Deck 1: The World of Advertising and IBP
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Deck 1: The World of Advertising and IBP
1
The definition of IBP highlights that the IBP tools need to work together to create a consistent and compelling impression of the brand.
True
2
The organization that pays for an advertisement is referred to as the agency.
False
3
A reference group is a particular group of consumers singled out by an organization for an advertising or IBPcampaign.
False
4
Advertising is a business,an art form,an institution,and a cultural phenomenon.
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5
Advertising means different things to different people.
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6
Although companies believe in and rely heavily on advertising,some people have significant misperceptions about advertising and what it's supposed to do.
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7
In going through an IBP tool checklist,a brand must focus on either digital or traditional advertising,but not both.
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8
Angelina Jolie,an actress,is interviewed by news reporters about what she thinks her fans should know about her new movie.This would be considered as an advertisement,based on the definition of advertising.
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9
Promotion refers to a specific message that an organization has created to persuade an audience.
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10
It is possible to grow your business with content marketing,which is about providing prospects with relevant content and engaging consumers to have a relationship with your brand.
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11
Sponsorship,event marketing,sales promotions,public relations,and sponsored content are all examples of advertising.
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12
With unpaid media,a public relations-oriented team puts out a pro-social message about the importance of not texting while driving.This is an example of a public service announcement.
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13
Integrated brand promotion is the process of using one promotional tool that works to create widespread brand exposure.
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14
Integrated brand promotion is a great way to think about advertising and branding related topics.
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15
Established brands such as Cadillac,the car brand,often face the challenge of maintaining an updated market-driven image and communicating the brand's contemporary image.
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16
A way to achieve success in marketing is with integrated brand promotion.
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17
Advertising is a paid,mass-mediated attempt to persuade,and it is a key component to integrated brand promotion.
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18
Meeting client needs is an important aspect of advertising and integrated brand promotions.
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19
As consumers,we do not know what we like and want,so advertising does not help expose us to brands that meet our needs.
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20
Advertising today is more diverse and more dynamic as a part of integrated brand promotion.
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21
An advertisement refers to a series of coordinated messages that communicates a reasonably cohesive and integrated theme about a brand.
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22
The model of mass-mediated communication can be interpreted to see that communication is an inherently social process.
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23
Public service announcements (PSAs):
A) are a type of advertising that are run by nonprofit organizations.
B) are commercial the way that ads are.
C) attempt only to persuade and not to inform.
D) are not necessarily "paid media" like advertisements are.
A) are a type of advertising that are run by nonprofit organizations.
B) are commercial the way that ads are.
C) attempt only to persuade and not to inform.
D) are not necessarily "paid media" like advertisements are.
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24
The marketer who does not use advertising and IBP as a way to build brand identity will,frankly,likely be ignored.
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25
When consumers are reached by various forms of inconsistent messages,they will have an easier time understanding the brand and deciding whether to use it regularly.
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26
KidsCause,a metropolitan outreach organization that collects and donates toys for needy children,buys airtime on WXXY (a local TV station)to promote its annual toy collection.Amazing Ads is hired to take the account; they shoot the video and produce a commercial and then help with media placement.In this promotional effort,who is the agency?
A) Amazing Ads
B) A local TV station
C) WXXY
D) KidsCause
A) Amazing Ads
B) A local TV station
C) WXXY
D) KidsCause
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27
Firms are developing opportunities in _____ through communication via devices like smart phones,tablets,and wearables.
A) broadcast media
B) mobile marketing, digital marketing, and social media marketing
C) personal selling
D) print media
A) broadcast media
B) mobile marketing, digital marketing, and social media marketing
C) personal selling
D) print media
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28
Advertising is NOT a part of the communication process.
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29
An ad contains a single meaning or even the same meaning for each audience member,according to the model of mass-mediated communication.
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30
A broad,unpaid message reminding consumers to wear their seat belt is an example of:
A) a mobile advertisement.
B) influencer marketing.
C) personal selling.
D) a public service announcement.
A) a mobile advertisement.
B) influencer marketing.
C) personal selling.
D) a public service announcement.
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31
The receivers of the communication must accommodate their perceived multiple meanings and personal agendas and then negotiate a meaning or interpretation of the ad according to their individual life experiences and value systems.
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32
Integrated brand promotion in action is a way to showcase how certain brands are integrating various forms of advertising and marketing communication.
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33
The model of mass-mediated communications is unidirectional,and not fluid.
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34
Communication is inherently a social process.
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35
An example of a campaign that uses integrated brand promotion is Taco Bell; they have simultaneously put out a commercial during the Super Bowl,print advertising,in-store promotions,and a hashtag that was all focused on a new product.
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36
IBP is the use of many promotional tools,including advertising,in a coordinated manner to build and then maintain brand awareness,identity,and preference.
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37
Which of the following is true regarding advertising?
A) Advertising is external to the social interaction process.
B) Advertising is solely responsible for the increase of product sales.
C) Advertising must consider audience categories, such as household consumers or members of business organizations, for its IBP communications.
D) Advertising is a simple communication process.
A) Advertising is external to the social interaction process.
B) Advertising is solely responsible for the increase of product sales.
C) Advertising must consider audience categories, such as household consumers or members of business organizations, for its IBP communications.
D) Advertising is a simple communication process.
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38
In a model of mass communication,there is a production source,accommodation and negotiation of the message and its intent,clutter,reception,encoding,and decoding.
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39
An advertising campaign refers to a specific message that an organization has created to persuade an audience.
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40
A politician makes a Facebook post about why voters should vote for her.In order for this message to be considered as an advertisement,which of the following conditions should be met?
A) The message must be noncommercial.
B) There must be a public service announcement included.
C) The airtime must be paid for.
D) The message must involve the promotion of a product.
A) The message must be noncommercial.
B) There must be a public service announcement included.
C) The airtime must be paid for.
D) The message must involve the promotion of a product.
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41
Which of the following is an essential criterion for communication to be considered an advertisement?
A) The communication must be noncommercial.
B) It must be paid communication.
C) The message conveyed must have a headline.
D) It must involve face-to-face communication.
A) The communication must be noncommercial.
B) It must be paid communication.
C) The message conveyed must have a headline.
D) It must involve face-to-face communication.
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42
Which of the following is true of integrated brand promotion (IBP)?
A) It is a simple process.
B) It uses promotional tools that do not need to be evaluated.
C) It prevents the exposure of a brand.
D) It creates synergy by having a consistent image or message.
A) It is a simple process.
B) It uses promotional tools that do not need to be evaluated.
C) It prevents the exposure of a brand.
D) It creates synergy by having a consistent image or message.
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43
Amaze,an online grocery store chain,has decided to run a series of advertisements.For this to be considered an advertising campaign,their ads must:
A) focus on store products rather than store services.
B) reinforce each other and attempt to create synergy for the brand.
C) appear in print media.
D) be unpaid communication.
A) focus on store products rather than store services.
B) reinforce each other and attempt to create synergy for the brand.
C) appear in print media.
D) be unpaid communication.
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44
Benjie and his wife,Ella,are watching a television commercial that they've never seen before.Benjie thinks that the ad is funny and witty.However,Ella finds the ad to be misleading based on what she knows from using the product in the ad.This example illustrates that:
A) ads are interpreted differently based on a person's experiences and beliefs.
B) what a message means to any given consumer is a function of an isolated solitary thinker.
C) the ad is communicated effectively to its target audience.
D) the ad contains the same meaning for all audience members.
A) ads are interpreted differently based on a person's experiences and beliefs.
B) what a message means to any given consumer is a function of an isolated solitary thinker.
C) the ad is communicated effectively to its target audience.
D) the ad contains the same meaning for all audience members.
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45
Samsonic is the leading manufacturer of televisions in the world.It has created a new advertisement that it wants to be aired all over the world,changing only the language for each country.This is an example of:
A) national advertising.
B) international advertising.
C) regional advertising.
D) global advertising.
A) national advertising.
B) international advertising.
C) regional advertising.
D) global advertising.
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46
Which of the following is one of the four areas of responsibility in the marketing mix?
A) Privacy
B) Permissions
C) People
D) Promotions
A) Privacy
B) Permissions
C) People
D) Promotions
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47
eBUYERS,an online broker,pays for a 30-second television commercial to be telecast during the Football World Cup.The commercial promotes the reliability of eBUYERS advice,expertise,and personal attention in assisting online customers with stock portfolio creation and management.The spot created by eBUYERs is:
A) a public service announcement.
B) a point-of-purchase advertisement.
C) representative of personal selling.
D) an advertisement promoting a service.
A) a public service announcement.
B) a point-of-purchase advertisement.
C) representative of personal selling.
D) an advertisement promoting a service.
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48
Two components of the mass-mediated communication model are:
A) primary demand and selective demand.
B) advertiser and consumer.
C) internal position and external position.
D) production and reception.
A) primary demand and selective demand.
B) advertiser and consumer.
C) internal position and external position.
D) production and reception.
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49
Integrated brand promotion (IBP)is:
A) the collaboration of two or more brands within a single advertisement with the intent of sharing costs.
B) the coordination of a number of promotional tools to create widespread brand exposure.
C) a company's decision to focus on a wide range of traditional advertising forms to replace nontraditional forms.
D) a unique concept seen mainly in local advertising campaigns.
A) the collaboration of two or more brands within a single advertisement with the intent of sharing costs.
B) the coordination of a number of promotional tools to create widespread brand exposure.
C) a company's decision to focus on a wide range of traditional advertising forms to replace nontraditional forms.
D) a unique concept seen mainly in local advertising campaigns.
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50
Based on the criteria that define advertising,which of the following examples would be considered advertising?
A) A candidate for city council going door-to-door urging people to vote for her.
B) A car manufacturer stating the efficiency of its product to motivate customers to make a purchase.
C) A public service announcement about the dangers of talking on the phone while driving.
D) An actor being interviewed on television about his campaign to aid people with physical disabilities.
A) A candidate for city council going door-to-door urging people to vote for her.
B) A car manufacturer stating the efficiency of its product to motivate customers to make a purchase.
C) A public service announcement about the dangers of talking on the phone while driving.
D) An actor being interviewed on television about his campaign to aid people with physical disabilities.
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51
Which of the following is an example of international advertising?
A) Crispy Cracks promoting their new line of cracker at the Olympics
B) Flextronic advertising its flat-screen TVs in different states of a country
C) DetergentPro creating different versions of its new detergent ad for various countries
D) Tennis Fashion Inc. featuring its "unicorn" logo on gear worn by tennis players
A) Crispy Cracks promoting their new line of cracker at the Olympics
B) Flextronic advertising its flat-screen TVs in different states of a country
C) DetergentPro creating different versions of its new detergent ad for various countries
D) Tennis Fashion Inc. featuring its "unicorn" logo on gear worn by tennis players
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52
When national companies and local merchants share advertising expenses,they are taking part in _________.
A) brand extensions
B) international advertising
C) cooperative advertising
D) trade channeling
A) brand extensions
B) international advertising
C) cooperative advertising
D) trade channeling
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53
Which of the following is considered as a member of a trade channel?
A) Wholesalers
B) Household consumers
C) Government employees
D) Philanthropic groups
A) Wholesalers
B) Household consumers
C) Government employees
D) Philanthropic groups
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54
Kofax Inc.,a pet store,has established stores in more than 40 states in America.Additionally,it has advertised in all states of the country.This is an example of _______ advertising.
A) local
B) national
C) regional
D) global
A) local
B) national
C) regional
D) global
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55
In the model of mass-mediated communication,the:
A) producers of the message control the reception of the content.
B) producers of the message control the interpretation of the content.
C) consumers interpret ads in a way that makes sense to them individually and serves their needs.
D) eceiver's interpretations are invariably compatible with what the producer intended to convey.
A) producers of the message control the reception of the content.
B) producers of the message control the interpretation of the content.
C) consumers interpret ads in a way that makes sense to them individually and serves their needs.
D) eceiver's interpretations are invariably compatible with what the producer intended to convey.
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56
Members of trade channels include:
A) not-for-profit businesses.
B) retailers.
C) household consumers.
D) government officials.
A) not-for-profit businesses.
B) retailers.
C) household consumers.
D) government officials.
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57
The promotional tool used most often to communicate with members of a trade channel is personal selling.Which of the following is a reason behind this?
A) Personal selling is the most inexpensive form of communication.
B) Members of trade channels are the most conspicuous audience.
C) Members of trade channels are the target audience for producers of only household products.
D) The target audience represents a relatively small, easily identifiable group.
A) Personal selling is the most inexpensive form of communication.
B) Members of trade channels are the most conspicuous audience.
C) Members of trade channels are the target audience for producers of only household products.
D) The target audience represents a relatively small, easily identifiable group.
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58
Texas and surrounding states have specific trees that many people are allergic to,and as such,an allergy medicine company advertises a special product custom to this area of the country,and the ads go to consumers in that region of the country.This is an example of ________ advertising.
A) global
B) local
C) cooperative
D) regional
A) global
B) local
C) cooperative
D) regional
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59
A family-owned meat shop has expanded to four locations within the Preston area and suburbs,running regular promotions to one zip code,where the shop is located.These social media ads are a form of advertising that will only go to this very small geographic area.What kind of advertising is this?
A) local
B) trade
C) branding
D) advocay
A) local
B) trade
C) branding
D) advocay
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60
There is a production source,a message,encoding,and decoding in a model of _______:
A) mass-mediated communication.
B) cooperative advertising.
C) a focus group
D) a sponsorship.
A) mass-mediated communication.
B) cooperative advertising.
C) a focus group
D) a sponsorship.
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61
Orange,a cell phone manufacturer,displays in its advertisement that its products are better than others in the market because they are waterproof and scratch proof.This is an example of _________________.
A) selective demand stimulation
B) economies of scale
C) inelasticity of demand
D) direct response advertising
A) selective demand stimulation
B) economies of scale
C) inelasticity of demand
D) direct response advertising
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62
A paint store has launched an advertisement on a social media site.The ad promotes a new set of Acrylic paints and informs customers that the first fifty people to click on the ad will receive a free sample.This is an example of ___________.
A) direct response advertising
B) personal selling
C) delayed response advertising
D) internal positioning
A) direct response advertising
B) personal selling
C) delayed response advertising
D) internal positioning
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63
The mixing of various promotional tools with a branding perspective is known as __________.
A) integrated brand promotion
B) a marketing mix
C) cooperative advertising
D) market segmentation
A) integrated brand promotion
B) a marketing mix
C) cooperative advertising
D) market segmentation
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64
Milos,a men's deodorant brand,displays its product in advertisements as being worn by men who are attractive and popular.This is an example of _______________.
A) symbolic value
B) direct response advertising
C) selective demand stimulation
D) internal positioning
A) symbolic value
B) direct response advertising
C) selective demand stimulation
D) internal positioning
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65
________ is a type of advertising that communicates the specific features,values,and benefits of a product offered by a particular company.
A) Advocacy advertising
B) Corporate advertising
C) Brand advertising
D) Institutional advertising
A) Advocacy advertising
B) Corporate advertising
C) Brand advertising
D) Institutional advertising
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66
Scenario 1-1
In 1996, a graduate from the University of Maryland, Kevin Plank, founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes. "Along with the new product line, the company must have a new brand image," said Plank. "I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away." The company also removed all advertisements carrying the word "apparel," and began exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall "performance" company, which will ultimately enable it to compete with footwear powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share.
(Scenario 1-1)One of Under Armour's new retail outlets in the U.S.sends a direct mail to 500 households within a one-mile radius of the new store.In the email,the store announces the introduction of its new line of basketball shoes and offers incentives to any customer who walks into the store to purchase a pair of shoes from the new line.This direct mail:
A) is paid for, mass mediated, and an attempt to persuade; therefore, it can be considered advertising.
B) is paid for and is an attempt to persuade; however, it is only distributed locally and therefore cannot beconsidered advertising.
C) is not received by a large enough number of people to be considered advertising.
D) is not a part of an advertising campaign, and thus cannot be considered advertising.
In 1996, a graduate from the University of Maryland, Kevin Plank, founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes. "Along with the new product line, the company must have a new brand image," said Plank. "I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away." The company also removed all advertisements carrying the word "apparel," and began exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall "performance" company, which will ultimately enable it to compete with footwear powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share.
(Scenario 1-1)One of Under Armour's new retail outlets in the U.S.sends a direct mail to 500 households within a one-mile radius of the new store.In the email,the store announces the introduction of its new line of basketball shoes and offers incentives to any customer who walks into the store to purchase a pair of shoes from the new line.This direct mail:
A) is paid for, mass mediated, and an attempt to persuade; therefore, it can be considered advertising.
B) is paid for and is an attempt to persuade; however, it is only distributed locally and therefore cannot beconsidered advertising.
C) is not received by a large enough number of people to be considered advertising.
D) is not a part of an advertising campaign, and thus cannot be considered advertising.
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67
________ is the process of creating a perceived distinction between an organization's brand and a competitor's brand.
A) Differentiation
B) Market analysis
C) Co-op advertising
D) Market segmentation
A) Differentiation
B) Market analysis
C) Co-op advertising
D) Market segmentation
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68
Bella's,a department store,has launched a series of advertisements inviting people to do their holiday shopping at their store.This is an example of ___________.
A) institutional advertising
B) delayed response advertising
C) corporate advertising
D) advocacy advertising
A) institutional advertising
B) delayed response advertising
C) corporate advertising
D) advocacy advertising
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69
Which of the following is a difference between IBP and IMC?
A) IBP ignores the importance of communication whereas IMC does not.
B) IBP focuses more on the need for coordinated and synergistic messages.
C) IMC emphasizes the brand, whereas IBP does not.
D) IBP goes beyond the parameters of IMC.
A) IBP ignores the importance of communication whereas IMC does not.
B) IBP focuses more on the need for coordinated and synergistic messages.
C) IMC emphasizes the brand, whereas IBP does not.
D) IBP goes beyond the parameters of IMC.
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70
The purchase of certain products,such as cars,shoes,and sunglasses,signify class membership.This indicates that these brands have ________.
A) economies of scale
B) social meaning
C) internal positioning
D) low brand equity
A) economies of scale
B) social meaning
C) internal positioning
D) low brand equity
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71
Scenario 1-1
In 1996, a graduate from the University of Maryland, Kevin Plank, founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes. "Along with the new product line, the company must have a new brand image," said Plank. "I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away." The company also removed all advertisements carrying the word "apparel," and began exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall "performance" company, which will ultimately enable it to compete with footwear powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share.
(Scenario 1-1)Under Armour hopes that changing the company's image from an apparel company to a "performance" brand will help increase its footwear sales.To make consumers aware of the change,Under Armour designs a number of commercials,print ads,and Internet advertisements all focusing on the company's new motto,and immediately begins to apply them.All these elements make up a(n) __________.
A) international advertising campaign
B) cooperative advertising campaign
C) advertising campaign
D) promotional mix
In 1996, a graduate from the University of Maryland, Kevin Plank, founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes. "Along with the new product line, the company must have a new brand image," said Plank. "I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away." The company also removed all advertisements carrying the word "apparel," and began exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall "performance" company, which will ultimately enable it to compete with footwear powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share.
(Scenario 1-1)Under Armour hopes that changing the company's image from an apparel company to a "performance" brand will help increase its footwear sales.To make consumers aware of the change,Under Armour designs a number of commercials,print ads,and Internet advertisements all focusing on the company's new motto,and immediately begins to apply them.All these elements make up a(n) __________.
A) international advertising campaign
B) cooperative advertising campaign
C) advertising campaign
D) promotional mix
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72
In today's world,what three elements do marketers want to build and maintain through their promotional and advertising efforts?
A) Awareness, identity, and preference
B) Attention, curiosity, and response
C) Demand, value, and interaction
D) Information, message, and communication
A) Awareness, identity, and preference
B) Attention, curiosity, and response
C) Demand, value, and interaction
D) Information, message, and communication
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73
Which of the following is an example of a brand extension?
A) The manufacturers of Cocoa Flakes, a popular cereal, launches a cookie called "Cocoa Crunch" in a new product category.
B) Tracker, a company selling security systems, advertises its product on a local television network.
C) Dog Handler, a manufacturer of leashes for dogs, collaborates with a competitor to expand its market base.
D) Blossoms, a women's perfume line, advertises its new line through sales promotions and point-of-purchaseadvertising at department stores.
A) The manufacturers of Cocoa Flakes, a popular cereal, launches a cookie called "Cocoa Crunch" in a new product category.
B) Tracker, a company selling security systems, advertises its product on a local television network.
C) Dog Handler, a manufacturer of leashes for dogs, collaborates with a competitor to expand its market base.
D) Blossoms, a women's perfume line, advertises its new line through sales promotions and point-of-purchaseadvertising at department stores.
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74
Market segmentation is the process of:
A) creating advertising strategies to reach out to a wide consumer base.
B) creating a new product line that is relatively different from the firm's existing product line.
C) identifying competitors in the market that could be possible threats to the success of the company.
D) breaking down a large, widely varied market into more similar sub-markets.
A) creating advertising strategies to reach out to a wide consumer base.
B) creating a new product line that is relatively different from the firm's existing product line.
C) identifying competitors in the market that could be possible threats to the success of the company.
D) breaking down a large, widely varied market into more similar sub-markets.
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75
__________ attempts to develop brand awareness and preference over time,as well as emphasize the benefits of using that brand.
A) Co-op advertising
B) Direct response advertising
C) Sales promotion
D) Delayed response advertising
A) Co-op advertising
B) Direct response advertising
C) Sales promotion
D) Delayed response advertising
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76
Mineral Inc.,a manufacturer of mineral water,has recently launched its product in the market.It starts a rigorous advertising campaign to highlight the benefits of its product.This is an example of ________.
A) primary demand stimulation
B) economies of scale
C) market segmentation
D) selective demand stimulation
A) primary demand stimulation
B) economies of scale
C) market segmentation
D) selective demand stimulation
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77
A brand of cereal is perceived by consumers to be a "good deal," one that provides a certain level of comfort and satisfaction that goes well beyond the money it takes to purchase a few boxes.In this example,the cereal is considered to have:
A) low brand loyalty.
B) elasticity of demand.
C) economies of scale.
D) value.
A) low brand loyalty.
B) elasticity of demand.
C) economies of scale.
D) value.
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78
Scenario 1-1
In 1996, a graduate from the University of Maryland, Kevin Plank, founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes. "Along with the new product line, the company must have a new brand image," said Plank. "I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away." The company also removed all advertisements carrying the word "apparel," and began exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall "performance" company, which will ultimately enable it to compete with footwear powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share.
(Scenario 1-1)John receives a direct mail from Under Armour that offers a free poster of basketball star Brandon Jennings wearing a pair of the company's new shoes.John likes the company's promotional offer.Chang,who also receives the same direct mail,is not impressed by the offer and puts it aside after glancing through it.The differing reactions to the promotional effort are most likely the result of:
A) varying content.
B) different interpretations of the ad.
C) similar characteristics of the target market.
D) the rules and regulations of the direct mail medium.
In 1996, a graduate from the University of Maryland, Kevin Plank, founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes. "Along with the new product line, the company must have a new brand image," said Plank. "I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away." The company also removed all advertisements carrying the word "apparel," and began exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall "performance" company, which will ultimately enable it to compete with footwear powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share.
(Scenario 1-1)John receives a direct mail from Under Armour that offers a free poster of basketball star Brandon Jennings wearing a pair of the company's new shoes.John likes the company's promotional offer.Chang,who also receives the same direct mail,is not impressed by the offer and puts it aside after glancing through it.The differing reactions to the promotional effort are most likely the result of:
A) varying content.
B) different interpretations of the ad.
C) similar characteristics of the target market.
D) the rules and regulations of the direct mail medium.
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79
Which of the following is true of inelasticity of demand?
A) The supply of the product is greater than its demand.
B) Consumers are less sensitive to price increases.
C) Customers have low brand loyalty.
D) It leads firms to decrease profit margins.
A) The supply of the product is greater than its demand.
B) Consumers are less sensitive to price increases.
C) Customers have low brand loyalty.
D) It leads firms to decrease profit margins.
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80
Effective internal positioning is accomplished by:
A) distributing products to a market that is wider than those of one's competitors.
B) using advertising to compare a product's distinctions from those of one's rival firms.
C) developing brand features and values that are distinctive from the competition.
D) developing vastly different products within the firm's product line.
A) distributing products to a market that is wider than those of one's competitors.
B) using advertising to compare a product's distinctions from those of one's rival firms.
C) developing brand features and values that are distinctive from the competition.
D) developing vastly different products within the firm's product line.
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