Question 1

Advertising in the U.S. accounts for about 35 percent of worldwide advertising spending.

Accepted Answer

Advertising in the United States accounts for about 35 percent of worldwide ad spending.

Question 2

By 2010, advertising expenditures in the United States were more than $200 billion.

Accepted Answer

Spending on advertising is significant. In 1946, U.S. advertising spending was slightly more than $3 billion. By 2010, it was more than $200 billion.

Question 3

Advertising allowances are price reductions given to firms further along in the channel to encourage them to advertise or otherwise promote a producer's products locally.

Accepted Answer

Advertising allowances are price reductions offered to firms further along the channel to encourage them to advertise or otherwise promote the firm's products locally.

Question 4

Motor vehicles producers spend a higher percentage of their sales on advertising than do perfumes and cosmetics producers.

Accepted Answer

Producers of perfumes and cosmetics spend a higher percentage of their sales on advertising than producers of motor vehicles. Refer Exhibit 15-2.

Question 5

Eating places spend a higher percentage of their sales on advertising than do amusement parks.

Accepted Answer

Amusement parks spend a higher percentage of their sales on advertising than do eating places. Refer Exhibit 15-2.

Question 6

Marketing managers should set overall advertising objectives, but then it's usually the advertising manager's job to set specific objectives for each ad.

Accepted Answer

The marketing manager might give the advertising manager one or more specific objectives, along with the budget to accomplish. However, it's usually the advertising manager's job to set specific objectives for each ad.

Question 7

The U.S. has about 462,000 people working directly in the advertising industry, and half of them work for advertising agencies.

Accepted Answer

In the United States, only about 462,000 people work directly in the advertising industry. Advertising agencies employ only about half of all these people.

Question 8

International dimensions do not affect sales promotion decisions, because consumers throughout the world have the same responses to sales promotion methods.

Accepted Answer

International dimensions impact sales promotion. Trade promotion may be difficult, or even impossible, to manage because consumers throughout the world have varying responses to sales promotion methods.

Question 9

It's a common belief that half of the money spent on advertising and sales promotion is wasted.

Accepted Answer

Unfortunately the results that marketers actually achieve with advertising, publicity, and sales promotion are very uneven. It's often said that half of the money spent on these activities is wasted.

Question 10

Total advertising spending in other countries is lower than in the U.S.

Accepted Answer

Advertising in the United States accounts for about 35 percent of worldwide ad spending, Europe accounts for about 30 percent, and Asia about 24 percent.

Question 11

Producers of business products generally spend a larger percent on advertising than do producers of consumer products.

Accepted Answer

Producers of consumer products generally spend a larger percent than firms that produce business products.

Question 12

Advertising in Europe accounts for roughly half of worldwide ad spending.

Accepted Answer

Advertising in Europe accounts for about 30 percent of worldwide ad spending.

Question 13

Although advertising expenditures in the United States by 2010 were more than $200 billion, the major expense was for media time and space--not payroll expense to people who worked in the advertising industry.

Accepted Answer

While total advertising expenditures are large, the advertising industry itself employs relatively few people. The major expense is for media time and space.

Question 14

During the last decade, the rate of advertising spending has increased in the U.S., but it has decreased in the rest of the world.

Accepted Answer

Over the last decade, the rate of advertising spending has increased even more rapidly in other countries than in the United States.

Question 15

Furniture stores spend a higher percentage of their sales on advertising than do grocery stores.

Accepted Answer

Furniture stores spend a higher percentage of their sales on advertising than do grocery stores. Refer Exhibit 15-2.

Question 16

On average, U.S. corporations spend only about 2.5 percent of their sales on advertising.

Accepted Answer

While total spending on advertising seems high, U.S. corporations spend an average of only about 2.5 percent of their sales dollars on advertising.

Question 17

The main problem with advertising is that it costs so much--on average about one third of sales dollars for U.S. companies.

Accepted Answer

While total spending on advertising seems high, U.S. corporations spend an average of only about 2.5 percent of their sales dollars on advertising.

Question 18

The basic strategy planning decisions for advertising, publicity, and sales promotion are the same regardless of where in the world the target market is located.

Accepted Answer

The basic strategy planning decisions for advertising, publicity, and sales promotion are the same regardless of where in the world the target market is located. However, the look and feel can vary a lot in different countries.

Question 19

Games and toys producers spend a higher percentage of their sales on advertising than do footwear producers.

Accepted Answer

Producers of games and toys spend a higher percentage of their sales on advertising than producers of footwear. Refer Exhibit 15-2.

Question 20

Advertising objectives should be very specific, even more specific than personal selling objectives.

Accepted Answer

Every ad and every advertising campaign should have clearly defined objectives. Advertising objectives should be more specific than personal selling objectives.

Quiz 15: Advertising, Publicity, and Sales Promotion

Advertising in the U.S. accounts for about 35 percent of worldwide advertising spending.

By 2010, advertising expenditures in the United States were more than $200 billion.

Advertising allowances are price reductions given to firms further along in the channel to encourage them to advertise or otherwise promote a producer's products locally.

Motor vehicles producers spend a higher percentage of their sales on advertising than do perfumes and cosmetics producers.

Eating places spend a higher percentage of their sales on advertising than do amusement parks.

Marketing managers should set overall advertising objectives, but then it's usually the advertising manager's job to set specific objectives for each ad.

The U.S. has about 462,000 people working directly in the advertising industry, and half of them work for advertising agencies.

International dimensions do not affect sales promotion decisions, because consumers throughout the world have the same responses to sales promotion methods.

It's a common belief that half of the money spent on advertising and sales promotion is wasted.

Total advertising spending in other countries is lower than in the U.S.

Producers of business products generally spend a larger percent on advertising than do producers of consumer products.

Advertising in Europe accounts for roughly half of worldwide ad spending.

Although advertising expenditures in the United States by 2010 were more than $200 billion, the major expense was for media time and space--not payroll expense to people who worked in the advertising industry.

During the last decade, the rate of advertising spending has increased in the U.S., but it has decreased in the rest of the world.

Furniture stores spend a higher percentage of their sales on advertising than do grocery stores.

On average, U.S. corporations spend only about 2.5 percent of their sales on advertising.

The main problem with advertising is that it costs so much--on average about one third of sales dollars for U.S. companies.

The basic strategy planning decisions for advertising, publicity, and sales promotion are the same regardless of where in the world the target market is located.

Games and toys producers spend a higher percentage of their sales on advertising than do footwear producers.

Advertising objectives should be very specific, even more specific than personal selling objectives.