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135. The main problem with using the objective-and-task approach to setting an advertising budget is that
a. sales create advertising rather than advertising creates sales.
b. it often results in overspending or underspending of the firm’s resources.
c. it does not achieve full potential in terms of stimulating demand.
d. the marketer may experience difficulty when trying to estimate accurately the level of effort needed to achieve
goals.
e. it is difficult to determine the objectives of the campaign.
136. The three general types of media schedules are
a. pulsing, beating, and continuous.
b. short, medium, and long-term.
c. morning, afternoon, and evening.
d. pulsing, continuous, and flighting.
e. light, heavy, and alternating.
137. You are the head of marketing for a major oil company based in the United States. Recently, your company was
involved in a major oil spill off the coast of Texas where millions of barrels of crude oil were accidentally released into
the Gulf of Mexico. The negative publicity for your company has been fast and furious since the spill occurred. However,
your company took a very proactive approach in managing the disaster and the resulting publicity. Now your CEO wants
to assess how effective the company has been in repairing its image.
Which of the following would you recommend to the CEO?
a. A communications audit
b. A customer survey
c. A public relations audit
d. A press conference
e. A social audit
138. Some of the posttest methods for measuring advertising effectiveness are based on how well consumers remember
advertising and include (1) recognition tests and (2) recall tests. What is the basic difference between these two
approaches?
a. The actual ads are shown in the former but not in the latter.
b. The former method relies on memory alone, and the latter shows the actual ads.
c. One uses a consumer jury; the other uses random individuals.
d. The respondents are given class clues in the latter but not in the former.
e. One is used primarily by the government, and the other is used by private businesses
139. Suppose State Farm Insurance stated, “We want our advertising to increase our customer base for home and
automobile insurance 10 percent by the end of the fiscal year.” This would be considered a(n)
a. target audience goal.
b. advertising platform.
c. percent-of-sales approach.
d. advertising objective.
e. media plan goal.
140. Fruit of the Loom is launching a new advertising campaign. Within the first six months of the campaign, the media
planners want the new advertisement’s _____ to be 25% of the target market and the _____ to be four times.
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a. reach; frequency
b. goal; multiplier
c. exposure; repetition
d. range; rate
e. impact; recurrence
141. When Anheuser-Busch ran an advertising campaign featuring the slogan, “Know when to say when,” it was using
a. competitive advertising.
b. public relations.
c. product advertising.
d. public service awareness.
e. advocacy advertising.
142. When developing an advertising campaign, benchmarks need to be included in the
a. campaign platform.
b. evaluation of the advertising effectiveness.
c. statement of advertising objectives.
d. media plan.
e. budget.
143. Dan is responsible for developing the promotional campaign for Under Armour’s new line of footwear for teens. He
will be writing advertising campaign objectives that are aimed at making the target customers’ attitudes more favorable
toward Under Armour, which should be stated in ____ terms.
a. communication
b. sales
c. demand
d. market
e. survey
144. After the target audience for an advertising campaign has been identified and analyzed, marketers should then
proceed by
a. creating the advertising platform.
b. determining the financial resources available.
c. defining the advertising objectives.
d. developing a media plan.
e. creating an advertising message.
145. The primary goal of a media planner is to
a. choose the best commercial spots available.
b. develop a message that works well with the firm’s target market.
c. achieve the appropriate message reach and frequency.
d. use a wide variety of media to ensure the entire target audience is exposed.
e. reach the largest number of people in the target market within the budget constraints.
146. A firm can identify changes in public opinion that affect it by conducting
a. environmental monitoring.
b. consumer polling.
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c. a consumer jury.
d. a communications audit.
e. press conferences.
147. To determine how much money to spend on advertising, marketers for a new brand of caffeinated energy drink
decided that they wanted the advertising to create awareness of the new flavor in 80 percent of the energy drink market
within one month of introduction. The marketers then determined how much it would cost to reach this goal. This is an
example of which one of the following approaches to determining advertising budgets?
a. Objective-and-task
b. Percent of sales
c. Competition matching
d. Arbitrary allocation
e. Past-year comparison
148. After the advertising budget is determined, the next step in creating an advertising campaign is
a. creating the advertising message.
b. creating the advertising platform.
c. evaluating the advertising objectives.
d. executing the campaign.
e. developing the media plan.
149. Toyota’s sponsorship of a major Professional Golf Association tournament would be an example of a(n) ____ tool.
a. advertising
b. public relations
c. sales promotion
d. publicity
e. personal selling
150. When an organization uses an advertising agency, who usually develops the advertising campaign?
a. The agency’s specialists
b. The firm and the agency working jointly
c. The agency suggests ideas and the firm chooses among them
d. The advertising department within an organization
e. An individual or a few persons within the firm
151. A marketer that wanted to include detailed information in advertisements would most likely use
a. radio.
b. television.
c. outdoor displays.
d. magazines.
e. mass transit.
152. Lexus has designed its commercials to appeal to more affluent car drivers as its
a. target audience
b. advertising objective
c. advertising platform
d. media plan
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e. advertising message
153. Julie Reese is working on developing a magazine advertisement for Planet Fitness, a health and fitness club. She
knows what she wants the advertisement to say and the illustrations she wants to use, but she is having a tough time
putting it all together. Julie is having trouble determining the
a. storyboard.
b. artwork.
c. copy.
d. presentation.
e. layout.
154. Canon Inc. is releasing a new version of its EOS Rebel camera. As part of the launch, they have submitted a 2,500-
word story to Popular Photography, a magazine for camera users. This is a public relations tool known as
a. publicity
b. a news release
c. a captioned photo
d. a feature article
e. a press conference
155. ____ is a broad set of communication activities used to create and maintain favorable relations between the
organization and its stakeholders.
a. Advertising
b. Selling
c. A press strategy
d. Public relations
e. Publicity
156. Refer to Scenario 16.2. If State Farm were to decide that its previous method of appropriating the advertising budget
was ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one problem with
this method is that
a. it makes the bookkeeping too difficult.
b. it is tied too closely to sales forecasts.
c. a sales decline leads to an increase in the advertising appropriation.
d. a drop in sales would cause a drop in the advertising budget.
e. competitors may have different advertising objectives.
157. The last stage in the development of any advertising campaign is
a. creating the advertising platform.
b. developing the media plan.
c. creating the advertising message.
d. evaluating the effectiveness of advertising.
e. defining the advertising objectives.
158. A car dealership is switching how it determines its advertising appropriation. They are moving from an approach
where they set their budget based on their projected revenue for the coming year to one in which it identifies the cost
required to meet certain goals. They are switching from the _____ approach to the _____ approach.
a. competitive-matching; arbitrary
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b. percentage-of-sales; competitive-matching
c. competitive-matching; objective-and-task
d. percentage-of-sales; objective-and-task
e. arbitrary; competitive-matching
159. When Volvo’s advertising campaign mentions the Volvo CX60 has the highest safety rating of any European sedan,
it is using _______ advertising.
a. Reminder
b. Reinforcement
c. Competitive
d. Defensive
e. Institutional
160. When respondents are shown a list of various products, brands, and company names and then asked about
advertisements they have seen lately, researchers are conducting a(n)
a. unaided recall test.
b. pretest.
c. recognition test.
d. aided recognition test.
e. aided recall test.
161. Steve is aware of the growth in digital media advertising, particularly to certain target markets. The use of
advertising on digital devices can alienate young consumers. Steve has uncovered recent research stating that young
consumers are more likely to be receptive to advertising appearing on their digital devices if the source is _____; _____
has been given, and the messages are ______.
a. known; a coupon; exciting
b. trusted; permission; relevant or entertaining
c. liked; permission; has a monetary benefit
d. trusted; a discount; exciting
e. known; a discount; humorous
162. In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations is
to
a. discourage news coverage of the event.
b. deny that the event occurred.
c. facilitate news coverage of the event.
d. hire a public relations firm.
e. refrain from publicity that reports the event.
163. Mike Stevens wonders whether the creative idea of using the character “Tom T. Turtle” as an image for marketing a
new line of running shoes will be successful. He should suggest to his account representative that a(n) ____ be used to
pretest the campaign.
a. storyboard
b. survey
c. experiment
d. GSR test
e. consumer jury
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164. Which of the following is the most commonly used type of publicity-based public relations tool?
a. News release
b. Captioned photograph
c. Feature article
d. Press conference
e. Letter to the editor
165. If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the
public and get wide media coverage would be through a
a. captioned paragraph.
b. press release.
c. feature article.
d. sponsorship.
e. press conference.
166. Todd is developing a print advertisement for Afflac. He knows that the ______ is a critical component of the copy
because _____.
a. headline; it determines the final layout design.
b. headline; It is often the only part of the advertisement that is read.
c. artwork; it takes up the most space.
d. tag line; it links the copy to the signature.
e. slogan; it links the artwork to the signature.
167. If Target were to base its advertising appropriation on the amount that Walmart spends, it would be using the ____
approach.
a. objective-and-task
b. percent-of-sales
c. industry-standard
d. arbitrary
e. competition-matching
168. Kohl’s, a department store featuring clothing and housewares, communicates in news story form about its
organization and its efforts to support local children’s hospitals. This information is transmitted through mass media at no
charge and is therefore called
a. news reporting.
b. public relations.
c. mass communications.
d. free advertising.
e. publicity.
169. Brands that are promoted through comparative advertising are most likely to be
a. market leaders.
b. brands that are attempting to compete with market leaders.
c. primarily services rather than tangible goods.
d. attempting to compete on a nonprice basis.
e. competing in a less competitive market.
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170. Grant is responsible for the marketing promotions of a small firm of consultants. It is most likely that his firm will
use ____ to create and implement its advertising campaigns.
a. an advertising agency
b. a group of multiskilled managers
c. an advertising department
d. a freelance specialist
e. one or two individuals
171. Brian is responsible for the promotions and public relations of his firm, which produces rubber tires. A recent
development in technology may change the way in which the rubber for tires is produced, allowing it to be sourced from
the roots of dandelion plants. Brian would like to have a story run on the evening news or in the local newspaper about
this development, but he knows that this story is likely to be rejected by media personnel because the material is
a. too long.
b. written at too high a reading level.
c. submitted by an organization that the media does not like.
d. not persuasive enough.
e. not newsworthy.
172. Brian and Tiffany are discussing the media plan for the opening of their new bar/laundromat called Soap and Suds.
He tells her that while he agrees that ____ has tremendous impact, he does not feel that the upfront costs for such a
campaign are in the modest budget that presently exists.
a. radio
b. outdoor
c. television
d. direct mail
e. newspaper
173. Pepsi wants to find out how their public relations program in which they sponsor the Super Bowl Halftime Show has
changed perceptions of the company. To do so, they should conduct a
a. social audit
b. communications audit
c. public relations audit
d. sponsorship-effectiveness audit
e. customer-impact audit
174. Which of the following statements applies to media planning?
a. Characteristics of the product are the most important consideration in selecting the media for a campaign.
b. The message content affects the types of media used for an advertising campaign.
c. The location of the advertising target is irrelevant in media planning.
d. Total media dollars spent on advertising have decreased over the last 30 years.
e. Regardless of the message to be conveyed, newspapers are one medium that is appropriate for almost any
circumstances.
175. Advertising appropriations are largest for which type of product?
a. Business products
b. Convenience goods
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d. Specialty goods
e. Infrequently purchased goods
176. Dial Soap’s advertising slogan “Aren’t you glad you use Dial? Don’t you wish everybody did?” exemplifies the use of
____ advertising.
a. reinforcement
b. offensive
c. comparative
d. institutional
e. defensive
177. In creating the advertising message, which of the following is not recommended when creating a slogan?
a. The slogan should be short.
b. The slogan should be retained for a long period of time.
c. The slogan should be accompanied by a spokescharacter.
d. The slogan should be backed by a large marketing budget.
e. The slogan should be memorable.
178. The cost per thousand (CPM) indicator shows
a. the cost to expose 1,000 people to a television commercial.
b. the cost to expose 1,000 people to a one-page magazine advertisement.
c. the return on investment marketers get for their advertising dollar.
d. the cost to expose a million people to any type of advertisement.
e. how one media source compares to a different source for reaching target markets.
179. Parisian Dry Cleaners airs a series of radio ads that claim, “We are the fastest dry cleaners in town.” This campaign
would best be described as ____ advertising.
a. pioneer
b. target
c. product
d. institutional
e. comparative
180. Recently the local television station communicated a news story about the new specialized medical mart opened by
Cleveland Clinic. The story provided information about the various services that the new medical mart would offer and
how to get in touch with the service providers. This story is most likely an example of
a. Institutional advertising.
b. Publicity.
c. Public relations.
d. Sales promotion.
e. Direct marketing.
181. Before launching a new advertising campaign, marketers for Healthy Choice frozen dinners must determine the
selling points that they want to include in the advertisements. The identification and organization of these selling points is
called the
a. advertising appropriation.
b. objective-and-task approach.
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c. advertising platform.
d. advertising objective.
e. advertising budget.
182. Coors advertises that its beer is the only one that is kept cold from the brewery to the store. This type of advertising
is called
a. pioneer.
b. competitive.
c. comparative.
d. defensive.
e. institutional.
183. Domino’s is looking into magazine advertising for its pizza. The company wants to reach as many people as possible,
but due to budget constraints Domino’s must reach consumers as efficiently as possible. What can Domino’s use to
evaluate various magazines?
a. A cost comparison indicator
b. The total circulation of the magazines
c. A list of the costs of a one-page ad in various magazines
d. The advertising appropriations for each magazine
e. An index of advertisement exposure
184. Public relations personnel create corporate identity materials including all the following except:
a. Logos
b. Business cards
c. Stationery
d. Coupons
e. Signs
185. A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with
the dates and times, is a(n)
a. advertising plan.
b. media plan.
c. advertising message.
d. advertising appropriation.
e. media platform.
186. If an advertising campaign is aimed at increasing brand awareness and consumers’ knowledge of a product’s features,
the advertising objective should be stated in terms of
a. market share.
b. dollar sales.
c. unit sales.
d. communication.
e. long-run goals.
187. Home Depot is interested in knowing how its efforts to act in a socially responsible manner through its Habitat for
Humanity and disaster relief efforts have affected stakeholders’ views of the company. Home Depot should conduct a(n)
a. social audit.
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b. publicity audit.
c. environmental audit.
d. communications audit
e. environmental impact study.
188. The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period
of time is the definition of
a. frequency.
b. exposure.
c. reach.
d. targeting.
e. push.
189. Disney decided to run its new commercials for all of its theme parks several times a day for three weeks and then not
at all for two weeks. It will then run the commercials again for three more weeks. Disney is using a ____ schedule for its
advertising.
a. flighting
b. varying
c. continuous
d. pulsing
e. beating
190. _____________ identifies changes in public opinion affecting an organization.
a. A public relations audit
b. A financial audit
c. A communications audit
d. A social audit
e. Environmental monitoring
191. Alan is the CEO of Greensprings Landscaping. At the recent budget planning meeting, Alan stated that last year’s
sales were down from the previous period. He then went on to say that Greensprings would have a budget of $100,000 for
advertising in the coming year. In this instance, Alan was using the ____
a. arbitrary approach.
b. executive decision process.
c. objective-and-task approach.
d. percentage-of-sales approach.
e. competition-matching approach.
192. The Bentley Agency places $2,500 in radio spots and $17,500 in television spots for Darnell Insurance in June. For
its efforts this month, the agency “traditionally” would receive ____ in compensation.
a. $2,500
b. $10,000
c. $1,000
d. $5,500
e. $3,000
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193. An ad’s ____ is designed to attract readers’ attention and develop interest so that they will read the entire
advertisement.
a. signature
b. layout
c. headline
d. artwork
e. subheadline
194. Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is
called ____ advertising.
a. institutional
b. product
c. organizational
d. pioneer
e. advocacy
195. An ad for a multivitamin that claims, “We still bring you everything you need to get through your day in one
vitamin,” would most likely be considered ____ advertising.
a. reinforcement
b. competitive
c. comparative
d. reminder
e. institutional
196. Which of the following statements is true about public relations?
a. Publicity is not part of public relations.
b. The most common publicity-based tool is the press conference.
c. Marketers cannot control whether the media choose to publish their public relations material.
d. Publicity-based public relations do not have limitations.
e. Event sponsorship is not an effective public relations tool.
197. Refer to Scenario 16.1. Advertisements such as the one proposed above for the Camry and hybrid SUVs, are most
likely an example of
a. product advertising.
b. comparative advertising.
c. competitive advertising.
d. institutional advertising.
e. reminder advertising.
198. When individuals’ behaviors are tracked from television sets to checkout counters using equipment provided by the
marketer, this is known as
a. family behavior recording.
b. single-source data.
c. individual consumer jury.
d. advertisement exposure data.
e. detailed market research.
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199. Compare the competition-matching approach with the arbitrary approach in determining an advertising
appropriation. Which method might more easily lead to overspending or underspending on the appropriation?
200. Identify and describe four publicity-based public relations tools.
201. What are the components of a print ad? What are the functions of each component?
202. Discuss how event sponsorship can be used as a public relations tool.
203. What are the advantages of using an advertising agency to develop an advertising campaign?
204. Describe the various methods used to evaluate the advertising effectiveness after a campaign.
205. What are the major differences between sales-based and communications-based advertising objectives?
206. What approaches can be used to evaluate the effectiveness of public relations programs?
207. What are the major components of a media plan? What limitations must be considered as the media plan is
implemented?
208. What is an advertising platform? What is the best way to develop a platform?
209. What is public relations and for what purposes is it used?
210. What are the important issues to consider when developing advertising objectives?
211. What steps should an organization take to be able to deal effectively with negative public relations?
212. Describe the major types of advertising, and discuss how they differ.