MKGT 5310 - Study Guide

1) ________ refers to the means by which firms attempt to inform, persuade, and remind consumers — directly or indirectly — about the products and brands they sell. A) Human resource development B) Marketing communications C) Financial management D) Operations management E) Planning Answer: B Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 2) Which of the following elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media? A) advertising B) personal selling C) sales promotion D) direct marketing E) public relations Answer: A Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 3) Tracy works for a cellular phone company that offers trade-in allowances toward the upgrade of new phones, which is an example of ________. A) a sales promotion B) interactive marketing C) word-of-mouth marketing D) personal selling E) events and experiences Answer: A Diff: 2 LO: 19.1: What is the role of marketing communications? AACSB: Application of knowledge 4) Which of the following elements of the marketing communications mix involves a variety of short-term incentives to encourage trial or purchase of a product or service? A) advertising B) direct marketing C) public relations D) personal selling E) sales promotion Answer: E Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 5) Which of the following is an example of a trade promotion? A) free samples B) discount coupons C) display allowances D) contests for sales reps E) premiums Answer: C Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 6) Which of the following is an example of a business and sales force promotion? A) advertising allowance B) free samples C) contests for sales reps D) display allowance E) discount coupons Answer: C Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 7) ________ refer to the marketing communications element that involves company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers. A) Publicity campaigns B) Trade promotions C) Advertisements D) Public relations E) Events and experiences Answer: E Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 8) Which of the following elements of the marketing communications mix includes a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications? A) direct marketing B) public relations and publicity C) personal selling D) advertising E) sales promotion Answer: B Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 9) Which of the following elements of the marketing communication mix involves use of mail, telephone, fax, e-mail, or Internet to communicate with or solicit response or dialogue from specific customers and prospects? A) advertising B) personal selling C) direct marketing D) public relations E) sales promotion Answer: C Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 10) ________ is an element of the marketing communications mix that involves online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services. A) Personal selling B) Direct marketing C) Sales promotion D) Interactive marketing E) Public relations Answer: D Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 11) ________ is an element of the marketing communications mix that involves people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services. A) Personal selling B) Sales promotion C) Word-of-mouth marketing D) Public relations E) Advertising Answer: C Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 12) Which of the following elements of the marketing communications mix involves face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders? A) advertising B) sales promotion C) word-of-mouth marketing D) public relations E) personal selling Answer: E Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 13) Which of the following is an example of an advertising platform? A) posters and leaflets B) company magazines C) fairs and trade shows D) sales presentations E) continuity programs Answer: A Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 14) Which of the following is an example of an events and experiences platform? A) fairs and trade shows B) continuity programs C) factory tours D) sales presentations E) community relations Answer: C Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 15) Which of the following is an example of a public relations and publicity communication platform? A) lobbying B) company museums C) street activities D) company blogs E) incentive programs Answer: A Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 16) Which of the following is an example of an interactive marketing communication platform? A) product demonstrations B) factory tours C) company museums D) TV shopping E) community relations Answer: D Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 17) Which of the following is an example of a word-of-mouth marketing communication platform? A) chat rooms B) billboards C) factory tours D) incentive programs E) trade shows Answer: A Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 18) Which of the following is an example of a personal selling communication platform? A) sales presentations B) company blogs C) telemarketing D) TV shopping E) press kits Answer: A Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 19) The starting point in planning marketing communications is a ________ that profiles all interactions customers in the target market may have with the company and all its products and services. A) marketing budget B) communications audit C) market research program D) publicity campaign E) product launch Answer: B Diff: 2 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 20) Along which of the following parameters should marketers evaluate communication options when building brand equity? A) popularity B) innovativeness C) technological sophistication D) efficiency E) novelty Answer: D Diff: 2 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 21) Marketing communications allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things. Answer: TRUE Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 22) The rapid diffusion of multipurpose smart phones, broadband and wireless Internet connections, and ad-skipping digital video recorders (DVRs) have augmented the effectiveness of the mass media. Answer: FALSE Diff: 2 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 23) The pervasive nature of advanced communications technologies, such as the Internet, has resulted in greater exposure of customers to advertising content than it was in the 1960s. Answer: FALSE Diff: 2 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 24) Marketing communications in almost every medium and form have been on the rise, and some consumers feel they are increasingly invasive. Answer: TRUE Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 25) In this new communication environment, advertising is often the single most important element of a marketing communications program for sales and building brand and customer equity. Answer: FALSE Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 26) Personal selling refers to person-to-person oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services. Answer: FALSE Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 27) In building brand equity, marketers should be "media neutral" and evaluate all communication options on effectiveness and efficiency. Answer: TRUE Diff: 1 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 28) Briefly describe the current marketing communications environment. Answer: Technology and other factors have profoundly changed the way consumers process communications, and even whether they choose to process them at all. The rapid diffusion of multipurpose smart phones, broadband and wireless Internet connections, and ad-skipping digital video recorders (DVRs) have eroded the effectiveness of the mass media. In 1960, a company could reach 80 percent of US women with one 30-second commercial aired simultaneously on three TV networks: ABC, CBS, and NBC. Today, the same ad would have to run on 100 channels or more to achieve this marketing feat. Consumers not only have more choices of media, they can also decide whether and how they want to receive commercial content. Diff: 2 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 29) What are the elements of the marketing communications mix? Answer: The marketing communications mix consists of eight major modes of communication: 1.

Advertising — Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media. 2. Sales promotion — A variety of short-term incentives to encourage trial or purchase of a product or service including consumer promotions, trade promotions, and business and sales force promotions. 3. Events and experiences — Company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers, including sports, arts, entertainment, and cause events as well as less formal activities. 4. Public relations and publicity — A variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications. 5. Direct marketing — Use of mail, telephone, fax, e-mail, or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects. 6. Interactive marketing — Online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services. 7. Word-of-mouth marketing — People-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services. 8. Personal selling — Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders. Diff: 2 LO: 19.1: What is the role of marketing communications? AACSB: Reflective thinking 30) Which of the following benefits is offered by sales promotion tools? A) Sales promotion tools are more authentic and credible to buyers than others such as advertising, public relations, and personal selling. B) Sales promotion tools can reach prospects who prefer to avoid mass media and targeted promotions. C) Sales promotion tools are typically an indirect form of "soft-sell" and hence, better received by customers. D) Sales promotion tools incorporate some concession, inducement, or contribution that gives value to the consumer. E) Sales promotion tools allow buyers personal choices and encourage them to respond directly. Answer: D Diff: 2 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 31) Which of the following statements correctly reflects a characteristic of public relations as a marketing communications tool? A) Public relations can reach prospects who prefer to avoid mass media and targeted promotions. B) They incorporate some concession, inducement, or contribution that gives value to the consumer. C) Given their live, real-time quality, public relations tools are more actively engaging for consumers. D) Public relations communications can be prepared to appeal to the addressed individual. E) Public relations tools create an immediate and interactive episode between two or more persons. Answer: A Diff: 2 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 32) Aisha is a marketing manager with Injoos, a company that manufactures packaged fruit juices. Knowing that several other companies exist in the market that offer similar products, Aisha decides to build a customer base from among those who prefer to avoid mass media and other targeted promotions. Which of the following marketing communications tools would be her best option to build a favorable impression among the prospective customers? A) advertising B) personal selling C) sales promotions D) direct marketing E) public relations Answer: E Diff: 2 LO: 19.2: What is the marketing communications mix? AACSB: Analytical thinking

Application of knowledge 8) ________ advertising aims to convince current purchasers that they made the right choice. A) Persuasive B) Informational C) Reinforcement D) Reminder E) Comparative Answer: C Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 9) The predominant response function for advertising is often concave, but when it is S-shaped, ________. A) sales are flat, and advertising does not generate any sales impact B) any increase in advertising spending results in a proportionally positive increase in sales C) any increase in advertising spending results in a proportionally negative decrease in sales D) some positive amount of advertising is necessary to generate any sales impact, but sales increases eventually flatten out E) advertising is not necessary to generate any sales impact Answer: D Diff: 3 LO: 20.1: What steps are required in developing an advertising program? AACSB: Analytical thinking 10) Which of the following conditions necessitates that the objective of advertising should be to stimulate more usage of a product? A) The advertised product belongs to a nascent product category. B) The company is not the market leader. C) The advertised brand is superior to the market leader. D) The product class is mature. E) Brand usage for the product is very high. Answer: D Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 11) Which of the following statements is true of the factors that affect an advertising budget? A) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share. B) Brands in less-differentiated or commodity-like product classes require less advertising to establish a unique image. C) New products typically merit large advertising budgets to build awareness and to gain consumer trial. D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard. E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales. Answer: C Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 12) Marketers often cut the cost of advertising dramatically by using consumers as their creative team. This strategy is known as ________. A) disintermediation B) public relations C) vertical integration D) reintermediation E) crowdsourcing Answer: E Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 13) An advertising objective is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time. Answer: TRUE Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 14) Persuasive advertising aims to create brand awareness and knowledge of new products or new features of existing products. Answer: FALSE Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 15) Reinforcement advertising aims to stimulate repeat purchase of products and services. Answer: FALSE Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 16) When Staples introduced a new $69.99 paper-shredding device called the MailMate in 2006 by striking a two-episode deal with NBC's popular television program, The Office, it was using product placement. Answer: TRUE Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Application of knowledge 17) If the product class is mature, then the advertising objective is to convince the market of the brand's superiority. Answer: FALSE Diff: 1 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 18) Puffery refers to simple exaggerations in advertisements that are not meant to be believed and are considered illegal. Answer: FALSE Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 19) Advertising elasticities were estimated to be higher for established (0.3) than for new (0.1) products. Answer: FALSE Diff: 3 LO: 20.1: What steps are required in developing an advertising program? AACSB: Analytical thinking 20) What you say (ad copy) is more important than the number of times you say it (ad frequency). Answer: TRUE Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Analytical thinking 21) Kraft utilized customers to name its new flavor of its iconic Vegemite product, and their selection, iSnack 2.0, increased sales dramatically. Answer: FALSE Diff: 3 LO: 20.1: What steps are required in developing an advertising program? AACSB: Application of knowledge 22) In developing an advertising program, marketing managers can make the five major decisions known as the five Ms. List and explain each of these Ms. Answer: The five major decisions are: 1.

Mission — sales goals and advertising objectives 2. Money — factors to consider: stage in PLC, market share and consumer base, competition and clutter, advertising frequency, and product substitutability 3. Message — message generation, message evaluation and selection, message execution, and social-responsibility review 4. Media — reach, frequency, impact, major media types, specific media vehicles, media timing, and geographical media allocation 5. Measurement — communication impact and sales impact. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Application of knowledge 23) Explain the classification of advertising objectives. Answer: The classification of advertising objectives includes: • Informative advertising aims to create brand awareness and knowledge of new products or new features of existing products. • Persuasive advertising aims to create liking, preference, conviction, and purchase of a product or service. Some persuasive advertising uses comparative advertising, which makes an explicit comparison of the attributes of two or more brands. Comparative advertising works best when it elicits cognitive and affective motivations simultaneously, and when consumers are processing advertising in a detailed, analytical mode. • Reminder advertising aims to stimulate repeat purchase of products and services. • Reinforcement advertising aims to convince current purchasers that they made the right choice. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 24) Describe how advertising objectives are set to reflect the product class. Answer: The advertising objective should emerge from a thorough analysis of the current marketing situation. If the product class is mature, the company is the market leader, and brand usage is low, the objective is to stimulate more usage. If the product class is new, the company is not the market leader, but the brand is superior to the leader, then the objective is to convince the market of the brand's superiority. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 25) Give a brief description of the various factors that affect advertising budget decisions. Answer: The various factors that affect advertising budget decisions include: • Stage in the product life cycle — New products typically merit large advertising budgets to build awareness and to gain consumer trial. Established brands usually are supported with lower advertising budgets, measured as a ratio to sales. • Market share and consumer base — High-market-share brands usually require less advertising expenditure as a percentage of sales to maintain share. To build share by increasing market size requires larger expenditures. • Competition and clutter — In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard. Even simple clutter from advertisements not directly competitive to the brand creates a need for heavier advertising. • Advertising frequency — The number of repetitions needed to put the brand's message across to consumers has an obvious impact on the advertising budget. • Product substitutability — Brands in less-differentiated or commodity-like product classes (beer, soft drinks, banks, and airlines) require heavy advertising to establish a unique image. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 26) Briefly describe the role of television as an advertising medium. Answer: Television is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure. TV advertising has two particularly important strengths. First, it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits. Second, it can dramatically portray user and usage imagery, brand personality, and other intangibles. Because of the fleeting nature of the ad, however, and the distracting creative elements often found in it, product-related messages and the brand itself can be overlooked. Moreover, the high volume of nonprogramming material on television creates clutter that makes it easy for consumers to ignore or forget ads. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 27) What is the role of print media in advertising? What are the major advantages and disadvantages associated with print advertising media? Answer: Print media offer a stark contrast to broadcast media. Because readers consume them at their own pace, magazines and newspapers can provide detailed product information and effectively communicate user and usage imagery. At the same time, the static nature of the visual images in print media makes dynamic presentations or demonstrations difficult, and print media can be fairly passive. The two main print media — magazines and newspapers — share many advantages and disadvantages. Although newspapers are timely and pervasive, magazines are typically more effective at building user and usage imagery. Newspapers are popular for local — especially retailer — advertising. Although advertisers have some flexibility in designing and placing newspaper ads, relatively poor reproduction quality and short shelf life can diminish the ads' impact. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 28) What are the legal and social issues associated with advertising? Answer: To break through clutter, some advertisers believe they have to be edgy and push the boundaries of what consumers are used to seeing in advertising. In doing so, marketers must be sure advertising does not overstep social and legal norms or offend the general public, ethnic groups, racial minorities, or special-interest groups. A substantial body of laws and regulations governs advertising. Under US law, advertisers must not make false claims, such as stating that a product cures something when it does not. They must avoid false demonstrations, such as using sand-covered Plexiglas instead of sandpaper to demonstrate that a razor blade can shave sandpaper. It is illegal in the United States to create ads that have the capacity to deceive, even though no one may actually be deceived. The challenge is telling the difference between deception and "puffery" — simple exaggerations that are not meant to be believed and that are permitted by law. Sellers in the United States are legally obligated to avoid bait-and-switch advertising that attracts buyers under false pretenses. Advertising can play a more positive broader social role. The Ad Council is a nonprofit organization that uses top-notch industry talent to produce and distribute public service announcements for nonprofits and government agencies. From its early origins with "Buy War Bonds" posters, the Ad Council has tackled innumerable pressing social issues through the years. One of its recent efforts featured beloved Sesame Street stars Elmo and Gordon exhorting children to wash their hands in the face of the H1N1 flu virus. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Ethical understanding and reasoning 29) What are the four types of advertising timing patterns available to marketers when launching a new product? Answer: In launching a new product, the advertiser must choose among continuity, concentration, flighting, and pulsing. • Continuity means exposures appear evenly throughout a given period. Generally, advertisers use continuous advertising in expanding market situations, with frequently purchased items, and in tightly defined buyer categories. • Concentration calls for spending all the advertising dollars in a single period. This makes sense for products with one selling season or related holiday. • Flighting calls for advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity. It is useful when funding is limited, the purchase cycle is relatively infrequent, or items are seasonal. • Pulsing is continuous advertising at low-weight levels, reinforced periodically by waves of heavier activity. It draws on the strength of continuous advertising and flights to create a compromise scheduling strategy. Those who favor pulsing believe the audience will learn the message more thoroughly, and at a lower cost to the firm. Diff: 2 LO: 20.1: What steps are required in developing an advertising program? AACSB: Reflective thinking 30) Place advertising, or out-of-home advertising, is a broad category that includes many creative and unexpected forms to grab consumers' attention, including all of the following EXCEPT ________. A) billboards B) yellow pages C) public spaces D) product placement E) point of purchase Answer: B Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 31) Which of the following is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure? A) television B) radio C) newspapers D) magazines E) billboards Answer: A Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 32) TV advertising is considered to be particularly advantageous because ________. A) the low volume of nonprogramming material on television makes it difficult for consumers to ignore or forget ads B) it provides detailed product information and effectively communicates user and usage imagery C) it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits D) TV channels are very targeted, ads are relatively inexpensive to produce and place, and short closings allow for quick response E) it lets companies achieve a balance between broad and localized market coverage Answer: C Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 33) According to researchers, which of the following is the correct order in which content of print advertisements matter? A) picture-headline-copy B) copy-picture-headline C) headline-copy-picture D) picture-copy-headline E) copy-headline-picture Answer: A Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 34) Which of the following is the main advantage of radio as an advertising medium? A) low competition B) more attention than television C) longer duration of ad exposure D) flexibility E) standardized rate structures Answer: D Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 35) ________ refers to simple exaggerations in advertisements that are not meant to be believed and that are permitted by law. A) Puffery B) Boosterism C) Astroturfing D) Doublethink E) Subliminal advertising Answer: A Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 36) ________ is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience. A) Media scheduling B) Content analysis C) Media selection D) Communication design E) Copy testing Answer: C Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 37) The number of different persons or households exposed to a particular media schedule at least once during a specified time period is known as ________. A) range B) impact C) intensity D) reach E) frequency Answer: D Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 38) The number of times within a specified time period that an average person or household is exposed to an advertising message is known as ________. A) impact B) frequency C) amplitude D) reach E) depth Answer: B Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 39) The qualitative value of an exposure through a given medium is known as ________. A) frequency B) reach C) amplitude D) impact E) range Answer: D Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 40) Which of the following equations accurately describes the total number of exposures (E) of an advertising message through a given medium? A) E = reach × frequency B) E = (reach × frequency) / impact C) E = reach × frequency × impact D) E = (reach + frequency) / impact E) E = frequency / reach Answer: A Diff: 3 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 41) The weighted number of exposures (WE) of an advertising message over a given medium is given by ________. A) WE = reach × frequency B) WE = (reach × frequency) / impact C) WE = reach × frequency × impact D) WE = (reach + frequency) / impact E) WE = frequency / reach Answer: C Diff: 3 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 42) Under which of the following conditions is the reach of media the most important factor in media selection? A) when introducing frequently purchased brands B) when going into a defined target market C) when launching extensions of well-known brands D) when there are strong competitors to a brand E) when there is high consumer resistance to the product Answer: C Diff: 3 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 43) Under which of the following conditions is the frequency the most important factor in media selection? A) when introducing flanker brands B) when launching infrequently purchased brands C) when going into undefined target markets D) when there is high consumer resistance to the product E) when there is modest competition to the brand in the market Answer: D Diff: 3 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 44) What is the gross rating points (GRP) for a media schedule that reaches 60 percent of homes with an average exposure frequency of 4 and impact of 1.5? A) 10 B) 15 C) 160 D) 240 E) 360 Answer: D Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 45) What is the weighted number of exposures of a media schedule that reaches 80 percent of the target audience, with an exposure frequency of 4 and impact value of 2? A) 10 B) 160 C) 240 D) 320 E) 640 Answer: E Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 46) Which of the following is an advantage of using newspapers as an advertising medium? A) long lifespan B) high reproduction quality C) huge "pass-along" audience D) high level of targeting E) good local market coverage Answer: E Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Reflective thinking 47) Which of the following is a disadvantage of using newspapers as an advertising medium? A) lack of flexibility B) high costs of advertisement space C) poor reproduction quality D) low believability E) absence of local market coverage Answer: C Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 48) Which of the following is an advantage of using television as an advertising medium? A) high attention and reach B) low absolute cost C) absence of clutter D) long duration of ad exposure E) high audience selectivity Answer: A Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 49) Which of the following is a disadvantage of using television as an advertising medium? A) high absolute cost B) low audience attention C) lack of reach among audience D) high audience selectivity E) absence of clutter Answer: A Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 50) Which of the following is an advantage of using radio as an advertising medium? A) higher attention than television B) standardized rate structures C) long duration of ad exposure D) high quality reproduction E) high geographic selectivity Answer: E Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 51) Which of the following is a disadvantage of using direct mail as an advertising medium? A) low audience selectivity B) lack of flexibility C) high competition within same medium D) relatively high cost E) lack of personalization of advertising message Answer: D Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 52) Which of the following is an advantage of using magazines as an advertising medium? A) high-quality reproduction B) short ad purchase lead time C) high efficiency in circulation D) no ad competition in same medium E) low cost of advertising Answer: A Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 53) Which of the following is a disadvantage of using magazines as an advertising medium? A) low geographic and demographic selectivity B) long ad purchase lead time C) low-quality reproduction D) small "pass-along" readership E) lack of credibility Answer: B Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 54) Which of the following is a disadvantage of using outdoor media for advertising? A) low flexibility B) low repeat exposure C) limited audience selectivity D) high costs E) greater competition Answer: C Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 55) Which of the following is an advantage of using Yellow Pages as an advertising medium? A) low competition B) high believability C) short ad purchase lead time D) greater scope for creativity E) lack of clutter Answer: B Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 56) Which of the following is a disadvantage of using Yellow Pages as an advertising medium? A) high competition B) poor local market coverage C) low believability D) lack of adequate reach E) high total costs Answer: A Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 57) Which of the following is a disadvantage of using the Internet as an advertising medium? A) limited audience selectivity B) increasing clutter C) lack of interactive possibilities D) relatively high costs involved E) fleeting ad exposure time Answer: B Diff: 1 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 58) Which of the following is a disadvantage of using newsletters as an advertising medium? A) low audience selectivity B) high chances of runaway costs C) lack of adequate control D) relatively high costs E) lack of interactive possibilities Answer: B Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking 59) Pepe Homes manufactures a range of bathroom accessories and fittings that include bathtubs, shower stalls, etc. While deciding on an effective advertising media vehicle for its planned advertising campaign, the marketing department decides that its advertising objectives would be best achieved if they used a medium that would portray their brand as prestigious and a symbol of luxury. To this effect, the medium should offer marketers a high degree of audience selectivity and high-quality reproduction. Which of the following advertising media would best serve the advertising purposes of Pepe Homes? A) outdoor media B) radio C) magazines D) television E) newspapers Answer: C Diff: 2 LO: 20.2: How should marketers choose advertising media and measure their effectiveness? AACSB: Analytical thinking

more specific ones identifying a particular product model or service ("Apple iPod classic 160GB") are useful for generating and converting sales leads. •

Search terms need to be spotlighted on the appropriate pages of the marketer's Web site so search engines can easily identify them. • Any one product can usually be identified by means of multiple keywords, but marketers must bid on each keyword according to its likely return on revenue. It also helps to have popular sites link back to the marketer's Web site. • Data can be collected to track the effects of paid search. Diff: 2 LO: 21.1: What are the pros and cons of online marketing? AACSB: Analytical thinking 54) Compare and contrast paid search ads, banner ads, and interstitials. In your response, please identify the advantages and disadvantages of each advertising format. Answer: In paid search ads, a marketer's ad is shown based on keywords the consumer is searching, and the ads may appear above or next to the results, depending on the amount the company bids and an algorithm the search engines use to determine an ad's relevance to a particular search. Marketers pay only if the consumer clicks through on the ad. Marketers believe that consumers who click the ads are pre-screened prospects. Search ads have a 2 percent click-through rate, which is higher than banner ads or interstitials. However, Internet users only spend about 5 percent of their time online searching for information. Further, the increased popularity of search ads means popular keywords are more expensive. Marketers must be creative with their ad placements and keyword bids. Banner ads are small, rectangular boxes containing text and perhaps a picture that companies pay to place on relevant Web sites. The larger the audience, the higher the cost. In the early days of the Internet, viewers clicked on 2 percent to 3 percent of the banner ads they saw, but that percentage has quickly plummeted, and advertisers have explored other forms of communication. They are important because of the amount of time consumers spend online when they are not searching, but they have to be more attention-getting and influential, better targeted, and more closely tracked than they used to be. Interstitials are advertisements, often with video or animation, that pop up between page changes within a Web site or across Web sites. They can be targeted based on a consumer's needs or anticipated needs, as opposed to what the consumer is looking for. Because consumers find such pop-up ads intrusive and distracting, many use software to block them. Diff: 3 LO: 21.1: What are the pros and cons of online marketing? AACSB: Analytical thinking 55) Identify three ways marketers can maximize marketing effectiveness of e-mails. Answer: Student answers will vary. Here are seven possible ways marketers can maximize marketing effectiveness of e-mails: • Give the customer a reason to respond (e.g., powerful incentives for reading e-mail pitches and online ads, such as trivia games, scavenger hunts, and instant-win sweepstakes). • Personalize the content of your e-mails and use an engaging subject line. • Offer something the customer can't get via direct mail like time-sensitive information. • Make it easy for customers to opt in as well as unsubscribe. • Run controlled split tests to explore how location, color, and other factors affect "Sign Up Now" messages. Controlled split tests assemble online matched samples of consumers with one sample given a test message that manipulates one factor and the other being a status quo control. • Combine e-mail with other communications such as social media. • Employ "heat mapping," which tracks eye movements with cameras to measure what people read on a computer screen. Diff: 2 LO: 21.1: What are the pros and cons of online marketing? AACSB: Analytical thinking 56) ________ are a means for consumers to share text, images, audio and video information with each other and with companies, and vice versa. A) Social media B) Interstitials C) Microsites D) Pay-per-click ads E) Mobile ads Answer: A Diff: 1 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Reflective thinking 57) Dollar Shave Club's irreverent online video on YouTube is an example of ________. A) social media B) an interstitial C) a microsite D) a pay-per-click ad E) a mobile ad Answer: A Diff: 1 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Application of knowledge 58) Apple hosts a large number of ________, which become customers' primary source of product information after warranties expire and are organized by product lines and type of user (consumer or professional). A) niche networks B) social networks C) microblogs D) blogs E) online communities Answer: E Diff: 3 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Application of knowledge 59) The social network which focuses on career-minded professionals is ________. A) Facebook B) LinkedIn C) MySpace D) Twitter E) Gawker Answer: B Diff: 1 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Reflective thinking 60) For which of the following product categories are consumers least likely to engage with on social networks? A) Purex laundry detergent B) USA Today C) Red Cross D) Salvation Army E) NBC News Answer: A Diff: 3 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Application of knowledge 61) Which of the following is NOT a benefit of a social media presence for a brand? A) Social media allows marketers to establish a public voice and presence online. B) Social media can cost-effectively reinforce other communication activities. C) Social media can encourage companies to stay innovative and relevant. D) Social media can be used to build or tap into online communities. E) Social media allows companies to have a short-term focus. Answer: E Diff: 3 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Reflective thinking 62) Which of the following is a blog network? A) Facebook B) Sugar C) MySpace D) Groupon E) YouTube Answer: B Diff: 3 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Reflective thinking 63) Faith is a big fan of a popular musical group, so she created a place for other fans to communicate with each other online. Faith created a ________. A) forum B) microblog C) blog D) social network E) microsite Answer: A Diff: 2 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Application of knowledge 64) When GlaxoSmithKline sponsored a weight-loss community in preparation for the launch of its first weight-loss drug, Alli, which of the following was the key benefit of the online community? A) Consumers did not have commercial interests or company affiliations. B) Democratization of innovation for lowest-common denominator solutions. C) Two-way information flow led to useful, hard-to-get customer information and insights. D) A point of contact for product recalls. E) One-way communication with customers. Answer: C Diff: 3 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Application of knowledge 65) Social media allow marketers to build or tap into online communities, inviting participation from consumers and creating a long-term marketing asset in the process. Answer: TRUE Diff: 1 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Information technology 66) Firms benefit when they democratize innovations and replace groundbreaking ideas with lowest-common-denominator solutions. Answer: FALSE Diff: 2 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Reflective thinking 67) At the PopSugar blog site, a team of bloggers tracks green consumer products for 5 million unique visitors per month. Answer: FALSE Diff: 3 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Application of knowledge 68) Bloggers do not need to disclose their relationship with marketers whose products they endorse. Answer: FALSE Diff: 1 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Application of knowledge 69) Facebook is an early warning system for firms that permits rapid response, whereas Twitter allows deeper dives to engage consumers in more meaningful ways. Answer: FALSE Diff: 2 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Analytical thinking 70) San Francisco bakery Mission Pie benefited from sending tweet alerts about its events on TreeHugger.com. Answer: FALSE Diff: 2 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Application of knowledge 71) When it comes to social media, only some consumers want to engage with some brands, and, even then, only some of the time. Answer: TRUE Diff: 1 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Reflective thinking 72) Why are social media important to marketers? Answer: Social media provide a means for consumers/companies to share text, images, audio, and video information with each other and with companies/consumers. Social media allow marketers to establish a public voice and presence online. They can cost-effectively reinforce other communication activities. Because of their day-to-day immediacy, they can also encourage companies to stay innovative and relevant. Marketers can build or tap into online communities, inviting participation from consumers and creating a long-term marketing asset in the process. Diff: 2 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Reflective thinking 73) What are the three main platforms for social media? Answer: The three main platforms for social media include: 1. online communities and forums 2. blogs (individual blogs and blog networks such as Sugar and Gawker) 3. social networks (like Facebook, Twitter, and YouTube) Diff: 2 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Information technology 74) Why should firms avoid too much democratization of innovation? Answer: Groundbreaking ideas can be replaced by lowest-common-denominator solutions. Diff: 2 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Reflective thinking 75) Identify three reasons social media are rarely the only source of communications for a brand. Answer: Student answers will vary. Here are five possible reasons social media are rarely the only source of communications for a brand: • Social media may not be as effective in attracting new users and driving brand penetration. • Research by DDB suggests that brands and products vary widely in how social they are online. Consumers are most likely to engage with media, charities, and fashion and least likely to engage with consumer goods. • Although consumers may use social media to get useful information or deals and promotions or to enjoy interesting or entertaining brand-created content, a much smaller percentage want to use social media to engage in two-way "conversations" with brands. • Technology limitations may affect the ability to execute a high quality experience. The Facebook app for contest submissions crashed the first day due to high traffic. • The Internet permits scrutiny, criticism, and even "cheap shots" from consumers and organizations. Diff: 2 LO: 21.2: How can companies carry out effective social media campaigns? AACSB: Analytical thinking 76) AT&T found that one of the most effective drivers of its sales, along with unaided advertising awareness was ________. A) a blog B) an online forum C) social networks D) WOM E) pay-per-click ads Answer: D Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 77) ________ is a form of online word of mouth, or "word of mouse," that encourages consumers to pass along company-developed products and services or audio, video or written information to others online. A) Viral marketing B) Guerrilla marketing C) Microsite marketing D) Interstitial marketing E) Public relations Answer: A Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 78) Which of the following increases the likelihood a brand is discussed in face-to-face, oral communications? A) brand novelty B) brand salience C) brand excitement D) brand surprise E) brand edginess Answer: B Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 79) What percentage of word-of-mouth content cascades to more than one person beyond the initial recipient? A) 4 percent B) 6 percent C) 8 percent D) 10 percent E) 25 percent Answer: A Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 80) Which of the following extrinsic factors is most likely to sway a consumer's decision about whether to contribute to social media? A) whether they are having fun B) whether they are learning C) whether it affects their self-image D) whether the brand is novel E) whether their family is having fun Answer: C Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Analytical thinking 81) ________ has enrolled more than half a million mothers in Vocalpoint, a group built on the premise that highly engaged individuals want to learn about products and share their opinions with companies and other individuals. A) Blendtec B) SodaStream C) Google D) P&G E) Vimeo Answer: D Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 82) ________ operates an international word-of-mouth media network powered by 1 million demographically diverse, ordinary people who volunteer to talk up the products they deem worth promoting. A) Brand Advocates B) Vocalpoint C) P&G D) BzzAgent E) Influentials Answer: D Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 83) Which of the following is NOT an example of viral marketing? A) Quicksilver puts out surfing videos and surf-culture books for teens. B) Johnson & Johnson has a popular parenting advice Web site. C) Walmart places videos with money-saving tips on YouTube. D) Mountain Dew has a record label and offers free downloads. E) Hasbro places a Facebook ad about its TV channel. Answer: E Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 84) Online customer reviews are the second-most trusted source of brand information. What is the most trusted source? A) print advertising B) recommendations from friends and family C) salesperson recommendation D) celebrity endorsements E) Facebook recommendations Answer: B Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 85) Which of the following is NOT a limitation of online reviews? A) People trust and value positive reviews more than negative reviews. B) Online reviews can be biased. C) Raters are influenced by previous, positive ratings. D) Social influence can lead to disproportionally positive online ratings. E) Online reviews can be fake. Answer: A Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 86) According to media researcher Duncan Watts, the key to setting a song on the path to popularity is a phenomenon called ________. A) sampling B) cumulative advantage C) influence farming D) entertainment trendspotting E) buzz firing Answer: B Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 87) Which of the following is NOT one of the steps that can improve the likelihood of starting positive buzz? A) Identify underserved, inactive individuals and devote extra effort to them. B) Supply key people with product samples. C) Work through community influentials. D) Develop word-of-mouth referral channels to build business. E) Provide compelling information that customers want to pass along. Answer: A Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Analytical thinking 88) The bottom rung of the customer loyalty ladder is ________. A) word of mouth/buzz B) repeat purchase C) satisfaction D) evangelism E) ownership Answer: C Diff: 1 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 89) ________ is the rung of the customer loyalty ladder where the customer convinces others to purchase/join. A) Word of mouth/buzz B) Repeat purchase C) Satisfaction D) Evangelism E) Ownership Answer: D Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 90) Maria is flagged as a special customer at your firm because she is a satisfied customer, returns to your company to buy, puts her reputation on the line to tell others about you, and convinces others to purchase from you, which suggests she is on the ________ rung of the loyalty ladder. A) word of mouth/buzz B) repeat purchase C) satisfaction D) evangelism E) ownership Answer: D Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 91) When another customer complains about the hair salon where Georgeanna is a loyal customer, she defends it because she feels responsible for the continued success of the hair salon. This behavior suggests she has reached the ________ rung of the loyalty ladder. A) word of mouth/buzz B) repeat purchase C) satisfaction D) evangelism E) ownership Answer: E Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 92) The top rung of the loyalty ladder is the ________ rung. A) word of mouth/buzz B) repeat purchase C) satisfaction D) evangelism E) ownership Answer: E Diff: 1 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 93) When Gerard and his team seek to evaluate blogs according to three dimensions — relevance, sentiment, and authority — they are focused on characterizing the ________ of word of mouth. A) speed B) source C) scale D) share E) space Answer: B Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 94) To monitor the Gatorade brand on social networks around the clock, ________ created a Mission Control Center — set up like a broadcast television control room — in the middle of the marketing department in its Chicago headquarters. A) Coca-Cola B) Cadbury Schweppes C) PepsiCo D) P&G E) Nestlé Answer: C Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 95) One of the measures of online word of mouth at DuPont was the effort's ________, or whether it was not a one-shot deal. A) authority B) sentiment C) relevance D) scale E) sustainability Answer: E Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 96) One of the measures of online word of mouth at DuPont was the effort's ________, or how fast it spread. A) authority B) speed C) relevance D) scale E) sustainability Answer: B Diff: 1 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 97) ________ social media ground control and command center in Round Rock, Texas, has 70 employees and processes 25,000 daily social media events in 11 different languages, responding to most queries and complaints within 24 hours. A) DuPont's B) Dell's C) Gatorade's D) Wells Fargo's E) Nestlé's Answer: B Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 98) AT&T found word of mouth was one of its most effective drivers of its sales. Answer: TRUE Diff: 1 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 99) Viral marketing is a form of online word of mouth, or word of mouse, that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online. Answer: TRUE Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 100) Consumers are more likely to transmit negative WOM and pass on information about their own negative consumption experiences. Answer: FALSE Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 101) Only 4 percent of content cascades to more than one person beyond the initial recipient. Answer: TRUE Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 102) Consumers are more likely to share a viral video ad when the brand uses pulsing so it is not too intrusive in the video. Answer: TRUE Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Analytical thinking 103) P&G's Vocalpoint is a group built on the premise that moms who have conversations with three to five women each day are more influential than women who speak to 25 to 30 other women during the day. Answer: FALSE Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 104) BzzScapes are digital tools to activate widespread opinion-sharing throughout its own social media site and each member's personal social circles. Answer: TRUE Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Application of knowledge 105) A recent Nielsen survey found that online customer reviews were the most trusted source of brand information. Answer: FALSE Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 106) Social influence can lead to disproportionally positive online ratings, and subsequent raters are more likely to be influenced by previous negative ratings than positive ones. Answer: FALSE Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Information technology 107) What is viral marketing? Please provide an example. Answer: Student answers will vary. Viral marketing is a form of online word of mouth, or "word of mouse," that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online. Student examples will vary, but an example from the text is Blendtec's Will It Blend? videos. Diff: 1 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Analytical thinking

Application of knowledge 131) Audi models featured prominently in the 2010 blockbuster Iron Man 2, including main character Tony Stark's personal R8 Spyder. Which of the following is the most rational explanation for Audi's decision to associate itself with the movie? A) to express commitment to the community or on social issues B) to identify with a particular target market or lifestyle C) to create experiences and evoke feelings D) to become part of a personally relevant moment in consumers' lives E) to entertain key clients or reward key employees Answer: C Diff: 3 LO: 20.4: What are the guidelines for effective brand-building events and experiences? AACSB: Application of knowledge 132) JBJ Sports is a leading sporting goods manufacturer from Atlanta. It has recently initiated a program in association with the Food4Kids Foundation, which raises funds to promote nutritional awareness of young children. The company plans to donate $1 for every item it sells in the North American market. Also, JBJ has roped in professional sports teams associated with it to wear the Food4Kids logo on their team gear. Which of the following best describes the motivation for JBJ's involvement in the program? A) entertaining key clients or rewarding key employees B) expressing commitment to the community or on social issues C) permitting merchandising or promotional opportunities D) stimulating quicker or greater purchase of particular brands E) identifying with a particular target market or lifestyle Answer: B Diff: 2 LO: 20.4: What are the guidelines for effective brand-building events and experiences? AACSB: Analytical thinking 133) Which of the following factors forms the basis of assessing sponsorship activities through supply-side methods? A) consumers' brand knowledge B) impact on sponsor's bottom line C) extent of media coverage D) brand exposure reported by consumers E) sales pattern of sponsored products Answer: C Diff: 2 LO: 20.4: What are the guidelines for effective brand-building events and experiences? 134) Which of the following parameters forms the basis for measuring sponsorship effectiveness using demand-side methods? A) impact on market share of sponsor B) amount of time a brand is clearly visible on a television screen C) amount of relevant newsprint mentioning the sponsor D) influence on consumers' brand knowledge of the sponsor E) net impact on the sponsor's bottom line Answer: D Diff: 2 LO: 20.4: What are the guidelines for effective brand-building events and experiences? AACSB: Analytical thinking 135) An ideal event is unique but not encumbered with many sponsors, lends itself to ancillary marketing activities, and reflects or enhances the sponsor's brand or corporate image. Answer: TRUE Diff: 1 LO: 20.4: What are the guidelines for effective brand-building events and experiences? AACSB: Reflective thinking 136) The supply-side method identifies the effect sponsorship has on consumers' brand knowledge. Answer: FALSE Diff: 1 LO: 20.4: What are the guidelines for effective brand-building events and experiences? AACSB: Reflective thinking 137) Although supply-side exposure methods provide quantifiable measures, equating media coverage with advertising exposure ignores the content of the respective communications. Answer: TRUE Diff: 2 LO: 20.4: What are the guidelines for effective brand-building events and experiences? AACSB: Reflective thinking 138) Media coverage and telecasts only expose the brand and do not necessarily embellish its meaning in any direct way. Answer: TRUE Diff: 1 LO: 20.4: What are the guidelines for effective brand-building events and experiences? AACSB: Reflective thinking 139) The supply-side measurement method focuses on potential exposure to a brand by assessing the extent of media coverage, and the demand-side method focuses on exposure reported by consumers. Answer: TRUE Diff: 1 LO: 20.4: What are the guidelines for effective brand-building events and experiences? AACSB: Reflective thinking 140) List the major objectives of events and experiences as promotion tools. Answer: The major objectives of events and experiences as promotion tools are: 1.

To identify with a particular target market or lifestyle 2. To increase salience of company or product name 3. To create or reinforce perceptions of key brand image associations 4. To enhance corporate image 5. To create experiences and evoke feelings 6. To express commitment to the community or on social issues 7. To entertain key clients or reward key employees 8. To permit merchandising or promotional opportunities Diff: 1 LO: 20.4: What are the guidelines for effective brand-building events and experiences? AACSB: Reflective thinking 141) ________ is a marketing communications tool that includes a variety of programs to promote or protect a company's image or individual products. A) Public relations B) Advertising C) Sales promotion D) Personal selling E) Direct marketing Answer: A Diff: 1 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 142) Which of the following functions of public relations departments involves presenting news and information about the organization in the most positive light? A) corporate communications B) product publicity C) lobbying D) counseling E) press relations Answer: E Diff: 1 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 143) Which of the following describes the public relations function of lobbying? A) sponsoring efforts to publicize specific products B) advising management about public issues, and company positions and image during good times and bad C) presenting news and information about the organization in the most positive light D) dealing with legislators and government officials to promote or defeat legislation and regulation E) promoting understanding of the organization through internal and external communications Answer: D Diff: 2 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 144) What function does a company's public relations department perform when it promotes understanding of the organization through internal and external communications? A) lobbying B) corporate communications C) press relations D) product publicity E) counseling Answer: B Diff: 1 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 145) When a public relations department of a company advises management about public issues, and company positions and image during good times and bad, it is performing the function of ________. A) counseling B) corporate communications C) product publicity D) lobbying E) press relations Answer: A Diff: 1 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 146) ________ refers to the task of securing editorial space — as opposed to paid space — in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization. A) Advertising B) Media planning C) Communication design D) Publicity E) Copy testing Answer: D Diff: 1 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 147) Which of the following is a medium of visual identity for a company? A) annual reports B) dress codes C) press releases D) seminars E) trade shows Answer: B Diff: 1 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 148) The easiest measure of marketing public relations effectiveness is the ________. A) resultant effect on the company's sales figures B) effect it has on its market capitalization C) number of exposures carried by the media D) changes observed in consumers' brand knowledge E) impact it has on the company's market share Answer: C Diff: 2 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 149) A public is any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives. Answer: TRUE Diff: 1 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 150) The public relations function of lobbying involves advising management about public issues as well as company positions and image during good times and bad. Answer: FALSE Diff: 1 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 151) The main objective of marketing public relations is to secure editorial space in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization. Answer: FALSE Diff: 2 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 152) Creative public relations can affect public awareness at a fraction of the cost of advertising. Answer: TRUE Diff: 2 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 153) MPR can hold down promotion cost because it costs less than direct-mail and media advertising. Answer: TRUE Diff: 2 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 154) MPR can build credibility by placing stories in the media to bring attention to a product, service, person, organization, or idea. Answer: FALSE Diff: 2 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 155) MPR is effective in blanketing local communities and reaching specific groups and hence has to be planned separately from the less cost-effective advertising. Answer: FALSE Diff: 2 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 156) MPR's contribution to a company's bottom line is the easiest to measure among all the available promotion tools. Answer: FALSE Diff: 2 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Reflective thinking 157) What are the major functions performed by marketing public relations? Illustrate with examples. Answer: MPR goes beyond simple publicity and plays an important role in the following tasks: • Launching new products: The amazing commercial success of toys such as LeapFrog, Beanie Babies, and even the latest kids' craze, Silly Bandz, owes a great deal to strong publicity. • Repositioning a mature product: In a classic PR case study, New York City had extremely bad press in the 1970s until the "I Love New York" campaign. • Building interest in a product category: Companies and trade associations have used MPR to rebuild interest in declining commodities such as eggs, milk, beef, and potatoes and to expand consumption of such products as tea, pork, and orange juice. • Influencing specific target groups: McDonald's sponsors special neighborhood events in Latino and African American communities to build goodwill. • Defending products that have encountered public problems: PR professionals must be adept at managing crises, such as those weathered by such well-established brands as Tylenol, Toyota, and BP in 2010. • Building the corporate image in a way that reflects favorably on its products: Steve Jobs's heavily anticipated Macworld keynote speeches have helped to create an innovative, iconoclastic image for Apple Corporation. Diff: 3 LO: 20.5: How can companies exploit the potential of public relations? AACSB: Application of knowledge Marketing Management, 15e (Kotler) Chapter 21 Managing Digital Communications: Online, Social Media, and Mobile 1) Which of the following is an example of paid media? A) word-of-mouth about the brand B) news stories about the brand C) social network conversations about the brand D) a trade show booth about the brand E) consumers' Instagram photos that include the brand Answer: D Diff: 2 LO: 21.1: What are the pros and cons of online marketing? AACSB: Analytical thinking 2) Mountain Dew's Dewmocracy promotional campaign — including advertising, events, a Web site and social media efforts designed to engage consumers in brand-related activities — is an example of ________. A) paid media B) earned media C) individualization D) word-of-mouth E) mobile marketing Answer: A Diff: 3 LO: 21.1: What are the pros and cons of online marketing? AACSB: Analytical thinking

1) ________ refers to the means by which firms attempt to inform, persuade, and remind consumers — directly or indirectly — about the products and brands they sell.

A) Human resource development B) Marketing communications C) Financial management D) Operations management E) Planning Answer: B

3) Tracy works for a cellular phone company that offers trade-in allowances toward the upgrade of new phones, which is an example of ________.

A) a sales promotion B) interactive marketing C) word-of-mouth marketing D) personal selling E) events and experiences Answer: A

2) Which of the following elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media?

A) advertising B) personal selling C) sales promotion D) direct marketing E) public relations Answer: A

marketers can lose control of online messages, which can be hacked or vandalized. Consumers control the flow of information by selecting who they interact with and engaging selectively in the information. However, almost half of consumer media time is spent online, and marketers must reach consumers where they are. Diff: 2 LO: 21.1: What are the pros and cons of online marketing? AACSB: Analytical thinking 49) A Web site's ease of use and physical attractiveness are important to marketers because consumers use them to judge a site's performance. Please explain three things marketers should do to ensure high ratings on each. Answer: Two criteria consumers use to judge a site's performance are ease of use and physical attractiveness. •

Ease of use means: The site downloads quickly, the first page is easy to understand, and it is easy to navigate to other pages that open quickly. • Physical attractiveness is ensured when: Individual pages are clean and not crammed with content, typefaces and font sizes are very readable, and the site makes good use of color (and sound). Diff: 2 LO: 21.1: What are the pros and cons of online marketing? AACSB: Information technology 50) Identify three ways a marketer might transform online marketing touch points related to privacy on the Web site into a positive customer experience. Answer: The three ways include: 1. develop user-centric privacy controls to give customer control 2. avoid multiple intrusions 3. prevent human intrusion by using automation whenever possible Diff: 1 LO: 21.1: What are the pros and cons of online marketing? AACSB: Information technology 51) What is a microsite? Provide an example of a firm that is likely to benefit from the use of a microsite. Answer: Microsites are individual Web pages or clusters of pages that function as supplements to a primary site. They're particularly relevant for companies selling low-interest products. People rarely visit an insurance company's Web site, for example, but the company can create a microsite on used-car sites that offers advice for buyers of used cars and a good insurance deal at the same time. Diff: 1 LO: 21.1: What are the pros and cons of online marketing? AACSB: Analytical thinking 52) What is paid search advertising and why is it increasing in popularity? Answer: Thirty-five percent of all searches are reportedly for products or services. Marketers bid in a continuous auction on search terms that serve as a proxy for the consumer's product or consumption interests. When a consumer searches for any of the words with Google, Yahoo!, or Bing, the marketer's ad may appear above or next to the results, depending on the amount the company bids and an algorithm the search engines use to determine an ad's relevance to a particular search.Advertisers pay only if people click on the links, but marketers believe consumers who have already expressed interest by engaging in search are prime prospects. Average click-through in terms of the percentage of consumers who click on a link is about 2 percent, much more than for comparable online display ads, which range from 0.08 for standard banner ads with graphics and images to 0.14 for rich media (expandable banners) ads that incorporate audio and/or video. Diff: 2 LO: 21.1: What are the pros and cons of online marketing? AACSB: Analytical thinking 53) Identify two general guidelines for Search Engine Optimization and paid search ads. Answer: Student answers will vary. Here are four general guidelines: • Broader search terms ("MP3 player" or "iPod") are useful for general brand building

Application of knowledge 139) Name a few products for which personal influence plays a significant role in marketing communications. Answer: Personal influence carries especially great weight when products are expensive, risky, or purchased infrequently, and when products suggest something about the user's status or taste. On that count, life insurance, real estate, health services, automobiles, luxury items, consultation services, etc. can be expected to be significantly influenced by word-of-mouth and endorsements by credible sources. Diff: 2 LO: 19.4: What are the major steps in developing effective communications? AACSB: Application of knowledge 140) Identify three different types of personal communication channels. Answer: Personal communications channels derive their effectiveness from individualized presentation and feedback and include direct marketing, personal selling, and word of mouth. Advocate channels consist of company salespeople contacting buyers in the target market. Expert channels consist of independent experts making statements to target buyers. Social channels consist of neighbors, friends, family members, and associates talking to target buyers. Diff: 2 LO: 19.4: What are the major steps in developing effective communications? AACSB: Reflective thinking 141) When does personal influence carry the most weight? Answer: Personal influence carries especially great weight when products are expensive, risky, or purchased infrequently, and when products suggest something about the user's status or taste. People often ask others to recommend a doctor, plumber, hotel, lawyer, accountant, architect, insurance agent, interior decorator, or financial consultant. If we have confidence in the recommendation, we normally act on the referral. Service providers clearly have a strong interest in building referral sources. Diff: 2 LO: 19.4: What are the major steps in developing effective communications? AACSB: Reflective thinking 142) Marco is working on promoting his company's Glazer brand of electronic razors. The company estimates 50 million potential users and sets a target of attracting 8 percent of the market. He hopes to reach 80 percent of the potential customers with an advertising message. He would be pleased if 25 percent of the prospects that were aware, tried the Glazer. According to further estimates, 40 percent of all triers will become loyal users. If the cost of exposing 1 percent of the target population to one impression is $4500 on an average, determine the necessary advertising budget, according to the objective-and-task method. Answer: Using the objective-and-task method, Marco can arrive at the marketing communications budget by following these steps: 1.

The company estimates 50 million potential users and sets a target of attracting 8 percent of the market — that is, 4 million users. 2. The percentage of the market that should be reached by advertising is determined. Marco hopes to reach 80 percent (40 million prospects) with his advertising message. 3. The percentage of aware prospects that should be persuaded to try the brand is then calculated. Marco would be pleased if 25 percent of aware prospects (10 million) tried Glazers. He estimates that 40 percent of all triers, or 4 million people, will become loyal users. This is the market goal. 4. Next, the number of advertising impressions per 1 percent trial rate is estimated. Marco estimates that 40 advertising impressions (exposures) for every 1 percent of the population will bring about a 25 percent trial rate. 5. The number of gross rating points that would have to be purchased is now calculated. A gross rating point is one exposure to 1 percent of the target population. Because Marco wants to achieve 40 exposures to 80 percent of the population, he will want to buy 3,200 gross rating points. 6. Finally, the necessary advertising budget on the basis of the average cost of buying a gross rating point is estimated. To expose 1 percent of the target population to one impression costs an average of $4,500. Therefore, 3,200 gross rating points will cost $14,400,000 (= $4,500 × 3,200) in the introductory year. Diff: 3 LO: 19.4: What are the major steps in developing effective communications? AACSB: Analytical thinking

and surprise but don't shock — if an ad makes viewers too uncomfortable, they are unlikely to share it. Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 109) What are the two most trusted sources of brand information? Answer: Recommendations from friends and family and online customer reviews. Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 110) From a consumer's perspective, what are the limitations of getting information from an online review? Answer: Online reviews can be biased or fake. Research has shown that social influence can lead to disproportionally positive online ratings, and subsequent raters are more likely to be influenced by previous positive ratings than negative ones. Consumers posting reviews are susceptible to conformity pressures and adopting norms of others. Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Analytical thinking 111) According to researchers, what steps can improve the likelihood of starting a buzz? Answer: The steps that can improve the likelihood of starting a buzz include: •

Identify influential individuals and companies and devote extra effort to them. • Supply key people with product samples. • Work through community influentials. • Develop word-of-mouth referral channels to build business. • Provide compelling information that customers want to pass along. Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 112) Identify and describe the rungs on the customer loyalty ladder in ascending order. Answer: 1. Satisfaction — Sticks with your organization as long as expectations are met. 2. Repeat purchase — Returns to your company to buy again. 3. Word of mouth/buzz — Puts his or her reputation on the line to tell others about you. 4. Evangelism — Convinces others to purchase/join. 5. Ownership — Feels responsible for the continued success of your organization. Diff: 3 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Reflective thinking 113) Provide five examples of things a marketer might track to measure buzz. Answer: Student answers will vary. Marketers might track scale (how far the campaign reached), speed (how fast it spread), share of voice in that space, share of voice in that speed, whether it achieved positive lift in sentiment, whether the message was understood, whether it was relevant, whether it had sustainability (and was not a one-shot deal), and how far it moved from its source. Other marketers might characterize the source of the word of mouth. One example evaluates blogs by their relevance, sentiment, and authority. Another group measures the types of investments customers make in engaging with brands (e.g., efforts on blogs, microblogs, cocreation, forums and discussion boards, product reviews, social networks, photo and video sharing. Diff: 2 LO: 21.3: What are some tips for enjoying positive word of mouth? AACSB: Information technology 114) Which of the following is NOT one of the four distinctive characteristics of a mobile device? A) It is tied to one user. B) It allows marketers to personalize messages. C) It is virtually always "on." D) It allows for immediate consumption as it is a distribution channel with a payment system. E) It is highly interactive given it allows for geotracking and picture and video taking. Answer: B Diff: 2 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Analytical thinking 115) Marcel downloaded an episode of his daughter's favorite program to his cell phone to ward off a tantrum while they were shopping. Which of the four distinctive characteristics was most critical to enable this action? A) It is tied to one user. B) It allows marketers to personalize messages. C) It is virtually always "on." D) It allows for immediate consumption as it is a distribution channel with a payment system. E) It is highly interactive given it allows for geotracking and picture and video taking. Answer: D Diff: 1 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Application of knowledge 116) ________ out of every 10 US consumers owned a smart phone in 2014. A) Two B) Four C) Six D) Eight E) Ten Answer: C Diff: 1 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Information technology 117) Which of the following is the "third screen"? A) mobile phones B) in-vehicle entertainment systems C) televisions D) computers E) elevator screens Answer: A Diff: 1 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Information technology 118) Which of the following best characterizes average consumers' current media consumption patterns? A) Consumers spend more time listening to the radio than on their mobile phones, but less time on magazines and newspapers. B) Consumers spend more time reading magazines and newspapers than on their mobile phones, but less time listening to the radio. C) Consumers spend more time on mobile devices than on radio, magazines, and newspapers combined. D) Consumers spend an average of two hours and 52 minutes on radio, magazines, and newspapers combined. E) Consumers spend an average of one hour and 46 minutes on mobile devices. Answer: C Diff: 2 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Reflective thinking 119) Mobile ad spending approached ________ worldwide in 2013. A) $14 million B) $18 million C) $48 million D) $18 billion E) $48 billion Answer: D Diff: 2 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Reflective thinking 120) ________ are bite-sized software programs that can be downloaded to smart phones. A) Mobile apps B) Mini-billboards C) Loyalty programs D) Virtual maps E) Cookies Answer: A Diff: 1 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Information technology 121) VW chose to launch its GTI in the United States with a(n) ________, which was downloaded 2 million times in three weeks. A) interstitial B) app C) mini-billboard D) Facebook page E) LinkedIn ad Answer: B Diff: 2 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Information technology 122) ________ "Face Retirement" app used 3D "virtual makeover" imaging technology to show people what they might look like as they approached retirement age as part of a campaign to encourage young people to save for retirement. A) Charles Schwab's B) Ameritrade's C) Prudential's D) Bank of America's E) Fidelity Investments's Answer: D Diff: 1 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Application of knowledge 123) Which of the following is NOT one of the ways companies can utilize cell phones to market to or track consumers? A) utilize GPS data to provide location-based offers B) utilize digital in-store signs that dispense coupons to smart phones C) utilize cookies to track mobile activity D) track behavior across tablets and mobile devices using screen identities E) track loyalty program participation Answer: C Diff: 3 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Analytical thinking 124) Why is the Web experience different for mobile phone users than for people who are surfing from a computer? A) smaller screen sizes B) longer download times C) lack of software D) all of the above E) none of the above Answer: D Diff: 1 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Analytical thinking 125) Experts recommend mobile ad copy should occupy only ________ percent of the screen, avoiding complex viewing experiences that may take a toll on consumers' battery and data availability as well as their time. A) 30 B) 40 C) 50 D) 60 E) 70 Answer: C Diff: 3 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Reflective thinking 126) Nadya is designing a mobile ad to promote her company's widgets. Where should the company's logo appear in the mobile ad? A) in the middle of the ad B) centered at the bottom C) centered at the top D) in the corner E) it should not appear Answer: D Diff: 3 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Application of knowledge 127) When it comes to ad design and copy, mobile ads should use which of the following guidelines? A) Use lots of bright colors but limit ad copy to a pair of phrases. B) Do not use color and limit ad copy to one phrase. C) Use no more than three bright colors and use as much copy as you want. D) Use four bright colors and limit ad copy to one phrase. E) Use at least one bright color, but no more than two, and limit ads to a pair of phrases. Answer: E Diff: 3 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Reflective thinking 128) Carlos is training his new graphic design intern on the use of color in mobile ads. Which of the following is good advice when it comes to the use of color? A) Only use one bright color. B) Do not use bright colors. C) Use at least three bright colors. D) Use at least four bright colors. E) Use a bright color to highlight calls to action. Answer: E Diff: 3 LO: 21.4: What are important guidelines for mobile marketing? 129) Why should mobile ad developers avoid complex viewing experiences? A) They take a toll on consumers' battery. B) Consumers may have limited data availability. C) Consumers may have limited time. D) All of the above E) None of the above Answer: D Diff: 1 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Information technology 130) In which developed Asian market is mobile marketing becoming a central component of customer experiences? A) Hong Kong B) Japan C) Singapore D) South Korea E) All of the above Answer: E Diff: 2 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Diverse and multicultural work environments 131) A pioneer in China, ________ created a national campaign asking Beijing residents to send text messages guessing the high temperature in the city every day for just over a month for a chance to win a one-year supply of its products. A) PepsiCo B) Coca-Cola C) Red Bull D) Poland Spring E) Unilever Answer: B Diff: 2 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Application of knowledge

Application of knowledge 134) What are the steps involved in developing effective marketing communications? Answer: 1.

Identify target audience 2. Determine objectives 3. Design communications 4. Select channels 5. Establish budget 6. Decide on media mix 7. Measure results 8. Manage integrated marketing communications Diff: 1 LO: 19.4: What are the major steps in developing effective communications? AACSB: Reflective thinking 135) When asked about their preferred brand of instant noodles outside a supermarket setting, customers could not remember Nissin's name, but relied on the distinct packaging to help them spot the noodles while shopping. Describe how this problem can be addressed through the objective of Nissin's marketing communications. Answer: Student answers will vary. The objective for Nissin's marketing communications objective should be to build brand awareness, i.e. fostering the consumer's ability to recognize or recall the brand within the category, in sufficient detail to make a purchase. Recognition is easier to achieve than recall — consumers asked to think of a brand of frozen entrées are more likely to recognize Stouffer's distinctive orange packages than to recall the brand. Brand recall is important outside the store

Diverse and multicultural work environments 132) Mobile ad copy should occupy only 50 percent of the screen, avoiding complex viewing experiences that may take a toll on consumers' battery and data availability as well as their time. Answer: TRUE Diff: 2 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Information technology 133) In mobile ads, calls to action should be highlighted with a bright color. Answer: TRUE Diff: 2 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Information technology 134) What are four distinctive characteristics of a mobile device? Answer: Four distinctive characteristics of a mobile device include: 1.

it is uniquely tied to one user 2. it is virtually always "on" given it is typically carried everywhere 3. it allows for immediate consumption because it is in effect a channel of distribution with a payment system 4. it is highly interactive given it allows for geotracking and picture and video taking Diff: 2 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Information technology 135) What are mobile apps and how are they used? Answer: Mobile apps are bite-sized software programs that can be downloaded to smart phones. Apps can perform useful functions — adding convenience, social value, incentives, and entertainment and making consumers' lives a little or a lot better. Diff: 1 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Information technology 136) What are some challenges associated with mobile marketing and how should advertisers overcome them? Answer: Even with newer-generation smart phones, the Web experience can be very different for users given smaller screen sizes, longer download times, and the lack of some software capabilities. Marketers should design simple, clear, and clean sites, paying even greater attention than usual to user experience and navigation. Mobile ad copy should occupy only 50 percent of the screen, avoiding complex viewing experiences that may take a toll on consumers' battery and data availability as well as on their time. Brands should limit their ads to a pair of phrases — the offer and the tagline. Brands should place their logo in the corner of the mobile ad frame. Finally, ads should use at least one bright color, but no more than two. Calls to action should be highlighted with a bright color. Diff: 2 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Analytical thinking 137) Identify the 7Cs of design elements. Do you feel they are relevant in a mobile advertising context? Why or why not? Answer: The 7Cs of design elements are context, content, community, customization, communication, connection, and commerce. Student opinions may vary regarding their relevance in a mobile advertising context, but they should recognize the advice for mobile advertising: Brands should limit their ads to a pair of phrases — the offer and the tagline. Brands should place their logo in the corner of the mobile ad frame. Finally, ads should use at least one bright color, but no more than two. Calls to action should be highlighted with a bright color. Diff: 3 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Analytical thinking 138) What can US marketers learn about mobile marketing by looking overseas? Answer: In developed Asian markets such as Hong Kong, Japan, Singapore, and South Korea, mobile marketing is fast becoming a central component of customer experiences. In developing markets, high smart-phone penetration also makes mobile marketing attractive. For example, Coca-Cola created a national campaign asking Beijing residents to send text messages guessing the high temperature in the city every day for just over a month for a chance to win a one-year supply of Coke products. The campaign attracted more than 4 million messages over the course of 35 days. Diff: 2 LO: 21.4: What are important guidelines for mobile marketing? AACSB: Analytical thinking

Application of knowledge 43) Which of the following marketing communications tools is most influential at the reordering stage of buyer readiness? A) events and experiences B) publicity C) direct marketing D) sales promotion E) interactive marketing Answer: D Diff: 2 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 44) ________ is a measure of communications effectiveness that describes the percentage of target market exposed to a communication. A) Frequency B) Reach C) Width D) Depth E) Range Answer: B Diff: 1 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 45) Advertising allows the buyer to receive and compare the messages of various competitors. Answer: TRUE Diff: 1 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 46) Public relations is incapable of reaching prospects who prefer to avoid mass media and targeted promotions. Answer: FALSE Diff: 1 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 47) In general, personal selling is used more with complex, expensive, and risky goods and in markets with fewer and larger sellers. Answer: TRUE Diff: 1 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 48) Advertising and publicity play the most important roles in the conviction stage of buyer readiness. Answer: FALSE Diff: 2 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 49) In the growth stage of a product's life cycle, demand has its own momentum through word of mouth and interactive marketing. Answer: TRUE Diff: 1 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 50) What are the major characteristics of sales promotions as an element of the marketing communications mix? Answer: Companies use sales promotion tools — coupons, contests, premiums, and the like — to draw a stronger and quicker buyer response, including short-run effects such as highlighting product offers and boosting sagging sales. Sales promotion tools offer three distinctive benefits: 1.

Ability to be attention-getting — They draw attention and may lead the consumer to the product. 2. Incentive — They incorporate some concession, inducement, or contribution that gives value to the consumer. 3. Invitation — They include a distinct invitation to engage in the transaction now. Diff: 2 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 51) What is the role of advertising as a communications tool in marketing for business markets? Answer: Although marketers rely more on sales calls in business markets, advertising still plays a significant role: • Advertising can provide an introduction to the company and its products. • If the product has new features, advertising can explain them. • Reminder advertising is more economical than sales calls. • Advertisements offering brochures and carrying the company's phone number or Web address are an effective way to generate leads for sales representatives. • Sales representatives can use copies of the company's ads to legitimize their company and products. • Advertising can remind customers how to use the product and reassure them about their purchase. Diff: 2 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 52) How do the stages of buyer readiness affect the composition of a product's marketing communications mix? Answer: Communication tools vary in cost-effectiveness at different stages of buyer readiness. Advertising and publicity play the most important roles in the awareness-building stage. Customer comprehension is primarily affected by advertising and personal selling. Customer conviction is influenced mostly by personal selling. Closing the sale is influenced mostly by personal selling and sales promotion. Reordering is also affected mostly by personal selling and sales promotion, and somewhat by reminder advertising. Diff: 2 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 53) How do the stages in a product's life cycle influence the marketing communications mix? Answer: In the introduction stage of the product life cycle, advertising, events and experiences, and publicity have the highest cost-effectiveness, followed by personal selling to gain distribution coverage and sales promotion and direct marketing to induce trial. In the growth stage, demand has its own momentum through word of mouth and interactive marketing. Advertising, events and experiences, and personal selling all become more important in the maturity stage. In the decline stage, sales promotion continues strong, other communication tools are reduced, and salespeople give the product only minimal attention. Diff: 2 LO: 19.2: What is the marketing communications mix? AACSB: Reflective thinking 54) Karl Lipton is the marketing communications coordinator for a major electronics manufacturer. He is assigned with charting out a communications strategy for a new range of mobile phones developed by his company. How will Karl's communications strategy look over the course of the mobile phones' life cycle? Answer: Mobile phones have relatively short life cycles. In the introduction stage of the phones' life cycle, advertising, events and experiences, and publicity have the highest cost-effectiveness. In-store personal selling helps improve distribution coverage, while sales promotions such as discounted accessories, freebies etc., help induce trial. In the growth stage, demand has its own momentum through word of mouth and interactive marketing. Web sites are effective tools during the growth stage. As the phones reach the maturity stage, advertising, promotional events and experiences, and personal selling again become more important. As the phones enter the decline stage of their life cycle, sales promotion takes over as the most important tool in the marketing communications mix, even as other communication tools are reduced, and salespeople give the phones only minimal attention. Diff: 2 LO: 19.2: What is the marketing communications mix? AACSB: Analytical thinking

Application of knowledge 75) Provide a general description of the four classic response hierarchy models. Answer: Micromodels of marketing communications concentrate on consumers' specific responses to communications. All the response hierarchy models assume the buyer passes through cognitive, affective, and behavioral stages, in that order. This "learn-feel-do" sequence is appropriate when the audience has high involvement with a product category perceived to have high differentiation, such as an automobile or house. An alternative sequence, "do-feel-learn," is relevant when the audience has high involvement but perceives little or no differentiation within the product category, such as an airline ticket or personal computer. A third sequence, "learn-do-feel," is relevant when the audience has low involvement and perceives little differentiation, such as with salt or batteries. By choosing the right sequence, the marketer can do a better job of planning communications. Diff: 2 LO: 19.3: How do marketing communications work? AACSB: Reflective thinking 76) What are the features of an ideal advertising campaign? Answer: To increase the odds for a successful marketing communications campaign, marketers must attempt to increase the likelihood that each step occurs. For example, the ideal ad campaign would ensure that: •

The right consumer is exposed to the right message at the right place and at the right time. • The ad causes the consumer to pay attention but does not distract from the intended message. • The ad properly reflects the consumer's level of understanding of and behaviors with the product and the brand. • The ad correctly positions the brand in terms of desirable and deliverable points-of-difference and points-of-parity. • The ad motivates consumers to consider purchase of the brand. • The ad creates strong brand associations with all these stored communications effects so they can have an impact when consumers are considering making a purchase. Diff: 2 LO: 19.3: How do marketing communications work? AACSB: Reflective thinking 77) Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of ________. A) brand knowledge B) purchase patterns C) demographic characteristics D) income levels E) psychographic characteristics Answer: A Diff: 2 LO: 19.4: What are the major steps in developing effective communications? AACSB: Reflective thinking 78) Which of the following is the marketing communications objective for a new-to-the-world product, such as electric cars? A) enhancing brand awareness B) developing brand attitude C) increasing brand purchase intention D) encouraging repeat purchases E) establishing category need Answer: E Diff: 2 LO: 19.4: What are the major steps in developing effective communications? AACSB: Application of knowledge 79) When Apple introduced the iPod in October, 2001, it was the first-of-its-kind product that offered sizable storage capacity for songs and a portable device that was not seen before in the market. Which of the following is most likely to have been the marketing communications objective for the iPod at the time of its introduction? A) developing brand awareness B) building customer traffic C) enhancing purchase actions D) establishing product category E) enhancing firm image Answer: D Diff: 2 LO: 19.4: What are the major steps in developing effective communications? AACSB: Analytical thinking