Chapter 15 Advertising and Public Relations



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Chapter 15 Advertising and Public Relations
1) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________.

A) sales promotion

B) direct marketing

C) advertising

D) personal selling

E) public relations

Answer: C

Diff: 2 Page Ref: 430

Skill: Concept

Objective: 15-1


2) A company's total marketing communications package consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. This is also called ________.

A) the communications method

B) integrated marketing

C) the promotion mix

D) competitive marketing

E) target marketing

Answer: C

Diff: 1 Page Ref: 428

Skill: Concept

Objective: 15-1


3) According to the opening scenario, GEICO has become the fourth-largest insurance company by ________.

A) integrating humor and creativity into its minicampaigns

B) targeting a niche market of people with exceptional driving records

C) offering cost savings directly to customers without sales personnel

D) marketing its product through creative print ads in major magazines

E) creating a website that is appealing to both young and old drivers

Answer: A

Diff: 3 Page Ref: 428

Skill: Concept

Objective: 15-1

4) All of the following are important decisions during the process of developing an advertising program EXCEPT ________.

A) setting advertising objectives

B) setting the advertising budget

C) developing advertising strategy

D) selecting a target market

E) evaluating advertising campaigns

Answer: D

Diff: 2 Page Ref: 430-431

Skill: Concept

Objective: 15-2


5) Advertising ________ define the task that advertising must accomplish with a specific target audience during a specific period of time.

A) objectives

B) budgets

C) strategies

D) campaigns

E) evaluations

Answer: A

Diff: 1 Page Ref: 431

Skill: Concept

Objective: 15-2


6) An advertising objective is classified by its primary purpose, which is to inform, persuade, or ________.

A) convince

B) compete

C) remind

D) explain

E) encourage

Answer: C

Diff: 1 Page Ref: 431

Skill: Concept

Objective: 15-2


7) Which of the following is an objective of informative advertising?

A) build brand preference

B) change customer perceptions of brand value

C) encourage customers to switch brands

D) suggest new uses for a product

E) keep brand in customer minds during off-seasons

Answer: D

Diff: 1 Page Ref: 431

Skill: Concept

Objective: 15-2

8) What is one of the primary goals of reminder advertising?

A) maintain customer relationships

B) build brand preference

C) correct false impressions

D) inform the market of a price change

E) restore company image

Answer: A

Diff: 1 Page Ref: 431

Skill: Concept

Objective: 15-2


9) When the advertising objective is to build primary demand for a new product category, ________ advertising will most likely be used.

A) persuasive

B) informative

C) comparative

D) patronage

E) institutional

Answer: B

Diff: 2 Page Ref: 431

Skill: Concept

Objective: 15-2


10) ________ advertising becomes more important as competition increases. The company's objective is to build selective demand.

A) Reminder-oriented

B) Informative

C) POP promotion

D) Patronage

E) Persuasive

Answer: E

Diff: 2 Page Ref: 431-432

Skill: Concept

Objective: 15-2


11) Persuasive advertising becomes ________ advertising when a company directly or indirectly compares its brand with one or more other brands.

A) informative

B) reminder

C) comparative

D) POP promotion

E) institutional

Answer: C

Diff: 1 Page Ref: 432

Skill: Concept

Objective: 15-2

12) What is a potential problem associated with comparative advertising?

A) Consumers confuse the positive and negative aspects of the brands involved in the ad war.

B) Competitors develop new and improved products in an attempt to win the advertising contest.

C) Consumers are bombarded with competing ads, which causes them to leave the market completely.

D) Competitors respond with their own ads, which often results in negative publicity for both brands.

E) Consumers alternate between competing products and never develop brand loyalties.

Answer: D

Diff: 3 Page Ref: 432

AACSB: Reflective Thinking

Skill: Concept

Objective: 15-2
13) A product in the maturity stage will often require ________ advertising.

A) informative

B) comparative

C) persuasive

D) reminder

E) cooperative

Answer: D

Diff: 1 Page Ref: 432

Skill: Concept

Objective: 15-2


14) Familiar products such as Coca-Cola are more likely to use ________.

A) informative advertising

B) comparative advertising

C) persuasive advertising

D) reminder advertising

E) institutional advertising

Answer: D

Diff: 3 Page Ref: 432

AACSB: Communication

Skill: Concept

Objective: 15-2
15) After determining its advertising objectives, the company's next step in developing an advertising program is to ________.

A) set its advertising budget

B) determine the media vehicle

C) use cash refund offers

D) plan its advertising campaign

E) develop its message strategy

Answer: A

Diff: 2 Page Ref: 432

Skill: Concept

Objective: 15-2

16) All of the following require high advertising budgets EXCEPT ________.

A) products in competitive markets

B) undifferentiated brands

C) new products

D) low-share brands

E) mature brands

Answer: E

Diff: 3 Page Ref: 432

Skill: Concept

Objective: 15-2


17) Which of the following may require heavy advertising in order to be set apart from similar products?

A) undifferentiated brands

B) specialty brands

C) international brands

D) mature brands

E) flanker brands

Answer: A

Diff: 1 Page Ref: 433

Skill: Concept

Objective: 15-2


18) Some large corporations have developed ________ to help determine the optimal investment across various media; such tools are useful when determining the relationship between promotional spending and brand sales.

A) impact studies

B) sales techniques

C) statistical models

D) advertising budgets

E) advertising strategies

Answer: C

Diff: 1 Page Ref: 433

Skill: Concept

Objective: 15-2

19) Which of the following is an element of developing an advertising strategy?

A) selecting advertising media

B) using sophisticated statistical models

C) setting advertising objectives

D) evaluating advertising campaigns

E) setting the advertising budget

Answer: A

Diff: 1 Page Ref: 433

Skill: Concept

Objective: 15-2

20) Soaring media costs, focused target marketing strategies, and the growing array of new media have increased the importance of ________.

A) advertising budget objectives

B) competitive parity

C) humor in advertisements

D) branded entertainment

E) media planning

Answer: E

Diff: 2 Page Ref: 433

AACSB: Use of IT

Skill: Concept

Objective: 15-2
21) The success of the MINI Let's Motor campaign exemplifies the partnership between which two elements?

A) advertising and Internet

B) message and media

C) image and strategy

D) technology and creativity

E) brand and objective

Answer: B

Diff: 3 Page Ref: 433

Skill: Concept

Objective: 15-2


22) To be successful, an advertisement must ________.

A) guarantee the highest quality product

B) offer the highest quality service

C) reach consumers frequently

D) promise the lowest market price

E) gain the attention of consumers

Answer: E

Diff: 2 Page Ref: 434

Skill: Concept

Objective: 15-2


23) The Internet, video on demand, and DVRs (digital video recorders) present which of the following problems for marketers?

A) Consumers are watching less television.

B) Consumers cannot focus on specific messages due to advertising clutter.

C) Audiences are less interested in media consumption.

D) Consumers have more choices about what to watch or not watch.

E) Television advertising is becoming more expensive.

Answer: D

Diff: 3 Page Ref: 434-435

AACSB: Use of IT

Skill: Concept

Objective: 15-2

24) Which of the following represents the merge between advertising and entertainment?

A) Madison & Vine

B) Wall St. & Fifth Ave

C) Buzz marketing

D) product placement

E) webisodes

Answer: A

Diff: 1 Page Ref: 435

Skill: Concept

Objective: 15-2
25) What is the term used to describe the idea that will be communicated to consumers through an advertisement?

A) advertising appeal

B) message strategy

C) consumer-generated message

D) creative concept

E) message execution

Answer: B

Diff: 2 Page Ref: 435

Skill: Concept

Objective: 15-2


26) Developing an effective message strategy begins with identifying ________ that can be used as advertising appeals.

A) consumer trends

B) competitor's weaknesses

C) competitor's strengths

D) customer benefits

E) consumer emotions

Answer: D

Diff: 2 Page Ref: 435

Skill: Concept

Objective: 15-2

27) ________ tend to be straightforward outlines of benefits and positioning points that the advertiser wants to stress.

A) Promotion mix plans

B) Message strategy statements

C) Creative concept strategies

D) Big idea statements

E) Branded entertainment plans

Answer: B

Diff: 2 Page Ref: 435

Skill: Concept

Objective: 15-2

28) After creating message strategy statements, the advertiser must develop a compelling ________ that will bring the message strategy to life in a distinctive and memorable way.

A) creative concept

B) customer strategy

C) customer benefit

D) execution style

E) media vehicle

Answer: A

Diff: 2 Page Ref: 435

Skill: Concept

Objective: 15-2


29) The big idea or the creative concept may emerge as a(n) ________, a phrase, or a combination of the two.

A) appeal

B) visualization

C) differentiation

D) strategy

E) evaluation

Answer: B

Diff: 2 Page Ref: 435

Skill: Concept

Objective: 15-2


30) Which of the following are the three characteristics of an advertising appeal?

A) engaging, informative, and stylish

B) trendy, compelling, and appealing

C) meaningful, believable, and distinctive

D) unique, emotional, and entertaining

E) humorous, memorable, and interesting

Answer: C

Diff: 3 Page Ref: 435

Skill: Concept

Objective: 15-2


31) The goal of ________ is to make an advertisement so useful that people want to watch it.

A) branded entertainment

B) advertainment

C) audience engagement

D) continuity scheduling

E) pulse scheduling

Answer: B

Diff: 2 Page Ref: 436

Skill: Concept

Objective: 15-2

32) American Eagle Outfitters has increased interest in its clothing products using which of the following advertising forms?

A) text messaging

B) brand integrations

C) product placement

D) webisodes

E) memorable print ads

Answer: D

Diff: 2 Page Ref: 436

AACSB: Use of IT

Skill: Concept

Objective: 15-2
33) Product placement in television programs and movies is an example of ________.

A) branded entertainment

B) advertainment

C) brand contact

D) message execution

E) pulsing

Answer: A

Diff: 2 Page Ref: 436

Skill: Concept

Objective: 15-2


34) According to experts, what is the biggest potential problem facing advertainment?

A) The cost of creating clever advertisements will become too steep.

B) The marketplace will become cluttered with ads that lack helpful information.

C) Consumers will remember the advertisement but forget the brand.

D) Local networks will oppose running potentially offensive advertisements.

E) Consumer demand for entertaining advertising will become difficult to match.

Answer: C

Diff: 3 Page Ref: 437

AACSB: Reflective Thinking

Skill: Concept

Objective: 15-2
35) Which message execution style depicts average people using a product in an everyday setting?

A) lifestyle

B) scientific evidence

C) slice of life

D) personality symbol

E) testimonial evidence

Answer: C

Diff: 1 Page Ref: 436

Skill: Concept

Objective: 15-2

36) Advertisements built around dream themes are using which type of execution style?

A) mood or image

B) musical

C) fantasy

D) lifestyle

E) personality symbol

Answer: C

Diff: 1 Page Ref: 437

Skill: Concept

Objective: 15-2


37) The AFLAC duck and Tony the Tiger are examples of ________ used in successful advertising campaigns.

A) character creations

B) creative endorsements

C) fantasy figures

D) celebrity spokespeople

E) personality symbols

Answer: E

Diff: 2 Page Ref: 438

AACSB: Analytic Skills

Skill: Concept

Objective: 15-2
38) What is the first element that a reader notices in a print ad?

A) copy


B) illustration

C) headline

D) slogan

E) color


Answer: B

Diff: 2 Page Ref: 438

Skill: Concept

Objective: 15-2


39) An amateur video showing the result of mixing Diet Coke with Mentos candies exemplifies which growing trend in advertising?

A) YouTube webisodes

B) consumer-generated messages

C) multiple minicampaigns

D) consumer-driven promotions

E) competitive consumer messages

Answer: B

Diff: 3 Page Ref: 439

Skill: Concept

Objective: 15-2

40) How can consumer-generated ads benefit companies and their products?

A) Consumers trust the opinions of people similar to themselves.

B) Viewers find user-generated advertisements more humorous than professional ads.

C) Consumer criticism of a competitor's product is believable and valuable.

D) Viewers enjoy participating in product contests and being in commercials.

E) Consumers become engaged in the product and consider its value in their lives.

Answer: E

Diff: 3 Page Ref: 439

Skill: Concept

Objective: 15-2


41) All of the following are major steps in advertising media selection EXCEPT ________.

A) deciding on reach, frequency, and impact

B) choosing among major media types

C) selecting specific media vehicles

D) deciding on format elements

E) deciding on media timing

Answer: D

Diff: 2 Page Ref: 439

Skill: Concept

Objective: 15-2


42) What was one of the results of the "Quiznos vs. Subway TV Ad Challenge"?

A) Quiznos developed an advertising contest asking its customers to counter the Subway claims.

B) Most of the submitted ads included negative health information about eating fast food.

C) Quiznos filed a lawsuit against the winner of the Subway contest who created the winning ad.

D) Consumer-generated ads are now rarely used by companies concerned about legal issues.

E) Subway filed a lawsuit asserting that Quiznos ads made false claims about Subway.

Answer: E

Diff: 3 Page Ref: 439

Skill: Concept

Objective: 15-2


43) ________ is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.

A) Reach


B) Qualitative value

C) Format

D) Premium

E) Frequency

Answer: A

Diff: 2 Page Ref: 440

Skill: Concept

Objective: 15-2

44) The number of times an average person in the target market is exposed to an ad is known as the ________.

A) impact

B) reach

C) frequency

D) exposure

E) engagement

Answer: C

Diff: 2 Page Ref: 440

Skill: Concept

Objective: 15-2


45) The advertiser must decide on the ________, or desired media impact, of a message in a specific medium.

A) reach

B) illustration

C) qualitative value

D) exposure costs

E) frequency

Answer: C

Diff: 2 Page Ref: 440

Skill: Concept

Objective: 15-2


46) For many years, ________ have dominated the media mix used by national advertisers.

A) radio and television

B) television and magazines

C) direct mail and billboards

D) radio and digital media

E) newspapers and direct mail

Answer: B

Diff: 2 Page Ref: 440

Skill: Concept

Objective: 15-2


47) Advertisers are increasingly shifting larger portions of their budgets to media that cost less and target more effectively. Which of the following is harmed the MOST by such a shift?

A) radio

B) cable television

C) network television

D) satellite television systems

E) Internet

Answer: C

Diff: 1 Page Ref: 440

Skill: Concept

Objective: 15-2

48) All of the following are examples of specialized and highly-targeted media that an advertiser might use to reach smaller customer segments EXCEPT ________.

A) cable television channels

B) e-mail

C) podcasts

D) magazines

E) product placement in video games

Answer: D

Diff: 2 Page Ref: 440

AACSB: Use of IT

Skill: Concept

Objective: 15-2
49) The Internet, direct mail, magazines, and radio all offer advertisers which of the following advantages?

A) audience selectivity

B) low costs

C) timeliness

D) flexibility

E) credibility

Answer: A

Diff: 3 Page Ref: 441

Skill: Concept

Objective: 15-2


50) Companies are doing less ________ and more ________ as a result of an explosion of more focused media that better match today's targeting strategies.

A) marketing; personal selling

B) advertising; public relations

C) narrowcasting; broadcasting

D) broadcasting; narrowcasting

E) public relations; advertising

Answer: D

Diff: 3 Page Ref: 440

AACSB: Communication

Skill: Concept

Objective: 15-2
51) 30 Rock and Newsweek are both examples of ________, specific media within each general media type.

A) alternative media

B) major media

C) media vehicles

D) media multitaskers

E) micromedia

Answer: C

Diff: 2 Page Ref: 442

AACSB: Analytic Skills

Skill: Concept

Objective: 15-2

52) The media planner looks both at the total cost of using a medium and at the ________.

A) cost per thousand persons reached

B) cost of premium offers

C) cost of the magazine it is using

D) opportunity cost

E) continuity cost

Answer: A

Diff: 2 Page Ref: 442

Skill: Concept

Objective: 15-2
53) When a media planner determines whether an advertisement for dishwashing soap should be placed in Sports Illustrated or Good Housekeeping, the planner is evaluating the media vehicle's ________.

A) audience engagement

B) editorial quality

C) market coverage

D) audience quality

E) cost per exposure

Answer: D

Diff: 2 Page Ref: 442

AACSB: Analytic Skills

Skill: Concept

Objective: 15-2
54) ________ means scheduling ads evenly within a given period. ________ means scheduling ads unevenly over a given time period.

A) Pulsing; Continuity

B) Continuity; Hard hitting

C) Continuity; Pulsing

D) Pulsing; Hard hitting

E) Sequencing; Routing

Answer: C

Diff: 2 Page Ref: 443

Skill: Concept

Objective: 15-2


55) Scheduling ads unevenly, which is called ________, builds awareness that is intended to be carried over to the next advertising period.

A) continuity

B) pulsing

C) shuffling

D) sequencing

E) segmenting

Answer: B

Diff: 2 Page Ref: 443

Skill: Concept

Objective: 15-2

56) According to the Association of National Advertisers, what is the most important issue for today's advertisers?

A) determining the favorite media for all demographics

B) measuring advertising's efficiency and effectiveness

C) estimating the overall costs of an advertising campaign

D) managing advertising campaigns on tight budgets

E) calculating the communication effects of an ad campaign

Answer: B

Diff: 2 Page Ref: 443

Skill: Concept

Objective: 15-2


57) Sales and profit effects of advertising are difficult to measure because of factors outside of the ad campaign such as ________.

A) price and availability

B) seasons and attitude changes

C) knowledge and product features

D) budgets and communication tools

E) brand loyalty and media vehicles

Answer: A

Diff: 2 Page Ref: 443

Skill: Concept

Objective: 15-2


58) One way to measure the ________ effects of advertising is to ________ past sales and past advertising expenditures.

A) communication; average

B) promotion; analyze

C) communication; identify

D) sales; compare

E) sales; combine

Answer: D

Diff: 2 Page Ref: 443

Skill: Concept

Objective: 15-2


59) All of the following are benefits of standardized global advertising EXCEPT ________.

A) lower advertising costs

B) greater global advertising coordination

C) higher appeal to varying demographics

D) more consistent worldwide image

E) greater consistency among international Web sites

Answer: C

Diff: 2 Page Ref: 446

Skill: Concept

Objective: 15-2

60) Most international advertisers develop global ________ for the sake of efficiency, but they adapt their advertising ________ to make them responsive to local market needs and expectations.

A) programs; strategies

B) campaigns; objectives

C) strategies; programs

D) objectives; programs

E) strategies; objectives

Answer: C

Diff: 3 Page Ref: 446-447

Skill: Concept

Objective: 15-2


61) Apple has modified its "I'm a Mac; I'm a PC" ad campaign in Japan for which of the following reasons?

A) The Japanese government opposes direct-comparison advertisements.

B) Japanese culture frowns upon humorous advertisements on television.

C) Most Japanese would not notice the differences in style between the two men in the ad.

D) Most Japanese computer users prefer PCs to Apples.

E) The Japanese culture views bragging as rude.

Answer: E

Diff: 3 Page Ref: 447

AACSB: Communication

Skill: Concept

Objective: 15-2
62) What is the primary question that must be asked by an advertiser before deciding to run a commercial during the Super Bowl?

A) Will the commercial deliver a high return on advertising investment?

B) What will be the reach of the commercial?

C) What will be the production costs of the commercial?

D) Does our product match the demographics of the viewing audience?

E) Will the commercial generate enough buzz to justify the cost?

Answer: A

Diff: 3 Page Ref: 445

Skill: Concept

Objective: 15-2


63) Unilever decided not to purchase advertising during the Super Bowl a second time because the maker of Dove ________.

A) received little buzz after running its commercial during the game

B) earned a better response for less money through an outdoor campaign

C) discovered that most of the audience did not watch the sentimental commercial

D) spent too much money on one commercial that received low consumer ratings

E) received negative publicity for running a beauty ad during a sporting event

Answer: B

Diff: 3 Page Ref: 445

Skill: Concept

Objective: 15-2

64) Which of the five major promotion tools includes building up a positive corporate image and handling unfavorable stories and events?

A) sales promotion

B) personal selling

C) direct marketing

D) public relations

E) direct marketing

Answer: D

Diff: 2 Page Ref: 448

Skill: Concept

Objective: 15-3


65) Lobbying, or building and maintaining relations with legislators and government officials to influence legislation and regulation, is part of ________.

A) outdated business ethics

B) press relations

C) press agencies

D) public relations

E) a mass market strategy

Answer: D

Diff: 2 Page Ref: 448

Skill: Concept

Objective: 15-3


66) Which of the following functions is LEAST likely to be performed by a public relations department?

A) product publicity

B) development

C) public affairs

D) investor relations

E) media vehicle selection

Answer: E

Diff: 2 Page Ref: 448

Skill: Concept

Objective: 15-3

67) When nonprofit organizations need financial or volunteer support they often turn to public relations experts to help them in the area of ________.

A) public affairs

B) press relations

C) investor relations

D) development

E) lobbying

Answer: D

Diff: 2 Page Ref: 448

Skill: Concept

Objective: 15-3

68) Trade associations have used ________ to rebuild interest in declining commodities such as eggs, pork, and milk.

A) lobbying

B) press relations

C) development

D) public relations

E) mass marketing

Answer: D

Diff: 2 Page Ref: 448

Skill: Concept

Objective: 15-3


69) Why was the introduction of Nintendo's Wii game console especially successful?

A) The company's public relations department held preview parties and encouraged people to blog about the system.

B) The company paid for demonstrations on morning news and talk shows to develop interest.

C) The company spent millions of dollars on Internet ads and website development.

D) The company's public relations department wrote press releases and blogs to create buzz.

E) The company's marketing department used product placement to generate excitement.about the system before it was released to the public.

Answer: A

Diff: 3 Page Ref: 449

AACSB: Reflective Thinking

Skill: Concept

Objective: 15-3
70) Why is public realtions often overlooked as a tool for supporting product marketing objectives?

A) Public relations departments are typically small divisions within corporations.

B) The time and costs associated with public relations can be prohibitive.

C) Public relations specialists lack the skills necessary to work with marketing experts.

D) Many public relations professionals see their jobs as simply communicating, not necessarily brand building.

E) The public relations department only wants to handle stockholders, employees, and government officials.

Answer: D

Diff: 3 Page Ref: 449

Skill: Concept

Objective: 15-3

71) The authors of the book The Fall of Advertising and the Rise of PR state that all of the following firms found success with very little advertising EXCEPT ________.

A) Starbucks Coffee

B) Body Shop

C) Wal-Mart

D) Amazon

E) Nike


Answer: E

Diff: 2 Page Ref: 449-450

Skill: Concept

Objective: 15-3


72) ________ use several tools, including the news, speeches, corporate identity materials, and special events.

A) Advertising agencies

B) Advertising specialists

C) Public relations professionals

D) Computer programmers

E) Media planners

Answer: C

Diff: 2 Page Ref: 450

Skill: Concept

Objective: 15-4


73) Logos, uniforms, brochures, and company trucks are all examples of ________ that can be used to help a company create a visual image for the public.

A) direct marketing

B) social marketing

C) public service activities

D) corporate identity materials

E) buzz marketing materials

Answer: D

Diff: 1 Page Ref: 450

Skill: Concept

Objective: 15-4


74) News conferences, press tours, and grand openings are examples of ________ , one of the tools commonly used by public relations professionals.

A) public service activities

B) special events

C) social networking

D) development

E) investor relations

Answer: B

Diff: 1 Page Ref: 450

Skill: Concept

Objective: 15-4

75) Johnson & Johnson used ________ when it launched its Aveeno Positively Ageless product line through a YouTube video of an artist's chalk drawing; consumers spread the word about the video, which was viewed by nearly one million people.

A) social networking

B) public service ads

C) endorsements

D) advertainment

E) product publicity

Answer: A

Diff: 2 Page Ref: 450

Skill: Concept

Objective: 15-4


76) A company's total marketing communications mix is also called its promotion mix.

Answer: TRUE

Diff: 1 Page Ref: 428

Skill: Concept

Objective: 15-1
77) Advertising is used mostly by not-for-profit organizations, professionals, and social agencies to promote their various causes to target publics.

Answer: FALSE

Diff: 2 Page Ref: 430

Skill: Concept

Objective: 15-2
78) A specific communication task to be accomplished with a specific target audience during a specific period of time is called an advertising objective.

Answer: TRUE

Diff: 1 Page Ref: 431

Skill: Concept

Objective: 15-2
79) Informative ads are used primarily in the growth stage of the product life cycle.

Answer: FALSE

Diff: 2 Page Ref: 431

Skill: Concept

Objective: 15-2
80) Professional athletes such as Tiger Woods, Peyton Manning, and Maria Sharapova are featured in advertisements for Gatorade. Gatorade is utilizing persuasive advertising.

Answer: TRUE

Diff: 3 Page Ref: 431-432

AACSB: Analytic Skills

Skill: Application

Objective: 15-2

81) Weekend advertisements for Home Depot encourage consumers to visit the store immediately. Home Depot is practicing reminder advertising.

Answer: FALSE

Diff: 3 Page Ref: 432

AACSB: Reflective Thinking

Skill: Application

Objective: 15-2


82) In advertising strategy, the creative department first creates good advertisements, and then the media department selects the best media, a system that almost always works very well.

Answer: FALSE

Diff: 2 Page Ref: 433

AACSB: Communication

Skill: Concept

Objective: 15-2


83) A simple message idea can become a great ad campaign when a copywriter and an art director team up to develop creative concepts.

Answer: TRUE

Diff: 1 Page Ref: 435

Skill: Concept

Objective: 15-2
84) Participants of the reality show Survivor win a team contest and receive a gift basket of Crest toothpaste, Ivory soap, and Charmin toilet paper. Proctor and Gamble, the maker of these products, has just participated in advertainment.

Answer: FALSE

Diff: 3 Page Ref: 436

AACSB: Analytic Skills

Skill: Application

Objective: 15-2


85) Slice of life, lifestyle, and personality symbol are all execution styles used in public relations.

Answer: FALSE

Diff: 2 Page Ref: 436

Skill: Concept

Objective: 15-2
86) Technical expertise, scientific evidence, and testimonial evidence are all examples of the execution styles that creative teams use in advertising products.

Answer: TRUE

Diff: 2 Page Ref: 438

Skill: Concept

Objective: 15-2
87) Scientific evidence is the execution style used when Subway advertises six subs for under six fat grams.

Answer: TRUE

Diff: 2 Page Ref: 438

Skill: Application

Objective: 15-2

88) As described in the opening scenario, GEICO uses both a gecko and a caveman in its advertisements. GEICO combines humor and testimonial evidence in its message execution.

Answer: FALSE

Diff: 2 Page Ref: 428

Skill: Application

Objective: 15-2


89) Reach is a measure of how many times the average person in the target market is exposed to the message.

Answer: FALSE

Diff: 2 Page Ref: 440

Skill: Concept

Objective: 15-2
90) Although television advertising is expensive for corporations, the cost per exposure is relatively low.

Answer: TRUE

Diff: 2 Page Ref: 441

Skill: Concept

Objective: 15-2
91) Direct mail is one of the least expensive media on a per exposure basis.

Answer: FALSE

Diff: 2 Page Ref: 441

Skill: Concept

Objective: 15-2
92) The communication effects of advertisements and ad campaigns are more difficult to measure than the sales and profit effects.

Answer: FALSE

Diff: 2 Page Ref: 443

Skill: Concept

Objective: 15-2
93) In small and large companies, advertising is typically handled by an individual or team in the sales department.

Answer: FALSE

Diff: 2 Page Ref: 444

Skill: Concept

Objective: 15-2
94) Today's advertising agencies are staffed with specialists who can often perform advertising tasks better than a producer or retailer's own employees can.

Answer: TRUE

Diff: 2 Page Ref: 444

Skill: Concept

Objective: 15-2

95) Recently, the increased use of online social networks and video sharing has reduced the need for advertising standardization for global brands.

Answer: FALSE

Diff: 3 Page Ref: 446

AACSB: Use of IT

Skill: Concept

Objective: 15-2
96) Since China has lifted many of its international trade restrictions, corporations such as McDonalds and Coca- Cola now have only limited censorship rules governing their TV and radio advertising.

Answer: FALSE

Diff: 2 Page Ref: 447

Skill: Concept

Objective: 15-2
97) In an attempt to change the perception that milk was unhealthy, the National Fluid Milk Processors Education Program established an advertising campaign featuring celebrities with milk mustaches and the tag line "Got Milk?"

Answer: FALSE

Diff: 2 Page Ref: 448

Skill: Concept

Objective: 15-3
98) A company typically spends comparable budgets on public relations and advertising.

Answer: FALSE

Diff: 2 Page Ref: 449

Skill: Concept

Objective: 15-3
99) A company's Web site can be an important public relations vehicle.

Answer: TRUE

Diff: 2 Page Ref: 451

AACSB: Use of IT

Skill: Concept

Objective: 15-4


100) The Butterball Turkey Talk-Line answers over 100,000 questions during November and December. The toll-free help line supplements the company's Web site and is a valuable public relations vehicle for Butterball.

Answer: TRUE

Diff: 1 Page Ref: 451

AACSB: Use of IT

Skill: Concept

Objective: 15-4

101) Marketing management must make four important decisions when developing an advertising program. Name and describe these four decisions.

Answer: a. Set advertising objectives, which can be classified by primary purpose: whether the aim is to inform, persuade, or remind.

b. Set the advertising budget: often depends on its stage in the product life cycle.

c. Develop advertising strategy: consists of creating an advertising message and selecting advertising media.

d. Evaluate advertising campaigns: monitor how well the advertising worked.

Diff: 2 Page Ref: 430-431

Skill: Application

Objective: 15-2


102) What are the three characteristics of advertising appeals?

Answer: Advertising appeals should be meaningful, believable, and distinctive. Meaningful appeals point out benefits that make the product more desirable or interesting to consumers. Believable appeals lead consumers to believe that the product or service will deliver the promised benefits. Finally, distinctive appeals should tell how the product is better than the competing brands.

Diff: 3 Page Ref: 435

Skill: Application

Objective: 15-2
103) The creative team must find the best way to execute an advertising message. Name and describe three of these styles of execution.

Answer: a. Slice of life: shows one or more typical people using the product in a normal setting.

b. Lifestyle: shows how a product fits in with a particular lifestyle.

c. Fantasy: creates a fantasy around the product or its use.

d. Mood or image: builds a mood or image around the product or service.

e. Musical: shows people or cartoon characters singing about the product.

f. Personality symbol: creates a character to represent the product.

g. Technical expertise: depicts the company's expertise in making the product or delivering the service.

h. Scientific evidence: presents survey or scientific evidence that the brand is better than other brands.

i. Testimonial evidence/endorsement: features a highly believable or likable source endorsing the product.

Diff: 2 Page Ref: 436-438

Skill: Application

Objective: 15-2

104) How are companies taking advantage of interactive technologies to tap consumers for message ideas and actual ads? What are the benefits and disadvantages of consumer-generated advertising?

Answer: Companies can now search existing video sites such as YouTube, set up their own Web sites, create accounts on social networks such as MySpace, and sponsor ad-creation contests. Several companies, such as Coca-Cola, MasterCard, and Frito-Lay, have used consumer-generated ads in national promotions. Consumer-generated advertising offers companies a way to gather new perspectives on their products and develop insights into how their products are used and seen by actual consumers. Also, consumer-generated advertising is very inexpensive. On the other hand, companies do not control consumer-generated material, which can lead to conflicting, or even negative, messages about a brand.

Diff: 3 Page Ref: 438-439

AACSB: Use of IT

Skill: Application

Objective: 15-2
105) Name and describe the four major steps in media selection.

Answer: a. Decide on reach, frequency, and impact. Reach is a measure of the percentage of people that are exposed to the advertisement; frequency is the measure of how many times the average person is exposed to the message; impact is how people feel about the advertisement.

b. Choose among major media types: television, newspapers, magazines, direct mail, radio, outdoor, and Internet.

c. Select specific media vehicles, such as choosing TV shows that the target would watch so he or she will see the commercial.

d. Decide on media timing. Determine how to schedule the advertising over the course of a year.

Diff: 2 Page Ref: 439-443

Skill: Application

Objective: 15-2

106) Identify four of the major media types and identify some of the strengths and weaknesses of each type.

Answer: a. Television: Advantages are good mass-marketing coverage, low cost per exposure, and appeals to the senses; weaknesses are high total costs and high clutter.

b. Newspapers: Strengths are timeliness, good local market coverage, and high believability; weaknesses are short life and poor reproduction quality.

c. Direct mail: Strengths are flexibility and capacity for personalization; weaknesses are relatively high cost per exposure and "junk mail" image.

d. Magazines: Strengths are high audience selectivity, credibility, and good pass-along readership; weaknesses are high costs and long lead times.

e. Radio: Strengths are good local acceptance and low cost; weaknesses are low attention and fleeting exposure to messages.

f. Outdoor: Strengths are flexibility, low cost, and low message competition; weaknesses are low audience selectivity and creative limitations.

g. Internet: Strengths include high selectivity, low cost, and interactive capabilities; weaknesses are audience control of exposure and relatively low impact.

Diff: 3 Page Ref: 441

AACSB: Reflective Thinking

Skill: Application

Objective: 15-2


107) For the sake of accountability, advertisers must evaluate two types of advertising results: the communication effects and the sales and profit effects. How are these two results measured?

Answer: Measuring the communication effects of an ad or ad campaign tells whether the ads and media are communicating the ad message well. Individual ads can be tested before or after they are run. Before an ad is placed, the advertiser can show it to consumers, ask how they like it, and measure message recall or attitude changes resulting from it. After an ad is run, the advertiser can measure how the ad affected consumer recall or product awareness, knowledge, and preference. Pre- and post-evaluations of communication effects can be made for entire advertising campaigns as well.


Advertisers have gotten pretty good at measuring the communication effects of their

ads and ad campaigns. However, sales and profit effects of advertising are often much

harder to measure. Sales and profits are affected by many factors other than advertisingsuch as product features, price, and availability. One way to measure the sales and profit effects of advertising is to compare past sales and profits with past advertising expenditures. Another way is through experiments. For example, to test the effects of different advertising spending levels, Coca-Cola could vary the amount it spends on advertising in different market areas and measure the differences in the resulting sales and profit levels. More complex experiments could be designed to include other variables, such as differences in the ads or media used.

Diff: 3 Page Ref: 443

AACSB: Analytic Skills

Skill: Application

Objective: 15-2

108) Describe public relations and three of its main functions.

Answer: Public relations departments build good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Functions include:

a. Product publicity: publicizing specific products

b. Public affairs: building and maintaining national or local community relations

c. Lobbying: building and maintaining relations with legislators and government officials to influence legislation and regulation

d. Press relations: creating and placing newsworthy information in the new media to attract attention to a person, product, or service associated with the company

e. Investor relations: maintaining relationships with shareholders

Diff: 3 Page Ref: 448

Skill: Application

Objective: 15-3
109) In a short essay, explain why a public relations campaign can be a more cost-effective option for corporations than an advertising campaign. Provide examples of companies that have achieved success by focusing on public relations rather than advertising.

Answer: Public relations can have a strong impact on public awareness at a much lower cost than advertising can. The company does not pay for the space or time in the media. Rather, it pays for a staff to develop and circulate information and to manage events. If the company develops an interesting story or event, it could be picked up by several different media, having the same effect as advertising that would cost millions of dollars. And it would have more credibility than advertising.


Starbucks, Amazon, Body Shop, and Nintendo's Wii have all achieved success through public relations campaigns rather than huge advertising campaigns.

Diff: 3 Page Ref: 448-450

AACSB: Reflective Thinking

Skill: Application

Objective: 15-4

110) Public relations specialists have several tools that they use. Identify three of these tools and describe how they can be used to help a company communicate with the public.

Answer: a. PR professionals find or create favorable news about the company and its products or people. Sometimes news stories occur naturally, and sometimes the PR person can suggest events or activities that would create news.

b. Speeches can also create product and company publicity. Increasingly, company executives must field questions from the media or give talks at trade associations or sales meetings, and these events can either build or hurt the company's image.

c. Another common PR tool is special events, ranging from news conferences, press tours, grand openings,and fireworks displays to laser shows, hot air balloon releases, multimedia presentations,

or educational programs designed to reach and interest target publics.

d. Public relations people also prepare written materials to reach and influence their target markets. These materials include annual reports, brochures, articles, and company newsletters and magazines.

e. Audiovisual materials, such as slide-and-sound programs, DVDs, and online videos are being used increasingly as communication tools.

f. Corporate identity materials can also help create a corporate identity that the public immediately recognizes. Logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms, and company cars and trucksall become marketing tools when they are attractive, distinctive, and memorable.

g. Companies can improve public goodwill by contributing money and time to public service activities.

h. Many marketers are now also designing buzz marketing campaigns to generate excitement and favorable word of mouth for their brands. Buzz marketing takes advantage of social networking processes by getting consumers themselves to spread information about a product or service to others in their communities.

Diff: 2 Page Ref: 450

Skill: Application

Objective: 15-4


111) U-Frame-It is a small company that has hired a local ad agency to put together an advertising campaign. Which of the following questions should be answered first?

A) What percentage of the budget should be for U-Frame-It radio ads?

B) Which type of media vehicle is most appropriate for U-Frame-It ads?

C) What are the communication and sales objectives of U-Frame-It?

D) How does U-Frame-It's competition advertise?

E) What is the demographic of U-Frame-It's customer base?

Answer: C

Diff: 3 Page Ref: 431

AACSB: Analytic Skills

Skill: Application

Objective: 15-2

112) Quaker Oats has been selling oatmeal for many years and is a trusted leader in the oatmeal market. What will be the most likely objective of advertisements for a new flavor of oatmeal being introduced by Quaker Oats?

A) build a company image

B) encourage customers to switch brands

C) correct false impressions

D) maintain customer relationships

E) change customer perceptions

Answer: D

Diff: 2 Page Ref: 432

AACSB: Analytic Skills

Skill: Application

Objective: 15-2


113) Suave ran ads featuring a woman with beautiful hair questioning "Suave or Matrix? Can You Tell?" This is an example of ________.

A) informative advertising

B) reminder advertising

C) comparative advertising

D) persuasive advertising

E) buzz marketing

Answer: C

Diff: 2 Page Ref: 432

AACSB: Analytic Skills

Skill: Application

Objective: 15-2
114) When Proctor & Gamble developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by Proctor & Gamble for the Mr. Clean Magic Eraser?

A) informative advertising

B) persuasive advertising

C) reminder advertising

D) developmental advertising

E) comparative advertising

Answer: A

Diff: 2 Page Ref: 431

AACSB: Analytic Skills

Skill: Application

Objective: 15-2

115) Apex detergent is relatively undifferentiated from two other detergent brands: Acme and Brighton detergent; therefore, Apex may require ________.

A) a different target market

B) a new package

C) heavy advertising to set it apart from others

D) a higher price

E) none of the above

Answer: C

Diff: 2 Page Ref: 443

AACSB: Analytic Skills

Skill: Application

Objective: 15-2


116) In its advertisements, Timex promotes its affordable and sturdy watches. Fossil emphasizes style and fashion in its advertisements, while Rolex stresses luxury and status. These are all examples of ________ appeals.

A) creative

B) meaningful

C) believable

D) entertainment

E) distinctive

Answer: E

Diff: 2 Page Ref: 435

AACSB: Analytic Skills

Skill: Application

Objective: 15-2
117) An ad for a new convection oven shows a busy professional woman serving dinner to her family. The convection oven is seen in the background, and the headline reads, "The latest development in time travel." This is an example of what type of execution style?

A) slice of life

B) lifestyle

C) fantasy

D) scientific evidence

E) mood or image

Answer: B

Diff: 2 Page Ref: 436

AACSB: Analytic Skills

Skill: Application

Objective: 15-2

118) When AFLAC uses a duck to represent its product, which type of execution style is being employed?

A) mood or image

B) fantasy

C) personality symbol

D) technical expertise

E) musical

Answer: C

Diff: 1 Page Ref: 438

AACSB: Analytic Skills

Skill: Application

Objective: 15-2


119) When a pharmaceutical ad includes a world-renowned heart surgeon describing the benefits of the medication, which type of execution style is being used?

A) mood or image

B) fantasy

C) personality symbol

D) musical

E) technical expertise

Answer: E

Diff: 2 Page Ref: 438

AACSB: Analytic Skills

Skill: Application

Objective: 15-2
120) Mike's Bike Shop's has a new print advertisement appearing in the local newspaper. What will be the first element readers will notice in the advertisement?

A) headline

B) illustration

C) copy


D) subheadlines

E) color


Answer: B

Diff: 2 Page Ref: 438

AACSB: Analytic Skills

Skill: Application

Objective: 15-2

121) You receive a report that 68% of your target market has been exposed to your ad campaign during a given period of time. The information in the report relates to ________.

A) reach

B) frequency

C) impact

D) engagement

E) qualitative value

Answer: A

Diff: 1 Page Ref: 440

AACSB: Analytic Skills

Skill: Application

Objective: 15-2


122) You are looking to advertise your new product, and you want good mass-marketing coverage and low cost per exposure. You should choose ________ as your advertising media.

A) newspaper

B) radio

C) outdoor

D) television

E) direct mail

Answer: D

Diff: 3 Page Ref: 441

AACSB: Analytic Skills

Skill: Application

Objective: 15-2
123) Franklin & Marshall College wishes to contact high school seniors at independent schools in Pennsylvania. Which of the following media would be most effective and efficient?

A) an e-mail reaching out to students through the Internet

B) local newspapers ads throughout the state

C) radio ads throughout the state

D) a direct mail piece sent to the schools

E) billboards throughout the state

Answer: D

Diff: 3 Page Ref: 441

AACSB: Reflective Thinking

Skill: Application

Objective: 15-2

124) Capture Cameras is launching a new advertising campaign to demonstrate the quality of their digital cameras. Which media option will attract the most demographically skewed audience with relatively low impact?

A) the Internet

B) newspaper

C) TV

D) radio


E) billboard

Answer: A

Diff: 3 Page Ref: 441

AACSB: Analytic Skills

Skill: Application

Objective: 15-2


125) IAMS Pet Food runs a commercial on the Animal Planet cable channel during an episode of The Dog Whisperer. The advertising agency for IAMS is taking advantage of which of the following?

A) prime time

B) broadcasting

C) narrowcasting

D) audience engagement

E) frequency and reach

Answer: C

Diff: 2 Page Ref: 440

AACSB: Analytic Skills

Skill: Application

Objective: 15-2
126) ABC Advertising Agency was recently hired to create an advertising campaign for a local water park. Since the park is only open during the spring and summer months, ________ plays a major role in the firm's decision about scheduling advertisements.

A) media vehicles

B) continuity

C) audience quality

D) audience engagement

E) media timing

Answer: E

Diff: 1 Page Ref: 443

AACSB: Analytic Skills

Skill: Application

Objective: 15-2

127) The advertising agency hired by Mrs. Brown's Cookie Company has developed a series of commercials about the new cookie flavors created by the company. The head of the marketing department thinks that pulsing would be the most appropriate way to schedule the commercials. What is the potential benefit of pulsing the cookie ads?

A) The ads would achieve maximum awareness.

B) The costs of advertising would be low.

C) Audience quality can be evaluated.

D) Ads can be modified for different demographics.

E) Ad schedules can be adapted based on sales.

Answer: B

Diff: 3 Page Ref: 443

AACSB: Analytic Skills

Skill: Application

Objective: 15-2


128) Fence Patrol is considering an international advertising campaign. The company may face any or all of the following problems EXCEPT ________.

A) media costs may vary

B) media availability may vary

C) regulation of advertising may vary

D) some products may be barred or illegal

E) all of the above

Answer: E

Diff: 2 Page Ref: 447

AACSB: Analytic Skills

Skill: Application

Objective: 15-2
129) Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly contacts members of the local and state-wide media with information about community events and charity fundraisers sponsored by her company. This is an example of the ________ function of public relations.

A) press relations

B) product publicity

C) public affairs

D) lobbying

E) development

Answer: A

Diff: 1 Page Ref: 448

AACSB: Analytic Skills

Skill: Application

Objective: 15-3

130) The National Pork Board developed its very successful "Pork. The Other White Meat" campaign. The campaign provided nutritional information and pork recipes in an attempt to encourage consumers to view pork as a tasty alternative to poultry and fish. Which of the following functions was the goal of this public relations campaign?

A) influence government regulations on pork

B) gain financial support for pork producers

C) create newsworthy information about pork

D) maintain relationships with pork producers

E) build up a positive image for pork

Answer: E

Diff: 1 Page Ref: 448

AACSB: Analytic Skills

Skill: Application

Objective: 15-3


131) In an attempt to set the company apart from its competitors, United Parcel Service has its employees wear brown uniforms and drive brown trucks. What type of public relations tool is UPS using?

A) buzz marketing

B) corporate logos

C) corporate identity materials

D) product publicity

E) public service materials

Answer: C

Diff: 2 Page Ref: 450

Skill: Application

Objective: 15-4


132) The public relations department at a manufacturer of a variety of technological devices has been charged with developing inexpensive methods of building and maintaining brand awareness and excitement. To begin with, the public relations department has recruited consumers who are early adopters of technological devices to spread the word about the company's new products. This is an example of the public relations tool of ________.

A) public service activities

B) special events

C) audiovisual materials

D) corporate identity marketing

E) buzz marketing

Answer: E

Diff: 1 Page Ref: 450

AACSB: Reflective Thinking

Skill: Application

Objective: 15-4



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