Chapter 15

176. Regarding advertising media selection, which of the following is the best advice? "There is no such thing as a must buy." "Be sure the media match your target market." "Avoid the local media." "Make sure your first media choice reaches the whole target market." "Set very general promotion objectives to stay flexible."

"Be sure the media match your target market."

163. Which of the following is the BEST example of "institutional advertising?" "I'd walk a mile for a Pepsi" "IBM is THE standard for personal computers" "Mobil gas makes your car perform better" "Promise her anything but give her Obsession" "Better living through research"

"Better living through research"

130. Which of the following advertising headlines is MOST oriented toward stimulating PRIMARY demand? "See your Hewlett Packard dealer to learn how an affordable portable printer can make business travel easier." "Panasonic is the value leader." "IBM printers set the quality standard." "Buy Quality. Buy from an authorized Epson dealer." "Canon portable computers are lighter to carry than any other brand."

"See your Hewlett Packard dealer to learn how an affordable portable printer can make business travel easier."

124. Which of the following is the BEST example of an advertising objective? "We want 35 percent of our target customers to be aware of our new product within the next two months." "We want to generate enough interest in our product that middlemen will be willing to stock it." "We want to make older consumers aware of our product--since they have the greatest need." "We want to increase profits--and that will require significantly expanding sales of our product." "We want to win an advertising industry artistic award for the creative effort on the ad."

"We want 35 percent of our target customers to be aware of our new product within the next two months."

126. Which of the following is the LEAST appropriate advertising objective? "We want our ads to increase traffic in our retail outlets by 10%." "We want our TV ads to really promote the product." "We want the ad campaign to increase our market share by 3 percent." "We want distribution in 30 percent of the desirable retail outlets." None of the above, i.e., all are equally appropriate.

"We want our TV ads to really promote the product."

105. By 2005, advertising spending in the United States was about: $176 billion. $276 billion. $ 6 billion. $ 26 billion. $106 billion.

$276 billion.

108. U.S. corporations spend about ________ percent of their sales on advertising. 25 35 15 2.5 7.5

2.5

197. Natalie St. John, brand manager for a cookie producer, says that she is looking for a "full service" advertising agency. Apparently, in addition to having the agency purchase media, she wants an agency to help plan package development. develop sales promotions. provide market research. create the actual advertisements. A full service agency might help with any of the above.

A full service agency might help with any of the above.

204. Regarding measuring advertising effectiveness, which of the following statements is FALSE? Advertising effectiveness is easily measured by looking at the sales results. Managers probably should pretest advertising rather than relying only on the judgment of advertising "experts." If specific advertising objectives are set, then marketing research can help evaluate the effectiveness of ads. Some advertisers are now demanding laboratory or market tests to evaluate effectiveness. No single research technique has proven most effective.

Advertising effectiveness is easily measured by looking at the sales results.

212. Sales promotion: usually lasts for only a limited time period. spending has grown rapidly in mature markets. involves a wide variety of activities which often require the use of specialists. can make the personal selling job easier. All of the above are true statements.

All of the above are true statements.

206. Which of the following statements are TRUE regarding government's role in regulating advertising? Canada bans any advertising targeted directly at children. Japan limits the use of cartoon characters in ads to children. Switzerland does not allow an actor to represent a consumer in an ad. New Zealand limits political ads on TV. All of the above are true.

All of the above are true.

208. A firm has run a comparative ad, and a competitor immediately complained that the claims made by the ad are deceptive. In such a case, the ad agency that created the ad could share responsibility in any action brought by the FTC. the firm that sponsored the ad might need to provide research proof that its claims are accurate. the Federal Trade Commission has the power to require corrective advertising--if the ad was really deceptive. All of the above are true. A and C are true, but not B.

All of the above are true.

104. Planning for mass selling involves strategy decisions about: what is to be said to the target customers. how target customers are to be reached. who is the target audience. what kind of advertising is to be used. All of the above.

All of the above.

161. Institutional advertising: may try to improve a firm's image with shareholders. may seek to inform, persuade, or remind. may try to improve a firm's image with the general public. focuses on the name and prestige of a company or industry. All of the above.

All of the above.

174. Selecting the most effective advertising media depends on the: nature of the media--i.e. reach, frequency, impact and cost. firm's target market. funds available for advertising. firm's promotion objectives. All of the above.

All of the above.

180. A media buyer knows that: the local newspaper will probably be a must buy for a retailer targeting local consumers. a 30-second commercial on primetime network television is likely to be too expensive for all but large national firms. a Yellow Pages listing will probably be a must buy for a service firm serving customers in a local market. website advertising will probably be a must buy for firms targeting business buyers in overseas markets. All of the above.

All of the above.

181. Regarding Internet advertising: Most ads are seeking a direct response. All three types of ads (banner, pop-up, and pop-under) encourage viewers to visit the advertiser's website for more information. Some websites are better than others for reaching target customers. At some websites, ads are free if they don't get results. All of the above.

All of the above.

182. Regarding Internet advertising: Search ads know what customers are looking for based on the keywords that customers use in a search. Ads can be delivered to customers based on which other websites customers have visited. Most ads try to get customers to click-through to the firm's website. Ads are much more interactive than traditional ads and may include video, sound, and more. All of the above.

All of the above.

207. Regarding advertising, the Federal Trade Commission: can require firms to run corrective ads. can regulate deceptive advertising. can require firms to support ad claims. can require firms to provide affirmative disclosures. All of the above.

All of the above.

210. Sales promotion activities: can usually be implemented quickly and get results sooner than advertising. may be aimed at final consumers, middlemen, and/or a firm's own sales force. cost more than the total expenditures on advertising. are currently a weak spot in many firms' marketing strategies. All of the above.

All of the above.

114. Which of the following retailers spend more on advertising as a percent of sales? Grocery stores. Hotels and motels. Women's clothing stores. Amusement parks.

Amusement parks.

189. Regarding advertising and the AIDA model, which of the following is the best example of advertising aimed at obtaining action? A TV ad at 10:00 PM for the luncheon buffet at a local restaurant. A car at an auto junk yard--with the operating hours painted on the side. An ad for a restaurant in the Yellow Pages. A classified ad in a newspaper with the word "SEX" in bold print and then the name and telephone number of a dry cleaner. None of the above.

An ad for a restaurant in the Yellow Pages.

214. Sales promotion should be targeted toward wholesalers. business customers. final consumers. retailers. Any of the above could be an appropriate target.

Any of the above could be an appropriate target.

172. Producers do cooperative advertising with retailers because: media rate structures give local firms lower rates than national firms. the FTC requires it. retailers create better ads than producers. retailers are more likely to follow through when they are paying a share of the cost. Both A and D.

Both A and D.

140. Which kind of advertising should a manufacturer of paper towels (that are basically similar to competitive products) use if it wants to increase its market share? Reminder Competitive Institutional Primary demand Pioneering

Competitive

146. A manufacturer of computer printers has decided to add scanners to its line. Which kind of advertising should it stress if it wants to persuade consumers to buy its brand of more or less similar scanners? Reminder Cooperative Pioneering Institutional Indirect competitive

Indirect competitive

159. ______________ advertising tries to develop goodwill for a company or even an industry--instead of a specific product. Primary demand Selective demand Institutional Persuading Pioneering

Institutional

202. Trion, Inc. recently spent $1,000,000 on newspaper advertising and obtained a 30 percent increase in sales. Which of the following is TRUE regarding Trion's advertising effectiveness? It's hard to evaluate the ad's effectiveness because the sales increase was the result of Trion's whole marketing mix--not just its advertising. It is not possible to measure the effectiveness of Trion's advertising. Trion's advertising effectiveness should be evaluated by how many potential customers were exposed to the ads. Trying to measure the effectiveness of Trion's advertising is not possible unless the ads were pretested. Trion's ads produced a very effective increase in sales.

It's hard to evaluate the ad's effectiveness because the sales increase was the result of Trion's whole marketing mix--not just its advertising.

129. Pioneering advertising is often needed during the ______________ stage of the product life cycle. Sales decline Turbulence Market maturity Market growth Market introduction

Market introduction

194. Which of the following statements about advertising agencies is FALSE? Advertising agencies are specialists with an outside view that work for advertisers. Most advertising agencies are small--with 10 or fewer employees. The largest advertising agencies account for most of the billings. All of the above are false. None of the above is false.

None of the above is false.

183. Which of the following statements about advertising on the Internet is(are) true? When a website sets fees based on actual sales, it is setting fees in the same manner as traditional media. Content on a website is similar to traditional advertising. As with traditional media, getting lots of exposure is all that matters. All of the above are true. None of the above is true.

None of the above is true.

131. The message "Drink milk every day" is an example of which type of advertising? Pioneering Competitive Indirect action Reminder Direct action

Pioneering

119. In the U.S., the largest share of advertising expenditures is spent on: direct mail. radio. TV (including cable). billboards. newspapers.

TV (including cable).

122. Which of the following statements about advertising objectives is FALSE? They should be as specific as possible. They should be more specific than personal selling objectives. They should be left to creative ad agencies, not the marketing manager. They should flow from the overall marketing strategy. They should set the framework for an advertising campaign.

They should be left to creative ad agencies, not the marketing manager.

125. Which of the following is the LEAST appropriate advertising objective? To increase sales by 20 percent this year. To improve consumer goodwill and help sell the product. To increase target customers' brand awareness by 50 percent this year. To increase a brand's market share by 10 percent. To obtain 20 new accounts in the Oakland Bay area.

To improve consumer goodwill and help sell the product.

123. Which of the following advertising objectives is the BEST example of a specific advertising objective? To increase a firm's market share by 20 percent--this year. To increase consumer awareness of the product. To help attract new retailers on the West Coast. To sell the company "image" to senior citizens. To increase store traffi

To increase a firm's market share by 20 percent--this year.

168. Cooperative advertising is: advertising by several producers of the same product type--to stimulate primary demand. encouraged by the Federal Trade Commission. the opposite of competitive advertising. a way for a producer to get more promotion for its advertising dollar. None of the above is true.

a way for a producer to get more promotion for its advertising dollar.

213. Sales promotion: should not be needed if a firm has a good mass selling program. is not likely to be used in the market maturity stage of the product life cycle. objectives should be developed after the other promotion decisions have been made--so the manager knows how much is left in the budget. activities are often handled by outside specialists. All of the above are true.

activities are often handled by outside specialists.

166. Price reductions given to channel members to encourage them to advertise or otherwise promote a firm's products locally are: quantity discounts. brokerage allowances. push money allowances. advertising allowances. trade incentives.

advertising allowances.

141. DIRECT competitive advertising: aims for immediate buying action. tries to develop primary demand. is only seen in newspapers. only uses direct mail. stresses specific product advantages--so the target customers will buy the advertised brand when they are ready to buy.

aims for immediate buying action.

173. Which of the following is NOT a concern in selecting the advertising media to use? the advertising budget. the nature of the media. the target market. the advertising objective. all of the above are relevant concerns.

all of the above are relevant concerns.

175. To choose the best advertising medium, you have to: decide what target market(s) should be reached. decide on promotion objectives. know the cost of alternative media. decide what must be said. all of the above.

all of the above.

215. Sales promotion: to consumers usually is trying to increase demand or speed up the time of purchase. aimed at middlemen is sometimes called trade promotion. might include free samples of a product. used by service firms is often aimed at its employees. all of the above.

all of the above.

169. "Cooperative advertising" involves producers: paying for middlemen's total advertising costs. agreeing with competitors to limit advertising spending. doing some advertising and expecting their middlemen to provide the rest of the promotion blend. and middlemen sharing in the cost of advertising placed in national media. and middlemen sharing in the cost of local advertising.

and middlemen sharing in the cost of local advertising.

184. Instead of linking to a firm's home page, some Internet ads link to customized landing pages that reflect the customer's search term. language. Internet connection speed. local currency. any of the above.

any of the above.

185. In addition to text and pictures, Internet ads may include: videos. sounds. product databases. customer reviews. any of the above.

any of the above.

192. "Advertising agencies": usually require advertisers to sign long-term contracts. prefer to work with local advertisers rather than national advertisers. compete against the national media for the business of big advertisers. do little more than sell media time or space to advertisers. are specialists in planning and handling mass selling details.

are specialists in planning and handling mass selling details.

109. Advertising expenditures by U.S. corporations: average only about 2.5 percent of sales. must be approved by an advertising agency that is registered with the Federal Trade Commission. are higher for newspaper advertising than television advertising. are much higher than either personal selling or sales promotion expenditures. are highest for business product companies (as a percent of sales).

average only about 2.5 percent of sales.

199. The "traditional" approach for compensating ad agencies was most favored by: large producers of consumer products. not-for-profit organizations. business products producers. small local retailers. the Federal Trade Commission.

business products producers.

187. Regarding message planning: a specific message usually can be used for several target markets. communication may be poor if there is not a common frame of reference. behavioral research shows that most consumers cannot "tune out" advertising messages. advertising is more suitable for changing behavior than attitudes. All of the above.

communication may be poor if there is not a common frame of reference.

149. Competitive advertising which makes specific brand comparisons--using actual names--is ______________ advertising. direct competitive cooperative comparative pioneering institutional

comparative

150. Nissan's Altima advertises the performance of its new luxury sedan by showing it side-by-side with competing brands, like Lexus and BMW. This is: primary advertising. institutional advertising. reminder advertising. comparative advertising. selective advertising.

comparative advertising.

151. In its ads, Clorox touts the effectiveness of its Disinfecting Wipes by claiming that they disinfect better than those made by Windex, a competing brand. This is: reminder advertising. comparative advertising. selective advertising. institutional advertising. primary advertising.

comparative advertising.

152. In its ads, General Mills highlights the advantages of its Milk 'n Cereal breakfast bars over Kellogg's breakfast bars. This is: comparative advertising. primary advertising. selective advertising. reminder advertising. institutional advertising.

comparative advertising.

153. An ad for Toyota's lowest priced truck claimed that it "is tougher, gives better mileage, and costs less that any other truck"--and specifically named the directly competitive trucks. This is: institutional advertising. comparative advertising. cooperative advertising. direct competitive advertising. pioneering advertising.

comparative advertising.

138. Advertising which tries to develop selective demand for a specific brand rather than a product category is called ______________ advertising. institutional competitive indirect reminder direct pioneering primary

competitive

139. An ad stressing the advantages of one brand of cookware--compared to similar (but unnamed) competitive products--is an example of ______________ advertising. institutional comparative pioneering primary competitive

competitive

113. Advertising spending as a percent of sales dollars is lowest for: watches. cars. cable TV. computers. games.

computers.

167. A producer of country music CDs pays a share of local retailers' costs--to get them to promote its new releases. This is an example of: pioneering advertising. institutional advertising. comparative advertising. cooperative advertising. selective advertising.

cooperative advertising.

170. A producer and middlemen sharing the cost of ads in local media is called: comparative advertising. cooperative advertising. pioneering advertising. campaign advertising. institutional advertising.

cooperative advertising.

121. Advertising objectives should be specific, but not as specific as the objectives for the personal selling effort. be set by the specialists--the creative people at the advertising agency. be quite general so that ads will appeal to the largest possible audience. determine the kinds of advertising needed. be more specific for institutional advertising than for direct type competitive advertising.

determine the kinds of advertising needed.

127. "Pioneering advertising" tries to: develop goodwill toward a company. develop primary demand. build a brand image. develop selective demand. build demand for a specific brand.

develop primary demand.

137. "Competitive advertising" tries to: develop selective demand rather than primary demand. keep a product's name before the public. promote the competitive products of an industry rather than a particular firm. build demand for a product category. create goodwill for a firm.

develop selective demand rather than primary demand.

142. A typical retailer's newspaper ad stressing "today's" sale prices on "regular" stock is an example of ______________ advertising. reminder direct competitive pioneering institutional indirect competitive

direct competitive

143. A supermarket manager should use ______________ advertising to increase store traffic during the middle of the week. institutional indirect competitive pioneering reminder direct competitive

direct competitive

144. Glitter, Inc. advertises its "gold-tone" jewelry on TV, along with a toll free number and the message that "operators are standing by now to take your credit card order." This is an example of: direct type competitive advertising. pioneering advertising. primary advertising. comparative advertising. indirect type competitive advertising.

direct type competitive advertising.

203. Analysis of sales increases for measuring the effectiveness of a firm's advertising makes the most sense with ______________ advertising. direct-response comparative broadcast (radio and television) billboard institutional

direct-response

188. Regarding message planning and the AIDA model: "getting action" is the final and easiest step in the process. focusing on one unique selling proposition is one way to arouse desire. a successful attention-getting device assures "holding interest." "arousing desire" is the first and hardest step in the process. All of the above are true.

focusing on one unique selling proposition is one way to arouse desire.

205. Research to evaluate advertising effectiveness: is especially difficult with direct-response promotion. should focus primarily on measuring increases in sales. includes experiments conducted using split runs on cable TV systems. is a problem because nothing can be done until after the ad has actually run. All of the above are true.

includes experiments conducted using split runs on cable TV systems.

147. Best Sound, Inc. placed a full-page color ad in Car Talk magazine--stressing the better sound available with its car stereo product as compared to similarly priced products--to try to affect its target market's future buying decisions. This is an example of: reminder advertising. pioneering advertising. direct competitive advertising. institutional advertising. indirect competitive advertising.

indirect competitive advertising.

160. Focusing a company's advertising on its name and prestige is called ______________ advertising. reminder primary institutional competitive pioneering

institutional

162. When a firm's president appears in TV testimonial ads to assure customers, employees and stockholders that the firm is making a fast recovery from some problem, this is: institutional advertising. reminder advertising. competitive advertising. comparative advertising. pioneering advertising.

institutional advertising.

164. The National Cheese Association's ad theme "We are making better cheese for you" is an example of: institutional advertising. cooperative advertising. pioneering advertising. competitive advertising. reminder advertising.

institutional advertising.

165. A firm that uses advertising that tells customers that the firm focuses on "Better things for better living through chemistry" illustrates: pioneering advertising. reminder advertising. competitive advertising. institutional advertising. cooperative advertising.

institutional advertising.

115. Regarding mass selling and other elements of promotion, less money is spent on advertising than on personal selling. many more people work in advertising than in personal selling. more dollars are spent on advertising than on the rest of promotion. All of the above are true. None of the above is true.

less money is spent on advertising than on personal selling.

198. The "traditional" commission approach for paying advertising agencies: encouraged agencies to use inexpensive media. resulted in more local advertisers than national advertisers using ad agencies. made it difficult for agencies to be completely objective in designing advertising campaigns. encouraged agencies to do research on the effect of the ads they created. All of the above.

made it difficult for agencies to be completely objective in designing advertising campaigns.

103. Mass selling: makes widespread distribution possible--by reaching many potential customers at the same time. alternatives do not vary much in cost (and results) when target market preferences are considered. alternatives do not vary much from one country to another. All of the above are true. None of the above is true.

makes widespread distribution possible--by reaching many potential customers at the same time.

191. An advertising manager's job is to: manage the firm's advertising effort. plan creative marketing strategies. develop the firm's marketing mix. develop the firm's promotion blend. both A and D.

manage the firm's advertising effort.

136. Using advertising to develop selective demand: may become necessary as a firm's product moves through its product life cycle. should only be tried with selective distribution. is needed when consumers do not know a new product is available. is intended to produce immediate buying action. is needed when a firm has a monopoly.

may become necessary as a firm's product moves through its product life cycle.

193. Advertising agencies: may do a better job at less cost than firms' own advertising departments because they are specialists with an outside viewpoint. earn a mandatory 15 percent commission on all local media buys. usually do marketing strategy planning for their clients. obtain most of their income from advertisers--as service fees. All of the above.

may do a better job at less cost than firms' own advertising

116. The largest share of total U.S. advertising expenditures is for: advertising agency personnel costs. creating and producing ads. media time and space. advertising to business customers. None of the above is true.

media time and space.

171. "Cooperative" advertising refers to the practice of: producers and middlemen sharing in the cost of advertising that is done by the producer. producers doing some advertising and expecting their middlemen to cooperate by providing the rest of the promotion blend. the producer paying for all of the advertising which is done by its middlemen. middlemen doing advertising which is partially paid for by the producer. middlemen picking up the promotion theme of the producer and carrying it through.

middlemen doing advertising which is partially paid for by the producer.

120. Advertising objectives should be: more specific than personal selling objectives. decided by the creative experts who work with advertising agencies. quite general to allow for creativity. set by the advertising manager--not the marketing manager. determined by the kind of advertising that is required.

more specific than personal selling objectives.

177. When selecting advertising media, a good advertising manager knows that: TV typically reaches more targeted markets than radio. direct-response ads are not a good alternative unless you already have your own mailing list. big national magazines, like TIME, may have wide circulation, but are not practical for reaching regional markets. Magazines can't be used for reaching specific business or trade audiences. objective measures--like "cost per thousand"--can be misleading.

objective measures--like "cost per thousand"--can be misleading.

211. Sales promotion: is not likely to be used in the market maturity stage of the product life cycle. objectives and situation should determine what specific type of sales promotion is best. should not be needed if a firm has a good mass selling program. objectives should be developed after the other promotion decisions have been made--so the manager knows how much is left in the budget. None of the above is true.

objectives and situation should determine what specific type of sales promotion is best.

190. An ad which offers the consumer $1.00 off on his next grocery store visit is most likely aimed at: arousing desire obtaining action. getting attention. holding interest. none of the above

obtaining action.

128. Advertising which tries to develop primary demand for a product category rather than a specific brand is called ______________ advertising. comparative institutional competitive pioneering persuading

pioneering

133. A farmer's cooperative in California is sponsoring TV ads aimed at getting Americans to eat more garlic. The ads don't mention any brand names. This is an example of ______________ advertising. competitive pioneering indirect competitive reminder comparative

pioneering

135. Boomerang, Inc. has created a really new product and the firm's marketing manager is worried that consumers may not buy the product because it is such a different way of satisfying the basic need. The promotion blend for the new product probably should emphasize ______________ during market introduction. comparative advertising institutional advertising reminder advertising pioneering advertising competitive advertising

pioneering advertising

132. Kodak has developed a revolutionary new kind of electronic color camera that does not require film. People will need to adjust their thinking about how a camera works. The "camera" will cut the cost of color pictures by 50 percent--if the market accepts the idea. Kodak is about to advertise this product to inform potential customers about what it does and how it works. The campaign should emphasize: pioneering advertising. institutional advertising. competitive advertising. reminder advertising. None of the above.

pioneering advertising.

134. Faced with a decline in red meat consumption, the American Beef Association is sponsoring an advertising campaign to increase consumption of beef by stressing new research results about beef's nutritional benefits. This is an example of: competitive advertising. reminder advertising. comparative advertising. indirect action advertising. pioneering advertising.

pioneering advertising.

112. Advertising spending as a percent of sales dollars is lowest for: shoes. investment advice. plastics. soft drinks. perfume.

plastics.

155. A major difference between reminder advertising and pioneering advertising is that: reminder advertising focuses on selective demand, while pioneering advertising tries to develop primary demand. reminder advertising is less likely to use "soft sell" ads. reminder advertising is emphasized in the early stages of the product life cycle and pioneering advertising is emphasized later. All of the above are true. None of the above is true.

reminder advertising focuses on selective demand, while pioneering advertising tries to develop primary demand.

156. When a producer has won brand preference for its product--but is entering the sales decline stage of its life cycle--it probably should use: pioneering advertising. competitive advertising. primary advertising. reminder advertising. institutional advertising.

reminder advertising.

157. When a producer has won brand insistence in its target market--and just wants to keep the product's name before the public--it can use: reminder advertising. pioneering advertising. direct-action advertising. comparative advertising. institutional advertising.

reminder advertising.

107. Advertising spending by U.S. corporations averages about 25 percent of their sales dollars. exceeded $1.5 trillion in 2005. represents only a small portion of what people pay for products. in the U.S. exceeds the amount spent on any other element of promotion. All of the above are true.

represents only a small portion of what people pay for products.

154. "Comparative advertising": is usually ignored by consumers. is illegal--according to the FTC. should be supported by research evidence. must focus on major consumer benefits to be legal. None of the above.

should be supported by research evidence.

110. Advertising spending as a percent of sales dollars is largest for: soaps and detergents. perfumes and cosmetics. sporting and athletic goods. soft drinks and water. motor vehicles.

soaps and detergents.

118. The largest share of U.S. advertising money goes for: radio. newspapers. magazines. direct mail. television (including cable).

television (including cable).

117. The largest share of total advertising expenditures in the United States goes for: Internet advertising. television advertising. magazine advertising. direct-mail advertising. radio advertising

television advertising.

195. Advertising agencies can be helpful, but they are always more expensive than a firm doing its own advertising work. must be selected very carefully since most agencies require long-term contracts. that are smaller in size will probably continue to play an important role despite the creation of mega-agencies. usually don't cost local retailers anything to use, since the media commission is usually all the compensation the agency expects. None of the above is true.

that are smaller in size will probably continue to play an important role despite the creation of mega-agencies.

148. Sears advertises its "DieHard" auto batteries as "even better than your original battery." The ads tell possible customers to get a DieHard at their Sears auto center the next time they need one. This is an example of institutional advertising. the indirect type of competitive advertising. the direct type of competitive advertising. comparative advertising. reminder advertising.

the indirect type of competitive advertising.

178. Regarding media selection: the media available in a country may limit the choices. the low cost of television makes it a "must buy." the use of "mass market magazines" is growing in popularity--to cut costs. the only advertising medium available for direct-response ads is mail. All of the above.

the media available in a country may limit the choices.

201. Regarding ad agencies, a good marketing manager knows that: a 15 percent commission system can be a real bargain for firms that need little service but buy a lot of media time and space. ad agencies earn commissions from media only when they buy at local rates. the traditional 15 percent commission system is no longer required. it is hard to end an agency relationship. All of the above.

the traditional 15 percent commission system is no longer required.

200. In recent years, specialists in media buying have disappeared. there has been growing interest in paying agencies based on the results they actually produce. almost all advertising agencies have switched to the full-service approach. conflicts between creative and business-oriented advertising people have almost disappeared due to acceptance of the marketing concept. more ad agencies have been adopting the 15 percent commission system.

there has been growing interest in paying agencies based on the results they actually produce.

145. INDIRECT competitive advertising seeks: to develop primary demand. immediate buying action. to develop goodwill for a company--so target customers will eventually buy one or more of its products. to develop selective demand--to affect future buying decisions. None of the above.

to develop selective demand--to affect future buying decisions.

111. Advertising spending as a percent of sales dollars is largest for: computers. business services. toys. motor vehicles. malt beverages.

toys.

158. Institutional advertising: tries to stimulate primary demand rather than selective demand. involves no media costs. tries to develop goodwill for a company or even an industry. tries to keep a product's name before the public. is always aimed at final consumers or users.

tries to develop goodwill for a company or even an industry.

196. Advertising agencies usually specialize in one particular type of work, such as media buying, sales promotion planning, or website design. were traditionally paid based on a percent of the sales they achieved, but now the trend is toward a commission based on 15 percent of media purchases. vary in size, but the largest ones account for most of the billings. All of the above are true. None of the above is true.

vary in size, but the largest ones account for most of the billings.

179. Good media buyers know that: website advertising is increasingly a "must buy" for business firms in international markets. the most targeted medium is newspapers. media costs generally have little relation to audience size or circulation. television is superior to newspapers or radio. All of the above.

website advertising is increasingly a "must buy" for business firms in international markets.

106. Total advertising expenditures by 2005: were about 16 percent of all firms' sales. were larger in Europe than in the U.S. declined to the level of the early 1980s. were about $276 billion. were under $26 billion.

were about $276 billion.

209. Advertisers should keep in mind that: advertisers, but not ad agencies, can be held responsible for false and misleading ads. only false or deceptive ads can be controlled by the FTC. the FTC does not have the power to require corrective advertising or affirmative disclosures. there are very clear-cut guidelines concerning how to substantiate ad claims. what is seen as "positioning" in one country may be viewed as "unfair" or "deceptive" in another.

what is seen as "positioning" in one country may be viewed as "unfair" or "deceptive" in another.

186. "Copy thrust" refers to: competitors who make similar claims in their ads. an FTC challenge to the claims made by an advertiser. all the advertising copy prepared for a particular brand. what is to be communicated by the words and illustrations. how much the audience believes what the advertiser says.

what is to be communicated by the words and illustrations.