Communications Chapter 11 1 Procter Gamble Spends The Most Advertising The

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Test Bank for Media of Mass Communication, 11/e
Chapter 11 Advertising
11.1 Multiple-Choice Questions
1) Bob Greenberg, who might be called an advertising guru, operates on a philosophy that
A) ads are best used sandwiched into entertainment products.
B) ads should be entertainment themselves.
C) traditional advertising will rise again.
D) new ad strategies are fads that will fade quickly.
2) When ad guru Bob Greenberg talks about advertising on “the third screen,” he’s referring to
A) cell phones.
B) computer monitors.
C) laptops, iPads, and other tablets.
D) televisions.
3) Advertising contributes to prosperity by
A) discouraging consumption.
B) discouraging product innovation.
C) encouraging wasteful purchases.
D) inspiring people to greater productivity.
4) Former Procter & Gamble president Howard Morgens said that advertising
A) is the most expensive means of selling.
B) is the most effective and efficient way to sell to consumers.
C) makes people aware of products but does little to actually sell products.
D) is merely a feel-good activity for producers.
5) The leading advertiser, spending about $5.2 billion annually for mass media ads, is
A) General Motors.
B) Verizon.
C) Procter & Gamble.
D) Ford.
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6) Advertising as a modern phenomenon first took off in
A) Sweden.
B) France.
C) Japan.
D) the United States.
7) What was the first form of printed advertisement?
A) books
B) flyers
C) newspapers
D) magazines
8) __________ was a British printer who is credited with printing the first advertisement to promote
one of his books.
A) William Caxton
B) John Campbell
C) Benjamin Day
D) Wayland Ayer
9) Benjamin Day’s newspaper, the __________, was the first penny newspaper that brought
advertising to a new level within its pages.
A) Washington Post
B) Chicago Tribune
C) Boston Globe
D) New York Sun
10) National advertising took root in the United States with
A) John Campbell’s newsletter ads in the 18th century.
B) political pamphlets in the 1770s.
C) the railroads’ simplification of mass distribution in the 1840s.
D) the yellow journalism of the late 1800s.
11) The first advertising agency was founded by
A) Wayland Ayer.
B) Benjamin Day.
C) William Caxton.
D) John Campbell.
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12) Which of these service was among those provided by the firm of N.W. Ayer & Son?
A) product research
B) psycho-demographics research
C) expertise in placing advertisements in advantageous media
D) in-house newsletters for companies
13) Most ad agencies will offer advertisers all of the following services EXCEPT
A) counsel on selling their products and services.
B) design services to create the actual ads.
C) expertise in placing the ads in the most advantageous media.
D) recommending product improvements and updates.
14) Using traditional models, an ad agency’s commission was derived by totaling the advertiser’s
outlay for time and space and paying the agency _______ of the total.
A) 6.5 percent
B) 13 percent
C) 15 percent
D) 30 percent
15) Advertising agency compensation has shifted from commission contracts to
A) equitable contracts.
B) equity contracts.
C) variable annuities.
D) performance contracts.
16) In advertising, the performance contract system of payment entails
A) billing clients a certain percentage above the media charge for time and space.
B) billing for expenses and modest profit with extra compensation for successful campaigns.
C) a fee arrangement where agencies bill clients for expenses as they are incurred.
D) cash up front but with a guaranteed refund if goals aren’t met.
17) When an advertising agency takes its compensation as an ownership share in a client’s
company, the deal is called
A) an equity contract.
B) a commission contract.
C) a performance contract.
D) a common-law contract.
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18) Which is chanciest type of contract for an advertising agency?
A) commission contracts
B) equitable contracts
C) equity contracts
D) variable performance
19) What was the criticism of the U.S. Army for its new and more extensive marketing campaign
launched after recruiters failed to meet their goals during the Iraq war?
A) It wasn’t aggressive enough in going after the proper age group.
B) It infused militaristic trappings into messages that targeted children.
C) It was sexist and did not include females.
D) It sold games and clothing but failed to improve recruiting.
20) The systematic outline of where ads will be placed to reach the right target audiences is called
the
A) advertisement.
B) reproduction.
C) media plan.
D) placement key.
21) Most media plans begin with an examination of
A) potential product placements.
B) the exact audience or circulation of the prospective media.
C) the creative concept of the ad.
D) cost per thousand (CPM) of possible media.
22) Which professional determines the most effective media placements for an ad?
A) creative director
B) account executive
C) media buyer
D) placement manager
23) Media buyers verify circulation claims of printed mass media with
A) Nielsen Online Campaign Ratings.
B) Arbitron surveys.
C) the Audit Bureau of Circulations.
D) BookScan.
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24) Studies show that readers of newspapers
A) pay little attention to advertisements.
B) are predisposed to seriously consider advertisements because reading requires focus.
C) rarely recall advertisements because the news consumes attention.
D) have short attention spans.
25) What is a disadvantage of newspaper advertising?
A) space for ads usually can be reserved as late as 48 hours ahead
B) newspaper readers are predisposed to consider information seriously
C) the level of income and education of most newspaper readers
D) declining readership among young adults
26) What is a disadvantage of magazines for advertising?
A) ads must be placed up to three months in advance
B) long magazine shelf life
C) high pass-along circulation
D) narrowly defined audiences
27) Among the advantages that magazines offer over newspapers are better printing, a longer shelf-
life, and
A) higher subscription.
B) a less demassified audience.
C) more flexibility in reservation and printing time.
D) pass-along circulation.
28) Which of these traits is both an advantage and a disadvantage of radio for advertising?
A) radio offers no opportunity for visual displays
B) radio time can be bought on short notice.
C) radio ad time is comparatively inexpensive.
D) radio is a mobile medium.
29) Radio stations with narrow formats offer advertisers
A) lower prices than those with broad and diversified formats.
B) fewer competing advertisers and therefore more visibility.
C) better listener receptiveness.
D) easily identified target audiences.
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30) What is a major advantage of television advertising?
A) production costs
B) placing advertisements
C) targeting potential customers
D) impact through a moving and visual medium
31) Which of the following is NOT an advantage of Internet advertising?
A) People can print the ads.
B) There is less “waste” from reaching disinterested consumers than in other media.
C) Advertisers can easily reach niche audiences.
D) Advertisers have less competition.
32) Based on 2010 data, the most money was spent placing ads in what medium?
A) Internet
B) television
C) radio
D) magazines
33) What is the charge Google collects from an advertiser each time it directs traffic to the ad?
A) link sponsorship fee
B) hit fee
C) click-through fee
D) traffic fee
34) The advantages of advertising in video games include all of the following EXCEPT
A) at $20,000 to $100,000 per message, the ads are usually very cost-effective.
B) background billboard ads can be instantly changed during online game playing.
C) they effectively reach females aged 13 to 35, a highly desired ad audience.
D) with interactive coding, ads can be modified to fit the current player’s demographics.
35) Which of the following is a successful brand name?
A) Flashlight
B) Croissant
C) Latte
D) Kleenex
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36) Who championed the concept of brand imaging when he said, “give your product a first class
ticket through life?
A) Sam Walton
B) David Ogilvy
C) Jack Trout
D) Donald Trump
37) Brand-name advertising is losing ground to
A) viral advertising.
B) store brands.
C) agency-produced advertising.
D) redundancy techniques.
38) Linking a celebrity’s name to a product is one method of
A) bunching.
B) positioning.
C) branding.
D) glitzing.
39) Which of the following advertising technique is also a lowest common denominator approach?
A) unique selling proposition
B) positioning
C) stealth
D) infomercial
40) Who championed positioning?
A) David Ogilvy
B) Wayland Ayer
C) Jack Trout
D) Jim Vicary
41) Targeting ads for specific consumer groups is called
A) positioning.
B) lowest common denominator.
C) unique selling proposition.
D) viral advertising.
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42) Which of the following is NOT a redundancy technique in advertising?
A) barrages
B) bunching
C) positioning
D) multimedia trailing
43) Bunching is
A) running multiple condensed versions of an ad after the original has been introduced.
B) using less-expensive media to promote a campaign that’s already run.
C) scheduling ads in intensive bursts.
D) promoting a product during a specific, limited period.
44) Running a condensed version of an ad after the original has been introduced is a practice called
A) trailing.
B) barraging.
C) bunching.
D) waving.
45) Clutter in advertising is defined as
A) too many visual elements competing for attention within an ad.
B) an unhealthy mix of competing advertisers pitching the same product.
C) too many ads running one after another in a television commercial break.
D) too many agencies competing for the same advertising business.
46) Television commercials have been shortened from 60 seconds in the early days of television to
A) 45 seconds.
B) 30 seconds.
C) 15 seconds.
D) 10 seconds.
47) A number of shorter ads competing against one another during the same commercial break on
television is n known as
A) subliminal messaging.
B) ad clutter.
C) subception.
D) saturation advertising.
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48) Word-of-mouth testimonials, friends talking to friends, is known as
A) traditional advertising.
B) media advertising.
C) brand watch.
D) buzz advertising.
49) What is viral advertising?
A) pastel messages from the Viral & Hjelmberg shop in the 1920s
B) advertising produced by Magnus Viral in the 1990s.
C) short action stories on the web that friends pass on to friends
D) advertisements about cold cures and healthcare products
50) Which of the following is an example of stealth advertising?
A) “R-O-L-A-I-D-S spells relief”
B) the Marlboro Man
C) positioning Johnson & Johnson’s baby shampoo as an adult product by using athletes
D) FedEx Field, a sports stadium outside of Washington, D.C.
51) The advent of TiVo has prompted new advertiser interest in
A) product placement.
B) brand names.
C) 30-second spots.
D) infomercials.
52) The practice of product placement first began and became popular in
A) motion pictures, especially in the 1980s.
B) radio during the early years of rock `n’ roll.
C) television when advertisers sponsored entire programs.
D) women’s magazines with small packets of perfume.
53) Dave Balter specializes in what type of marketing?
A) television commercials
B) word-of-mouth
C) sales promotion
D) radio commercials
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54) The term applied to extensive use of word-of-mouth advertising is
A) blitzing.
B) buzz marketing.
C) gossip riding.
D) stealth selling.
55) What is a program-length commercial disguised as a newscast or entertainment called?
A) product placement
B) branding effort
C) infomercial
D) stealth ad
56) What is the name for a magazine published by a manufacturer to plug a single line of products?
A) viral mag
B) ‘zine
C) product placement
D) plugger
11.2 True/False Questions
1) Advertising guru Bob Greenberg believes that the 30-second television spot will continue as a
viable advertising avenue.
2) Ad guru Bob Greenberg says the entertainment era that assembled mass audiences for
advertisers to reach is coming to an end and advertisers need to adopt new approaches.
3) Advertising is essential to a prosperous society?
4) Advertising has no role and serves no purpose when survival is the main concern.
5) Advertising is the most expensive form of selling.
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6) Procter & Gamble spends the most on advertising in the U.S. media.
7) Advertising plays an even more important role in authoritarian societies than in democratic
ones.
8) The primary role of advertising is to provide consumers with information on which to make
buying decisions.
9) Flyers were the first form of printed advertising.
10) The penny press was able to keep the cost for a newspaper at a penny by relying on advertising
revenue.
11) Railroads helped create national advertising because they could transport goods over long
distances.
12) Benjamin Day created the first advertising agency.
13) Average advertising agency commissions have dropped below the old standard of 15 percent.
14) The advertising commission system broke down in the 1990s.
15) A fairly recent advertising agency compensation arrangement is the equity contract.
16) Signing equity contracts as payment for their services offer stable and predictable revenue for
advertising agencies.
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17) The U.S. Army was universally praised for his recruitment efforts aimed at young teens.
18) Effective media plans ensure that ads reach their target audiences.
19) Media buyers decide where to buy and place ads.
20) The most common factor used to start selecting media to carry advertisements is CPM.
21) The acronym CPM, standing for “customers per medium,” is an index for comparing the
effectiveness of ads appearing in different media.
22) The circulation of newspapers is verified by the Audit Bureau of Circulations.
23) Newspapers have high pass-along circulation.
24) How long a periodical remains in use is called publication life.
25) For advertisers, magazines have many advantages of newspapers plus a longer shelf-life.
27) As of 2010, newspapers continued to lead all other media in advertising revenue.
28) Google both collects and pays out money through click-through fees.
29) An advergame is a sponsored online game, usually for an established brand at its own site.
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30) David Ogilvy championed brand imaging.
31) Many brand name companies are continually increasing their ad budgets to combat the
emergence of store brands.
32) Brand-name advertising has threatened store brands.
33) Enhancing a product image by linking it to a celebrity or an already established brand name,
regardless of the intrinsic connection between the product and the image, is called branding.
34) Advertising tactics include seeking the lowest common denominator.
35) The unique selling proposition concept is a variation of LCD advertising that is usually based on
broad, simple audience appeals.
36) Positioning directs an ad at the largest possible group of people.
37) A flight is an intensive repetition of advertising messages for a single product or family of
products.
38) A campaign employing bunching would run an ad intensively during a specific, limited period.
39) Multimedia trailing consists of running the same commercial several times during one program.
40) The television ad statement, “I’m not a doctor but I play one on TV,” was actually triggered by a
Federal Trade Commission crackdown on celebrity endorsements of healthcare products.
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41) The proliferation of advertising and the decreasing length of broadcast ads has created a
problem: too many ads.
42) Advertising clutter is of grave concern for advertising.
43) People generally trust advertising more than word-of-mouth recommendations.
44) Buzz advertising is another name for viral advertising.
45) Short action stories created to promote products and placed on the web that friends pass on to
friends are called viral ads.
46) Stealth ads are illegal ads.
47) Product placement is adding a brand name product into a television or movie script.
48) Most viewers are fooled into thinking that infomercials are television newscasts or
entertainment programs.
49) A ‘zine is A magazine with fewer than 10 pages.
50) The essence of advertising is buying time and space from the media into which the advertiser
can place whatever messages he/she wants.
51) Newspapers, magazines, radio, television, and the Internet are the economic engines that drive
American advertising.
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1) According to ad guru Bob Greenberg, “the third screen” that advertisers should be paying more
attention to is __________.
2) Rather than having ads “sandwiched into entertainment products,” ad guru Bob Greenberg says
the says the ads themselves need to become __________.
3) The country in which advertising first took off as a modern phenomenon is __________.
4) The company that spends more per year on mass media advertising than anyone else is __________.
5) The railroads allowed __________ advertising to take root as railroads spawned new networks for
the mass distribution of goods.
6) Advertising itself is NOT a mass medium, but it relies on the __________ to carry its messages.
7) In the past, advertising agencies traditionally earned __________ percent of what their clients spent
on space and time.
8) A(n) _________ contract pays ad agencies with shares in the advertiser’s company which can be
very lucrative but which is also risky.
9) A recent marketing campaign by __________ raised eyebrows and objections from critics who
complained about its “infusion of military trappings into children’s culture.”
10) Agencies create __________ to ensure that advertisements reach the right target audiences.
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11) Because fewer young adults in the post-Baby-Boomer generations are reading them, __________
have become less valuable to advertisers.
12) Compared to television, one disadvantage to radio advertising is that it cannot offer ___________
to its listeners.
13) One advantage advertisers see in magazines is that they offer a longer __________ than
newspapers.
14) Google and other search engines charge advertisers a __________ every time a visitor clicks on a
link to visit the advertiser’s page.
15) Ads in video games often take the form of background __________.
16) An __________ is a sponsored online game that was essentially created to be an ad in and of itself.
17) David Ogilvy is known for developing the __________ image concept.
Page Ref: 300-0118) Such mega stores as Wal-Mart have created their own __________ brands to
compete with name brands.
19) Jack Trout devised the concept of __________, which tries to create an identify for its product that
links it to specific consumer groups, not the lowest common denominator.
20) __________ means promoting a product in a limited period, such as pitching cold medicine during
the winter months.
21) Having someone describe what a product did for them or how satisfied they are with it, this ad
technique is called a(n) ___________.
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22) A celebrity __________ is a special type of testimonial involving a well-known celebrity rather than
an average person-on-the-street or nameless spokesperson.
23) When there are so many competing television commercials that all lose impact, it is called
___________.
24) __________ advertising is really nothing more than word-of-mouth testimonials, friends talking to
friends.
25) __________ ads fit so neatly into the landscape that the commercial pitch seems part of the story
line.
26) Using a brand-name product in a movie or television show is called __________.
27) A(n) __________ is a program-length, television commercial.
28) __________ provides people with the information they need to make choices as consumers.
29) The mutual interests of media companies and advertisers have led to the __________ of the mass
audience into countless subsets that can be targeted with specially-focused appeals.
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Chapter 11 Advertising
11.4 Matching Questions
Match each concept on the left with the best definition or explanation in the right column.
1) Circulation
A) Length of time an ad remains available to reader
2) Endorsement
B) Intensively scheduled barrage of ads for a product
3) CPM
C) Subtle ads in unexpected places
4) Shelf life
D) Number of copies of a periodical sold
5) Pass-along circulation
E) Payment by advertiser for people visiting their online ad
6) Click-through fee
F) Linking products to specific types of people, not everyone
7) Flight
G) Tool to determine cost effectiveness
8) LCD
H) All people beyond original recipient who see a periodical
9) Positioning
I) Testimonial ad featuring a celebrity
10) Stealth ad
J) Message strategy for the broadest audience possible
Match each person on the left with the appropriate accomplishment in the right column.
1) William Caxton
A) Coined the term and promoted “unique selling proposition”
2) Wayland Ayer
B) Championed brand imaging
3) Dave Balter
C) His Pepsi endorsement led other celebrities to endorse products
4) Rosser Reaves
D) Printed first advertisement
5) Josiah Wedgwood
E) Celebrity endorser for erectile dysfunction medications
6) Bob Dole
F) Developed the idea of positioning
7) David Ogilvy
G) Founded BzzAgent for word-of-mouth advertising
8) Benjamin Day
H) Credited with establishing the first brand name product
9) Jack Trout
I) Founded first ad agency
11.5 Essay Questions
1) Explain why advertising works well in a democratic society and may even be critical to it, but
doesn’t work very well in an authoritarian society and may not be needed.
2) Describe three different ways advertising agencies can charge advertisers for the services they
provide, and indicate which seem to be the most popular today.
3) Discuss why the traditional 15% ad agency commission which had lasted for well over 100 years
has now fallen out of favor and is being adjusted or replaced by other payment schemes. Explain its
relative advantages and disadvantages for both the advertisers and the agencies.
4) Describe two advantages of each of the following media: newspapers, magazines, radio,
television, and online for advertisers.
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5) Describe two disadvantages advertisers face in using each of the following media: newspapers,
magazines, radio, television, and online.
6) Discuss the competition that has developed between major brand names and store brands,
explaining why store brands have become a threat to large-brand name companies. Cite an example
of a major brand and a store brand for at least three different product categories.
7) Describe and explain the differences between any three of the common redundancy techniques
used in advertising.
8) Describe how ad clutter and the increasing popularity of recording devices like TiVo have cut
into the effectiveness of television advertising messages. Explain some of the steps the television
industry has taken to combat these problems.

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