Today, advertising tends to be used almost exclusively by businesses targeting
consumer markets, and only in very rare circumstances by businesses trying to sell
products to other businesses.
a. True
b. False
Which of the following services of an advertising agency involves expressing the
benefits of a company’s brand in interesting and memorable ways?
a. Creative services
b. Billing services
c. Administrative services
d. Media buying services
In his analysis of some of the most creative people of the 20th century, Gardner found
that they had little interest in social life, usually neglected family members, and were
significantly childlike.
a. True
b. False
A survey was conducted by Spotless, a dishwashing liquid manufacturer, at a
department store. During the survey, the store manager asked customers which
dishwashing liquid they utilized, to which most of them immediately replied,
“Spotless.” When asked why, the customers stated that they felt it was used by everyone
and was the most popular. Based on the given scenario, it can be said that Spotless has
____.
a. low brand loyalty
b. high involvement
c. an accessibility bonus
d. a low economy of scale
An upcoming chain of “green” grocers has reasonable prices, friendly staff, local
produce, and a focus on organic and natural products. The company wants to connect
with consumers in a fresh way, and is considering creating a show on the FoodNetwork.
What type of promotion is this grocer considering?
a. Brand loyalty
b. Branded entertainment
c. Affiliate marketing
d. Event sponsorship
Today’s marketers use a number of sales promotion techniques aimed at consumers
including coupons, priceoff deals, premiums, contests and sweepstakes, samples and
trial offers, phone and gift cards, rebates, and frequency programs.
a. True
b. False
One drawback of sales promotions is that the results are difficult to document.
a. True
b. False
Which of the following is true about advertisements in the 1960s?
a. The emphasis in advertising turned from creative products to ancillary services.
b. Advertising discouraged consumption and was no longer a symbol of consumption.
c. The advertisements were bold, garish, and carnivalesque.
d. There was an emphasis on art, inspiration, and intuition.
Scenario4-4
Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on
Toyota Camrys. He was interested in that model because he had seen a number of
television and magazine ads describing the car’s features and reputation for reliability
and the fact that it displayed the slogan ” The best car in the world” urged him to look at
the cars. After closely examining the stickers, Joe noticed a line that said “Dealer
Promotion Allowance$125.00.” Joe asked a salesperson what that meant. The salesman
replied that it was a charge that helped the dealership pay for local advertising to
encourage consumers to shop at that particular dealer. After further discussion, Joe
learned that almost 5 percent of the cost of the vehicle comes from expense for national
and local advertising.
The Pederson dealership and Toyota share the expense of local advertising in this
market. This is an example of ____advertising.
a. subliminal
b. vertical cooperative
c. corporate
d. institutional
One of the versions of satellite transmission is direct transmission which is also known
as______ .
a. barter syndication
b. smartphone TV
c. local TV
d. closed circuit
In today’s age of Web 2.0,:
a. companies find consumers primarily through mass exposure.
b. firms have replaced all pull strategies with push strategies.
c. consumers have much lesser access to information.
d. consumers can communicate with each other.
Though it is limited to a one-dimensional presentation, radio is a medium with a setting
for true creativity, often described as the theater of the mind.
a. True
b. False
Renee’s job in an advertising agency involves talking to the clients to identify their
goals and then conveying these goals to the creative team, which creates strategies to
accomplish these goals. Her job often involves explaining the client’s perspective to the
agency and explaining the agency’s creative strategy to the client. Renee is likely to be
a(n):
a. ad designer.
b. media buyer.
c. copywriter.
d. account executive.
Critics of advertising claim that advertisements do much more than just ‘shuffling of
total demand,” but contribute to the increase of total demand.
a. True
b. False
According to Nielsen Media Research, product placements in video games:
a. are more annoying to gamers than commercials are to television viewers.
b. were popular for a while but are now less frequent.
c. are accepted by younger players but disliked by adult players.
d. are seen by gamers as elements that add to the quality of play.
During the _____ , advertising messages were primarily informational in nature.
a. preindustrialization era (pre-1800)
b. designer era (1980 to 1992)
c. P.T. Barnum era (1875 to 1918)
d. 1920s (1918 to 1929)
A designer handbag, used by a celebrity, would have ____.
a. high cultural capital
b. high social capital
c. low inelasticity of demand
d. low economies of scale
Advertising is related to the gross domestic product in that it can contribute to levels of
overall consumer demand when it helps introduce new products.
a. True
b. False
Order taking involves accepting orders for merchandise or scheduling services. It also
requires answering basic questions, and communicating effectively so that a quality
relationship with the customer is established and maintained.
a. True
b. False
A home decor catalog is trying to use its marketing database to identify and isolate its
best customers to determine their decision making and purchasing behavior. A CPO
analysis is an excellent tool to help accomplish this.
a. True
b. False
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.
The marketers at Visualizers talk to Optima about banner ads that have created
problems in the online market. Which of the following is likely to be a common
problem when banner ads are placed on the websites of other firms?
a. They are easily imitated by competitors.
b. They add to high advertisement clutter.
c. They decrease Web page load times.
d. Their effectiveness cannot be measured or tracked.
An advertising plan should be a direct extension of a firm’s marketing plan.
a. True
b. False
A ___ helps firms identify and manage information that allow for the development of
integrated marketing communications programs.
a. media organization
b. sales agency
c. database consultant
d. trade reseller
Teams come up with ideas that are both creative and useful in the process of building
brands if:
a. they are allowed freedom in playing with their ideas.
b. they are managed in a proactive way.
c. structure is given more importance than talent.
d. right expertise is preferred over diversity of thought.
Which of the following is an advantage of the pay-per-click model?
a. It is less vulnerable to click fraud.
b. Advertisers have to pay only for a pulled exposure.
c. People who click on the ad usually buy the product which is more profitable.
d. It is the least expensive Internet advertising model.
In the current system of product placement, companies pay a fee to incorporate their
branded products deliberately as part of the show.
a. True
b. False
Costs associated with advertising to the trade and specialized research unique to the
campaign are prominent examples of_____ .
a. principal finances
b. ancillary costs
c. major finances
d. primary costs
An account planner:
a. is more likely to suggest the idea for the visuals.
b. comes up with the headline or tag line.
c. keeps the profile of the target consumer in the team’s mind.
d. is responsible for the actual production and is usually in charge on the set.
Creating a visual representation of the media schedule gives an advertiser tangible
documentation of the overall media plan.
a. True
b. False
Email is one of the least expensive marketing tools and provides the highest return on
investment relative to other forms of online marketing.
a. True
b. False