Marketing Management, 3e (Marshall)
Chapter 14 Promotion Essentials: Legacy Approaches
1) Customers can quickly and easily become bored with any given advertising campaign, a
concept referred to as advertising wearout.
2) There are two major types of advertising: product advertising and service advertising.
3) The goal of institutional advertising is to increase the purchase of a specific offering.
4) Institutional advertising is a particularly smart strategy during the early phases of the product
life cycle and AIDA model in that it can enhance feelings of trust in potential customers.
5) Pioneering advertising tends to be used during the introductory and early growth stages of the
product life cycle.
6) JK motors is the leader in the automobile industry, and so it should use comparative
advertising to reach its audience.
7) Many people believe that advertising is synonymous with marketing.
8) The lower the reach and frequency, the higher the cost of an advertising campaign will be.
9) The way an advertisement communicates the information and image is called advertising
results.
10) Sales promotion can be aimed directly at end-user consumers, or it can be targeted to
members of a channel on which a firm relies to sell products.
11) A trade show is an industry- or company-sponsored event in which booths are set up for the
dissemination of information about offerings to members of a channel.
12) Sales promotion is a promotion mix element that provides an inducement for an end-user
consumer to buy a product or for a salesperson or someone else in the channel to sell it.
13) In a trade show, a manufacturer provides special incentive money to channel members for
certain performances such as running advertisements for one of the manufacturer’s brands or
doing product demonstrations with potential customers.
14) Bonus payments, prizes, trips, and other incentives to induce a salesperson to push one
product over another are forms of consumer sales promotion.
15) Public relations is a systematic approach to influencing attitudes, opinions, and behaviors of
customers and others.
16) Public relations is a specialized field.
17) Salespeople and the personal selling function are the most effective approach for establishing
and enhancing the personal relationship between company and customer.
18) Trade servicers take orders from customers directly and persuade customers to buy their
firm’s products from distributors or other suppliers.
19) Inbound telemarketing involves calling potential customers at their home or office.
20) The goal of sales presentation is not simply to make the sale but to create a strong value
proposition that will lead to a mutually beneficial long-term relationship.
21) To communicate the message in a sales presentation, the first step is to set goals and
objectives.
22) Salespeople consistently report that price is the most common customer apprehension.
23) One of the most critical aspects to the selling process is not what happens before the
purchase decision but what happens after, the follow-up.
24) The primary advantage of a market organization is that individual salespeople can develop
familiarity with the technical attributes, applications, and most effective selling methods
associated with a single product.
25) A commission is a fixed sum of money paid at regular intervals.
26) Murphy Bros took out an ad in several local papers focusing on how the company was
started and how it benefits the community. This is an example of ________ advertising.
A) product
B) pioneering
C) competitive
D) institutional
E) comparative
27) ________ advertising is one of the three principal types of product advertising.
A) Covert
B) Competitive
C) Institutional
D) Direct
E) Viral
28) A problem with advertising is that beyond a certain ad spending level, diminishing returns
tend to set in. That is, market share stops growing—or even begins to decline—despite continued
spending. This is known as ________.
A) the advertising market concept
B) the advertising response function
C) advertising wear out
D) advertising reach
E) advertising execution
29) What is an example of measured media?
A) newspaper
B) social media
C) direct marketing
D) promotion
E) e-mail marketing
30) Customers can quickly and easily become bored with any given advertising campaign, a
concept referred to as advertising ________.
A) response function
B) tracking
C) wearout
D) persuading
E) illusion
31) The goal of ________ advertising is to promote an industry, company, family of brands, or
some other issues broader than a specific product.
A) product
B) pioneering
C) competitive
D) comparative
E) institutional
32) California Milk Advisory Board has been running a national advertising campaign on
television. The ad features “happy cows” and carries the tagline “Great cheese comes from happy
cows. Happy cows come from California.” The board developed a logo that is prominently
displayed in the ads, and presumably the expectation is that a consumer would look for that logo
on a wedge of cheese in the dairy case, selecting it over cheese from elsewhere. This is an
example of ________ advertising.
A) institutional
B) product
C) comparative
D) competitive
E) pioneering
33) From an AIDA model perspective, ________ advertising seeks to gain awareness and initial
interest and is used mostly in the early growth stages of a product.
A) institutional
B) competitive
C) covert
D) pioneering
E) comparative
34) ________ advertising is heavily used during the growth and early maturity stages of the
product life cycle.
A) Competitive
B) Comparative
C) Pioneering
D) Covert
E) Institutional
35) Marketing managers employ ________ advertising to build sales of a specific brand.
A) institutional
B) comparative
C) pioneering
D) covert
E) competitive
36) ________ advertising is common during the maturity stage of the product life cycle, but you
should avoid this if your brand is the leader.
A) Pioneering
B) Comparative
C) Competitive
D) Institutional
E) Covert
37) Apple ran a series of humorous television ads in which two guys stood side by side while
slinging barbs back and forth about features of the Mac versus the PC. This is an example of
________ advertising.
A) pioneering
B) competitive
C) institutional
D) comparative
E) covert
38) When two or more brands are reviewed against each other on certain attributes, it is
considered ________ advertising.
A) pioneering
B) competitive
C) institutional
D) comparative
E) covert
39) The vast majority of advertising is ________ advertising.
A) institutional
B) product
C) virtual
D) nonprofit
E) research-based
40) Comparative advertising works well when a brand ________.
A) has a higher than average advertising budget
B) is not competing with a top brand
C) is not the leader in its product category
D) has higher sales than all of its competitors
E) has an inexperienced marketing team
41) Starbucks ran a new ad during the Super Bowl. It wanted to know the percentage of people
who watched the ad during the event. Starbucks was measuring the ________ of the ad.
A) reach
B) frequency
C) relevancy
D) impact
E) noise
42) ________ measures the average number of times a person in a target market is exposed to
the message.
A) Reach
B) Frequency
C) Relevancy
D) Impact
E) Noise
43) P&G often shows ads of people using its products, such as a family using a Swiffer to pick
up dog hair. This approach to advertising execution is called ________.
A) mood/affect
B) humor
C) slice of life
D) demonstration
E) lifestyle
44) When actress Jennifer Aniston appears in an advertisement using and promoting a particular
brand of body lotion, it is an example of the ________ approach to advertising execution.
A) demonstration
B) research-based
C) lifestyle
D) endorser
E) slice-of-life
45) A commercial that shows Dodge Ram pickup trucks navigating through the back roads of
America is an example of the ________ approach to advertising execution.
A) lifestyle
B) fantasy creation
C) musical
D) slice-of-life
E) humor
46) ________, an approach to advertising execution, offers an imaginative look at how it might
be if a customer purchases a product.
A) Fantasy creation
B) Endorser
C) Humor
D) Musical
E) Slice of life
47) An advertisement showing tiny aliens blasting cavities in a person’s mouth is an example of
the ________ approach to advertising execution.
A) fantasy creation
B) endorser
C) humor
D) slice-of-life
E) musical
48) Which of the following is one of the benefits of using television as an advertising medium?
A) It has a long shelf life.
B) It appeals to multiple senses.
C) It creates the feel of one-to-one marketing.
D) It offers lasting impressions.
E) It involves low cost.