Question 1

Tobacco company Philip Morris runs television ads where they promote quitting smoking and direct viewers to a Web site for support and help.These ads are examples of _____ advertising.

Accepted Answer

Institutional advertising is a form of advertising designed to enhance a company's image rather than promote a particular product.

Question 2

_____ advertising is designed to enhance a company's image rather than promote a particular product.

Accepted Answer

This is the definition of institutional advertising.

Question 3

Why do companies with new brands that have a small market share tend to spend proportionately more for advertising and sales promotions compared to those with a large market share for existing products?

Accepted Answer

There are two reasons why companies with new brands with small market share tend to spend proportionately more for advertising and sales promotions compared to those with existing products and large market share.The first reason is in response to the advertising response function.The second reason is to create product awareness in the minds of the target audience.

Question 4

Research shows that coupons tend to increase the amount of a product bought.

Accepted Answer

Research has shown that offering coupons can incentivize consumers to purchase more of a product or try something new. Coupon users may take advantage of the discount to stock up on the product, try a new flavor or variety, or make an unplanned purchase.

Question 5

In 2011,advertising expenditures:

Accepted Answer

Expenditures increased in 2011 and were expected to grow by about 5.5 percent globally in 2012.

Question 6

Kia Motors runs television advertisements that encourage the purchase of their Kia Soul compact car.This is an example of _____ advertising.

Accepted Answer

Product advertising touts the benefits of a specific product or service.

Question 7

When cosmetics company Estée Lauder gives customers a bag of small-sized cosmetics with the purchase of a full-priced item,this is an example of a premium offer.

Accepted Answer

This is correct. A premium offer is a promotional incentive that offers the customer an additional product or service at no extra cost. In this case, Estée Lauder is offering a bag of small-sized cosmetics as a premium item to customers who purchase a full-priced item.

Question 8

Unlike advertising that establishes or maintains a company's identity,_____ advertising touts the benefits of a specific good or service.

Accepted Answer

This is the definition of product advertising.

Question 9

Why do many brands with a large market share spend proportionally less on advertising compared to brands with small market share?

Accepted Answer

Sales and market share improvements slow down and eventually decrease no matter how much is spent on advertising and sales promotion.

Question 10

Exxon Mobil has launched a series of ads promoting its commitment to alternative energy sources during a time when the company is recording record profits while consumers struggle with high gas prices and environmentalists are concerned that burning fossil fuels is contributing to the acceleration of global warming.This is an example of _____ advertising.

Accepted Answer

Advocacy advertising is a means for organizations to express their viewpoints on various controversial issues or respond to media attacks.

Question 11

_____ is any form of impersonal,sponsor-paid,one-way mass communication.

Accepted Answer

This defines advertising.

Question 12

When Gillette introduced its Venus razor for women several years ago,it spent $100 million on advertising and other promotions and successfully boosted its market share.As an advertising consultant,you would advise Gillette to now:

Accepted Answer

The advertising response function shows that beyond a certain level of spending for advertising and sales promotion,diminishing returns set in.As a mature,successful company,Gillette can choose to spend only as much as needed to maintain market share.

Question 13

Which form of advertising involves an organization expressing its views on controversial issues or responding to media attacks?

Accepted Answer

This is the definition of advocacy advertising.

Question 14

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

Accepted Answer

A trade allowance is a price reduction offered by manufacturers to intermediaries.

Question 15

DuPont has an advertisement that shows police officers describing how they were shot at close range in the line of duty.The advertisement explains that the lives of these public servants were saved by Kevlar bullet-proof vests and that Kevlar was invented by DuPont.This is an example of _____ advertising.

Accepted Answer

Institutional advertising is designed to enhance the image of the company and asks for no action except maintaining a favorable attitude toward the advertiser and its goods and services.

Question 16

How can advertising affect consumers?

Accepted Answer

Advertising can affect attitudes but cannot alter values or force people to do things they do not want to do or believe are wrong.

Question 17

Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase decisions are made before consumers ever enter a store.

Accepted Answer

Point-of-purchase promotions are an extremely important sales promotion tool because between 70 and 80 percent of all retail purchase decisions are made in the store.

Question 18

The advertising response function helps marketers:

Accepted Answer

The advertising response function is a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing results.

Question 19

Trade association meetings,conferences,and conventions are an important aspect of sales promotion and a growing,multi-billion-dollar market.

Accepted Answer

Trade association meetings, conferences, and conventions provide opportunities for businesses to promote their products or services and network with potential clients. The market for these events is indeed worth billions of dollars, as companies invest in attending and sponsoring them to increase their visibility and sales.

Question 20

Kraft's marketing efforts for its Macaroni & Cheese include television commercial and magazine inserts.These are all activities associated with:

Accepted Answer

Advertising is any form of impersonal,paid communications that are paid for by a marketer.

Quiz 31: Advertising Public Relations and Sales Promotion