Chapter 17—Advertising and Public Relations
TRUE/FALSE
1. Promotion is defined as any form of impersonal, paid communication in which the sponsor or
company is identified.
2. The advertising response function is a phenomenon in which increased spending for advertising and
sales promotion increases sales or market share up to a certain level but then produces diminishing
results.
3. The goal of advertising is to change people’s values.
4. Historically, advertising in the United States has been oriented around corporations, not products.
5. A small, high-tech company has just launched a new writing pen that has a memory, much like a small
computer. The advertising campaign focuses on the innovativeness of the new product. This is an
example of pioneering advertising.
6. On Subway napkins, they compare the nutritional information for their 6-inch subs to McDonald’s Big
Mac and Burger King Whopper. This is an example of competitive advertising.
7. The DAGMAR approach is method one of setting advertising objectives.
8. A print ad depicts a picture of a frozen dessert accompanied by information about the dessert: “two
servings, only 300 calories per serving, no cholesterol, and 100 percent of the RDA of vitamins and
minerals.” This is an example of an advertisement selling the product’s benefits.
9. An appeal to vanity and egotism is the reason that celebrity spokespeople are used so often in
advertising.
10. An appeal to love and romance is often used in selling cosmetics and perfume.
11. There are many snack foods for children, but only Nature’s Path makes an organic snack designed for
a child’s palate. The product’s unique selling proposition is that it is completely organic.
12. A commercial for McDonald’s shows kids having fun with their Happy Meals. This is an example of
a demonstration executional style for advertising.
13. Humorous executional styles are more often used in radio and television advertising than in print or
magazine advertising.
14. The primary advantage of newspaper advertising is demographic selectivity.
15. The manufacturer of the George Forman grill has produced a 30-minute sales pitch in the form of a
talk and demonstration show to be aired on local cable TV channels. This is an example of an
infomercial.
16. Research has shown banner ads on Web sites to be very effective.
17. Advergaming is an Internet advertising format where companies put ad messages in Web-based or
video games to advertise or promote products.
18. Nature’s Path makes EnviroKids brand organic cereals, rice bars, and cookies. It is determining
whether to put its advertisements in newspapers or on television. Its primary concern is with how
many people in its target market will be exposed to its ads. In other words, the company is concerned
about frequency.
19. Magazine ads have a much shorter life span and pass-along rate than radio ads.
20. Mobile advertising may be one of the most promising tactics for contacting consumers when they are
thinking about a specific product.
21. Publicity consists of programs developed by a company to capitalize on the factors that will enhance
the firm’s image and minimize those that generate negative images.
22. An example of product placement is when the judges on American Idol are shown sipping Coca-Cola
during the broadcast.
23. The sponsorship of NASCAR is an example of a public relations activity.
24. Cause-related marketing is when two competing companies come together to support a cause, such
breast cancer research.
25. Companies increasingly are using the Internet in their public relations strategies.
26. Crisis management should begin before a crisis occurs.
MULTIPLE CHOICE
1. _____ is any form of impersonal, sponsor-paid, one-way mass communication.
a.
Publicity
b.
Advertising
c.
Promotion
d.
Public relations
e.
Direct marketing
2. Kraft’s marketing efforts for its Macaroni & Cheese include television commercial and magazine
inserts. These activities are all activities associated with:
a.
advertising
b.
publicity
c.
public relations
d.
sales promotions
e.
direct marketing
3. In 2009, the top advertiser in the United States, according to dollars spent per year, was:
a.
AT&T
b.
Walt Disney Co.
c.
Procter & Gamble
d.
General Motors Corporation
e.
McDonald’s Corporation
4. Why do many brands with a large market share spend proportionally less on advertising compared to
brands with small market share?
a.
Beyond a certain volume of promotion, diminishing returns set in.
b.
Certain industries have a practice of spending a low amount of dollars, relative to sales, on
advertising.
c.
There is no minimum level of exposure for advertising to have an effect on sales.
d.
Advertising will not stimulate economic growth for the industry.
e.
The firms with large market share do not have to advertise anymore.
5. Which of the following explains why sales and market share begin to decrease no matter how much is
spent on advertising and sales promotion?
a.
Inverted promotion function
b.
Weber’s Law
c.
AIDA
d.
Just Noticeable Difference (JND)
e.
Advertising response function
6. The advertising response function helps marketers:
a.
create ads that will be noticed by consumers each time the ad runs
b.
use their advertising budgets wisely
c.
calculate the break-even points for each product being advertised
d.
determine the reach and frequency of specific media
e.
select an executional appeal appropriate to the product being advertised
7. Why do companies with new brands that have a small market share tend to spend proportionately more
for advertising and sales promotions compared to those with a large market share for existing
products?
a.
As a result of experiential marketing research
b.
To create the appropriate level of institutional advertising
c.
To determine which executional appeal is the most effective
d.
To achieve a certain minimum level of exposure to measurably affect purchase habits
e.
To prevent product cannibalization
8. When Gillette introduced its Venus razor for women several years ago, it spent $100 million on
advertising and other promotions and successfully boosted its market share. As an advertising
consultant, you would advise Gillette to now:
a.
double its advertising budget in order to double its market share
b.
maintain the current advertising budget and continue to focus on brand awareness and
market share gains
c.
slowly increase the amount spent on advertising and promotion to offset competitive
advertisements
d.
shift the budget dollars from advertising to sales promotion and personal selling due to a
change in the product life cycle stage
e.
focus on maintaining market share and spend proportionately less on advertising because
additional expenditures would reap diminishing benefits
9. How can advertising affect consumers?
a.
It can change cultural practices and conventions
b.
It can change strongly held values
c.
It can manipulate society against its will
d.
It can change negative attitudes to positive ones
e.
It can make people buy things they do not want
10. _____ advertising is designed to enhance a company’s image rather than promote a particular product.
a.
Publicity
b.
Institutional
c.
Pioneering
d.
Selective
e.
Image
11. Tobacco company Philip Morris runs television ads where they promote quitting smoking and direct
viewers to a Web site for support and help. These ads are examples of _____ advertising.
a.
product
b.
institutional
c.
pioneering
d.
environmental
e.
comparative
12. DuPont has an advertisement that shows police officers describing how they were shot at close range
in the line of duty. The advertisement explains that the lives of these public servants were saved by
Kevlar bullet-proof vests and that Kevlar was invented by DuPont. This is an example of _____
advertising.
a.
publicity
b.
attribute
c.
image
d.
pioneering
e.
institutional
13. Which form of advertising involves an organization expressing its views on controversial issues or
responding to media attacks?
a.
Advocacy
b.
Persuasive
c.
Issue
d.
Comparative
e.
Image
14. Exxon Mobil has launched a series of ads promoting their commitment to alternative energy sources
during a time when they are recording record profits and consumers struggle with high gas prices and
environmentalists are concerned that burning fossil fuels is contributing to the acceleration of global
warming. This is an example of _____ advertising.
a.
global
b.
homogeneous
c.
pioneering
d.
advocacy
e.
image
15. The American Association of Retired Persons (AARP) fights to protect social programs such as
Medicare and Social Security for senior citizens and runs television and print advertisements
encouraging its members to contact their legislators about these topics. Such ads are examples of
_____ advertising.
a.
advocacy
b.
selective
c.
product
d.
differential
e.
image
16. Unlike advertising that establishes or maintains a company’s identity, _____ advertising touts the
benefits of a specific good or service.
a.
selective
b.
cooperative
c.
advocacy
d.
image
e.
product
17. Kia Motors runs television advertisements that encourage the purchase of their Kia Soul compact car.
This is an example of _____ advertising.
a.
pioneering
b.
circumstantial
c.
product
d.
advocacy
e.
comparative
18. Pioneering advertising, competitive advertising, and comparative advertising are all types of:
a.
institutional advertising
b.
product advertising
c.
primary advertising
d.
commercial advertising
e.
commissioned advertising
19. Which type of advertising is used to stimulate demand for a new product or product category?
a.
Comparative
b.
Innovative
c.
Focused
d.
Image
e.
Pioneering
20. Instead of sending artfully arranged flower bouquets, an entrepreneur has developed fresh fruit
bouquets and is marketing them under the name Edible Arrangements. The premium fruit is cut to
mimic flowers, arranged in a basket, and carefully delivered to the recipient’s home. One of the
problems is convincing people that it is not a novelty product, but an attractive way to show how you
feel about someone. Edible Arrangements will be using _____ advertising to promote its fruit
bouquets.
a.
pioneering
b.
innovative
c.
introductory
d.
start-up
e.
focused
21. Cranium, the Seattle-based toy company, has recently introduced Giggle Gear, a toy designed to let
kids’ imagination run wild. With the face and headpieces that make up Giggle Gear, kids can change
themselves into aliens, fairies, bugs, and robots. What type of advertising will this company be using
to promote this new toy?
a.
pioneering
b.
innovative
c.
promotional
d.
start-up
e.
comparative
22. Which form of advertising is designed to influence demand for a specific brand?
a.
Institutional
b.
Primary
c.
Competitive
d.
Direct
e.
Growth
23. An emphasis on branding generally begins as firms use _____ advertising.
a.
comparative
b.
differentiational
c.
pioneering
d.
institutional
e.
competitive
24. _____ advertising compares two or more specifically named or shown competing brands on one or
more specific attributes.
a.
Contrasting
b.
Comparative
c.
Pioneering
d.
Superlative
e.
Differentiational
25. Ads in which where Dunkin’ Donuts tells consumers that more “hard–working” people prefer their
coffee than the high-priced, “elitist” coffee sold at Starbucks are examples of _____ advertising.
a.
competitive
b.
institutional
c.
comparative
d.
image
e.
pioneering
26. Comparative advertising:
a.
does not have high claim recall effectiveness
b.
has always been legal but is in bad taste
c.
allows advertisers to falsely describe the competition
d.
was not allowed before the 1970s if the other brands were mentioned by name or shown
e.
results in high recall of the brand name of the advertised goods, but not for the named,
competing brand
27. Around election time every year, we see ads on television claiming that one candidate is superior to
another in terms of experience, capability, and/or ethics. Sometimes opponents are named and even
vilified in these _____ ads.
a.
differential
b.
cooperative
c.
advocacy
d.
comparative
e.
image
28. Which of the following statements about comparative advertising is true?
a.
Comparative advertising is highly effective in Arabic countries.
b.
The FCC is the only federal agency that has any regulatory power over comparative
advertising.
c.
Comparative advertising is often used for products experiencing strong growth.
d.
Comparative advertising is highly regulated and is illegal in certain countries.
e.
Comparative advertising is illegal in the United States.
29. A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
is referred to as a(n):
a.
advertising campaign
b.
message strategy
c.
continuity program
d.
flight
e.
creative program
30. An advertising campaign:
a.
may contain a wide variety of themes and slogans
b.
extends for a defined period of time
c.
continues for the life of the product
d.
starts with determining which media will be used
e.
rarely has a specific budget
31. A(n) _____ is a specific communication task that a campaign should accomplish for a specified target
audience during a specified period of time.
a.
advertising objective
b.
marketing mix
c.
media schedule
d.
advertising life span
e.
promotional mix
32. Before any creative work can begin on an advertising campaign, it is important to:
a.
determine what goals or objectives the advertising should achieve
b.
set the marketing budget
c.
decide what executional style to use in the ads
d.
see if sales promotion is more important
e.
hire a spokesperson
33. The first step in the advertising campaign decision process is to:
a.
make media decisions
b.
evaluate the campaign
c.
determine campaign objectives
d.
develop advertising copy
e.
make creative decisions
34. One method used for setting advertising objectives is:
a.
campaign budgeting
b.
objective and task
c.
the DAGMAR approach
d.
percentage of sales
e.
contribution margin
35. DAGMAR is an acronym for:
a.
Defining and Achieving Goals Means Advertising Reach
b.
Developing Aggressive Markets
c.
Designing Advertising with Market Research
d.
Defining Advertising Goals for Measured Advertising Results
e.
Developing Aggressive Growth Markets and Revenues
36. A feature of a product is called a(n):
a.
asset
b.
appeal
c.
attribute
d.
element
e.
benefit
37. Kellogg’s has a brand of Frosted Flakes that touts a third less sugar on the packaging. This ad is
emphasizing:
a.
a product attribute
b.
production implementation
c.
a product mission
d.
a loyalty reward
e.
a product premium
38. Ads for Yoplait Greek Yogurt highlight that the product has twice the protein and three times the
calcium of other yogurts. This advertising highlights:
a.
a product attribute
b.
the creation of brand loyalty
c.
how negative consumers’ attitudes are modified
d.
a product benefit
e.
a loyalty reward
39. Which of the following is what consumers will receive or achieve by using a product?
a.
Attribute
b.
Benefit
c.
Compensation
d.
Market share
e.
Functionality
40. The UPS Store’s advertising “What Brown Can Do for You” whiteboard campaign tells business
consumers that when it comes to getting their products delivered somewhere or need shipping software
or ship products worldwide that UPS can help. The advertising is focusing on:
a.
creating advertising appeal
b.
production implementation
c.
a product mission
d.
creating product loyalty
e.
a product benefit
41. A newspaper ad for General Mills cereal highlights its BoxTop Redemption program in which General
Mills donates cash to schools when the schools redeem box tops from General Mills cereal. This ad
focuses on:
a.
a product attribute
b.
production implementation
c.
a product mission
d.
creating product loyalty
e.
a product benefit
42. In advertising, the goal is to sell the _____, not the _____ of a product.
a.
benefits; attributes
b.
characteristics; appeals
c.
values; traits
d.
competitive edge; virtues
e.
differential advantage; properties
43. An advertising _____ identifies a reason for a person to buy a product.
a.
profile
b.
execution
c.
format
d.
execution
e.
appeal
44. All of the following are common types of advertising appeals EXCEPT:
a.
profit
b.
health
c.
admiration
d.
fear
e.
commitment
45. A print ad for Kraft Capri Sun drink packs says “take a sip of antioxidant protection” What kind of an
advertising appeal is this ad using?
a.
Convenience
b.
Fun and pleasure
c.
Health
d.
Profit
e.
Admiration
46. Ads for Sandals Resorts that prominently feature vacationers in real-life situations are using a _____
appeal.
a.
slice-of-life
b.
mood or image
c.
fun and pleasure
d.
demonstration
e.
spokesperson
47. Gucci, a very expensive brand of clothing and accessories, show beautiful women wearing its products
in magazine ads. What kind of an advertising appeal is this?
a.
Environmental consciousness
b.
Vanity and egotism
c.
Health
d.
Profit
e.
Admiration
48. ReaLemon juice relies on the slogan, “Fresh Lemon Taste Made Easy.” What kind of an advertising
appeal is this ad using?
a.
Mood
b.
Vanity and egotism
c.
Health
d.
Convenience
e.
Admiration
49. An ad for an AT&T MasterCard offered zero percent interest on any balance transferred from another
card by September 1, as well as no annual fee. What kind of an appeal is this ad using?
a.
Environmental consciousness
b.
Vanity and egotism
c.
Health
d.
Profit
e.
Admiration
50. Ads for Brita water filters describe how one Brita pitcher filter can reduce waste by effectively
replacing as many as 300 standard plastic water bottles. What kind of an advertising appeal is this ad
using?
a.
Environmental consciousness
b.
Concern
c.
Health
d.
Profit
e.
Admiration
51. Allstate Insurance has mostly ditched its famous “in good hands” ads in favor of a character called
“Mayhem,” who shows up in your life at random — and trashes it. What kind of advertising appeal
were these ads using?
a.
fear
b.
consequences
c.
health
d.
vanity and egotism
e.
consciousness
52. Many advertisements use celebrities that are liked by many people in hopes that consumers will buy
the product that the celebrity endorses. Using celebrities to influence consumers to buy the product is
an example of which advertising appeal?
a.
Consciousness
b.
Love or romance
c.
Fun and pleasure
d.
Admiration
e.
Resonance
53. A(n) _____ is a desirable, exclusive, and believable advertising appeal selected as the theme for a
campaign.
a.
executional framework
b.
creative message strategy
c.
benefit
d.
attribute
e.
unique selling proposition
54. IBM runs television ads that show how their IT services can help a small Internet start up prepare for
and solve any problems that may arise in their daily operations. This is an example of a:
a.
unique selling proposition
b.
advertising objective
c.
media profile
d.
basis for comparative advertising
e.
basis for product identification
55. M&M’s famous slogan, “Melts in your mouth, not in your hand,” is an example of a(n):
a.
unique selling proposition
b.
advertising objective
c.
basis for lifestyle strategy
d.
promotional mix
e.
basis for comparative advertising
56. _____ is the way the advertisement portrays its information.
a.
Message execution
b.
Appeal formation
c.
Focus selection
d.
Audience selection
e.
Benefit determination
57. All of the following are executional styles for advertising EXCEPT:
a.
humorous
b.
fantasy
c.
lifestyle
d.
fear
e.
musical
58. A print ad for Real Simple magazine shows a group of women sitting on a sofa talking and laughing.
Which executional style is being used in this ad?
a.
Demonstration
b.
Slice-of-life
c.
Fantasy
d.
Mood or image
e.
Testimonial
59. A print ad for Wydham hotels and resorts shows how different groups can benefit from their vacation
whether it be playing as a family, a woman getting a massage, or a young couple enjoying some
quality time together. Which executional style is being used in this ad?
a.
Demonstration
b.
Lifestyle
c.
Fantasy
d.
Mood or image
e.
Testimonial
60. An Advil magazine print ad shows the same woman painting, at work, in the gym, and with her child.
The ad states that Advil works on “all my pains wherever I hurt so I am ready for anything” Which
executional style is being used in this ad?
a.
Demonstration
b.
Slice-of-life
c.
Fantasy
d.
Mood or image
e.
Humor and fear