chapter 16 Flashcards
(203 cards)
What defines advertising?
a) Personalized messages to promote a product
b) Non-personal messages to promote or sell a product, service, or idea
c) Direct communication between consumers and companies
d) Public relations efforts to improve brand image
A. Company has complete control over the message
Which of the following statements is true about the control of advertising messages?
b) Companies have complete control over advertising messages.
c) Advertising messages are controlled by government agencies.
d) Advertising messages are controlled by consumer advocacy groups.
B
Compared to public relations (PR), advertising generally has:
a) Higher credibility
b) Lower credibility
c) Similar credibility
d) No credibility
B
What is one of the drawbacks of advertising mentioned in the passage?
a) Limited control over the message
b) High credibility
c) Low cost per person reached
d) Difficulty in measuring its impact accurately
D
What is a characteristic of the cost structure of advertising?
a) Low costs due to personalized messages
b) High costs due to lack of control over the message
c) High costs, but relatively small cost per person reached
d) No costs involved in advertising
C
What is the ultimate long-term goal of advertising?
a) To improve brand image
b) To increase sales
c) To reduce costs
d) To enhance customer service
B
Which statement accurately reflects the relationship between advertising and sales?
a) Advertising has no impact on sales.
b) Advertising always leads to a significant increase in sales.
c) Advertising generally helps increase sales, but the exact impact is hard to measure.
d) Advertising results in a decrease in sales.
C
_____ is any form of impersonal, sponsor-paid, one-way mass communication.
a. Publicity
b. Advertising
c. Promotion
d. Public relations
e. Direct marketing
B
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
A
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.
A. There is a saturation point for advertising.
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
E
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
B. The advertising response function is a phenomenon in which spending for advertising and sales
promotion increases sales or market share up to a certain level but then produces diminishing
results
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
D. There are two reasons why companies with new brands with small market share tend to spend
proportionately more for advertising and sales promotions compared to those with existing
products and large market share. The first reason is in response to the advertising response
function. The second reason is to create product awareness in the minds of the target audience
What happens at the beginning of the S-shaped curve when the product is advertised?
a. The response is negative
b. The response is relatively strong
c. None of these options is correct
d. There is not much impact on sales
D
On the S-shaped curve, which of the following is on the horizontal axis?
a. Response
b. Amount of advertising spending
c. Demand
d. Supply
B
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
E
_____ 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
B
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
B
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
E
Tesla automotive company uses a parent brand name for all of its products. What type of advertising is Tesla following?
A. Pioneer
B. Competitive
C. Comparative
D. Institutional
D
What role does institutional advertising play in shaping public perception?
a) It has no impact on public perception
b) It only reinforces existing perceptions
c) It helps to shape a positive image or address negative perceptions
d) It primarily focuses on criticizing competitors
C
What distinguishes institutional advertising from product advertising?
a) Institutional advertising focuses on individual products, while product advertising focuses on promoting the corporation as a whole.
b) Institutional advertising aims to increase short-term sales, while product advertising aims to build long-term brand identity.
c) Institutional advertising targets specific consumer segments, while product advertising appeals to a broader audience.
d) Institutional advertising enhances the corporation’s identity, while product advertising emphasizes individual product features.
D
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
A
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
D