Issuu

Advertising and Sales Promotion, 1e Ken Kaser (Test Bank All Chapters, 100% Original Verified, A+ Grade) Chapter 1 1. Advertising has been around since only the early 1800s. a. True *b. False 2. Advertisements in the 1950s typically focused on families and new technological advances. *a. True b. False

3. Beginning in the 1950s, television became the dominant form of advertising because commercials could be broadcast with sight, sound, and motion. *a. True b. False

4. The Internet has not yet become an important advertising medium for most businesses. a. True *b. False

5. One reason why print advertising is widely used today is because it does not negatively impact the environment. a. True *b. False

6. Businesses that use green marketing have an advantage when introducing their product or service in the marketplace. *a. True b. False

7. It is unethical for a business to advertise its social responsibility efforts; such efforts should always be conducted behind the scenes. a. True *b. False

8. Advertising is highly influenced by consumer needs and purchase patterns. *a. True b. False

Chapter 1 9. Understanding consumer motivation is the best way to learn how to increase buyer incentive through effective advertising. *a. True b. False

10. Blogs are a poor source of consumer information about products and services. a. True *b. False

11. All a successful ad requires is a strong understanding of the product or service being promoted. a. True *b. False

12. Brand advertising and product advertising sometimes overlap. *a. True b. False

13. Corporate advertising does not ask consumers to take a specific action, such as to buy a product. *a. True b. False

14. Account planners communicate the client’s objectives to other team members at the advertising agency to ensure that strategies are carried out on schedule and within budget. a. True *b. False

15. Outsourcing occurs when a small advertising agency assigns individual tasks to other companies that specialize in planning, designing, and creating advertisements. *a. True b. False

16. During the 1920s, advertising was typically a. no-nonsense and focused on practical goods *b. glamorous and promoted consumption during prosperous times

Chapter 1 c. oriented primarily toward families and children d. highly visual and included little text

17. Cable television impacted advertising because a. it forced advertising agencies to produce commercials that ran for only 30 or 60 seconds b. it strengthened the appeal of radio as an advertising medium *c. it allowed advertisers to narrow the demographics of their intended audiences d. all of the above are correct

18. When did Internet advertising come onto the scene? a. the 1970s b. the 1980s *c. the 1990s d. the 2000s

19. Businesses that use green business practices *a. are often favored by customers b. find ways to turn pollution into “green” cash c. are generally less profitable than companies that underestimate environmental influences d. have been losing market share for years

20. The MAIN focus of trade associations is a. shaping public opinion on various issues *b. collaboration between companies to develop industry standards c. producing advertising to influence public sentiment d. lobbying legislators to support or oppose particular legislation

21. When Monica visits Poppy’s Pizza, she gives her order to Martin, the server. Poppy makes the pizza in the kitchen and brings it to Monica’s table. After Monica has enjoyed her meal, she pays the cash register clerk, Amber. Who is the consumer in this scenario? a. Poppy b. Martin c. Amber *d. Monica

22. Which of the following terms refers to what a customer wants from a product. *a. direction

Chapter 1 b. passion c. intensity d. desire

23. Which of the following is an example of corporate advertising? *a. GE runs an advertisement about capturing and using wind energy through the use of windmills. b. Hyundai runs an advertisement emphasizing the low price and durability of its automobiles. c. Nike runs a series of advertisements featuring its “Just Do It” slogan to build a positive brand image. d. All of the above are examples of corporate advertising.

24. The PRIMARY role of an advertising agency is to a. reaffirm the brand image of its clients b. build ad campaigns to increase sales of a company’s products *c. analyze a company’s goals and help it achieve those goals through well-planned advertising strategies d. attract new customers and retain current customers for its clients

25. The words used in an advertisement are the responsibility of the a. editor b. media planner c. creative director *d. copywriter

26. In 1848, it was possible to print 10,000 sheets per hour on a printing press. If an advertiser wanted to print 100,000 sheets, how many hours would it take? Correct Answer(s): a. 10

27. In 1880, total advertising dollars spent in the United States was $200 million. By 1920, that figure had grown to $3 billion. What percentage increase is that? Correct Answer(s): a. 1400%

28. A popular radio program in the 1950s had an audience of 24 million listeners a week, airing on 1,600 radio stations. On average, how many people were listening on each of those radio stations? Correct Answer(s):

Chapter 1 a. 15,000

29. Tipton Industries’ green marketing campaign has resulted in a 4 percent increase in sales over last year. If sales totaled $500,000 last year, what are sales this year? Correct Answer(s): a. $520,000

30. A company spent its advertising dollars last year as indicated below: product advertising: $350,000 brand advertising: $250,000 corporate advertising: $200,000 What percentage of total advertising dollars did the company spend on corporate advertising? Correct Answer(s): a. 25%

31. A paid form of communication intended to inform, persuade, and remind an audience to take some kind of action is called _____. Correct Answer(s): a. advertising

32. New _____ techniques developed in the 1880s used assembly lines to create standardized products in large quantities, prompting manufacturers to develop brand names to help consumers clearly identify their products. Correct Answer(s): a. mass production

33. A(n) _____ is a lengthy paid advertisement that showcases the benefits of a product. Correct Answer(s): a. infomercial

34. The use of advertising to support and improve the environment is known as _____. Correct Answer(s): a. green marketing

Chapter 1 35. Industry trade groups, often called _____, are founded and funded by businesses operating in a specific industry. Correct Answer(s): a. trade associations

36. The end user of a product or service is a(n) _____. Correct Answer(s): a. consumer

37. A(n) _____ is the combination of unique qualities of a company, product, or product line. Correct Answer(s): a. brand

38. The _____ is the client that needs creative messages and advertising campaigns to reach target markets. Correct Answer(s): a. advertiser

39. The production department at an advertising agency is led by a(n) _____, who manages everything that happens after an advertisement is developed. Correct Answer(s): a. producer

40. _____ are consultants to advertising agencies and are used to identify what makes a company unique in a market flooded with consumer choices. Correct Answer(s): a. Brand specialists

41. When were advertising agencies founded? How were they first used? Correct Answer: Advertising agencies were founded in the late 19th century. They were first used to sell advertising space in local newspapers and a limited number of magazines.

42. Identify four inventions that have influenced advertising. Correct Answer: Four inventions that have influenced advertising include the printing press,

Chapter 1 radio, television, and the Internet.

43. What is social responsibility? Correct Answer: Social responsibility is the principle that businesses should contribute to the welfare of society.

44. Define the term consumer behavior. Correct Answer: Consumer behavior describes how and why people make purchase decisions.

45. Name the three common types of advertising. Correct Answer: The three common types of advertising are product advertising, brand advertising, and corporate advertising.

46. What is a media plan? Correct Answer: A media plan outlines when and where advertisements will run and how often.

47. Describe the early origins of advertising. Correct Answer: Advertising has been around practically since the beginning of time. Advertisements appeared as inscriptions on Egyptian tombs around 3000 B.C. The Greeks engraved theater advertisements in stone around 500 B.C. The ancient ruins of cities like Pompeii and Rome showed evidence of message boards on the lime-whitened walls of buildings displaying political and commercial messages for the public to read. In many parts of South America, Asia, and Africa, stone carvings or paintings displaying commercial advertisements on old walls have been discovered.

48. What are negative campaign advertisements? What is the impact of such advertisements on the political process? Correct Answer: Negative campaign advertisements involve criticism of a candidate, a policy position, or past performance. Some of the advertisements question the character of political candidates. Exposure to advertisements does influence public perceptions of the candidates. However, it is unclear as to whether negative political advertising is actually effective. Some critics of negative ads believe that they actually discourage people from going to the polls to vote and diminish confidence in the political system.

Chapter 1 49. Explain the various ways technology has given consumers greater control over how they get information about products and product brands. Correct Answer: The latest technology has given consumers greater control over how they get information about products and product brands. For example, rather than relying on advertisements, consumers can visit websites to view product information or make purchases. Consumers are in control of the disbursement of product information when they use blogs, which are websites frequented by individuals with common interests. The facts, opinions, and personal experiences posted by individuals on blogs are emerging as new, sophisticated sources of product and brand information. Many consumers choose to receive targeted advertisements through text messaging. Consumers also exert control over the messages they receive by using digital video recorders (DVRs) and controllers that have ad-skipping capabilities. Because consumers now can easily ignore advertisements, advertisers must adapt to consumer control by using more entertaining and informative advertising. To counter the effects of DVRs, advertisers are now running advertising messages along the bottom of the screen during television programs. As new technology emerges, advertisers will need to continue to find new ways to get their messages to consumers.

50. What is a boutique advertising agency? Describe the objective of a boutique advertising agency and briefly explain how it operates. Correct Answer: A boutique advertising agency is a small, specialized advertising company that outsources many of its services. The primary objective of a boutique advertising agency is to create brand identification for a product or service through the use of nontraditional creativity. Boutique advertising agencies typically serve one particular market exclusively. They focus on what they are good at—the creative aspect of advertising—and then outsource the other work, such as media planning and buying, to those with more expertise. By doing so, they are able to produce the best product at the most reasonable price.

Chapter 2 51. The product and service preferences of customers rarely change, making it relatively easy for businesses to understand what customers want. a. True *b. False

52. After people have a sense of physical and economic security, their attention turns to social needs. *a. True b. False

53. Good marketing and advertising create needs. a. True *b. False

54. All purchasing decisions require the same decision-making skills. a. True *b. False

55. Ways to evaluate alternative solutions include summarizing information, comparing the benefits of each choice, and ranking alternatives. *a. True b. False

56. All low-cost purchases involve routine decision making. a. True *b. False

57. New purchases tend to be infrequent. *a. True b. False

58. Repeat purchases are usually associated with low-cost products and services that involve low risk. *a. True b. False

59. When customers have not had a past experience with a product or service, there is usually a lower level of involvement in making the buying decision.

Chapter 2 a. True *b. False

60. Advertising for each of the various product categories (convenience, shopping, specialty, and unsought) is different because each one has a different target market. *a. True b. False

61. Advertising campaigns for specialty products must emphasize why consumers believe the product or service is unique. *a. True b. False

62. Emotional advertising spends more time describing product features than creating a special experience for the consumer. a. True *b. False

63. Rational buying motives apply only to very expensive purchases. a. True *b. False

64. Your social environment consists of other individuals or groups with whom you interact regularly. *a. True b. False

65. Promotional strategies can be used to match demand with supply. *a. True b. False

66. Which of the following is NOT one of the five areas of personal needs identified by Abraham Maslow? a. social b. security *c. wealth d. esteem

Chapter 2 67. Which of the following would be properly categorized as a capital resource? a. a shipment of lumber *b. a new delivery truck c. company employees d. all of the above

68. The first step in the consumer decision-making process is to a. evaluate alternatives b. search for information *c. recognize the problem d. compare prices

69. When you purchase your favorite candy bar at a convenience store, you are probably using which type of decision making? *a. routine b. narrow c. limited d. general

70. Limited decision making is often involved in _____ purchases. a. new *b. modified c. repeat d. original

71. Which of the following people is likely to be MOST involved in the buying decision described? a. Terri needs a new cell phone, but she has very little personal interest in the latest technology. b. Chris is thirsty and stops by the drug store to buy a bottle of his favorite soda. *c. Martina is picking out her wedding dress, as well as dresses for her bridesmaids. d. Denzell is shopping for a new toaster because his old one finally stopped working.

72. As he was paying for his groceries, Alex grabbed a celebrity gossip magazine that was on the rack at the checkout aisle. The magazine is an example of a(n) a. shopping product b. unsought product

Chapter 2 c. staple product *d. impulse product

73. Grandma always buys Martha White brand flour to do her baking. She wouldn’t think of ever trying a different brand of flour. In this case, Grandma’s purchasing decision is driven by _____ motives. *a. patronage b. rational c. environmental d. logical

74. The set of emotions, traits, and behaviors that define you is called your a. culture *b. personality c. lifestyle d. self-concept

75. When advertisers target messages to specific groups such as African Americans and Hispanic Americans, they are showing awareness of the importance of ____ on buying decisions. *a. ethnicity b. lifestyle c. values d. gender

76. Danielle wants a new iPad. Her parents told her that they will contribute $200 toward the purchase if she saves the rest herself. If an iPad costs $500 and Danielle is able to save $15 per week, how many weeks will it take for her to save her share of the cost? Correct Answer(s): a. 20

77. Midori is shopping for a new washing machine. She has found one model that costs $450. A second model costs 7 percent less than the first model. How much does the second model cost? Correct Answer(s): a. $418.50

78. Before he redeemed his coupons, Jason’s grocery bill came to $140. After his coupons were applied, the bill was $131.60. Jason saved ___ percent on his groceries this week.

Chapter 2 Correct Answer(s): a. 6

79. Funeral planning is an unsought purchase for most people. But Clyde has purchased a preplanned funeral arrangement service. He will pay $150 per month for five years to purchase the service. What is the total cost of the service Clyde has purchased? Correct Answer(s): a. $9,000

80. Dilton wants to be logical about his computer purchase. One system he is considering costs $500 plus an additional $80 per year for an extended warranty. Another system costs $790 but comes with a lifetime warranty at no extra cost. If Dilton expects to use the computer for four years and he wants to take the least expensive option, how much will he spend? Correct Answer(s): a. $790

81. A(n) _____ is anything you require for survival. Correct Answer(s): a. need

82. Personal needs and wants are never ending, but the resources used to produce goods and services are limited. This is the concept of _____. Correct Answer(s): a. scarcity

83. _____ decision-making is used for frequently purchased, low-cost products that require little thought. Correct Answer(s): a. Routine

84. Someone purchasing an automobile or a new home is likely using _____ decision making. Correct Answer(s): a. extensive

85. A(n) _____ purchase occurs when consumers must make new decisions about a product or service that they have previously purchased.

Chapter 2 Correct Answer(s): a. modified

86. A(n) _____ product is purchased regularly without much planning. Correct Answer(s): a. convenience

87. Vacation destinations, restaurants, luxury automobiles, and designer clothing are all examples of _____ products. Correct Answer(s): a. specialty

88. The incentive or reason for doing something is called _____. Correct Answer(s): a. motivation

89. Purchases that are based on facts or logic are influenced by _____ motives. Correct Answer(s): a. rational

90. _____ is any form of communication that a company uses to create a favorable image of its products or services. Correct Answer(s): a. Promotion

91. Define the term consumer behavior. Correct Answer: Consumer behavior describes how consumers make buying decisions, choose among alternatives, and use products.

92. List the five steps in the consumer decision-making process. Correct Answer: The five steps are (1) recognize the problem, (2) search for information, (3) evaluate alternatives, (4) make the purchase, and (5) evaluate the purchase.

93. Identify the three types of consumer purchases. Which is the most common

Chapter 2 type of purchase? Correct Answer: The three types of consumer purchases are new purchases, modified purchases, and repeat purchases. Repeat purchases are most common.

94. Name the four basic categories of consumer products. Correct Answer: The four basic categories of consumer products are convenience products, shopping products, specialty products, and unsought products.

95. What are buying motives? Identify the three categories of buying motives that influence consumer behavior. Correct Answer: Buying motives are the driving forces that cause consumers to buy products and services. The three categories of buying motives are emotional motives, rational motives, and patronage motives.

96. What is an advertising campaign? Correct Answer: An advertising campaign is a series of related advertisements with a common theme or idea that focuses on a specific product, service, brand, or message.

97. What is the final step in the consumer decision-making process? Describe it and explain how and why businesses are helping consumers with this step. Correct Answer: The final step in the consumer decision-making process is the post-purchase evaluation. During this stage, the consumer decides whether the purchase met his or her expectations and satisfied the need. Marketers are paying more attention to post-purchase satisfaction. Many businesses now offer money-back guarantees to customers who are not fully satisfied with a product. They are also making an effort to communicate with customers after a sale to reinforce the buying decision and to ensure satisfaction. Businesses that follow up with customers can learn how to improve customer relations and win repeat business.

98. Describe the factors that influence consumer involvement in buying decisions. Correct Answer: When consumers have had a past experience with a product or service, there tends to be a lower level of involvement in making the buying decision. Consumers’ specific interests can also impact the level of involvement in buying decisions. For example, consumers who are interested in a particular kind of product will spend more time shopping before purchasing items in this product category.

Chapter 2 When consumers perceive risk associated with a purchase, they will become more involved in the buying process. For example, high-priced items can result in financial risk. Thus, a higher level of consumer involvement is associated with higher-priced items. Circumstances also can influence the level of consumer involvement in making a purchase. A consumer may put more thought into buying a product or service if it is for a special occasion. Finally, higher consumer involvement is often associated with purchases that enhance self-image. If a consumer wants to make a statement or reinforce his or her image by purchasing a certain product, the buying decision becomes more relevant. Therefore, the consumer spends more time making the decision.

99. What is an unsought product? How are unsought products marketed and advertised? Correct Answer: Unsought products are not actively sought out by consumers. This could be because the consumer is unaware of the product or service. Advertising is used to increase awareness of new products. The advertising must communicate how the new product will satisfy consumer needs and where it can be purchased. Without awareness, there will be no demand, and the product will not succeed. Marketing unsought products or services often requires personal selling and persuasive advertising. Salespeople seek out potential customers. Advertisements may make an emotional claim to convince consumers of the need for this type of product or service.

Chapter 3 101. Marketing is defined as advertising and selling to an appropriate audience. a. True *b. False

102. Marketing has always been viewed as an important business function. a. True *b. False

103. Market planning involves identifying target markets and developing an effective marketing strategy and marketing mix that will produce a satisfying exchange relationship. *a. True b. False

104. Selling is direct, personal communication with prospective customers that involves assessing needs, explaining how the business’s products and services can satisfy those needs, and following up to ensure satisfaction. *a. True b. False

105. A target market is a specific group of consumers to whom the business wants to sell its products and services. *a. True b. False

106. In selecting a target market, it’s important to consider factors such as geographical location, income level, and the specific needs or wants the product or service will satisfy. *a. True b. False

107. In an effective target market, needs and wants may vary greatly, but people can afford the product or service and there is adequate data available to create an effective marketing mix. a. True *b. False

108. In general, mass marketing is easier and more effective for smaller or more specialized businesses.

Chapter 3 a. True *b. False

109. When market segmentation is used, a customer profile can be helpful in building customer relationships and customer loyalty. *a. True b. False

110. Demographics such as consumer age, gender, and race are no longer considered to be important in determining consumer needs and wants. a. True *b. False

111. Geographic segmentation and psychographic segmentation are effective and commonly used examples of market segmentation. *a. True b. False

112. Psychographics focus attention on the way people spend their time and the motives behind their actions. *a. True b. False

113. The first important step in identifying an effective market segment is choosing a specific market or product category to study. *a. True b. False

114. Meaningful subgroups are based on identifiable and similar characteristics and needs, such as education level, occupation, and age. *a. True b. False

115. Market potential is based primarily on the size and income level of the market segment being studied. a. True *b. False

Chapter 3 116. Which of the following statements is NOT true about marketing? a. Marketing involves all of the processes used to identify, create, and maintain exchange relationships that satisfy individuals and organizations. b. The marketing concept focuses on identifying and satisfying the needs of customers. *c. Marketing has been recognized as an important business function since the early 1900s. d. The marketing concept becomes increasingly important in the face of competition and as the standard of living improves.

117. Which of the following is NOT a necessary marketing function? *a. production of a product with mass appeal b. appropriate pricing c. promotion and/or selling d. distribution

118. An advertisement describing the environmental benefits of driving a new hybrid car versus driving an older, gas-engine car, is an example of a. product and service management b. selling *c. promotion d. marketing-information management

119. Which of the following most accurately describes a target market? a. a group of consumers who have the income necessary to buy a company’s products or services *b. a group of consumers to whom the business wants to sell its products or services c. a group of consumers of similar age, gender, ethnicity and location d. a group of consumers with the greatest desire to buy a company’s products or services

120. In choosing a target market for a new, upscale restaurant featuring primarily pizza and sandwiches, which of these factors is LEAST likely to be an important consideration? a. Where do potential customers live? b. How much income do potential customers have? c. What price are potential customers willing to pay for this product and service? *d. What do potential customers do for a living?

121. Which of the following services or products would most likely be a candidate for a mass marketing strategy?

Chapter 3 a. in-home health care *b. cleaning and household repair services c. pet sitting d. gardening and landscaping

122. Which of the following products or services would be the most likely candidate for market segmentation? *a. automobiles b. soft drinks c. paper products d. computers

123. Which of the following is NOT an aspect of demographic segmentation? a. education level b. occupation *c. interests d. marital status

124. Which of the following is NOT an aspect of psychographic segmentation? a. attitudes *b. age c. lifestyle d. opinions

125. Which of the following factors determine whether a market segment has strong potential? a. The market segment is measurable and accessible. b. The market segment has many potential customers and the potential for growth. c. neither a or b *d. both a or b

126. A local electronics store has rolled back the price on its best-selling HDTV. The old price was $400. The new price is 6 percent less. What is the new price? Correct Answer(s): a. $376

127. It has been estimated that each child in the United States is exposed to 40,000 television commercials each year. How many is that each day, on average? (Round to the nearest whole number.)

Chapter 3 Correct Answer(s): a. 110

128. A tablet computer costs $500. Creative marketing accounts for 3 percent of the price being charged for the tablet. How much money was spent to market the tablet? Correct Answer(s): a. $15

129. A tablet computer costs $500. Creative marketing accounts for 3 percent of the price being charged for the tablet. What would the price of the tablet be if marketing costs were not applied to the final price? Correct Answer(s): a. $485

130. Data indicate that total sales of pizza in Brownsville are $2 million each year. If Topper’s Pizza has captured 20 percent of the market, what is the amount of Topper’s annual sales? Correct Answer(s): a. $400,000

131. The marketing concept focuses on identifying customer needs and wants; applying the concept to planning, production, _____, distribution, and promotion; and satisfying customer needs and wants while operating profitably. Correct Answer(s): a. pricing

132. The _____is a combination of four marketing elements--product, price, distribution, and promotion. Correct Answer(s): a. marketing mix

133. Budgeting resources to carry out marketing strategies and providing financial assistance to customers to enable them to buy are aspects of marketing known as _____. Correct Answer(s): a. financing

134. A _____ market is a smaller, narrowly defined target market with a unique

Chapter 3 set of needs. Correct Answer(s): a. niche

135. A(n) _____ is a description of the characteristics exhibited by an individual who is likely to buy a business’s products or services. Correct Answer(s): a. customer profile

136. A company uses _____ in an attempt to appeal to a large, general group of consumers. Correct Answer(s): a. mass marketing

137. One type of market segmentation is _____segmentation, in which consumers may be classified as first-time users, light users, or heavy users. Correct Answer(s): a. product usage

138. Product brand and performance, as well as lifestyles and attitudes, are critical issues when considering _____segmentation. Correct Answer(s): a. psychographic

139. Market potential is based on _____. Correct Answer(s): a. profitability

140. _____ marketing defines consumers by age but also considers their social and economic backgrounds and lifestyles. Correct Answer(s): a. Generational

141. Define the term marketing. Correct Answer: Marketing involves all of the processes used to identify, create, and maintain exchange relationships that satisfy individuals and organizations.

Chapter 10 478. The advertising campaign for Dilly Deli cost $10,000 and the return on investment was 500 percent. How much did the ad campaign generate in additional sales? Correct Answer(s): a. $60,000

479. A comparison advertisement for a new brand of automobile tire claims that its tires last 20 percent longer than the leading brand. If the leading brand lasts for 30,000 miles, how many miles should you expect to get from the new brand? Correct Answer(s): a. 36,000

480. A survey asked 700 consumers if they remembered seeing an ad for Ford trucks during Monday Night Football. Results indicated that 63 percent recognized the ad. How many consumers in the survey is that? Correct Answer(s): a. 441

481. A(n) _____ analysis describes the environment in which a business is operating. Correct Answer(s): a. situational

482. The _____ describes who the target market is, what the advertising message will be, and how the message will be communicated. Correct Answer(s): a. creative strategy

483. The amount earned as a result of money invested is called the _____. Correct Answer(s): a. return on investment b. ROI

484. When using _____ advertising, advertisers must understand the psychographic characteristics of their target audience. Correct Answer(s): a. lifestyle

Chapter 10 485. _____ advertising promotes the general perception of a product or service rather than its function or purpose. Correct Answer(s): a. Image

486. The process of using words to express creative ideas and concepts is called _____. Correct Answer(s): a. copywriting

487. A(n) _____ is a component of a print advertisement that is used to capture the reader’s attention. Correct Answer(s): a. headline

488. A(n) _____ is a drawing of the print advertisement showing where all the elements in the ad are positioned. Correct Answer(s): a. layout

489. A _____ test measures a lower level of brand awareness by determining whether audience members remember seeing the ad. Correct Answer(s): a. recognition

490. A(n) _____ study measures consumers’ feelings and beliefs about a brand before and after exposure to an advertisement. Correct Answer(s): a. attitude

491. What is an advertising plan? Correct Answer: An advertising plan describes the goals of an advertising campaign, methods to use to accomplish those goals, and ways to evaluate whether those goals are achieved.

492. Why might a business conduct an industry analysis? Correct Answer:

Chapter 10 A business might conduct an industry analysis to determine the estimated size of an industry, the expected outlook of an industry, the product/service and sales trends in an industry, the leading businesses in an industry, and marketing strategies commonly used in an industry.

494. What is a creative brief? When is it developed? Correct Answer: The creative brief is developed as part of the creative strategy process. It is a description of what the advertising campaign is to accomplish.

495. Briefly explain how technology has improved the way consumers’ behavior can be tracked. Correct Answer: Research companies can supply selected households with handheld scanners and electronic meters that are attached to TV sets. This equipment tracks brand purchases, coupon use, and advertising exposure. Advertisers use the data to measure the impact of their ads.

496. How can the use of different contact telephone numbers help a company determine the effectiveness of its advertising? Correct Answer: When a company receives calls to a phone number that is listed only in an advertisement, it is easier to track results.

497. Why are advertising plans based on objectives? Name at least five common advertising objectives. Correct Answer: Advertising plans are based on objectives that describe the desired results of the advertising campaign. Common advertising objectives include the following:

• • • • • • •

Build consumer awareness of a product or brand Communicate product or brand benefits Generate interest in a product or brand Create, change, or reinforce consumers’ attitudes about a brand Persuade consumers to switch brands Attain brand loyalty Increase sales

498. Under what circumstances is standardized advertising likely to be

Chapter 10 effective for companies that do business internationally? Identify two types of consumers who are good candidates for the standardized advertising approach. Correct Answer: Standardized advertising is likely to be more effective among consumers who live in countries that have similar economic, technological, legal, social, and cultural environments. The two types of consumers who are good candidates for the standardized advertising approach are (1) affluent people who are “global citizens” and who come into contact with ideas from around the world through their travels, business contacts, and media experiences; and (2) young people whose tastes in music and fashion are strongly influenced by MTV and other media that broadcast many of the same images to multiple countries.

499. Identify and describe the three phases of the production stage for a television advertisement. Correct Answer: The three phases are preproduction, production, and postproduction. During the preproduction stage, the creative team and the producer create a production schedule, hire a director, assemble a production crew, select a location, cast the actors, and hire music suppliers. In the production stage, the commercial is filmed. A well-laid plan and highly trained technicians help ensure this process goes smoothly, but unexpected events such as bad weather and intrusive noises can cause disruptions. After the commercial is filmed, it enters the postproduction stage. Editors, sound engineers, voice-over specialists, special effect artists, and others finish the commercial. It may go through several rounds of editing and assembly before the master copy is completed. Copies of the master are made and distributed to every TV station that is part of the media plan.

500. What is the final step in an advertising plan? Give some reasons why this step is so important. Correct Answer: The final step in an advertising plan is to evaluate the effectiveness of the advertising campaign. There are many reasons why measuring the effectiveness of advertising is important. For one thing, it determines whether the advertising message made an impact on the target audience. It also identifies which strategies worked and which didn’t. Evaluating an ad’s effectiveness can provide useful information that advertisers can use to make future advertising messages more effective. Finally, it is used to justify the investment in advertising.

Chapter 11 501. Consumer-oriented advertising may use an approach that focuses on emotional connections in human relationships as well as business relationships. *a. True b. False

502. Current trends in advertising include a greater presence for youth, who will be the next generation of consumers. *a. True b. False

503. Using consumer-oriented advertising to promote products is relatively simple for advertisers because consumer values and attitudes remain consistent. a. True *b. False

504. A sponsorship is a company’s support of an issue, cause, or event that is consistent with company objectives. *a. True b. False

505. Successful sponsorships should have well-defined short-term and/or long-term objectives and should be aligned with the company’s values. *a. True b. False

506. Brand-building sales promotions are designed to create a short-term increase in sales. a. True *b. False

507. Brand-building sales promotions are less frequently related to price, may offer promotional rewards for repeat purchases, and are often valid for an extended period of time. *a. True b. False

508. In order to survive in a highly competitive environment, companies must create a brand preference that’s strong enough to lead to long-lasting

Chapter 11 relationships. *a. True b. False

509. Direct marketing does not work well in a niche market. a. True *b. False

510. Direct retailing allows consumers to see a product demonstrated in their own home. *a. True b. False

511. Brand equity can be either positive or negative, depending on the reputation a brand acquires. *a. True b. False

512. The extent to which a brand is recognized and associated with a specific product or service is known as brand equity. a. True *b. False

513. The idea behind a brand image is that the consumer is purchasing not only the product but also the image associated with that product. *a. True b. False

514. The most common positioning strategy is price and quality positioning. a. True *b. False

515. Benefit positioning is used to show consumers how a brand’s attributes or benefits are capable of solving the consumers’ problems or satisfying the consumers’ needs. *a. True b. False