Advertising Management
Exam Answer Key
Course Introduction
Advertising Management explores the strategic and operational aspects of creating, planning, executing, and evaluating advertising campaigns. The course examines the role of advertising within the broader context of integrated marketing communications, with a focus on target audience analysis, creative message development, media selection, budgeting, and campaign effectiveness assessment. Students learn about both traditional media and digital platforms, considering ethical, social, and regulatory issues relevant to the advertising industry. Through case studies and practical projects, the course equips students with the skills necessary to manage advertising activities for brands, agencies, and organizations in diverse markets.
Recommended Textbook
M Advertising 2nd Edition by William Arens
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Page 2
Chapter 1: The Evolution of Advertising
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Sample Questions
Q1) Define advertising.
Answer: Advertising is the structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products or ideas by identified sponsors through various media.
Q2) What were the significant events that characterized the industrial age in the United States? (All these events should be tied up to the evolution of advertising in this country.)
Answer: The industrial age started around the turn of the twentieth century in the United States. It lasted well into the 1970s. Characterizing this age were such events as the creation of mass markets, producers wresting control of the distribution process away from wholesalers, the development of organized sales forces, advertising was described as becoming scientific, True mass communication devices such as radio and television emerged, product differentiation and market segmentation became popular strategies, the unique selling proposition emerged and positioning strategy was adopted as a competitive alternative to other marketing and advertising strategies. Lastly, branding became a global concept as U.S. products invaded foreign shores.
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3
Chapter 2: The Environment of Advertising
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Q1) Ever since the Napoleonic Wars, the British have used the derogatory term 'frogs' to refer to the French. When the London-based Institute Français advertised French language courses at all levels from beginners to advanced students, it pictured the development of a frog in stages from egg through tadpole to full maturity. This would be an example of:
A) deliberate deception.
B) advertising manipulation.
C) faux marketing.
D) stereotype perpetuation.
E) cultural malfeasance.
Answer: D
Q2) One of the most effective tools for regulating American advertising is the Advertising Self-Regulatory Council. In some cases, the ASRC is more effective than the court system in handling advertising disputes.
A)True
B)False
Answer: True
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Chapter 3: The Business of Advertising
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Sample Questions
Q1) An ad agency's traffic department:
A) makes sure there is no unplanned replication of the advertising effort.
B) maintains the agency's position as a facilitating intermediary.
C) develops the client's channel of distribution.
D) coordinates all phases of ad production.
E) negotiates long-term media deals.
Answer: D
Q2) One of the distinct groups in the advertising business is the suppliers who act as the communications vehicles paid to present an advertisement to their target audience.
A)True
B)False
Answer: False
Q3) What is integrated marketing communications (IMC)?
Answer: The process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general public by developing and coordinating a strategic communications program that enables them to make constructive contact with the company/brand through a variety of media.
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Chapter 4: Segmentation, Targeting, and the Marketing Mix
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Sample Questions
Q1) When Hannah buys almond soap from a vendor at an arts and crafts show and the vendor that sells the soap is actually the person who made the soap from scratch, it is an example of:
A) selective distribution.
B) indirect distribution.
C) direct distribution.
D) unbranded distribution.
E) differentiated distribution.
Q2) List the most important factors for advertising success.
Q3) Unlike the McCormick's brand of spices, the Penzeys brand of spices provides cooks with a helpful monthly magazine that shows them how to make the most effective use of spices in their recipes. This is most likely an example of a:
A) perceptible difference.
B) differentiation cue.
C) imperceptible difference.
D) sensory cue.
E) perceptual filter.
Q4) What are the two steps that make up the market segmentation process?
Q5) What are business markets?
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Chapter 5: Communication and Consumer Behavior
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Q1) _____ are groups of people we try to emulate or whose approval concerns us.
A) Approval centers
B) Emulation groups
C) Norm standard bearers
D) Cultural norms
E) Reference groups
Q2) The four quadrants of the FCB grid are high involvement or low involvement and:
A) need or want.
B) think or feel.
C) culture or society.
D) peripheral or route persuasion.
E) cognitive or conditioned thinking.
Q3) Thomas was planning on seeing a movie last weekend. After trying to read the small print which told the times the movie would be shown, he gave up and decided to go to the zoo instead. In this case, _____ screens influenced his perception.
A) physiological
B) rational
C) functional
D) psychological
E) self-actualizing
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Chapter 6: Account Planning and Research
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Sample Questions
Q1) In clutter tests, tested commercials are shown to large groups of people in shopping centers.
A)True
B)False
Q2) Which of the following techniques is used to uncover the information needed for developing and/or evaluating advertising strategies, individual ads, and whole advertising campaigns?
A) Consumer behavior
B) Ethnographics
C) Marketing research
D) Advertising research
E) Strategic marketing
Q3) Advertising research can be used in basically four different categories of advertising decision making. List and briefly describe each.
Q4) The first step in the research process is exploratory research.
A)True
B)False
Q5) What three basic research methods are used to collect quantitative data?
Q6) What is the difference between primary and secondary data?
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Chapter 7: Marketing, Advertising, and Imc Planning
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Sample Questions
Q1) Healthy Foods contacts customers from time to time with suggestions about potentially helpful new products. Healthy Foods has a basic transactional level relationship with its stakeholders.
A)True
B)False
Q2) The advertising pyramid reflects the traditional mass-marketing approach.
A)True
B)False
Q3) The price of a bottle of Chivas Regal Scotch, the use of UPS by Lands' End, and the workmanship found in a well-crafted wicker rocking chair are all examples of which type of company/brand-related messages that are sent to company stakeholders?
A) Planned
B) Functional
C) Unplanned
D) Product
E) Service
Q4) A product's position in the market is based on consumer perceptions.
A)True
B)False
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Chapter 8: Creating Ads: Strategy and Process
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Sample Questions
Q1) Why do most ads fail to resonate with the audience?
Q2) If negatively originated motives provide the basis for product purchase, then _____ ads will more than likely resonate with the audience.
A) informational
B) transactional
C) psychological
D) transformational
E) charismatic
Q3) An ad for Breitling watches describes the watches as "prestigious, professional-grade instruments that perform exceedingly well." The Breitling ad is _____ because it has a positively originated motive.
A) transactional
B) charismatic
C) informational
D) transformational
E) functional
Q4) What are the three components of the message strategy?
Q5) Describe a fact-based thinker.
Q6) Most theories of thinking fall into two general categories. What are they?
Page 10
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Chapter 9: Creative Execution: Art and Copy
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Sample Questions
Q1) Taco Bell introduced its new menu "to keep your wallet and your stomach full." The ads featured people exiting Taco Bell and proclaiming, "I'm full!" What type of a television commercial is this an example of?
Q2) Banner advertising is the dominant approach used in Internet advertising. A)True B)False
Q3) A dummy is a rough, rapidly produced pencil sketch that is used for trying out ideas. A)True
B)False
Q4) Effective television commercials should most likely:
A) let the audio carry most of the weight.
B) avoid the use of demonstrations.
C) make the message complex.
D) focus on final impressions.
E) include lengthy audio copy.
Q5) The visual in an advertisement should identify the brand and capture the reader's attention.
A)True B)False
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Chapter 10: Print Advertising
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Sample Questions
Q1) On what do magazines base their advertising rates?
A) Circulation
B) Size
C) Content
D) Format
E) Target audience
Q2) Compared to television or radio, print advertising has more permanence.
A)True
B)False
Q3) Calculate the cost per thousand (CPM) for Southern Living magazine if the full-page rate is $750 and its circulation is 30,000.
Q4) Second and third cover rates typically cost less than the fourth cover.
A)True
B)False
Q5) What are the two basic newspaper size formats?
Q6) What organization examines tearsheets from newspapers to make sure ads ran according to advertiser or agency instructions?
Q7) How often must a newspaper be published to be considered a daily?
Q8) What is a short rate? How is it calculated?
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Chapter 11: Broadcast, Cable, and Satellite Media: Television and Radio
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Sample Questions
Q1) While television tends to be a passive medium that people simply watch, radio actively involves people.
A)True
B)False
Q2) One of the advantages of radio advertising is the absence of clutter.
A)True
B)False
Q3) To take advantage of the lowest radio ad rates, the owner of a local pet grooming salon can order spots on an ROS basis. ROS means:
A) right of selectivity.
B) right-of-service.
C) run-of-station.
D) rate-on-sale.
E) radio organized sales.
Q4) What are the advantages of broadcast television advertising? Describe at least three benefits in your response.
Q5) Discuss three disadvantages that are associated with cable television advertising.
Q6) Define television prime time.
Page 13
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Chapter 12: Digital Interactive Media
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Q1) _____ is the Internet version of word-of-mouth advertising.
A) Rich media advertising
B) Spam
C) Viral marketing
D) Google
E) Ad networking
Q2) DSL connections offer faster Internet surfing and data downloads than broadband, which is significantly slower.
A)True
B)False
Q3) What are the concerns about behavioral tracking?
Q4) What are computer protocols?
Q5) What is a keyword purchase? Briefly explain how a keyword purchase works.
Q6) Which of the following is LEAST likely a problem associated with using digital interactive advertising?
A) Complexity
B) Few sponsors
C) Cluttered media
D) Lack of accountability
E) Privacy and security issues
Page 14
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Chapter 13: Out-Of-Home, Direct-Mail, and Promotional Products
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Q1) When a mobile communications service buys a basic bus, it means the service owner:
A) has bought the services of the transit system to distribute coupons.
B) has bought all the inside space on a group of buses.
C) expects a 100 percent reach for the advertising.
D) has bought all of the exterior space on one bus.
E) has bought a full showing.
Q2) To introduce interior decorators to its product line, Hanson Glassworks has decided to mail miniature reproductions of turn-of-the-century Tiffany lamps to all large design company owners, defined as more than $10 million in annual sales. Each handcrafted miniature lamp will cost Hanson almost $250 to buy and mail. What, if anything, is potentially wrong with this strategy?
A) The FTC forbids the giving of specialty items valued at more than $25.
B) The design company owners could perceive the miniature as a bribe.
C) The replica is being used as a premium.
D) Typically, gift recipients do not feel obligated to reciprocate.
E) There is nothing potentially wrong with this strategy.
Q3) What are the three basic components of direct-mail advertising?
Q4) Why is direct-mail advertising known as a form of direct-response advertising?
Page 15
Q5) Why do experts refer to billboards as the last mass medium?
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Chapter 14: Media Planning and Buying
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Q1) Which of the following statements about media planning is true?
A) One reason media planning is easier today than it was 20 years ago is the increasing number of media choices.
B) The ability to advertise to larger and larger segments has made the job of media planning easier.
C) The cost of all media is less today than it was 10 years ago.
D) The job of media planning has been made more difficult by changes in the way advertising is bought and sold.
E) The job of media planning has been made more difficult by legislation that prohibits repetitive advertising.
Q2) _____ refers to the length of time (duration) an advertising message or campaign will run over a given period of time.
A) Frequency
B) Continuity
C) Effective reach
D) Medium delivery power
E) Medium value
Q3) Explain the importance of continuity.
Q4) What is the primary function of media objectives?
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Chapter 15: IMC: Direct Marketing, Personal Selling, Packaging, and Sales Promotion
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Sample Questions
Q1) If you buy a case of Hanover kidney beans, you can mail eight UPC labels to Hanover and receive a "Kid Bean" stuffed toy. The toy is an example of a:
A) polybag.
B) premium.
C) sample.
D) rebate.
E) combination offer.
Q2) The construction of trade-show booths and exhibits has become a major factor in sales promotion plans.
A)True
B)False
Q3) What are the two primary methods for implementing a direct-sales strategy?
A) Personal selling and mass marketing
B) Database selling and telemarketing
C) Face-to-face and telemarketing
D) Internet sales and telemarketing
E) Order-taking and order-filling
Q4) What are the functions of direct marketing?
Q5) Why are manufacturers opposed to paying slotting allowances?
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Chapter 16: IMC: Public Relations, Sponsorship, and Corporate Advertising
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Q1) Ambush marketing involves an official event sponsor placing its logos in all areas of a stadium.
A)True
B)False
Q2) Which of the following is the most widely used PR tool?
A) A data warehouse
B) A press kit
C) A trade show
D) A house organ
E) A press release
Q3) Which of the following terms refers to internal and external publications such as stockholder reports, newsletters, and dealer publications?
A) Promotional announcement
B) Corporate blog
C) Media bulletin
D) Feature article
E) House organ
Q4) What are the two methods a company can use to engage in sponsorship?
Q5) What is a house organ?
Page 18
Q6) Why do public relations (PR) practitioners often engage in speechwriting?
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Page 19
Chapter 17: Producing ADS
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Q1) What are the four colors used in the four-color process or CYMK printing?
Q2) Which of the following involves producing Web site content that automatically adapts to the viewer's technology?
A) Digital media
B) Multimedia design
C) Graphical interface
D) Interstitial media
E) Responsive design
Q3) Although it adds realism to a commercial, location shooting is often a logistical nightmare.
A)True
B)False
Q4) Why is the finishing phase for video shorter than the finishing phase for film?
A) Use of computerized editing
B) Elimination of soundboard mixing
C) Creation of video and film duplicates
D) Availability of larger, more experienced staff
E) Lack of special or ancillary production elements
Q5) What is a job jacket?
Q6) What is the primary determinant of the cost of a radio commercial?
Page 20
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