Deck 14: Advertising, Sponsorships, and Public Relations

Question 1

The primary reason Bush's Baked Beans tripled their market share and now have about 50 percent of the market share in the baked bean category is the use of advertising.

Answer 1

True

Question 2

In comparing market share to advertising expenditures among liquid refreshment beverages, Coca-Cola spends the most on advertising among the various beverage brands and is also the market leader in terms of market share.

Answer 2

True

Question 3

The amount of money spent on advertising varies widely among different types of industries.

Answer 3

True

Question 4

According to AdAge's list of ad spending categories, industry spending on advertising varies from less than 1 percent to over 16 percent of revenue.

Question 5

Most people believe that advertising initiated the "belly button" fad.

Question 6

Product advertising is any advertisement that is designed to promote a firm's brand and can be targeted to end-users or channel members.

Question 7

Although there are five primary categories of product advertising, a good advertisement may have components from one or more of the categories.

Question 8

The primary goals of brand advertising are to develop a strong brand name and to build brand awareness.

Question 9

An advertising boutique-type service would offer only one type of service or works for only one type of client.

Question 10

The decision to hire an advertising agency is based on the belief that the agency can provide services and assistance beyond the firm's capability.

Question 11

With most products in the growth stage of the product life cycle, advertising is key in the process of developing brand awareness, brand equity, and brand preference.

Question 12

The key representative of the advertising agency to the client company is the account executive.

Question 13

The person who actually designs the advertisements is called a creative.

Question 14

While most creatives work for advertising agencies, some creatives also are freelancers and work for hire with various agencies when needs arise.

Question 15

The creative design process for an advertisement begins with information obtained from the account executive about the objectives of the advertisements or the ad campaign, the target audience, and any message themes that should be included.

Question 16

Advertising objectives should be specific, measurable, and have a specific time frame.

Question 17

The Dockers for Women line was launched through an understanding of the demographic characteristics of women in Generation X.

Question 18

Almost every product can be advertised using any of the six appeals and often an advertisement will utilize more than one appeal.

Question 19

The most common emotional appeals focus on the consumer's life and feelings.

Question 20

Fear appeals work because they increase viewer's attention, interest, and persuasion.

Question 21

Many viewers will remember an ad with a fear appeal better than one with a rational, upbeat argument.

Question 22

Research has shown that using sex or nudity in an advertisement increases viewer attention, but brand recall is lower.

Question 23

While the sex appeal can be used for almost any product, it works best for products that are related to sex in some way.

Question 24

Music is an important component of broadcast ads because it helps to gain people's attention and link them emotionally to the product being advertised.

Question 25

Rational appeals are used in many advertisements, especially in print ads and for business-to-business ads.

Question 26

A rational appeal is an effective means of advertising low-involvement products.

Question 27

Message strategies fall into three categories: cognitive, affective, and behavioral.

Question 28

Although the cognitive message strategy works well with a rational appeal, it can also be used with an emotional, fear, or sex appeal.

Question 29

Animation executions were originally used by advertisers with low budgets, but now are a popular method of advertising.

Question 30

In terms of U.S. advertising media spending, the top three categories of media spending are newspapers, television, and radio.

Question 31

If ad spending for both cable and broadcast television are combined, then television has the highest percentage of spending for the various advertising media with almost 35 percent of all ad dollars going into television.

Question 32

Over 40 percent of advertising in Japan is in television, whereas it is less than 18% in Finland and Switzerland.

Question 33

Currently, a Nielsen rating of 1 point equates to approximately 102,000 households.

Question 34

When reporting Nielsen ratings, the "share" is the percent of households that have television sets turned on and are watching a particular program.

Question 35

The cost per thousand (CPM) is the cost of reaching 1,000 members of a media vehicle's audience.

Question 36

The average cost of producing a national 30-second television ad is $58,000.

Question 37

Because of the high frequency of television advertisements, wear-out occurs quickly.

Question 38

The primary print media of magazines, newspapers, the Yellow Pages, business publications, and direct mail account for approximately 25% of the total expenditures on advertising.

Question 39

A major advantage of newspapers is the ability to precisely target audience segments.

Question 40

Yellow page advertising does not permit much flexibility and allows very little creative design freedom.

Question 41

In terms of sponsorships, the largest category is for sports sponsorships.

Question 42

One of the best areas to have sponsorships is baseball. According to Performance Research, 72 percent of baseball fans buy products that support the sport and 40 percent of the fans will switch their brand loyalty to baseball related brands.

Question 43

It is important to integrate any type of sponsorship with the firm's advertising and IMC plan.

Question 44

The public relations department is responsible for overseeing publicity and communications with groups such as employees, stockholders, public interest groups, the government, and society as a whole.

Question 45

One of the most difficult and important tasks faced by the public relations department is to handle negative publicity.

Question 46

Crisis management involves investigating the cause of a problem and shifting the blame away from the company.

Question 47

If not handled correctly, a negative news story or negative incident can destroy a brand and/or corporate image quickly.

Question 48

In the U.S. automotive industry, the industry leader in terms of revenue per ad dollar at $40.30 is

A) Daimler Chrysler
B) Ford Motor Co.
C) General Motors Corp.
D) Honda Motor Co.

Question 49

In personal care products, _____ revenue per advertising dollar is $24.70 and is considerably higher than its closest competitor, Procter & Gamble, which is only $5.50.

A) Colgate-Palmolive's
B) Gillette's
C) Kimberly-Clark's
D) L'Oreal's

Question 50

Among retail stores, the highest revenue per advertising dollar, at $256.60, is _____. Its closest competitor is Kroger, at $131.90.

A) Albertson's
B) K-Mart
C) Lowe's
D) Wal-Mart

Question 51

Of the following industries, the one with the lowest expenditures on advertising as a percentage of revenue, at 1 percent, is

A) grocery stores
B) eating places
C) real estate agents
D) amusement parks

Question 52

The two major categories of advertising are

A) product advertising and institutional advertising
B) brand advertising and product advertising
C) persuasive advertising and informative advertising
D) broadcast advertising and print advertising

Question 53

Brand advertising is an advertisement designed to

A) promote a particular brand usually with little or no information in the advertisement
B) provide the audience with some type of information
C) persuade viewers' thinking in some way
D) build primary demand for a product

Question 54

Informative advertising is an advertisement designed to

A) promote a particular brand with little or no information in the advertisement
B) provide the audience with some type of information
C) persuade viewers' thinking in some way
D) build primary demand for a product

Question 55

Persuasive advertising is an advertisement designed to

A) promote a particular brand with little or no information in the advertisement
B) provide the audience with some type of information
C) persuade viewers' thinking in some way
D) build primary demand for a product

Question 56

Pioneer advertising is an advertisement designed to

A) promote a particular brand with little or no information in the advertisement
B) provide the audience with some type of information
C) persuade viewers' thinking in some way
D) build primary demand for a product

Question 57

Comparative advertising is an advertisement designed to

A) promote a particular brand with little or no information in the advertisement
B) provide the audience with some type of information
C) compare the featured brand with another brand, named or implied
D) build primary demand for a product

Question 58

If a company's advertising goal is to build a strong brand name or to build brand awareness, then the best type of product advertising to use would be

A) brand advertising
B) informative advertising
C) persuasive advertising
D) comparative advertising

Question 59

An advertisement by Zeagler Music has information about the location of the store, its operating hours, its phone number, and the fact that they carry electric guitars. This would be an example of

A) brand advertising
B) informative advertising
C) persuasive advertising
D) pioneer advertising

Question 60

Institutional advertising is an advertisement designed to

A) promote a particular brand with little or no information in the advertisement
B) build the corporate reputation or develop goodwill for the corporation
C) compare the featured brand with another brand, named or implied
D) build primary demand for an institution

Question 61

An advertisement by Coors encouraging people not to drink and drive would be an example of

A) brand advertising
B) persuasive advertising
C) institutional advertising
D) pioneer advertising

Question 62

Media service companies

A) specialize in producing the actual advertisements
B) specialize in direct marketing campaigns
C) handle trade and consumer promotions
D) negotiate and purchase media packages for companies

Question 63

Media production companies

A) specialize in producing the actual advertisements
B) specialize in direct marketing campaigns
C) handle trade and consumer promotions
D) negotiate and purchase media packages for companies

Question 64

With most products in the _____ stage of the product life cycle, advertising is key in the process of developing brand awareness, brand equity, and brand preference.

A) introductory
B) growth
C) maturity
D) decline

Question 65

Advertising agencies can typically provide all of the following services except

A) identification and development of a brand's target market
B) business-to-business expertise
C) integration of advertising with other components of the IMC
D) public relations expertise to handle various public relations concerns

Question 66

In selecting an advertising agency, all of the following are major criteria that should be used except

A) conflicts of interest
B) public relations experience
C) creative reputation and ability
D) ad production capability

Question 67

In selecting an advertising agency for Applebee's, a dine-in restaurant, a potential conflict of interest would be the highest for an advertising agency that also represents

A) TGI Friday's
B) McDonald's
C) Kroger
D) Ballpark hot dogs

Question 68

In advertising, the _____ is actively involved in soliciting accounts, finalizing details of the contract, and managing the advertising campaign.

A) creative
B) account executive
C) brand manager
D) traffic manager

Question 69

In an advertising agency, the account executive typically performs all of the following functions except

A) soliciting accounts
B) represents the ad agency to the client company
C) prepares the media plan
D) manages the advertising campaign

Question 70

Advertising objectives should be based on communication objectives and

A) be specific
B) be measurable
C) have a specific time frame
D) all of the above

Question 71

Inside Indigo, a retail store, wants to increase awareness of their store using an advertising campaign. An appropriate advertising objective might be

A) increase awareness by 10 percent
B) increase awareness by 10 percent within 3 months of the launch of the advertising campaign
C) increase awareness among female shoppers by 15 percent
D) increase ad recall of Inside Indigo advertisements by 10 percent by December 31st.

Question 72

In designing advertisements, demographic information about the target audience would include all of the following except

A) age
B) gender
C) interests
D) geographic region

Question 73

In designing advertisements, psychographic information about the target audience would include all of the following except

A) activities
B) interests
C) opinions
D) behaviors

Question 74

In designing an advertisement for Skeeter boats, the creative requested psychographic information about the target audience. An example of psychographic information about a target audience would be

A) males, ages 20-40, with no college education
B) individuals who like outdoor activities, such as hunting, fishing, and hiking
C) individuals who live in rural areas of the southeastern part of the United States
D) individuals who purchase a fishing boat every 4 years

Question 75

Dockers for Women launched a "Three fits so we all fit in" campaign advertising three different options for the waistline of their newly developed jeans line. This new product line was based on an understanding of

A) Generation X demographics
B) Generation X psychographics
C) Generation X media habits
D) all of the above

Question 76

The advertising appeal is the

A) presentation of rational arguments or pieces of information to consumer
B) design that a creative will use to attract attention to and interest in an advertisement
C) ability of an advertisement to break through clutter and gain a person's attention
D) primary tactic an advertisement will use to deliver a message

Question 77

The primary goal of an emotional appeal is to

A) build a bond between the brand and the consumer, just as you would between two people
B) entertain the audience
C) gain the attention of the audience, then persuade them about the merits of the product being advertised
D) make the audience smile and enjoy the advertisement

Question 78

The most common emotional appeals focus on

A) sex
B) the consumer's life and feelings
C) activities, interests, and opinions of the target audience
D) love and romance

Question 79

Research has shown that sex and nudity increase viewer attention

A) regardless of the gender of the audience or the gender of the model in the ad
B) when the gender of the audience is the opposite of the gender of the model in the ad
C) for only male audience members and when the model in the ad is female
D) for female models only

Question 80

In terms of ad appeal, both _____ have a strong intrusion value and can capture the attention of an individual who is not paying any attention to the TV or to the radio.

A) emotional and fear
B) humor and sex
C) humor and music
D) rational and emotional