IM Chapter 16

Compensation arrangements for advertising agencies throughout the world are based on the U.S. system of ________ commissions.

15 percent

What is an example of the primary function of a product?

the ability of a camera to take a picture

Billboards are especially useful in countries:

with high illiteracy rates.

________ is especially important when an advertising budget is small, where there are severe production limitations, or where there are low literacy rates.

Creativity

________ in advertising is a thorny issue because most member countries of the European Commission have different interpretations of what constitutes a misleading advertisement.

Deception

________ is defined as the interpretation by the receiver of the symbolism transmitted from an information source.

Decoding

In an international advertising campaign, what happens once the goals of the communication have been specified?

Develop the most effective message(s) for the market segments selected

In the context of international advertising, ________ is the neon capital of the world.

Hong Kong

What is true of the newspaper industry?

In many countries, there is a time lag before advertisements can be run in a newspaper

Which statement best defines the concept of public relations?

It the creation of relationships with the media to help communicate messages to their customers, the general public, and governmental regulators.

Which country has the most egregious control over advertising, where each medium has its own censorship board that passes judgment on any advertising even before it is submitted for approval by the Ministry of Information?

Myanmar

When developing an international advertisement campaign, what is the first step of the process?

Perform marketing research

______ allows ESPN to fill blank walls, streets, or stadium sidings with computer-generated visuals that look like they belong in the scene.

Princeton Video Imaging

________ are considered to be major communications media in most countries due to their inherent entertainment value.

Radio and television

What is true of advertising agencies for international advertising?

The cross-cultural communication between a foreign client and a local agency can be problematic.

Which statement about advertising laws is correct?

Toy, tobacco, and liquor advertising is restricted in numerous countries.

Since 2007, FedEx has contributed millions to the PGA Tour, and as its most lucrative donor, an event is named after the company. This is an example of

a sponsorship

In the context of consumer products, what is the major limitation of the Internet?

accessibility outside the United States

Integrated marketing communications include

advertising

Of all the elements of the marketing mix, decisions involving ________ are those most often affected by cultural differences among country markets.

advertising

What are the major components in the marketing communications mix for most companies?

advertising and personal selling

What is an example of comparative advertising?

an ad showing a dog choosing one brand of dog food over another brand

The emergence of pan-European communications media will most likely cause companies to

choose more standardized promotional efforts.

Most toy manufacturers would agree that toys cannot be marketed profitably in countries without commercial television advertising directed toward children. In this scenario, commercial television advertising exemplifies the availability of appropriate

communication channels.

Sales promotions are short-term efforts directed to the consumer or retailer to achieve specific objectives such as

consumer product trial or immediate purchase

Direct mail is an unpopular medium in Chile because

customers must pay for every item delivered by the letter carrier.

In the context of international advertising, it has been observed that advertising expenditures are generally

cyclical.

During which step of the international communications process does the receiver of the message interpret symbolism transmitted from an information source?

decoding

Skepticism and negative attitudes about advertising, along with poor practices by some advertisers, have resulted in the International Advertising Association

developing self-regulating codes of conduct.

Due to differences in culture in different markets, standardized products that are marketed globally will most likely require

different advertising appeals

A multinational pharmaceutical company used a saffron trident in a promotional campaign for one of its drugs in India. The saffron trident, a religious symbol in India, was meant to indicate the three levels of efficacy of the drug but mistakenly conveyed a religious message to Indians. This miscommunication indicates a problem associated with which step of the international communications process?

encoding

During ________, the message from the source is converted into effective symbolism for transmission to a receiver.

encoding

In the context of the communications process in advertising, problems of literacy, media availability, and types of media create challenges in the communications process at the ________ step.

encoding

Janel, a media consultant, is helping the integrated marketing communications manager of a French cosmetics company with the design and content to be used in an upcoming promotional campaign in Japan. The IMC manager knows what to convey but wants to word it in a culturally relevant manner. With which step of the international communications process is Janel helping the company?

encoding of the message

As advertising agencies have expanded internationally, local agencies have virtually disappeared.

false

Contests, sweepstakes, and sponsorship of special events such as concerts are techniques used for maintaining and improving public relations

false

Different cultures usually seek different values or benefits from the primary function of a product

false

Feedback channels must be carefully selected if a decoded message is to reach the consumer

false

In spite of their inherent entertainment value, radio and television have not been able to become major communications media in most nations.

false

Industrial advertisers rarely use direct mail for advertising.

false

International advertisers prefer global television (satellite broadcasts) due to the availability of accurate market data in most countries.

false

International advertisers use foreign national consumer magazines extensively because they have dependable circulation figures.

false

Sales promotions are long-term IMC efforts directed to the consumer or retailer.

false

The feedback step of the international communications process is unrelated to the effectiveness of the other steps.

false

Uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process of communication are called feedback.

false

When a marketing executive advertises his product in a newspaper, the newspaper acts as a feedback channel.

false

When a message from a source is converted into effective symbolism for transmission to a receiver, the message is said to have been decoded.

false

While developing an international advertisement campaign, the last step of the process is executing the campaign.

false

With some exceptions, usually a majority of the population of less developed countries can be reached readily through the traditional mass medium of advertising.

false

The ________ step in the international communications process refers to the information about the effectiveness of the message that flows from the receiver back to the information source for evaluation of the effectiveness of the process.

feedback

Which step of the international communications process is important as a check on the effectiveness of the other steps?

feedback

One of the drawbacks of satellite TV is

governments' fear of a loss of control over their airwaves and messages.

An international marketing executive with a product message to communicate specifically acts as a(n)

information source.

What is especially vulnerable as EU member states decide which area of regulation should apply to these services?

internet services

Companies that rely on television infomercials and television shopping are restricted by the limitations placed on the ________ of television commercials permitted when their programs are classified as advertisements.

length and number

Sales promotions are

marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation.

Using newspapers or magazine ads as a channel of communication when the majority of the intended users cannot read is an example of ineffective ________ in the communications process

media channel selection

A manufacturer of sports bicycles uses various cycling legends and sports celebrities as brand ambassadors to promote its product in China. Bicycles in China are used mainly by the working class for commuting, not sports, so the promotional campaign was a failure. During which step of the international communications process did the manufacturer most likely go wrong?

message channel

Using the Internet as a communication medium when only a small percentage of an intended market has access to it is an example of an error related to

message channel selection

The sales force of a company that provides the company's product specifications to the customer acts as a(n)

message channel.

A study of a representative sample of European consumers indicated that

nearly 8 in 10 believed ads were often deceptive about product quality.

Which element of the international communications process comprises external influences such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of the communication?

noise

The only way to avoid linguistic problems in advertising communication is by

performing in-country testing with the target consumer group.

Which medium suffer(s) from issues such as difficulty in assessing taxes, unfair competition, import duties, and privacy?

the Internet

In Spain, a new medium for advertising called Publicoche involves

private cars that are painted with advertisements.

An especially effective promotional tool when a product concept is new or has a very small market share is

product sampling

Which element of integrated marketing communications includes encouraging the press to cover positive stories about companies and managing unfavorable rumors, stories, and events?

public relations

Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in

radio and television broadcasting.

In the context of international advertising, companies are moving from the commission system to a ________ system.

reward-by-results

In-store demonstrations, samples, coupons, contests, and sweepstakes are examples of ________ devices.

sales promotions

Blogs, virtual worlds, and video sharing are examples of media commonly known as

social media.

Corporate ________ might be classified as an aspect of sales promotions or public relations, though they also bear a connection to advertising.

sponsorships

Advertising ________ in some countries can distort media choice by changing the cost ratios of various media

taxation

The assault on advertising of ________ is escalating, as evidenced by the World Health Organization launching a global campaign against it.

tobacco products

A proper feedback system allows a company to correct errors before substantial damage occurs.

true

A reason for the failure of marketing communications is that the message received by the intended audience is not understood because of different cultural interpretations.

true

Errors at the receiver end of the international communications process can be avoided if the message is encoded properly.

true

For most companies, trade shows and direct selling are the major components in the marketing communications mix.

true

In international advertising, an advertiser should consider availability, cost, and coverage of media.

true

In the context of advertising, a marketer's self-reference criterion (SRC) may affect the ultimate success of the communication

true

In the context of international advertising, search engines have now become crucial directors of Internet users' attention.

true

Of all the elements of the marketing mix, decisions involving advertising are those most often affected by cultural differences among country markets.

true

Other sales personnel are a source of noise in the international communications process.

true

Problems of literacy, media availability, and types of media create problems in the international communications process at the encoding step.

true

Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation.

true

Sales promotions constitute the major portion of the promotional effort in rural and less accessible parts of a market.

true

Satellites have the ability to span a wide geographical region covering many different cultures.

true

The French government until recently forbade TV ads for retailers, publishing, cinema, and the press.

true

The role of public relations is to create good relationships with the popular press and other media to help companies communicate messages to their publics.

true