EXAM 1

Question 1

What is Advertising?

Answer 1

The activity of promoting products or services to potential customers.

Question 2

What is Demarketing?

Answer 2

A strategy used to reduce demand for a product or service.

Question 3

What is the Societal Role of Advertising?

Answer 3

To inform and influence public opinion, culture, and consumer behavior.

Question 4

What is the difference between Primary and Secondary Demand?

Answer 4

Primary demand refers to the desire for a product category, while secondary demand refers to the desire for a specific brand.

Question 5

What is Ethical Advertising?

Answer 5

Advertising that is honest, fair, and responsible to consumers and society.

Question 6

What is the difference between Advertising Self-Regulation and Federal Regulation?

Answer 6

Self-regulation is industry-guided, while federal regulation is enforced by government agencies.

Question 7

What is the role of the Federal Trade Commission (FTC)?

Answer 7

To protect consumers from deceptive advertising practices.

Question 8

What is the role of the Food and Drug Administration (FDA)?

Answer 8

To regulate food, drugs, and cosmetics to ensure safety and efficacy.

Question 9

What is the role of the Federal Communications Commission (FCC)?

Answer 9

To regulate interstate and international communications by radio, television, wire, satellite, and cable.

Question 10

What are Copyrights?

Answer 10

Legal rights that grant the creator exclusive control over the use of their original works.

Question 11

What are Trademarks?

Answer 11

Symbols, names, or slogans used to identify and distinguish goods or services.

Question 12

What is the difference between Deceptive and Unfair Advertising?

Answer 12

Deceptive advertising misleads consumers, while unfair advertising causes consumer harm.

Question 13

What is a Consent Decree?

Answer 13

A legal agreement to settle a dispute without admission of guilt or liability.

Question 14

What is the Better Business Bureau?

Answer 14

A nonprofit organization that helps consumers find trustworthy businesses.

Question 15

How does Advertising differ from Marketing?

Answer 15

Advertising focuses on promoting products, while marketing encompasses a broader range of activities including research and strategy.

Question 16

What are the differences between Local, Regional, and National Advertisers?

Answer 16

Local advertisers focus on local markets, regional advertisers target specific areas, and national advertisers reach audiences across the country.

Question 17

What is Cooperative (Co-Op) Advertising?

Answer 17

A partnership between manufacturers and retailers to share advertising costs.

Question 18

What are the types of Advertising Agencies?

Answer 18

• Full-Service Agencies * Creative Boutiques * In-House Agencies

Question 19

What is the role of Traffic Management in Advertising Agencies?

Answer 19

To ensure projects are completed on time and within budget.

Question 20

What are Agency Compensation models?

Answer 20

• Commissions * Fees * Hourly rates

Question 21

What are the 7 Types of Advertising?

Answer 21

• Informative * Persuasive * Reminder * Reinforcement * Institutional * Comparative * Cooperative

Question 22

What are Customer Needs and Wants?

Answer 22

Needs are basic requirements, while wants are desires shaped by culture and personality.

Question 23

What are the Four Types of Market Segmentation?

Answer 23

• Demographics * Psychographics * Geographic * Behavioral

Question 24

What do PRIZM and VALS stand for?

Answer 24

PRIZM: Potential Rating Index for Zip Markets; VALS: Values and Lifestyles.

Question 25

What is the Target Marketing Process?

Answer 25

Identifying and reaching specific consumer segments.

Question 26

What is the Product Life Cycle?

Answer 26

Stages a product goes through: Introduction, Growth, Maturity, Decline.

Question 27

What is the difference between Primary Audience and Secondary Audience?

Answer 27

Primary audience is the main target, while secondary audience is additional potential customers.

Question 28

What are User Status and Usage Rates?

Answer 28

User status categorizes consumers based on their usage, while usage rates measure frequency of use.

Question 29

What are the types of Distribution?

Answer 29

* Intensive * Selective * Exclusive

Question 30

What is the Consumer Decision Process?

Answer 30

Stages: Perception, Learning/Persuasion, Motivation.

Question 31

What is Brand Awareness?

Answer 31

The extent to which consumers recognize or recall a brand.

Question 32

What is Cognitive Dissonance?

Answer 32

The psychological discomfort experienced when holding conflicting beliefs or values.

Question 33

What is Account Planning in Advertising?

Answer 33

The process of understanding consumer insights and developing strategies.

Question 34

What are the differences between Market Research, Advertising Research, and Consumer Research?

Answer 34

* Market Research: General market information * Advertising Research: Specific ad effectiveness * Consumer Research: Insights about consumer behavior

Question 35

What are the Stages of Advertising Research?

Answer 35

* Advertising Strategy * Creative Concept * Pre-testing * Post-testing

Question 36

What is the importance of Consumer Insight?

Answer 36

It helps in creating effective advertising strategies that resonate with audiences.

Question 37

What is the difference between Qualitative and Quantitative Research?

Answer 37

Qualitative research focuses on understanding consumer behavior, while quantitative research measures numerical data.

Question 38

What are the Steps in the Research Process?

Answer 38

* Define problem * Collect data * Analyze data * Present findings

Question 39

What is a SWOT Analysis?

Answer 39

A strategic planning tool assessing Strengths, Weaknesses, Opportunities, and Threats.

Question 40

What are Test Markets?

Answer 40

Geographic areas used to test marketing strategies before a wider release.

Question 41

What is the difference between Validity and Reliability?

Answer 41

Validity measures accuracy, while reliability measures consistency of results.

Question 42

What is Strategic Planning?

Answer 42

The process of defining objectives, strategies, and tactics.

Question 43

What is the difference between Top Down and Bottom Up Marketing Plans?

Answer 43

Top down is directive from management, while bottom up is based on grassroots input.

Question 44

What is Perceptual Mapping?

Answer 44

A visual representation of consumer perceptions of products or brands.

Question 45

What are the Seven Approaches to Positioning Strategy?

Answer 45

* Attribute * Benefit * Use/Application * User * Product Category * Competitor * Quality/Price

Question 46

What are common Advertising Budgeting methods?

Answer 46

* Percentage of Sales * Objective-Task Method * Competitive Parity

Question 47

What are the Sources of Brand Messages?

Answer 47

* Advertising * Public Relations * Personal Selling * Sales Promotion

Question 48

What is Loyalty in Marketing?

Answer 48

The tendency of consumers to continue purchasing the same brand.

Question 49

What is LTV in Marketing?

Answer 49

Lifetime Value, the total worth of a customer over the whole period of their relationship with a brand.

Question 50

What is Relationship Marketing?

Answer 50

A strategy aimed at fostering customer loyalty and long-term engagement.

Question 51

What is the 80/20 Rule in Marketing?

Answer 51

The principle that 80% of a company's profits come from 20% of its customers.