Deck 16: Advertising, Public Relations, and Sales Promotion

Question 1

Experiential marketing is the coordinated effort to handle the effects of unfavorable publicity, ensuring fast and accurate communication in times of emergency.

Answer 1

False

Question 2

The Federal Trade Commission does not allow the identification of competing brands in comparative advertising.

Answer 2

False

Question 3

Corporations often use advocacy advertising to express their views on controversial issues.

Answer 3

True

Question 4

In the context of campaign evaluation, testing ad effectiveness can be done only after the advertising campaign is over.

Question 5

Unique selling proposition refers to the process of using game mechanics and a gaming mindset to engage an audience; it is increasingly important for marketers to know about and utilize.

Question 6

A product's benefit is simply a feature of the product such as its easy-open package, special formulation, or new lower price.

Question 7

Online advertising includes search engine marketing, display advertising, social media advertising, e-mail marketing, and mobile marketing.

Question 8

People who buy the same product most or all of the time are brand switchers.

Question 9

Intermediaries receive push money as a bonus for pushing the manufacturer's brand through the distribution channel.

Question 10

In a free-press environment, publicity is easily controlled in a crisis.

Question 11

Advertising can affect the way consumers rank a brand's attributes.

Question 12

Newspapers and magazines have a high noise level.

Question 13

Evaluating an advertising campaign is the simplest part of the advertising process because the factors that determine the effectiveness of an ad are limited and clear.

Question 14

Serious or emotional advertisements are largely used to change consumers' deeply rooted values and attitudes.

Question 15

If an advertiser wants to enhance the sales of a specific good or service, institutional advertising should be used.

Question 16

The selection of media is not dependent on promotional objectives, the appeal, or executional style of advertising.

Question 17

Unlike radio, a magazine has a relatively long life span, which is further increased by a high pass-along rate.

Question 18

A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.

Question 19

In infomercials, companies put ad messages in web-based, mobile, console, or handheld video games to advertise or promote a product, service, organization, or issue.

Question 20

People who buy a competitor's product most or all of the time are price buyers.

Question 21

Which of the following is an advantage of using cost per contact to determine the media mix for a product?

A)It allows advertisers to increase an ad's effectiveness by reaching potential customers.
B)It enables an advertiser to compare the relative expenses of specific media vehicles.
C)It requires advertisers to pay only for the customers who view their ad.
D)It allows marketers to minimize the cost of advertising by reaching a large number of people.

Question 22

_____ is the ability of an advertising medium to reach a precisely defined market.

A)Audience selectivity
B)Target sensitivity
C)Projection efficiency
D)Target efficiency

Question 23

Experiential marketing involves minimal engagement with a brand's consumers.

Question 24

Which of the following statements is true of pioneering advertising?

A)It offers consumers in-depth information about the benefits of the product class.
B)It is heavily used during the growth stage of the product life cycle.
C)It is used to enhance a company's image rather than promote a particular product.
D)It is used mainly to compare brands on one or more specific attributes.

Question 25

_____ is a form of institutional advertising.

A)Advocacy advertising
B)Pioneering advertising
C)Competitive advertising
D)Comparative advertising

Question 26

Which of the following is a similarity between trade sales promotion and consumer sales promotion?

A)Both focus on providing incentives to consumers or wholesalers to make an immediate purchase.
B)Both are directed to members of the marketing channel, such as wholesalers and retailers.
C)Both aim to increase sales by using point-of-purchase display.
D)Both aim to segment a market based on its characteristics.

Question 27

If the goal of the promotion plan is to improve the image of the company or the industry, _____ may be used.

A)institutional advertising
B)pioneering advertising
C)competitive advertising
D)comparative advertising

Question 28

Pioneering advertising is heavily used during the _____ of the product life cycle.

A)introductory stage
B)growth stage
C)formative stage
D)conception stage

Question 29

Magnira Corp., a manufacturer of hygiene and personal care products, launches a new toothpaste "Tidy" that claims to be more effective in maintaining oral hygiene than other brands. The advertisements of Tidy provide valid research information. Which executional style of advertising does Magnira use?

A)Scientific
B)Slice-of-life
C)Spokesperson
D)Mood or image

Question 30

Unlike trade sales promotion methods, consumer sales promotion methods are:

A)targeted at the ultimate consumer market.
B)directed to members of the marketing channel.
C)focused on persuading consumers to make slow purchases.
D)concerned with offering free merchandise and store demonstrations.

Question 31

Fournotts Corp., a sports shoe manufacturer, launches a new line of sports shoes. As a part of its promotion, Fournotts Corp invites its customers to try on the shoes for a period of one week and get a feel of its features. This is an example of _____.

A)corporate communication
B)sponsorship
C)product placement
D)experiential marketing

Question 32

_____ is the number of times an individual is exposed to a given message during a specific period.

A)Reach
B)Life span
C)Frequency
D)Contact

Question 33

_____ is the series of decisions advertisers make regarding the selection and use of media, enabling the marketer to optimally and cost-effectively communicate the message to the target audience.

A)Media planning
B)Cost per click
C)Media fragmentation
D)Cross-media advertising

Question 34

Kriyoto Inc. is a manufacturer of printers, scanners, and other office equipment. It announces a cash refund for corporate purchases in large quantities. Rick purchases 20 color printers for his office from Kriyoto during this sale. To avail the cash refund, he needs to fill out a form provided by Kriyoto and email proof of purchase along with the form. In this case, which of the following types of sales promotions does Kriyoto offer?

A)Premium
B)Bonus
C)Coupon
D)Rebate

Question 35

Which of the following statements is true of executional styles for advertising?

A)It often dictates what type of media is to be employed to convey the message.
B)Injecting humor into an advertisement is the least effective executional style.
C)Advertisers seldom use humor as an executional style for routine purchases.
D)It remains constant for marketing campaigns in the political realm.

Question 36

Which of the following is a difference between pioneering advertising and competitive advertising?

A)Pioneering advertising is used to promote a company's image, whereas competitive advertising is used to manage customer criticisms.
B)Pioneering advertising is a form of institutional advertising, whereas competitive advertising is a form of advocacy advertising.
C)Pioneering advertising is used during a product's introductory stage, whereas competitive advertising is used during a product's growth stage.
D)Pioneering advertising compares competing brands, whereas competitive advertising is intended to stimulate primary demand for a new product.

Question 37

Understanding the advertising response function helps marketers:

A)invest a large amount of money on advertising and promotion.
B)use their advertising budgets wisely to suit the target market.
C)multiply returns by constantly increasing the money spent on advertising.
D)achieve consumer loyalty regardless of the quality of the product or service.

Question 38

_____ is the element in the promotional mix that evaluates the public's attitudes, identifies issues that may elicit their concern, and executes programs to gain their understanding and acceptance.

A)Personal selling
B)Cooperative advertising
C)Sales promotion
D)Public relations

Question 39

New brands with small market shares tend to spend higher on advertising and sales promotions than those with large market shares because:

A)a certain minimum level of exposure is needed to measurably affect purchase habits.
B)spending more will inhibit the advertising response function.
C)returns multiply beyond a certain level of spending.
D)the value of market shares is directly proportionate to the amount of money spent on advertising.

Question 40

Advertisements of Brita LED (Light Emitting Diode) Lightings are in the form of comparative advertising to emphasize the benefits of using LEDs over CFLs (Cathode Filament Lamps). The advertisements emphasize that Brita's LEDs cost less than CFLs or other brands' LEDs, last longer, consume lesser energy, and need to be replaced fewer times than CFLs. In this case, which of the following advertising appeals is used in these ads?

A)Admiration
B)Profit
C)Vanity and egotism
D)Fun and pleasure

Question 41

A _____ is a media scheduling strategy in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times.

A)circular media schedule
B)flighted media schedule
C)continuous media schedule
D)seasonal media schedule

Question 42

Reach is related to a medium's ratings, generally referred to in the industry as:

A)gross ratings points.
B)cost per rating points.
C)gross review points.
D)target ratings points.

Question 43

Which of the following models does an advertising campaign often follow?

A)BCG matrix
B)IMC model
C)AIDA model
D)SWOT matrix

Question 44

Tread Inc., a sports shoe manufacturing company, began its campaign by spending one million dollars on advertising. Currently, Tread Inc. spends 200 million dollars on advertising. Initially, the advertisements contributed to the gradual increase in returns, but the company now confronts diminishing returns. In this scenario, which of the following phenomena explains Tread Inc.'s diminishing returns?

A)A unique selling proposition
B)The advertising response function
C)Switch and bait advertising
D)Strategic advertising

Question 45

A disadvantage of newspaper advertising is that:

A)it has low geographic selectivity and flexibility.
B)it encounters distractions from competing ads and news stories.
C)it seldom lends itself well to cooperative advertising.
D)it lacks news value, immediacy, and year-round readership.

Question 46

Which of the following is true of advertising?

A)It is of less value for new entrants in the market.
B)It ensures constant sales and market share improvements.
C)It influences attitudes, beliefs, and ultimately, consumers' purchases.
D)It can change consumers' deeply rooted values and attitudes.

Question 47

Eatalia is a popular chain of restaurants for authentic Italian food. Recently, a customer found a dead insect in the pasta he was served. The customer's negative review about the restaurant went viral. Eatalia's Chief Executive Officer (CEO) publicly apologized for the mishap and posted pictures of the restaurant's kitchen, after being fumigated, on several social networking websites. In this scenario, which of the following does Eatalia's CEO demonstrate?

A)Audience selectivity
B)Crisis management
C)Brand switching
D)Media scheduling

Question 48

Laelle Corp., a furniture manufacturing company, uses marketing efforts like paid television commercials and magazine inserts to publicize its products. These are examples of activities associated with:

A)advertising.
B)franchising.
C)personal selling.
D)nonstore retailing.

Question 49

Identify a true statement about an advertising campaign.

A)It circumvents the need for post-campaign evaluation.
B)It extends for a defined period of time.
C)It cannot focus on more than one advertising appeal.
D)It does not use humor to promote a theme.

Question 50

If an advertiser wants to enhance the sales of a specific good or service, _____ should be used.

A)institutional advertising
B)product advertising
C)corporate advertising
D)advocacy advertising

Question 51

An alternative to a commercial spot is _____, a thirty-minute or longer advertisement, which is relatively inexpensive to produce and air.

A)a podcast
B)a premium
C)sweepstakes
D)an infomercial

Question 52

Kelly's Kitchen, a popular chain of fast food restaurants, offers a kids' meal pack free with every purchase of its newly introduced luxury meal pack. In this case, which of the following types of sales promotions does Kelly's Kitchen offer?

A)Trade allowance
B)Push money
C)Rebate
D)Premium

Question 53

Which of the following statements is true of cooperative advertising?

A)It does not allow retailers to devote effort to the manufacturer's lines.
B)It resolves the impracticality of listing all the dealers of the manufacturer in national advertising.
C)It requires retailers to bear the entire cost of advertising the manufacturer's brand.
D)It cannot be used for advertising through radio.

Question 54

_____ is a form of advertising designed to influence demand for a specific brand.

A)Institutional advertising
B)Advocacy advertising
C)Competitive advertising
D)Pioneering advertising

Question 55

Firms use competitive or brand advertising when a product enters the _____ of the product life cycle and other companies begin to enter the marketplace.

A)introductory phase
B)growth phase
C)formative phase
D)decline phase

Question 56

In the context of the effects of advertising, humorous advertising:

A)is not effective when used to reinforce and remind loyal customers about the benefits of a product.
B)is effective in changing consumers' deeply rooted values and attitudes.
C)is not used to publicize new brands introduced in the market.
D)is effective at shaping attitudes when consumers already have a positive image of an advertised brand.

Question 57

_____ is a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events.

A)Audience selectivity
B)Product placement
C)Corporate communication
D)Cooperative advertising

Question 58

Duski, a very expensive brand of clothing and accessories, promotes its products by appointing famous personalities as its brand ambassador. Given this information, which of the following advertising appeals is used by Duski?

A)Health
B)Fear
C)Convenience
D)Admiration

Question 59

Rue's Hunting Emporium sells hunting equipment. The store advertises its equipment in a popular magazine every Monday. It also plans to put out a television commercial every Thursday at 5:00 p.m. for a period of three months. When a new or revised equipment is introduced, the products are steadily advertised throughout a planned period of time. This is an example of a _____.

A)circular media schedule
B)flighted media schedule
C)continuous media schedule
D)seasonal media schedule

Question 60

Which of the following is a difference between an attribute and a benefit of a product?

A)An attribute includes pleasure or improved health, whereas a benefit includes an easy-open package or a special formulation.
B)An attribute cannot be experienced by consumers, whereas a benefit is tangible and can be experienced.
C)An attribute is the goal to sell a product, whereas a benefit is an apparent part of a product.
D)An attribute is simply a feature of a product, whereas a benefit is what consumers receive by using a product.

Question 61

Discuss the effects of advertising on consumers.

Question 62

Explain the importance of media planning in advertising.

Question 63

How is sales promotion cheaper and easier to measure than advertising? Explain using an example.

Question 64

Explain with an example how marketers manage unfavorable publicity during a crisis.

Question 65

Explain how online games are used for advertising.

Question 66

Unlike magazine advertising, radio advertising:

A)provides maximum flexibility.
B)has longer lead time.
C)poses difficulty in communicating humor.
D)has long-term advertiser commitments.