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Refer to the passage below to answer the following questions.
Polo Ralph Lauren manufactures and sells high-quality, expensive brands of clothing as well as
accessories, cosmetics, and home products. The company maintains complete control over the
brand image and all of the functions necessary to develop, execute, and deliver advertising. Polo
appeals to consumers’ lifestyle aspirations. Its products are of high quality and better than most
competitors’ offerings. The objective in the company’s advertising is to convey this image and
the fashion statement it makes.
87) Because Polo Ralph Lauren wants to maintain close control over its image and advertising,
which of the following statements is most likely TRUE?
A) Polo Ralph Lauren will most likely use an outside advertising agency to develop and execute
its advertising.
B) Polo Ralph Lauren will most likely use an agency-of-record to develop and execute its
advertising.
C) Polo Ralph Lauren will most likely not use any outside resources, such as suppliers, to assist
in developing and executing its advertising.
D) Polo Ralph Lauren will get better media rates by not using an advertising agency to purchase
advertising time and space.
E) Polo Ralph Lauren will most likely use an in-house agency to develop and execute
advertising.
88) When Polo Ralph Lauren advertises in fashion magazines, it focuses on the company’s brand
identity and image by merely showcasing a beautiful, well-dressed person without giving any
information at all except the brand name. What type of advertising is this?
A) institutional advertising
B) direct-response advertising
C) brand advertising
D) business-to-business advertising
E) indirect advertising