Advertising and Promotion Solved
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Course Introduction
Advertising and Promotion explores the key principles, strategies, and techniques used by organizations to communicate with target audiences and build brand awareness. The course covers the development of integrated marketing communications campaigns, including the creation and placement of advertisements across traditional and digital media platforms. Students will examine the roles of research, consumer behavior, creative messaging, media planning, and promotional tools such as sales promotions, public relations, and event marketing within the promotional mix. Through real-world case studies and hands-on projects, students will gain practical experience in designing effective campaigns that achieve organizational objectives while adhering to legal, ethical, and social responsibility standards.
Recommended Textbook
Marketing Management 13th Edition by Phil Kotler
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Page 2
Chapter 1: Defining Marketing for the 21st Century
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Q1) According to Starbucks Chairman Howard Schultz,"Consumers now commonly engage in a cultural audit of [product and service] providers.People want to know your value and ethics demonstrated by how you treat employees,the community in which you operate." Discuss the concept of social responsibility marketing and how it impacts both companies and consumers.
Answer: The societal marketing concept holds that the organization's task is to determine the needs,wants,and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and society's long-term well-being.Many companies actively engaged in corporate social responsibility campaigns to both motivate employees and attract consumers.As goods become more commoditized,and as consumers grow more socially conscious,some companies are adding social responsibility as a way to differentiate themselves from competitors,build consumer preference,and achieve notable sales and profit gains.They believe customers will increasingly look for signs of good corporate citizenship.
Q2) Internal marketing is an appropriate practice to be used in holistic marketing.
A)True
B)False
Answer: True
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Chapter 2: Developing Marketing Strategies and Plans
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Q1) After analyzing their company's strengths and weaknesses,top managers at Loan Bright decided that they would serve individual loan officers who typically only wanted to purchase small sets of homebuyer data,rather than bigger institutional clients.To meet the needs of this segment,Loan Bright simplified its sales contract,restructured its advertising efforts to focus on Google ads,and created a separate customer-service department.Loan Bright's strategy is best described as a(n)________ strategy.
A) overall cost leadership
B) focus
C) differentiation
D) logistics
E) promotional
Answer: B
Q2) Describe what happens in scenario analysis and explain why firms such as Royal Dutch/Shell Group use the technique.
Answer: Scenario analysis consists of developing plausible representations of a firm's possible future that make different assumptions about forces driving the market and include different uncertainties.Answers may vary on why to use the concept but answers should be mindful of the definition given.
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Chapter 3: Gathering Information and Scanning the Environment
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Q1) Today,customers are still willing to swap personal information for customized products from firms.
A)True
B)False
Answer: True
Q2) An important force affecting business is the ________-a movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers.
A) lobbyist movement
B) consumerist movement
C) environmental movement
D) self-rights movement
E) ethical reform movement
Answer: B
Q3) What is the main demographic force monitored by marketers Why
Answer: The main demographic force monitored by marketers is population.The reason for its importance is because people make up markets.Marketers are keenly interested in the size and growth rate of population in cities,regions,and nations; age distribution and ethnic mix; educational levels; household patterns; and regional characteristics and movements.
Page 5
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Chapter 4: Conducting Marketing Research and Forecasting Demand
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Q1) One of the don'ts of questionnaire construction is to ensure that fixed responses do not overlap.Which of the following is the best illustration of a problem that this "don't" might cause
A) A question has three possible responses: yes, no, or maybe.
B) An income question asks for an income designation in one of the following income categories: $0-$20,000, $20,000-$40,000, or $40,000 and above.
C) A consumer is asked to describe a recent event while driving.
D) A consumer must describe a cartoon about buying a car.
E) A consumer is asked whether or not he or she could spy on another consumer's shopping experience.
Q2) Barry's company sells in a nonexpansible market.As a marketer,Barry should focus on ________.
A) increasing marketing expenditure to increase the overall market size
B) more effectively allocating his budget to increase demand for his company's product category
C) decreasing the marketing sensitivity of demand for his product
D) improving his company's market share by attracting competitors' customers
E) all of the above
Q3) Describe how ethical marketing assists a desire to have good marketing research.
Page 6
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Chapter 5: Creating Customer Value, Satisfaction, and Loyalty
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Q1) There are two determinates of customer-perceived value: total customer benefit and total customer cost.
A)True
B)False
Q2) An organized collection of comprehensive information about individual customers or prospects that is current,accessible,and actionable for such marketing purposes as lead generation,lead qualification,sale of a product or service,or maintenance of customer relationships is called ________.
A) a customer database
B) a customer mail list
C) target market segments
D) customer segments
E) relationship markets
Q3) Consumers tend to be value maximizes-they estimate which offer will deliver the most perceived value and act on it.
A)True
B)False
Q4) Explain how a company frequency program might work.
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Q5) Customer-perceived value is based on two components.What are those components
Chapter 6: Analyzing Consumer Markets
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Q1) ________ can work to the advantage of marketers with strong brands when consumers make neutral or ambiguous brand information more positive.
A) Selective attention
B) Selective distortion
C) Selective retention
D) Selective choice
E) Selective embellishment
Q2) In the anchoring heuristic,the consumer bases his or her predictions on the quickness and ease with which a particular example of an outcome comes to mind.
A)True
B)False
Q3) Psychogenic needs arise from physiological states of tension such as hunger or discomfort.
A)True
B)False
Q4) Perception depends only on the physical stimuli experienced by the person.
A)True
B)False
Q5) List and briefly characterize Maslow's Hierarchy of Needs.
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Chapter 7: Analyzing Business Markets
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Q1) The new,more strategically oriented purchasing departments have a mission to
A) always make a profit
B) always take the lowest bid
C) seek the best value from fewer and better suppliers
D) continue to seek outsourcing as their primary strategy
E) use consultants whenever possible
Q2) When purchasing disposable surgical gowns,Mercy Hospital's vice president of purchasing analyzes whether the hospital should buy disposable gowns or reusable gowns.If the findings favor disposable gowns,then the operating-room administrator compares various competitors' products and prices and makes a choice.Surgeons influence the decision retroactively by reporting their satisfaction with the particular brand.In this situation,the operating-room administrator performs the role of the
A) decider
B) initiator
C) user
D) gatekeeper
E) influencer
Q3) Explain the concept of derived demand.
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Chapter 8: Identifying Market Segments and Targets
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Q1) Hilton Hotels customizes rooms and lobbies according to location.Northeastern hotels are sleeker and more cosmopolitan.Southwestern hotels are more rustic.This is an example of ________ segmentation.
A) demographic
B) behavioral
C) psychographic
D) geographic
E) user status
Q2) In the ________ step of the market segmentation process,the marketer evaluates the segment using criteria such as market growth and market access.
A) need-based segmentation
B) segment identification
C) segment attractiveness
D) segment profitability
E) segment "acid test"
Q3) Assume that you have decided to use a niche strategy to advance your marketing goals.Characterize an attractive niche.
Q4) PRIZM was developed by Claritas Inc.Explain what PRIZM is intended to do.
Q5) Characterize psychographic segmentation.
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Chapter 9: Creating Brand Equity
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Q1) From a marketing management perspective,there are three main sets of brand equity drivers.Which of these drivers was most applicable when McDonald's decided to use the "golden arches" and Ronald McDonald as symbols of their brand
A) The product and all accompanying marketing activities and supporting marketing programs
B) The service and all accompanying marketing activities and programs
C) The initial choices for the brand elements or identities making up the brand
D) Associations indirectly transferred to the brand by linking it to some other entity
E) The profitability associated with brand development
Q2) Kisses candy are considered to be a subbrand of Hershey,the manufacturer. A)True
B)False
Q3) Tide laundry detergent maintains the same market share it had 50 years ago because of the sales contributions of its various line extensions.Tide could be said to employ a preemptive cannibalization strategy in generating line extensions.What does this mean
Q4) Distinguish between brand identity and brand image.
Q5) Describe the role of brands from a customer perspective.
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Chapter 10: Crafting the Brand Positioning
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Q1) The profit curve for most product life cycles peaks during the growth stage of the life cycle.
A)True
B)False
Q2) Which of the following common product life-cycle patterns would be characterized as being one where sales grow rapidly when the product is first introduced and then fall to a "petrified" level that is sustained by late adopters buying the product for the first time and early adopters replacing the product
A) Cycle-recycle pattern
B) Scalloped pattern
C) Growth-slump-maturity pattern
D) Reverse-cycle pattern
E) Inverse-cycle pattern
Q3) Most studies indicate that the market pioneer gains the greatest advantage in the marketplace.What are the sources of the pioneer's advantage
Q4) The product life cycle's bell-shaped curve is generally depicted as being divided into four stages.Briefly name and characterize each of the four stages.
Q5) Characterize the differences between style,fashion,and fad life cycles.
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Chapter 11: Dealing with Competition
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Q1) In satisfying customer needs,a ________ marketer discovers and produces solutions customers did not ask for but to which they enthusiastically respond.Sony is a good illustration of such a marketer.
A) responsive
B) anticipative
C) combative
D) manipulative
E) creative
Q2) One of the market leader strategies for expanding the total market is to focus on more usage.Two avenues are open for doing this: increasing the frequency of consumption or ________.
A) increasing adherence to everyday low pricing
B) decreasing the number of product returns
C) increasing the level or quantity of consumption
D) increasing the level of promotional expenditures relative to market share percentage
E) decreasing sales-related expenses
Q3) Identify the two requirements that must be satisfied to create a successful low-cost operation.
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Chapter 12: Setting Product Strategy
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Q1) Companies normally develop product lines rather than single products and require sellers to establish ________ quality differences between price steps within the line.
A) imaginary
B) actual
C) perceived
D) monetary
E) none of the above
Q2) A product is anything that can be offered to a market to satisfy a want or need.
A)True
B)False
Q3) ________ refers to training the customer's employees to use the vendor's equipment properly and efficiently.
A) Customer training
B) Internal marketing
C) Client marketing
D) Customer relationships
E) Technical training
Q4) How do the four product-mix dimensions (width,length,depth,and consistency)affect a firm's product and corporate strategies
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Chapter 13: Designing and Managing Services
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Q1) A service company can differentiate itself by designing a better and faster delivery system.
A)True
B)False
Q2) There are shifts that favor the customer in the client relationship.Customers are now becoming more sophisticated about buying product-support services and are pressing for ________.
A) selective pricing
B) institutional pricing/services
C) substitute services
D) promotional pricing
E) services unbundling
Q3) Several strategies exist for managing supply and demand of services.List the strategies for both managing "supply" and then for managing "demand."
Q4) Because services are generally high in experience and credence qualities,there is more risk in purchase.
A)True
B)False
Q5) How has the Internet empowered customers with complaints
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Chapter 14: Developing Pricing Strategies and Programs
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Q1) Most firms have no trouble estimating the demand and cost functions for their products.
A)True
B)False
Q2) Purchase decisions are based on how consumers perceive prices and what they consider to be the ________ price-not the marketer's stated price.
A) current actual
B) last purchased price
C) current sale price
D) referent price
E) none of the above
Q3) How do EDLP and high-low pricing strategies affect consumer price judgments
Q4) Companies prefer customers who are less price sensitive.
A)True
B)False
Q5) In attempt to "rein in" the continued discounting by the sales force,you implement a net price analysis program to arrive at the "real price" of your products.Describe the steps necessary to implement such a program.
Q6) What is experience-curve pricing and what risks does it carry
Page 16
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Chapter 15: Designing and Managing Integrated Marketing
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Q1) ________ means companies decide to purchase goods,services,and information from various online suppliers.
A) E-business
B) E-commerce
C) E-purchasing
D) E-marketing
E) none of the above
Q2) A marketing channel overcomes the time,place,and ________ gaps that separate goods and services from those who need or want them.
A) possession
B) retail
C) consumers
D) policies
E) buyers
Q3) Channel arrangements,once constructed,need not be modified over time.
A)True
B)False
Q4) Channel objectives vary with product characteristics.
A)True
B)False
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Chapter 16: Managing Retailing, Wholesaling, and Logistics
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Q1) Wholesaler-distributors have not faced the pressures in recent years from new sources of competition,demanding customers,new technologies,or more direct-buying programs.
A)True
B)False
Q2) Identify and describe three of the six major types of corporate retail organizations.
Q3) Mass merchandisers and discount stores typically fall into the ________ group with respect to margins and volume.
A) mixed markup, high-volume
B) low-volume, mixed markup
C) low-volume, low-markup
D) high-volume, low-markup
E) high-markup, lower-volume
Q4) Because wholesalers do not actually manufacture a product,they are unable to effectively manage asset productivity.
A)True
B)False
Q5) How has the growth of giant retailers threatened traditional retailers
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Chapter 17: Designing and Managing Integrated Marketing Communications
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Q1) Senders know that to effectively communicate,they must encode their messages so that the target audience can decode them; the must transmit the message through the media that reach the target audience and develop ________ channels to monitor the responses.
A) feedback
B) interest
C) response
D) decoding
E) none of the above
Q2) The commercials for pain remedies that promise quick relief to your aches and pains is an example of what type of creative strategy
A) Informational appeal
B) Transformational appeal
C) Collective appeal
D) Personal appeal
E) Differentiated appeal
Q3) Most nonpersonal messages come through paid media.
A)True
B)False
Q4) How do opinion leaders mediate the affect of mass communications
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Chapter 18: Managing Mass Communications:
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Q1) In choosing the proper media to carry the message,advertisers must decide on
A) strategy, users, and media
B) target markets, users, and heavy users
C) markets, target markets, and consumers
D) reach, impact, and television stations
E) reach, frequency, and impact
Q2) Developing successful sponsored events involves a number of decisions.What are the three decisions that must be made to utilize sponsorships effectively
Q3) One of the potential disadvantages of sponsorships is that the success of an event can often ________ and some consumers may still resent the commercialization of events.
A) attract unfavorable media attention
B) be cancelled
C) be illegal
D) be unpredictable
E) be unfavorable to the sponsor
Q4) In attempting to measure the effectiveness of your advertising,you undertake to pretest the advertising.What are the three methods of pretesting
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Chapter 19: Managing Personal Communications:
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Q1) At the heart of a successful sales force is the selection of effective representatives.One survey revealed that the top 27% of the sales force brought in ________ of all sales.
A) 60%
B) 20%
C) 80%
D) 52%
E) 45%
Q2) The original and oldest form of direct marketing is ________.
A) billboards
B) Internet commerce
C) direct mail
D) telephone sales
E) field sales calls
Q3) How can salespeople act as missionaries for their companies
Q4) Selling increasingly calls for teamwork and the support of others.Aside from the actual salesperson,who else is on this team
Q5) Interactive marketing offers many unique benefits to the direct marketer.Explain some of the benefits afforded to marketers using interactive marketing.
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Chapter 20: Introducing New Market Offerings
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Q1) After management develops the product concept and marketing strategy,it can evaluate the proposal's business attractiveness.Management needs to prepare sales,costs,and profit potentials.The first step is to estimate total sales.Describe what is included in estimating total sales.
Q2) A company can add new products through acquisition or development.The acquisition route can take three forms.The company can buy other companies; it can acquire patents from other companies; or it can buy a ________ or _________ from another company.
A) license; franchise
B) license; receive permission
C) franchise; co-brand
D) franchise; acquire rights
E) none of the above
Q3) Define conjoint analysis and identify the reason why marketers use this concept in market testing.
Q4) Most established companies focus on incremental innovation,which is the gradual improvement of existing products.
A)True
B)False
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Chapter 21: Tapping into Global Markets
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Q1) The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.Briefly describe the advantages to ownership.
Q2) Discuss three disadvantages of standardizing the marketing mix worldwide.
Q3) Define psychic proximity and explain why is it important for companies engaged in exporting.
Q4) In an adapted marketing mix,the producers ________ the marketing programs to each target market.
A) reduce the importance of each element of the marketing program to adjust for cost differential between countries
B) decide on which element of the marketing mix to change for each country and target market prior to entering the country
C) change packaging and distribution but leave the advertising message unchanged
D) change only one element of the marketing mix per country
E) tailor the marketing programs to each target market.
Q5) When companies sell their goods abroad,they face a price escalation problem.Define price escalation.
Q6) Define the gray market.
Q7) How do multinationals try to prevent gray markets
Page 23
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Chapter 22: Managing a Holistic Marketing Organization
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Q1) ________ is reducing the number of organizational levels to get closer to the customer.
A) Flattening
B) Globalizing
C) Accelerating
D) Empowering
E) Draft the report
Q2) Explain the product- or brand-management organization and list its advantages and disadvantages.
Q3) ________ is the appointment of teams to manage customer-value-building processes and break down walls between departments.
A) Reengineering
B) Outsourcing
C) Benchmarking
D) Supplier partnering
E) Customer Partnering
Q4) Discuss BAMT.
Q5) Full costing allocates nontraceable common costs to marketing entities and has three major weaknesses.What are they
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