Question 1

Which of the following is an example of product advertising?

Accepted Answer

Product advertising promotes a specific product or service and stimulates short-term action while building awareness of the business.

Question 2

Which of the following statements about local advertising is true?

Accepted Answer

Local advertising is critically important because most consumer sales are made (or lost)locally.McDonald's may spend billions advertising worldwide,but if they don't make a strong effort locally,the dollars may be wasted.

Question 3

Many experts believe the biggest difference between local advertisers and national advertisers is their:

Accepted Answer

The relationship with the customer may be the greatest difference between national and local advertisers.National advertisers' marketing executives rarely see their customers;instead,they traditionally think of them in terms of segments,niches,or target markets.

Question 4

Toys 'R' U.S.has divided its advertising department into two sections: Toys 'R' U.S.United States and Toys 'R' U.S.International.Toys 'R' U.S.International is further divided into individual overseas locations including Italy,Germany,France,Hong Kong,Singapore and Canada.Given these facts,it would appear that the Toys 'R' U.S.ad department is organized by:

Accepted Answer

The advertising department may be organized in any of five ways: by product or brand,by sub-function of advertising (copy,art,print production,media buying),by end user (consumer advertising,trade advertising),by media (radio,TV,Web,outdoor),by geography (western advertising,eastern advertising,international advertising).

Question 5

Advertisers use _____ advertising in the newspaper to locate and recruit new employees,to offer services or to sell or lease new and used merchandise.

Accepted Answer

Advertisers use classified advertising for a variety of reasons: to locate and recruit new employees,offer services (such as those of an employment agency or business opportunity broker),or sell or lease new and used merchandise (such as cars,real estate,and office equipment).

Question 6

Cooperative advertising serves two key purposes.One of those purposes is to help a manufacturer's distributors,dealers or retailers make more sales.The second purpose is to:

Accepted Answer

Cooperative (co-op)advertising has two key purposes: to build the manufacturer's brand image and to help distributors,dealers,or retailers increase sales.

Question 7

Advertising is organized around four distinct groups.The _____ group includes the photographers,the illustrators,video production houses and digital service bureaus.

Accepted Answer

A third group,the suppliers,includes the photographers,illustrators,printers,digital service bureaus,video production houses,Web developers,and others who assist advertisers and agencies in preparing advertising materials.Suppliers also include consultants,research firms,and professional services.

Question 8

When the Ace Hardware Store located in Franklin mails an advertising flyer to all the residents in the community,it is an example of _____ advertising.

Accepted Answer

Local adverting is done by local businesses targeting customers in their geographic area.

Question 9

Pathmark Stores operate 142 supermarkets in the New York-New Jersey and Philadelphia metropolitan areas.Pathmark Stores only advertises in those states where it has stores.The form of advertising that best describes Pathmark's approach to advertising is:

Accepted Answer

Some companies operate in one part of the country-in one or several states-and market exclusively within that region.These are referred to as regional advertisers.

Question 10

According to the text,local advertisers and national advertisers differ in terms of:

Accepted Answer

Local advertisers and national advertisers differ in terms of focus,time orientation and resources.See Exhibit 3-4.

Question 11

Hudson Pool and Spa,owned by Jill and Joel Hudson,sells and installs above-ground swimming pools and Beachcomber brand hot tubs.The manufacturer of the Beachcomber hot tub has sent the Hudsons a letter in which it offers to pay 50 percent of the advertising cost if the Hudsons will run a newspaper ad featuring the Beachcomber hot tubs.What type of advertising is the Beachcomber manufacturer suggesting they use?

Accepted Answer

The costs are shared in cooperative advertising.

Question 12

_____ advertising promotes a specific good or service and stimulates short-term action while building awareness of the business.

Accepted Answer

Product advertising promotes a specific product or service and stimulates short-term action while building awareness of the business.

Question 13

Advertising is organized around four distinct groups.One of these groups is the advertisers.This group is often referred to as the:

Accepted Answer

The advertisers (or clients)are companies-like Honda,Coca-Cola,or the local shoe store-that pay to advertise themselves and their products.

Question 14

Retailers like The Home Depot use television,catalogs,the Internet and magazines to transmit its advertising message to consumers.In terms of the four distinct groups around which advertising is organized,The Home Depot uses:

Accepted Answer

The fourth group,the media,sells time (on radio and TV)and space (in print,outdoor)or both (digital media)for delivering the advertiser's message to the target audience.

Question 15

Walgreen pharmacy ran an ad to announce it was selling all of its Easter candy and decorations at half their original prices.How should you classify this ad?

Accepted Answer

To stimulate sales of merchandise or increase store traffic,local merchants frequently use sale advertising,placing items on sale and offering two-for-one specials or other deals.The ad shows items selling at reduced prices.

Question 16

Which of the following is an example of institutional advertising?

Accepted Answer

Institutional advertising attempts to create a favorable long-term perception of the business as a whole,not just of a particular product or service.Many businesses use institutional advertising to promote an idea about the company and build long-term goodwill.The ad is attempting to create a favorable long-term perception of Avon.

Question 17

Recently,BP,the petroleum company,ran a series of commercials in which they asked consumers how they would improve and preserve the natural environment.After each individual's responses,an announcer explained how BP was doing more than its share to protect our environment.These commercials were examples of _____ advertising.

Accepted Answer

Institutional advertising attempts to create a favorable long-term perception of the business as a whole,not just of a particular product or service.Many businesses use institutional advertising to promote an idea about the company and build long-term goodwill.It makes the public aware of what the business stands for and attempts to build reputation and image.

Question 18

Helen Jackson operates a retail store that specializes in children's clothing in a local strip mall.She faces many promotional and advertising decisions on a daily basis.For example,what kind of a sale should she conduct after the Christmas holidays? For how many days should the sale be held? What kind of items should be placed on sale? Jackson's advertising focus is on _____ because of its short-term nature.

Accepted Answer

Refer exhibit 3-4 'Differences between local and national advertisers.' Local advertisers typically take a tactical approach to planning.

Question 19

_____ advertising attempts to create a favorable long-term perception of the business as a whole,not just of a particular good or service.

Accepted Answer

Institutional advertising attempts to create a favorable long-term perception of the business as a whole,not just of a particular product or service.Many businesses use institutional advertising to promote an idea about the company and build long-term goodwill.

Question 20

The three primary types of ads placed in local media are product,classified,and:

Accepted Answer

Most local ads are product,institutional,or classified advertising.Each serves a different purpose.

Quiz 3: The Business of Advertising