Jerome always buys Coke, and only Cokenot Pepsi or any other cola brand. Consumers
like Jerome, who repeatedly purchase a single brand to fulfill a specific need, are
demonstrating brand loyalty.
a. True
b. False
The promotional tool used most often to communicate with members of a trade channel
is personal selling. Which of the following is a reason behind this?
a. Personal selling is the most inexpensive form of communication.
b. Members of trade channels are the most conspicuous audience.
c. Members of trade channels are the target audience for producers of only household
products.
d. The target audience represents a relatively small, easily identifiable group.
Scenario3-1
In the early and mid-1800s, soaps were made from animal fats. The perishable quality
of the soap, however, allowed manufacturers to sell a product with only regional appeal.
This changed when soap makers began to use vegetable fats and perfume in the
soap-making process.
According to Procter & Gamble, one batch of this vegetable-based soap was left to mix
too long. The result was a product that floated in water due to an excess amount of air.
The company turned this into a selling point and, in 1882, launched one of the first
soaps with the potential for national salesIvory soapwith the slogans “It floats” and
“9944/100 percent pure.” (Stephen Fox, TheMirrorMakers,[New York: Random House,
1984], 24.)
Which of the following eras does Ivory soaps belong to?
a. The pre industrialization era
b. The industrialization era
c. The P.T. Barnum era
d. The Great Depression
On a cost-per-thousand (CPM) basis, the cost of Web ads for the most part compares
favorably with ads placed in traditional media.
a. True
b. False
Direct marketing is defined as an interactive system that uses one or more advertising
media to:
a. develop a one-time communication with customers.
b. push a product through the distribution channel.
c. sustain a brand image.
d. get a measurable response or transaction at any location.
Howard Gardner discovered a number of positive traits that the greatest creative minds
of the 20th century shared. He found that these individuals were all:
a. shy.
b. easygoing.
c. social.
d. conventional.
Scenario 2-4
Caltech Corp. has a 15 minute advertisement that is aired on a local news channel
explaining to the public the benefits of its product. Sparkles Inc. has provided Caltech
Corp. airtime on its television network, and has offered to advertise its product on its
website as an act of goodwill.
Caltech Corp. has a 15 minutes long advertisement that explains to the public about its
product. This is an example of a(n)_____ .
a. podcast
b. electronic directory
c. blog
d. infomercial
Which of the following is true about ethics?
a. It is based on personal judgement.
b. It is applicable to business alone.
c. It is strongly looked down upon in society.
d. It is the basic structure of business.
Scenario 18-2
A young man decides to become a mass producer of T-shirts. His small factory located
in Oregon begins promoting itself by hiring excellent seamstresses, offering a pleasant
working environment, decent salaries, and giving the public an opportunity to buy
clothes that are truly “made in America.” The company eventually adds other clothing
items, opens three brick-and-mortar retail stores in several large cities, and expands to
online shopping. Over the years, the firm grows and prospers due to its reputation as an
American manufacturer, a fair employer, and an opponent of the traditional view of
‘sweatshops.” However, along the way, it deals with a few public relations issues too.
He feels he did a good job in his press release by describing the positive aspects of his
company. However, he is aware that his press release:
a. can only promote positive news, but not combat negative information.
b. cannot be integrated with other communication efforts.
c. can do well in communicating information internally, but not externally.
d. can be edited, misconstrued, or not run at all by media organizations.
Which of the following is considered the most crucial design element that brings
harmony to all components on the page?
a. Order
b. Unity
c. Balance
d. Color
Scenario 16-2
HollywoodBranding is a new promotions company formed by three former ad
executives who had illustrious careers in large multi-service advertising agencies. Over
their years, they developed close ties with a number of Hollywood movers and shakers.
Consequently, they feel poised to respond to the business world’s growing desire for
branded entertainment. But they are aware that they need to continually fight their old
school thoughts about branding forged in years of working solely with traditional
media.
The HollywoodBranding staff has an idea for a corporate giant in the household
cleaning products industry; a reality show using all of its products in crazy stunts, timed
contests, and obstacle races. But the client is worried about playing it straight with
consumers, and openly disclosing its role as a paid advertiser for the show. This worry
stems from the concern that:
a. if advertisers pile on branded entertainment too quickly, a jaded consumer and a
cluttered environment will be the result.
b. branded entertainment will definitely have several failures because every time out, it
is new and unpredictable.
c. TV networks can be charged with deception of the public by failing to disclose the
details of product-placement deals.
d. there can be an incredible lack of alignment around who is responsible for ethics in
branded entertainment.
LivTo Inc. is a company that manufactures cosmetic products for women. It claims to
have the best customer care services and is prompt to address the grievances of its
customers. To be internally consistent, the company should invest in a better Research
and Development department and also create a new image for its products.
a. True
b. False
A script is a written version of the television commercial. It controls the flow,
coordinates all audio and visual elements, and helps make decisions about location,
cast, and schedule.
a. True
b. False
Scenario 17-4
Trapper’s Lake Lodge is a rustic hotel situated on a large lake in the Flat Tops
Wilderness Area. The lodge offers a relaxing getaway as well as guided fishing,
hunting, bicycling, and cross-country skiing trips from its remote location 250 miles
away from a major airport. Guests must travel the last 40 miles on a rough dirt road
during the summer months or ride a special snow car during the snow season. Trapper’s
Lake Lodge management has found that guests almost always have a wonderful
experience during their stay and swear they will visit again. Nonetheless, the biggest
problem is getting people to visit in the first place, probably due to the difficult travel
involved. So the lodge management has decided to mount an aggressive direct
marketing campaign to increase first-time guest visits as well as to nurture loyal
frequent visitors.
After the initial contact, the managers have identified about two dozen potential new
visitors who live in and around the closest big city, the one that is about 250 miles
away. They decide to start with this group. They want to send a sales representative to
host a casual buffet dinner for these potential guests along with the current customers
who recommended them. The representative will promote the features of the
recreational facility and drum up sales from both returning and new customers. Which
of the following roles is this person playing in supporting the lodge’s direct marketing
process?
a. Personal salesperson
b. Marcom manager
c. Missionary salesperson
d. Frequency marketer
A nationwide restaurant chain is considering the use of a direct mail piece to reach
potential customers. Managers of the company should realize that two disadvantages
related to this tactic are: the high cost per contact, and the:
a. limited ability to test executions.
b. lack of creative options.
c. inaccuracy of addresses on mailing lists.
d. consumers’ distrust in mailed advertising.
Scenario 17-2
AmericanProfile is an e-technology company. It allows companies to search and
navigate gigabytes of data, categorize disparate content, and gain secure access to
information regardless of where it residesall from its Web browser. Thus,
AmericanProfile can share content across connected servers with partners, suppliers,
customers, and employees to form an e-business content network. And it all happens in
real time.
AmericanProfile is considering imitating a direct marketing tactic employed by several
consumer magazines. Visitors to the home pages of these magazines’ websites can link
to tips on gardening, home decorating, cooking, clothes shopping, skin care, hair care,
etc. They are then encouraged to rate these articles and columns, explain whether they
were helpful, and add comments and suggestions based on their own lifestyles and
hobbies. This allows marketers to enhance their customer information with:
a. psychographic data.
b. geo-demographic data.
c. demographic data.
d. behavioral data.
Which of the following should be a key goal of direct marketing in for-profit businesses
and not-for-profit organizations?
a. To build a widespread mail-order operation
b. To create an image for the brand
c. To integrate the program with all other advertising efforts
d. To reach customers across the board rather than consumers in specific markets
Scenario1-2
Chug Enterprises is planning to create a new line of products and enter into the sports
drink market. They plan to advertise the first product to teenagers as being the
best-tasting sports drink in the market. The second product will be advertised to adults
as being the lowest calorie sports drink one can buy. The third product will be
advertised to senior citizens as containing calcium, a mineral needed to maintain a
healthy bone structure. Each product will have separate, distinctive packaging.
For its second product to be successful, Chug Enterprises believes that it must
effectively target the youth. To do this, the company uses influencer marketing. In such
a scenario, which of the following is the company most likely using?
a. Personal selling
b. Free sampling
c. Peer-to-peer persuasion
d. Coupons and rebates
Which of the following objectives of public relations exclusively involves damage
control?
a. Lobbying
b. Giving advice and counsel
c. Counteracting negative publicity
d. Promoting a product
Which of the following is true of segment selection?
a. The number of heavy users in a segment is usually very large.
b. It is enough to assess the size of a segment to select it as a company’s target segment.
c. Growth potentials for all segments are generally very low.
d. Marketers are inclined to devote resources to segments projected for dramatic
growth.
___ theory suggests that consumers rely on opinions or testimonials from people they
consider similar to themselves, rather than on objective product information.
a. Equity
b. Reference group
c. Maslow’s
d. Brand loyalty
Image ads tend to generate fewer consumer counterarguments when compared to other
types of ads.
a. True
b. False
Scenario 15-4
General Mills, a breakfast cereal brand, faces strong competition in the dry cereal
category from brands like Kellogg’s and Quaker Oats. However, General Mills brands
like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer,
General Mills knows it must stimulate consumer demand for its brands, but it must gain
retailer support for these brands as well. Its market research shows that some consumers
are very loyal to certain brands of cereal, but most consumers show some level of
variety-seeking behavior in this product category. As a result, General Mills is
constantly examining different sales promotion tools to stimulate consumers to consider
its brands when shopping for breakfast cereal.
General Mills allowes its retailers to deduct 2$ from every box of cereal in the shipment
it receives. This is an example of a(n) _____.
a. slotting fee
b. merchandise allowance
c. bill-back allowance
d. off-invoice allowance
The Folgers brand team looked at the diverse market of all coffee drinkers, then broke it
down by age. When the team chose to focus on just-graduated-20-somethings, it was
a. benefit positioning.
b. positioning.
c. targeting.
d. segmenting.
Scenario 10-4
In the “Chicago Shopping” section of the ChicagoTribunewebsite, the following ads
were listed:
1) An ad for the last day to save 10 percent on all purchases at Target.com. Readers are
urged to act quickly because the deadline for the deal, which is boldly listed in red ink,
is today. The ad also features a picture of a 40″ LCD television showing the company’s
name and “bullseye” logo on the screen.
2) An ad for a pair of basketball shoes accompanied by a positive endorsement from a
satisfied customer. The customer stated, “I have never had a shoe like this one. I jump
higher and run faster, and I am able to play longer than I ever have in the past.” The ad
offers a $15 coupon for use at participating FootLocker stores.
3) An ad encouraging consumers to shop at Adidas because of its low sale prices. The
ad reads, “Adidas brand apparel will increase your athletic performance. Give yourself
the competitive advantage you’ve always wanted and shop our selection of running,
soccer, basketball and golf apparel.”
4) An ad listing a limited time offer for a pair of expensive jeans. The ad shows a
fictional character being laughed at by an attractive female because of his old, raggedy
jeans. The man being laughed at appears incredibly embarrassed. Marketers want
consumers to feel more accepted in society when they wear this particular pair of jeans.
(ChicagoTribune.com, October 26, 2010)
In ad #1, the company’s name and logo are at the center of the advertisement.
Apparently, marketers are trying to hammer the images into consumers’ heads. Target
likely created the ad based on which of the following accepted concepts concerning
repetition?
a. Repetition is a complex form of advertising.
b. Repetition is best used during direct comparison with other brands.
c. Repetition is a good way of gaining easier retrieval of brand names from consumers’
memory.
d. Repetition advertising works well when considering the purchase of parity products.
The expansion of newspaper circulation in America was fostered by:
a. traveling circuses, carnivals, and theatrical performances.
b. increased interest among readers for television program listings.
c. extended railroads and growing urban centers.
d. highly differentiated but unbranded products.
Commercials that show ordinary people being stopped on the street to comment on a
product are employing a type of average-user testimonial.
a. True
b. False
Developmental advertising is conducted late in the advertising process, after the ads,
branded entertainment, or other IBPs are created.
a. True
b. False
The two major components of the mass-mediated communication model are:
a. primary demand and selective demand.
b. advertiser and consumer.
c. internal position and external position.
d. production and reception.
James is the marketing manager of a small corporate airline that handles business
flights for executives and celebrities. It also provides group charters for major sporting
events, concerts, and festivals. To reach it’s audience, airlines will have to avoid the
usual fare, as the target audience for this product usually ignores common advertising.
However, they occasionally watch worthwhile videos on social media sites. In which of
the following advertising avenues is James most likely to invest in?
a. Viral marketing
b. Micro-blogging
c. Advergaming
d. Social couponing
The first-generation Internet involves interactive online communication, participation,
and engagement.
a. True
b. False
Scenario 13-1
Crystal, a media buyer, is glancing through the latest edition of the industry trade
publication, Advertising Age, and notices an ad targeted at media buyers. The ad
encourages the purchase of space in a fast-growing magazine that reaches 12 to
18-year-old girls. It invites media buyers to contact the sales department of the
magazine for more information. She considers the ad as she has a cosmetics
manufacturer as a client who may benefit from this type of ad placement.
The media planner understands that a teen-oriented magazine will have one big
advantage that magazines have over other print and broadcast media. Which of the
following advantages is the media planner most likely referring to?
a. An opportunity for high frequency
b. A high degree of audience selectivity
c. The lowest cost per contact among all major media
d. High credibility