Transformational ads focus on the risk of physical harm or negative social
consequences if the consumer neglects to use a certain brand.
a. True
b. False
A person is most likely to have a high degree of involvement while buying:
a. laundry detergent.
b. a notepad.
c. paper towels.
d. a car.
The concept of cognitive dissonance is more commonly referred to as:
a. advertising clutter.
b. buyer’s remorse.
c. variety seeking.
d. a need state.
Scenario 8-3
After working as an account executive in an advertising agency for 20 years, you’ve
decided to own your own business. You buy Springfield Hardware, a neighborhood
hardware store, from a man who has owned and run the business for the past 52 years.
He sells the store and all the inventory, with one warninghe wasn’t much on paperwork,
so there won’t be a lot of records to be found. You buy the store and begin to create your
ad plan.
You’re currently deciding exactly where and when ads will be placed, and determining
the strategy behind each placement. This takes a whilewith the explosion of Internet
sites, outdoor advertising, and innovative promotions, the options are almost unlimited.
In this way, you are
a. setting up account services.
b. creating a media plan.
c. devising a budgeting method.
d. doing advertising research.
Creatives and account managers in ad agencies typically share the same goals for a
particular advertisement or campaign.
a. True
b. False
The focal point of public relations objectives is sales and profits.
a. True
b. False
In recent years, the U.S. Senate has approved a tenfold increase in fines for advertising
situations that are determined to step over the line regarding American society’s basic
ethical principles. What issues are being regulated in this way?
a. Ad agencies that knowingly make false claims
b. Advertisers that lure children into dangerous or unhealthy behaviors
c. TV and radio stations that violate rules on airing profanity or sexually explicit
materials
d. Print media with ads that include erotic images or language
Web 2.0 depends on mass collaboration as individuals simultaneously create value for
themselves and others.
a. True
b. False
A criticism of social anxiety ads is that historically they have ignored an entire
populationnamely, women.
a. True
b. False
The FTC’s regulations on deception have no authority over omissions or missing
information about a product, but only cover those false statements or misleading claims
actually made by the advertiser.
a. True
b. False
Share of voice is a calculation of any one advertiser’s brand expenditures relative to the:
a. overall spending in a category.
b. total revenue generated by the advertiser.
c. reach of several media vehicles.
d. frequency of its ads.
Negative publicity stems from external forces outside a firm’s control and not from a
company’s internal activities or decisions.
a. True
b. False
Several factors have affected sales promotion in organizations, in recent years. Pressure
from stockholders to produce high quarterly revenue, marketing plans based on quick
results, and a bottom-line mentality have all contributed to a:
a. focus on brand image.
b. short-term orientation.
c. sense of creative innovation.
d. strong consumer bond.
In ___, the audience expresses its approval or disapproval of the copy used in an ad.
Therefore, copywriters are not fond of these report cards.
a. evaluative copy research
b. social media copy
c. postproduction review
d. developmental copy research
Scenario 8-1
You are owner of a 15-person advertising agency in a major market. You’ve been
invited to pitch the Girl Powerz account, the largest female-only fitness center chain in
the region, one that could quickly grow into a national franchise. If you land the
account, it will be your biggest revenue producer by far. You’ll be able to staff up, move
to a nicer space, and buy some decent office furniture. It also will put you, personally,
in a position to make a ton of money by selling out to a larger agency some day.
Considering the importance of the pitch to Girl Powerz execs, you have decided to
spearhead the pitch yourself.
The folks at Girl Powerz initially consider using an advertising budgeting method that
identifies a mathematical relationship associating ad dollars spent with sales generated.
This would be the:
a. percentage-of-sales approach.
b. ethnocentric method.
c. advertising response function.
d. share-of-voice approach.
TV households is an estimate of the number of households that are in a market and own
a TV.
a. True
b. False
Advertisers include business organizations, but exclude not-for-profit organizations.
a. True
b. False
A fast-growing frozen yogurt chain discovers the need to create a proper advertising
message that will result in increased sales. In order to do this, it needs to coordinate all
of its communications programs with all of its specialists’ efforts. At this point in its
growth, the company would be wise to hire a ____.
a. missionary salesperson
b. marcom manager
c. list enhancer
d. functional specialist
A key advantage of using recognition scores to test an ad is that it:
a. demonstrates whether or not a consumer will buy the brand being advertised.
b. allows for comparison with the performance of other ads from past years.
c. tells whether consumers will remember the brand when they are in the store.
d. reassures the client that the ad agency knows what it is doing.
When consumers believe their brand to be more popular than it actually is, it is called
an accessibility bonus.
a. True
b. False
Scenario 8-2
Following the announcement that the world’s largest e-tailer, Amazon.com, made a
profit for the first time since it started business in the early 1990s, the company saw
more than 90 percent of its market value disappear as part of the dot-com collapse. It is
questionable whether or not Amazon figured out a profitable business model after
changing its tune several times over those early years. Then it began circling back
somewhat to an earlier focus on becoming the Walmart of the Internet. It said it wanted
to sell huge volumes of merchandise cheaply, and in the process eke out enough of a
profit to satisfy Wall Street.
Although investors had to wait some time for the e-tailer to work out the kinks, and it’s
uncertain how much longer they’ll remain patient, Amazon’s mainstay retail business
may see further improvements as it grows. As we all have now witnessed, unlike
brick-and-mortar retailers who must build new stores, stock them, and hire people to
staff them, Amazon has been able to open new stores with minimal additional cost.
Some years ago, it reported turning over its inventory 17 times a yearclose to double
that of traditional retailers at the time. And on average, it reported having gotten paid 32
days before it must pay its suppliersin essence, providing millions of dollars in cash
flow.
Information updated for 2011, based on the following initial articles:
(David Shook, “Can Amazon Turn Baby Steps Into Strides?,” Businessweek
Online,February 13, 2002.)
(Rob Hof, “Why Amazon Could Keep Flowing,” Businessweek Online,January 5,
2005.)
In the early days of Internet shopping, people were skeptical about the idea of buying
things over the computer, largely due to their worries about privacy issues combined
with their habitual patterns of purchasing at retail outlets. Some concerns remain today.
But many years after the shake-out of companies in the dot-com world, players that
survived have come back stronger. And new players have come onto the scene. The
demand is there, and this has instilled a feeling of trust in millions of customers who
make purchases online. The concept of customers having enhanced trust in e-tailing
would most likely be contained in the ____ section of the advertising plan.
a. budget analysis
b. market analysis
c. industry analysis
d. competitor analysis
Scenario 10-2
National clothing retailer, Old Navy has been known for its creative ad campaigns for a
number of years. In 2010, the company decided to tap into some Hollywood talent to
help promote its brand. Actors Jaime Pressly, Bailey Chase, and Judy Greer were signed
to support the company’s Scream for Savings initiative, a campaign designed to reach
consumers with comedic messages. Old Navy spent over $100 million in measured
media through the first two-thirds of 2010, and annual ad spending has topped $175
million in recent years.
(“Old Navy Taps Hollywood Talent for Halloween Spot” BrandweekMagazine, October
29, 2010)
It is believed in advertising that repeated exposure to a particular stimulus will increase
the chances of the stimulus being remembered in the future. This describes the term:
a. brand recall.
b. advertisement remembrance.
c. strong memory.
d. display memory.
Scenario 7-6
Wood Carver Cabinet Makers recently developed a line of kitchen cabinets designed for
new custom homes and kitchen remodeling jobs. The line of cabinets is to be called
“Signature Hardwoods” and a new magazine advertising campaign is being tested. Each
of the ads that is being tested has a photograph of a woodworker handcrafting some part
of the cabinet. In addition, his or her signature is shown at the bottom of the page as an
indicator that the cabinets are carefully hand made.
A marketing manager at Wood Carver said in a manager’s meeting, “We have to get
quick feedback on the overall quality and usefulness of these new ideas. We’ll just have
to let the focus group make the final judgment on these ads.” Which research method is
he considering?
a. Survey
b. Concept test
c. Direct response measure
d. Tracking study
A brand’s ____is a statement of the functional, emotional, and/or selfexpressive benefits
delivered by the brand.
a. universal product code
b. memorandum of understanding
c. value proposition
d. warranty
Scenario 14-4
Optima Artistic Tools has been manufacturing art supplies, in Boston, for almost 100
years. It is a successful business that works with art stores around the nation. Optima
produces materials for different varieties of media such as paints, pencils, charcoals,
clays, brushes, papers, canvases; and also equipment such as palettes, easels, drawing
tables, etc. Optima is ready to market these products online and has just hired an
Internet advertising consultant, Visualizers Inc. It has aimed for a 9 percent profit from
Internet sales by the end of next year.
Managers at Optima want to better understand the cost implications of advertising on
the Internet. Visualizers’ media researchers prepare a presentation using four traditional
media placements to compare. The banner ad CPM falls somewhere below the cost of
the top 10 market newspapers and magazines; however, it is higher than television.
Visualizers points out that the advantage offered by the banner ad is its:
a. capacity for blanketing the world of online consumers with the Optima brand.
b. ability to deliver to a highly desirable, segmented, and motivated audience.
c. quick-change option that allows marketers to make changes to the creativity of the
ad.
d. ability to insert itself into interactive situations where consumers don”t expect to see
it.
Scenario6-2
Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake
mixes, etc. The company conducts a study to segment its consumers.
It finds that segment A consists of a small group of individuals who purchase four boxes
of the brand’s cereal every week. The average user consumes one box every week. It
targets segment A by providing them with samples of other Sunshine products with the
purchase of one box.
Segment B consists of a large number of college students and individuals who have
recently begun living on their own, and require readymade mixes as their breakfast
solution. It targets these consumers by providing more variety with pancakes and waffle
mixes.
Segment C consists of consumers who are not consistent buyers and targeting these
consumers could prove a loss for the company.
Which of the following marketing strategies is more likely to have been used by the
company to target segment B users?
a. Niche marketing
b. Geographic segmentation marketing
c. Ambush marketing
d. Point-of-entry marketing
Ethnocentrism is the tendency to view and value things from the perspective of another
individual’s culture.
a. True
b. False
In which of the following areas is the federal government’s spending on advertising and
promotion concentrated?
a. The internal revenue services
b. Political campaigns
c. Armed forces recruitment
d. Trade and commerce
By the early 1900s, the “power of advertising” was based on the reality that consumers:
a. believe that branding was no longer the norm.
b. like durable, reliable products with a no-frills advertising style.
c. are willing to pay more money for brands.
d. see advertising suspiciously that tempt them into excessive consumption.
Ads for products during the “P.T. Barnum Era” (1875 to 1918) were characterized by:
a. a bold and garish style filled with incredible claims.
b. a no-frills advertising style.
c. simple ads with information and truthful claims.
d. informational messages in the dailies.