Question 80

In which country are global marketers likely to encounter the most restrictions on advertising?

A)United States
B)Japan
C)Saudi Arabia
D)Russia
E)Germany