chapter 16 Flashcards
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
The American Association of Retired Persons (AARP) fights to protect social
programs such as Medicare and Social Security for senior citizens and runs television and print
advertisements encouraging its members to contact their legislators about these topics. Such ads
are examples of _____ advertising.
a. advocacy
b. selective
c. product
d. differential
e. image
A
Unlike advertising that establishes or maintains a company’s identity, _____
advertising touts the benefits of a specific good or service.
a. selective
b. cooperative
c. advocacy
d. image
e. product
E
Kia Motors runs television advertisements that encourage the purchase of their
Kia Soul compact car. This is an example of _____ advertising.
a. pioneering
b. circumstantial
c. product
d. advocacy
e. comparative
C
Pioneering advertising, competitive advertising, and comparative advertising are
all types of:
a. institutional advertising
b. product advertising
c. primary advertising
d. commercial advertising
e. commissioned advertising
B
Which type of advertising is used to stimulate demand for a new product or
product category?
a. Comparative
b. Innovative
c. Focused
d. Image
e. Pioneering
E
Instead of sending artfully arranged flower bouquets, an entrepreneur has
developed fresh fruit bouquets and is marketing them under the name Edible Arrangements. The
premium fruit is cut to mimic flowers, arranged in a basket, and carefully delivered to the
recipient’s home. One of the problems is convincing people that it is not a novelty product, but an
attractive way to show how you feel about someone. Edible Arrangements will be using _____
advertising to promote its fruit bouquets.
a. pioneering
b. innovative
c. introductory
d. start-up
e. focused
A
Cranium, the Seattle-based toy company, has recently introduced Giggle Gear, a
toy designed to let kids’ imagination run wild. With the face and headpieces that make up Giggle
Gear, kids can change themselves into aliens, fairies, bugs, and robots. What type of advertising
will this company be using to promote this new toy?
a. pioneering
b. innovative
c. promotional
d. start-up
e. comparative
A
Which of the following is a difference between pioneering advertising and competitive advertising?
a
.
Pioneering advertising is a form of institutional advertising, whereas competitive advertising is a form of advocacy advertising.
b
.
Pioneering advertising compares competing brands, whereas competitive advertising is intended to stimulate primary demand for a new product.
c
.
Pioneering advertising is used during a product’s introductory stage, whereas competitive advertising is used during a product’s growth stage.
d
.
Pioneering advertising is used to promote a company’s image, whereas competitive advertising is used to manage customer criticisms
C
What is the primary goal of pioneering advertising?
a) Reinforcing existing brand loyalty
b) Maintaining market share
c) Stimulating demand for a new product
d) Building long-term customer relationships
C
Which form of advertising is designed to influence demand for a specific brand?
a. Institutional
b. Primary
c. Competitive
d. Direct
e. Growth
C
An emphasis on branding generally begins as firms use _____ advertising.
a. comparative
b. differentiational
c. pioneering
d. institutional
e. competitive
E
_____ advertising compares two or more specifically named or shown competing
brands on one or more specific attributes.
a. Contrasting
b. Comparative
c. Pioneering
d. Superlative
e. Differentiational
B
Ads in which where Dunkin’ Donuts tells consumers that more “hard-working”
people prefer their coffee than the high-priced, “elitist” coffee sold at Starbucks are examples of
_____ advertising.
a. competitive
b. institutional
c. comparative
d. image
e. pioneering
C
Around election time every year, we see ads on television claiming that one
candidate is superior to another in terms of experience, capability, and/or ethics. Sometimes
opponents are named and even vilified in these _____ ads.
a. differential
b. cooperative
c. advocacy
d. comparative
e. image
d
Which of the following statements about comparative advertising is true?
a. Comparative advertising is highly effective in
Arabic countries.
b. The FCC is the only federal agency that has
any regulatory power over comparative
advertising.
c. Comparative advertising is often used for
products experiencing strong growth.
d. Comparative advertising is highly regulated
and is illegal in certain countries.
e. Comparative advertising is illegal in the
United States
D
What type of brands can use comparative advertising more effectively?
A. High-end brands
B. Luxury brands
C. Smaller brands
D. Established brands
C
What is comparative advertising?
A. Comparing two or more brands
B. Differentiating two or more brands
C. Focusing on one brand
D. Promoting multiple brands
A
A company assigns a fixed percentage of its revenue for its advertising budget in what type of method?
A. Change of sales
B. Percentage of sales
C. Percentage improvement in sales
D. Percentage of growth
B. easy to calculate
Which statement best describes the ease of implementation of the Percentage of Sales Method?
a) It requires complex calculations
b) It is relatively easy to calculate and implement
c) It involves subjective decision-making
d) It requires input from multiple departments
B
What is the problem with following the percentage change method?
A. During a downturn in sales, this method would reduce the advertising budget
B. During a downturn in sales, this method would increase the advertising budget
C. During an upturn in sales, this method would decrease the advertising budget
D. During an upturn in sales, this method would increase the advertising budget
A
What does Competitive Parity entail in advertising spending?
a) Spending above competitors’ levels
b) Spending below competitors’ levels
c) Spending at a level comparable to competitors
d) Spending without considering competitors’ budgets
C
What is the primary advantage of Competitive Parity?
a) Guarantee of higher advertising effectiveness
b) Sense of equity among participants
c) Flexibility in budget allocation
d) Ability to outspend competitors
B
Which statement best describes the potential limitation of Competitive Parity?
a) It guarantees success in the market
b) It ensures differentiation from competitors
c) It may not suit every company’s unique position and strategy
d) It simplifies the budgeting process
C
What might be a challenge associated with implementing Competitive Parity?
a) Difficulty in tracking competitors’ spending levels
b) Lack of relevance to the company’s market position
c) Overemphasis on competitors’ strategies
d) Reliance on inaccurate information about competitors
D
What does the DAGMAR approach stand for?
A. Defining accounting goals
B. Distributing accounting goals
C. Defining advertising goals
D. Distributing advertising goals
C
The DAGMAR approach is method one of setting advertising objectives.
T
DAGMAR is an acronym for:
a. Defining and Achieving Goals Means
Advertising Reach
b. Developing Aggressive Markets
c. Designing Advertising with Market Research
d. Defining Advertising Goals for Measured
Advertising Results
e. Developing Aggressive Growth Markets and
Revenues
D
A small, high-tech company has just launched a new writing pen that has a
memory, much like a small computer. The advertising campaign focuses on the innovativeness of
the new product. This is an example of pioneering advertising
T
What distinguishes attributes from benefits in advertising?
a) Attributes focus on customers’ preferences, while benefits focus on product characteristics.
b) Attributes refer to product characteristics, while benefits refer to what customers derive from them.
c) Attributes emphasize brand image, while benefits emphasize brand identity.
d) Attributes focus on long-term goals, while benefits focus on short-term gains.
B
Ads for Yoplait Greek Yogurt highlight that the product has twice the protein and
three times the calcium of other yogurts. This advertising highlights:
a. a product attribute
b. the creation of brand loyalty
c. how negative consumers’ attitudes are
modified
d. a product benefit
e. a loyalty reward
A
Which of the following is what consumers will receive or achieve by using a
product?
a. Attribute
b. Benefit
c. Compensation
d. Market share
e. Functionality
B
In advertising, the goal is to sell the _____, not the _____ of a product.
a. benefits; attributes
b. characteristics; appeals
c. values; traits
d. competitive edge; virtues
e. differential advantage; properties
A
What could be the focus of an advertising campaign besides a specific product?
a) The company’s financial performance
b) The company’s CEO
c) An entire institution or a broad category
d) The company’s marketing team
C
An advertising _____ identifies a reason for a person to buy a product.
a. profile
b. execution
c. format
d. execution
e. appeal
E
All of the following are common types of advertising appeals EXCEPT:
a. profit
b. health
c. admiration
d. fear
e. commitment
E
A print ad for Kraft Capri Sun drink packs says “take a sip of antioxidant
protection” What kind of an advertising appeal is this ad using?
a. Convenience
b. Fun and pleasure
c. Health
d. Profit
e. Admiration
C
ReaLemon juice relies on the slogan, “Fresh Lemon Taste Made Easy.” What
kind of an advertising appeal is this ad using?
a. Mood
b. Vanity and egotism
c. Health
d. Convenience
e. Admiration
D
What do advertising appeals determine?
a) The budget for the advertising campaign
b) How to design the logo for the brand
c) What aspects of the product or service should be emphasized
d) Which advertising agency to hire
C
An ad for an AT&T MasterCard offered zero percent interest on any balance
transferred from another card by September 1, as well as no annual fee. What kind of an appeal is
this ad using?
a. Environmental consciousness
b. Vanity and egotism
c. Health
d. Profit
e. Admiration
D
Ads for Brita water filters describe how one Brita pitcher filter can reduce waste
by effectively replacing as many as 300 standard plastic water bottles. What kind of an
advertising appeal is this ad using?
a. Environmental consciousness
b. Concern
c. Health
d. Profit
e. Admiration
A
Allstate Insurance has mostly ditched its famous “in good hands” ads in favor of
a character called “Mayhem,” who shows up in your life at random — and trashes it. What kind
of advertising appeal were these ads using?
a. fear
b. consequences
c. health
d. vanity and egotism
e. consciousness
A
Many advertisements use celebrities that are liked by many people in hopes that
consumers will buy the product that the celebrity endorses. Using celebrities to influence
consumers to buy the product is an example of which advertising appeal?
a. Consciousness
b. Love or romance
c. Fun and pleasure
d. Admiration
e. Resonance
D
What can advertising appeals include?
a) Only factual information about the product
b) Emotional and rational elements
c) Only negative aspects of the product
d) Abstract concepts unrelated to the product
B
What often becomes the brand’s Unique Selling Proposition (USP)?
a) The advertising budget
b) The chosen advertising appeal
c) The company’s CEO
d) The advertising agency hired
B
A(n) _____ is a desirable, exclusive, and believable advertising appeal selected
as the theme for a campaign.
a. executional framework
b. creative message strategy
c. benefit
d. attribute
e. unique selling proposition
E
IBM runs television ads that show how their IT services can help a small Internet
start up prepare for and solve any problems that may arise in their daily operations. This is an
example of a:
a. unique selling proposition
b. advertising objective
c. media profile
d. basis for comparative advertising
e. basis for product identification
A
M&M’s famous slogan, “Melts in your mouth, not in your hand,” is an example
of a(n):
a. unique selling proposition
b. advertising objective
c. basis for lifestyle strategy
d. promotional mix
e. basis for comparative advertising
A
_____ is the way the advertisement portrays its information.
a. Message execution
b. Appeal formation
c. Focus selection
d. Audience selection
e. Benefit determination
A
All of the following are executional styles for advertising EXCEPT:
a. humorous
b. fantasy
c. lifestyle
d. fear
e. musical
D
A print ad for Real Simple magazine shows a group of women sitting on a sofa
talking and laughing. Which executional style is being used in this ad?
a. Demonstration
b. Slice-of-life
c. Fantasy
d. Mood or image
e. Testimonial
B
A print ad for Wydham hotels and resorts shows how different groups can benefit
from their vacation whether it be playing as a family, a woman getting a massage, or a young
couple enjoying some quality time together. Which executional style is being used in this ad?
a. Demonstration
b. Lifestyle
c. Fantasy
d. Mood or image
e. Testimonial
B
An Advil magazine print ad shows the same woman painting, at work, in the
gym, and with her child. The ad states that Advil works on “all my pains wherever I hurt so I am
ready for anything” Which executional style is being used in this ad?
a. Demonstration
b. Slice-of-life
c. Fantasy
d. Mood or image
e. Humor and fear
B
The ads for Liquid-Plumr drain cleaner show the product being applied to a
clogged drain and the clog disappearing. These ads use a _____ executional style.
a. demonstration
b. scientific
c. fantasy
d. mood or image
e. lifestyle
A
A magazine ad for Baker’s chocolate shows a picture of a luscious chocolate
cookie and is headlined, “Love cleverly disguised as chocolate.” Which executional style is being
used in this ad?
a. demonstration
b. scientific
c. lifestyle
d. testimonial
e. humorous
E
What is a key aspect of executing the message in advertising?
a) Maximizing the advertising budget
b) Selecting the most expensive advertising platform
c) Determining the best way to convey the message
d) Prioritizing quantity over quality in advertising content
C
Why is strong and effective creative essential in advertising?
a) To minimize the advertising budget
b) To maximize brand recognition
c) To grab attention and influence consumer behavior
d) To focus solely on product attributes
C
According to the AIDA model, what stages should advertisements move consumers through?
a) Awareness, Interest, Decision, Action
b) Attention, Interest, Decision, Action
c) Attention, Interest, Desire, Action
d) Awareness, Interest, Desire, Action
C
