Chapter 1 Flashcards

2
Q

Advertising is just one type of marketing communications tool.

A

True

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3
Q

Computer repair, ergonomic keyboards and printer ink cartridges are all examples of goods.

A

True

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4
Q

The billboard that displays an advertisement for a new Internet service provider is an example of a medium.

A

True

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5
Q

The term mass media includes print media only. The other mediums are part of the general media.

A

False

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6
Q

The ultimate goal of the marketing process is to build a strong brand image.

A

False

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7
Q

The marketing strategy refines the target audience and defines what responses the advertiser is seeking?what the audience should notice, think, and feel.

A

False

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8
Q

Our economy is based on the concept of perfect competition.

A

True

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9
Q

Lung cancer resulting from smoking is an example of an externality.

A

False

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10
Q

One of the functions of advertising as a marketing tool is to build value, brand preferences, and loyalty.

A

True

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11
Q

One of the basic functions of advertising is to communicate information about the product, its features, and its location of sale.

A

True

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12
Q

The pre-industrial age extended from the beginning of recorded history to first decades of the 1900s.

A

True

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13
Q

Benjamin Franklin was an early critic of advertising.

A

False

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14
Q

The industrializing age lasted roughly until the end of World War I.

A

True

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15
Q

For Americans, the profession of advertising began when Volney B. Palmer set up business in Philadelphia is 1841.

A

True

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16
Q

With the advent of public schooling, the United States reached an unparalleled 90 percent literacy rate.

A

True

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17
Q

The industrial age ended shortly after World War II.

A

False

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18
Q

The retailer of Craftsmen tools is using product differentiation when it advertises that unlike other tools, its brand of tools have a lifetime warranty.

A

True

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19
Q

A product’s USP is the feature that differentiates it from competitive products.

A

True

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20
Q

Product differentiation is a strategy of identifying groups of people or organizations with certain shared needs and characteristics.

A

False

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21
Q

Bo jangles; a fast food restaurant chain, is using a positioning strategy when it claims its chicken has “true taste of New Orleans.”

A

False

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22
Q

Demarketing, which was popular in the industrial age, is no longer used today.

A

False

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23
Q

Sales promotion is a more cost-effective marketing communication tool than advertising.

A

True

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24
Q

Sales promotion is a more cost-effective marketing communication tool than advertising.

A

False

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25
Q

Only the Internet provides advertisers with the ability to engage in narrowcasting.

A

True

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26
Q

As a social force, advertising has been a major factor in improving the standard of living in the United States.

A

False

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27
Q

In 1914, Congress passed the Federal Trade Commission Act to protect the public’s health and control drug advertising.

A

False

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28
Q

_____ is the structured and composed non-personal communication of information, usually paid for and usually persuasive in nature, about products or ideas by identified sponsors through various media.

A

Advertising

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29
Q

Which of the following statements about advertising is true?

A

It is just informative communication.

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30
Q

Since advertising is typically directed to groups of people rather than to individuals, advertising is defined as:

A

non-personal or mass communication

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31
Q

When Mollie buys a box of disposable diapers and June purchases a copy of the Wall Street Journal, both are acting as:

A

consumers.

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32
Q

Which of the following organizations is most likely to benefit from a Public Service Announcement (PSA)?

A

The humane society

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33
Q

Which of the following is an example of a good?

A

Paper clips

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34
Q

Which of the following is the best example of a service?

A

A seminar on how to quit smoking

35
Q

Under which situation might advertising not be paid for?

A

CRY advertisement requesting donation for the children of famine affected Somalia.

36
Q

Which of the following statements is true about word-of-mouth advertising?

A

It is not an advertising medium.

37
Q

Advertising reaches us through various channels of communication referred to as:

A

medium.

38
Q

Of all the business functions, _____ is the only function whose primary role is to bring in revenues.

A

marketing

39
Q

_____ is the process of creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

A

Marketing

40
Q

The 4 Ps of the marketing mix are:

A

product, price, place, and promotion.

41
Q

_____ has driven the growth of advertising since its earliest beginnings and has made it one of the hallmarks of the free enterprise system.

A

Economics

42
Q

Which out of the following assumptions of free market economics, suggest that people are acquisitive and always want more?for less?

A

Self-interest

43
Q

As a marketing tool, advertising is used to:

A

increase product use.

44
Q

The use of taxation and/or regulation to compensate for or eliminate the social cost when the sale or consumption of products may benefit or harm other people who are not involved in the transaction and didn’t pay for the product, falls under the assumption of:

A

absence of externalities.

45
Q

During the pre-industrial age, most advertisements took the form of signs with symbols such as a beer tankard indicating a tavern because:

A

most people were illiterate and could not read.

46
Q

The period in the evolution of advertising that extended from the beginning of recorded history to roughly the start of the nineteenth century was called the:

A

preindustrial age.

47
Q

Which of the following ages in the evolution of advertising was characterized by the Chinese inventing paper, Johannes Guttenberg inventing the printing press and the Boston Newsletter beginning to carry advertisements that appealed to American colonists?

A

Preindustrial age

48
Q

What did the first ad in English advertise?

A

A prayer book

49
Q

According to the history of advertising, the _____ made possible the first advertising formats?posters, handbills, signs and newspapers.

A

printing press

50
Q

Benjamin Franklin:

A

was the first American known to use illustrations in ads.

51
Q

During the _____ age, manufacturers were principally concerned with production. The primary burden of marketing fell on the wholesalers. They used advertising primarily as an information vehicle. Advertising to the consumer was the job of the retailers and the large mail-order catalog companies.

A

industrializing

52
Q

Which of the following statements best describes how Volney B. Palmer influenced advertising?

A

In 1841, he set up the first professional advertising agency in the United States.

53
Q

What role did the firm N.W. Ayer & Son play in the history of U.S. advertising?

A

It was the first ad agency to charge a commission based on the “net cost of space.”

54
Q

Who is the father of advertising art?

A

Benjamin Franklin

55
Q

Why did magazines become the ideal medium for advertising in the 1840s?

A

Magazines offered good quality and customized capabilities

56
Q

Why is 1896 considered to be an extremely important year for direct mail advertising and mail-order selling?

A

The Federal Government inaugurated rural free mail delivery

57
Q

Which of the following factors occurred near the end of the nineteenth century and was one of the most responsible reasons for accelerating the usage of print ads by manufacturers who wished to sell their products?

A

The nation had reached a 90 percent literacy rate

58
Q

With respect to the evolution of advertising in the United States, the _____ age started around the turn of the twentieth century and lasted well into the 1970s.

A

industrial

59
Q

The term _____ can be used to explain why most of the automobile manufacturers produce almost similar products and yet consumers have developed preferences for specific brands.

A

product differentiation

60
Q

New brands of consumer luxury and convenience goods developed by fresh mass markets can be referred to as:

A

B. consumer packaged goods.

61
Q

The industrializing age of nineteenth century saw the shift of orientation from:

A

D. production to sales.

62
Q

A decade after World War I ended, a significant event occurred that caused consumer sales resistance, corporate budget cutting and advertising expenditures to plummet. This event was:

A

C. the crashing of the stock market in October 29, 1929.

63
Q

A product’s _____ is a feature or features that differentiate it from competitive products.

A

B. unique selling proposition

64
Q

To differentiate its candy from that produced by other candy manufacturers, the manufacturer of Green & Black brand confections advertises that it is the only company to make its chocolate organically. This commitment to market only organic chocolate is an example of a(n):

A

B. unique selling proposition.

65
Q

Which of the following is the largest advertising medium in terms of advertising revenues?

A

Television

66
Q

_____ is a process by which marketers searched for unique groups of people whose needs could be addressed through more specialized products.

A

Market segmentation

67
Q

Many urban hotels are creating women-only floors for female travelers. Enhanced security and toiletries more likely to appeal to women such as bubble bath and curling irons are made available. To specifically target women who are traveling on their own, these hotels have implemented a _____ strategy.

A

market segmentation

68
Q

A(n) _____ is an effective way to separate a particular brand from its competitors by associating that brand with a particular set of customer needs that ranked high on the consumer’s priority list.

A

positioning strategy

69
Q

For years Levi-Strauss advertised its jeans to baby boomers because that is what most baby boomers wore during the 1960s and baby boomers are trying to buy back their youth. Unfortunately, this strategy of making Levi’s a baby boomer icon has decreased the brand’s appeal to today’s teens who perceive the Levi brand as old-fashioned. In this example, the _____ did not produce a positive effect.

A

positioning strategy

70
Q

The _____ age has been a period of cataclysmic change. For the first time, people became truly aware of the sensitive environment in which we live and became alarmed by our dependence on vital natural resources.

A

postindustrial

71
Q

_____ is a type of marketing used to slow down the demand for certain products, such as energy-consuming goods.

A

De-marketing

72
Q

During the current drought in the southeastern United States, marketing campaigns were implemented to encourage consumers to use less water by increasing rates and issuing fines to those who used more than their fair share. A marketing effort such as this would be classified as:

A

de-marketing.

73
Q

There is some of the most beautiful scenery in the world at the Banff National Park in Canada. Too many tourists have led to potential ecological disasters in the park. In response, park officials are trying to decrease the number of visitors to the park. They could use _____ to accomplish this objective.

A

de-marketing

74
Q

An end to the Cold War came as the Berlin Wall came down and Western companies and financiers began to invest heavily in what were once called Warsaw Pact countries. Big multinational companies and their advertising agencies went on a binge, buying other big companies and adding a new term to the financial lexicon. This term was referred to as:

A

mega merger.

75
Q

In 2005, Comcast created AZN, a network for Asian Americans. What type of strategy did Comcast use when it found this unique group of consumers who were not being currently reached by a cable station devoted to their specific needs?

A

Positioning

76
Q

What type of strategy is being used by a Web site like www.CNNMoney.com when it describes itself as “a one-stop destination covering everything a small-business owner needs to know” in order to associate itself with benefits that are important to small business owners?

A

Sales promotion

77
Q

Two related economic factors characterized the marketing world of the late 1980s and early 1990s in the United States. One of those factors was:

A

the aging of traditional products and a corresponding growth of competition.

78
Q

As the U.S. economy slowed over the last decade, companies have used which cost-effective method to trim their advertising budgets?

A

Sales promotions

79
Q

The availability of cable networks devoted to food, home repair, golf, history and animals is explained by the term:

A

narrowcasting.

80
Q

Due to PCs, Internet connections, DVDs and cable TV, advertising is evolving into a(n):

A

two-way medium.

81
Q

By publicizing the material, social, and cultural opportunities of a free enterprise society, advertising has encouraged:

A

increased productivity by both management and labor.

82
Q

The term integrated marketing communications means:

A

integrating all their marketing communications with what the companies actually do.