Gross domestic product is the measure of the total value of goods and services
produced by an organization.
a. True
b. False
An advertisement refers to a specific message that an organization has created to
persuade an audience.
a. True
b. False
Every precaution should be taken to avoid having to radically alter a budget after it is
submitted.
a. True
b. False
In which of the following ways would the the establishment of a marketing database
create problems between a company and its advertising agency?
a. Implying that the ad agency is unable to gather and track reliable customer
information
b. Using funds for direct marketing that would have otherwise supported traditional ad
agency campaigns
c. Purchasing mailing lists from competing promotional agencies
d. Forcing the ad agency to use the data that the company has on its own mailing lists
A marketer wonders why salespeople no longer simply approach their prospects with
the direct intention of making a sale. Instead, they spend time analyzing all the possible
needs and desires of the prospects. The marketer realizes that, today, salespeople are
expected to:
a. be problem solvers who work in partnership with customers.
b. be technical experts with experience in database management and analysis.
c. take orders only after confirming the appropriateness of each sale.
d. understand the operations and output of several departments.
A brand’s value proposition is a statement of the benefits of the brand that provide value
to its target consumers and includes functional, emotional, and self-expressive benefits.
a. True
b. False
The mixing of various promotional tools is known as _____.
a. integrated marketing communications
b. a marketing mix
c. cooperative advertising
d. market segmentation
Radio networks are different from TV networks in the sense that TV networks can
deliver programming via satellite, whereas radio networks cannot.
a. True
b. False
KidsCause, a metropolitan outreach organization that collects and donates toys for
needy children, buys airtime on WXXY (a local TV station) to promote its annual toy
collection. Amazing Ads, a local ad agency, shoots the video and produces a 30-second
commercial and Downtown Deli donates sandwiches for volunteers on the days that
KidsCause collects, wraps, and distributes toys. In this promotional effort, who is the
client?
a. Amazing Ads
b. Downtown Deli
c. WXXY
d. KidsCause
A media planner needs to evaluate the relative intensity of three different media plans
for an orange juice advertiser. The planner decides to multiply the reach of each
promotion plan with the frequency, in order to compare:
a. SOVs.
b. IBPs.
c. CPMs.
d. GRPs.
Which system has identified 62 market segments based on zip codes and the personal
characteristics of their residents, creating a well-known tool for geodemographic
segmentation?
a. Thorson and Moore’s model
b. PRIZM
c. SIC Codes
d. VALS
Which of the following is true of inelasticity of demand?
a. The supply of the product is greater than its demand.
b. Consumers are less sensitive to price increases.
c. Customers have low brand loyalty.
d. It leads firms to decrease profit margins.
Scenario 11-1
After a series of public relations setbacks, Japanese automaker Toyota unveiled a new
company slogan in 2010. The slogan read, “Drive a Toyota. You’ll never stop.” The
company hopes the new slogan can once again instill confidence into a number of
consumers who grew weary of the brand after a number of massive recalls in recent
years. The company chose to go with the slogan after turning down a number of others,
including, “Toyota Puts the Pedal to the Metal. And keeps it there,” and “Toyota. The
Last Car You’ll Ever Drive.” The new slogan will be featured in all of the company’s
future advertisements.
(Andy Borowitz, “Toyota Unveils New Slogan: “Drive a Toyota. You”ll Never Stop”.”
TheHuffingtonPost, February 6, 2010.)
To create ads featuring the new company slogan, Toyota assembles a creative team of
individuals who will focus solely on designing the new advertisements. Toyota realizes
that it will need to have a strong Internet and social media presence. In order to
effectively utilize these outlets, Toyota should consider hiring a(n):
a. production coordinator.
b. media planner.
c. advertising guru.
d. copywriter.
A Volkswagen print ad shows the headline “Think Small,” and a grayscale photo of the
round little car in one corner of the ad, surrounded by lots of white space. The overall
look and placement of the photo depicting the brand demonstrates the concept of
illustration format.
a. True
b. False
Scenario 16-4
You are a marketing associate at a promotional firm that specializes in innovative
branding. You will be meeting with several clients next week and you need to review
their files and get updated on their latest promotional efforts. Another client was
considering videogame placement the last time you met, and will be making a decision
next week. She wasn”t sure about placing her product in a game, since her company
sells mostly to adults and has never specifically targeted kids. You will remind her of
research that shows that:
a. a good portion of hard-core players are between 18 to 34 years old.
b. the vast majority of gamers are teenagers, not children.
c. the fastest-growing population of gamers are between 55 to 75 years old.
d. elders who do play video games are more likely to notice products.
Newspapers are an excellent medium for:
a. retailers who require a wide range of creative options same as those available in
broadcast media.
b. retailers targeting local geographic markets.
c. advertisers looking for an uncluttered environment to publish ads.
d. companies targeting highly selective audiences, with specific economic and social
backgrounds.
A peanut supplier is new to sponsorship, and wants to get an outside opinion on the
advantages of signage in baseball stadiums. Which of the following company’s should
he approach?
a. Forrester Research
b. Starcom MediaVest Group
c. Nielsen Media Research
d. Commercial Alert
Scenario 8-5
Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo
into the market in several months. In test marketing, many consumers liked the product
but their comments indicated that it is different enough from existing brands that
significant promotion and information will be needed to convince them to switch from
their current brands. Helene Curtis has always used an objective-and-task approach to
develop advertising budgets. Due to these research results, the firm must now do a
detailed build-up analysis.
Which element of the build-up analysis will identify the demographic and geographic
exposure that the advertising for the shampoo hopes to achieve?
a. Frequency
b. Media
c. Production
d. Reach
Kowalski and Associates has been a successful mid-sized, full-service advertising
agency for more than two decades. In an attempt to serve its clients more efficiently in a
competitive marketplace, the agency has changed its compensation package to include
payments based on results. In such a scenario, compensation packages for Kowalski
and Associates are likely to be based on:
a. brand recognition.
b. workforce strength.
c. competitive advantage.
d. economies of scale.
____ is an advertising revenue model where the advertiser is charged by the number of
people who click on the ad to pull it up for more information.
a. Bounce rate
b. Click-through
c. Pay-per-click
d. Paid search
Advertising and brand placement within video games is called advergaming.
a. True
b. False
The forgetting function is based on latest psychological research and explains the
random and unique nature of each individual’s memory.
a. True
b. False
Which segment specifically offers marketers an important opportunity to build future
business by luring first-time buyers?
a. switchers
b. brand-freaks
c. lead users
d. emergent consumers
Bayt Caf is launching a new advertising campaign portraying its restaurant as having
very fast service and a cheerful staff to target a younger crowd. The campaign alone
will be enough to gain the loyalty of the younger segment.
a. True
b. False
During the preindustrialization era, advertisements appeared in _____.
a. magazines
b. dailies
c. newsbooks
d. periodicals
Interpersonal abrasion is beneficial to creativity, while creative abrasion is not.
a. True
b. False
A fragrance manufacturer wants its target customers to demonstrate top-of-the-mind
awareness regarding its long- standing perfume, Bouquet. This means that when they
are asked to think of perfumes, they would
a. include the name Bouquet somewhere on their list.
b. realize that they want to purchase Bouquet.
c. think of Bouquet first.
d. claim to be loyal consumers of Bouquet.
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.
The marketers at General Mills have learned that along with Kellogg’s and Quaker
Oats, they often target the same customers with their advertising. This problem of
customers receiving too many messages from too many firms has been addressed with
sales promotion tactics featured in advertising such as coupons included in magazine
ads, or rebate offers mentioned in TV commercials. This is an example of _____ driving
growth in sales promotion.
a. short-term orientation
b. media clutter
c. elasticity of demand
d. power of retailers
Which of the following is true of a proactive public relations strategy?
a. It focuses on problems to be solved.
b. It emphasizes the defensive measures a company must consider.
c. It focuses on identifying vulnerabilities.
d. It is guided by marketing objectives.
Scenario4-5
Fritters, a fast food restaurant chain, known for its quick meals encountered an instance
where a customer had blamed its food for his weight gain. Later on in the same year,
Fritters launched an advertisement comparing its burger with a close rival’s, which were
very similar, and was asked to be corrected by the court. However, a
second advertisement depicting a super model eating its fries and an obese person
eating the fries of its competitors food chain had been deemed unethical and was
ordered by the court to be removed, although Fritters continued airing the ad.
The ______would prevent Fritters from being sued by the customer blaming it for his
obesity.
a. Advertisement substantiation program
b. Cheeseburger Bill
c. Robinson-Patman Act
d. Wheeler-Lea Amendment
Scenario 13-3
You are a media planner at a large advertising agency in Chicago. You are currently
assigned five accountsa used car dealer in the northern suburbs of the city, a
guitar/drum retailer on the south side of the city, a nationally distributed orange juice
retailer, a quick grits hot breakfast cereal sold nationwide but with the strongest sales in
large Southern cities, and a ski equipment manufacturer. Each account has requested
some type of information from you regarding next year’s media buy.
To keep costs down, the used car dealer decides to make sure that the ads appear every
week beside other car sales ads. For this, you need to use _____ advertising.
a. preprinted insert
b. classified
c. co-op
d. display
Many forms of pre-post attitude studies are becoming more popular than they once
were due to a recent push to gather more rounded “before and after” data from potential
consumers.
a. True
b. False