Chapter 15: Advertising and Sales Promotion

Which of the following statements about advertising media is true? A. In order to guarantee good media selection, an advertiser must clearly specify its target market first. B. Advertisers have begun targeting larger, less defined target markets in order to capture more potential customers. C. The effectiveness of marketing depends totally on the target markets a firm wishes to reach. D. Advertisers must only pay for media that is delivered to potential customers. E. Digital advertising media have surpassed television and now receive the majority of advertising media spending.

A. In order to guarantee good media selection, an advertiser must clearly specify its target market first.

Which of the following types of sales promotion activities is typically aimed at a company's own sales force? A. bonuses B. point-of-purchase materials C. frequent buyer programs D. samples E. trade shows

A. bonuses

Point-of-purchase ads and price deal offers are types of advertising that are most appropriate during the _____ stage of the adoption process. A. decision B. confirmation C. interest D. awareness E. identification

A. decision - Some examples of the different types of advertising used during the decision stage of the adoption process include direct-action retail ads, point-of-purchase ads, and price deal offers.

Which of the following is responsible for the decline in the percentage of ad revenue being spent on advertising in newspapers and magazines and on television? A. digital advertising B. DVR recording C. mail ordering D. satellite radio E. telemarketing

A. digital advertising

An Internet service provider that wants to influence consumers to immediately switch to its service would most likely utilize ______ advertising. A. direct competitive B. cooperative C. product reminder D. institutional E. pioneering

A. direct competitive

A television ad for the Decimal Technology company specifically states that "Decimal computers are faster and more reliable than Executive computers." This is an example of ______ advertising. A. institutional B. comparative C. model D. reminder E. pioneering

B. comparative

Which of the following types of advertising attempts to develop selective demand for a specific brand? A. reminder advertising B. competitive advertising C. product advertising D. pioneering advertising E. institutional advertising

B. competitive advertising

LiveTone, a line of cell phones, is in the maturity stage of the product life cycle. It has achieved brand insistence among its customers, and its advertisers are trying to reinforce its presence in the market through soft-sell ads. This is an example of _____ advertising. A. advertising B. reminder C. cooperative D. competitive E. institutional

B. reminder - It may be useful when the product has achieved brand preference or insistence, perhaps in the market maturity or sales decline stages. Reminder advertising is used primarily to reinforce previous promotion. Here the advertiser may use soft-sell ads that just mention or show the name—as a reminder.

A company that manufactures knives wants its advertising to demonstrate the knives' cutting ability. With this in mind, which of the following would be the best advertising medium for the company to use? A. magazines B. television C. newspapers D. billboards E. direct mail

B. television

In order to arouse desire, an ad should use a ______ that aims at an important unsatisfied need. A. tone B. unique selling proposition C. pay-per-click advertising model D. direct response E. native ad

B. unique selling proposition

Which of the following statements about international dimensions of advertising, publicity, and sales promotion is not true? A. Cultural influences may limit ad messages. B. Some countries ban consumer sweepstakes as they see them as a form of gambling. C. Privacy laws are stricter in the United States than they are in Europe. D. The trust that consumers place in publicity and online sources of information differs across countries. E. In some developing nations, it is impractical to send samples through the mail because they are regularly stolen before they reach their target market.

C. Privacy laws are stricter in the United States than they are in Europe.

Shirinika notices that when she logs into her email, the ads displayed in the sidebar change based on the websites she has recently visited. This is an example of A. pay-per-click. B. comparative advertising. C. retargeting. D. whole audience prospecting. E. media selection.

C. retargeting.

During the evaluation and trial phase of a product's adoption process, which of the following types of advertising is usually most appropriate? A. teaser campaigns B.viral advertising C. testimonials D. jingles E. reminder ads

C. testimonials - During the evaluation and trial phase of a product adoption process, competitive ads, persuasive copy, testimonials, and search ads are used for effective advertising.

Advertising agencies A. specialize in one particular type of work, such as media buying, sales promotion planning, or website design. B. are always more expensive than doing the job in-house. C. vary in size, but the largest ones account for most of the billings. D. are not usually provided access to a client's confidential information. E. None of these alternatives is correct.

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

When measuring advertising effectiveness, which of the following is true? A. Companies should measure advertising success by solely looking at their sales. B. Advertising effectiveness is unaffected by what competitors do or the changes in the external environment. C. Only advertising, and not the total marketing mix, is responsible for the sales result. D. Advertising effectiveness should be measured against advertising objectives. E. Measuring advertising effectiveness is an easy and a straightforward process.

D. Advertising effectiveness should be measured against advertising objectives. - One usually cannot measure advertising success just by looking at sales. Advertising managers should measure effectiveness against the advertising objectives. The total marketing mix—not just advertising—is responsible for the sales result. Sales results are also affected by what competitors do and by other changes in the external market environment.

Which of the following is true of sales promotion for different targets? A. Sales promotion aimed at end users or consumers is generally called trade promotion. B. Most of sales promotion spending targeting intermediaries has the effect of increasing prices in some manner or another. C. Trade shows and frequent buyer programs by service firms are primarily aimed at its employees. D. Sales promotion directed toward final consumers or users tries to speed up the time of purchase. E. Once a product is established, consumer sales promotion usually focuses on long-term sales increases.

D. Sales promotion directed toward final consumers or users tries to speed up the time of purchase. - Much of the sales promotion aimed at final consumers or users tries to increase demand, perhaps temporarily, or to speed up the time of purchase. Such promotion might involve developing materials for display in retailers' stores, including banners, sample packages, calendars, and various point-of-purchase materials.

Which of the following is true of advertising spending? A. Advertising becomes less important as an economy grows. B. In general, most retailers and wholesalers spend more on advertising than do producers. C. Most foreign countries spend more on advertising than the United States. D. U.S. corporations spend relatively little of their sales dollars on advertising. E. Over the last decade, advertising spending has decreased in most countries.

D. U.S. corporations spend relatively little of their sales dollars on advertising. - Although total spending on advertising has increased as the economy has grown, U.S. corporations spend only about 2.5 percent of their sales dollars on advertising.

Which of the following kinds of advertising media is characterized by wide reach, a segmented audience, relatively low cost, and short exposure? A. television B. cable C. Internet D. radio E. direct mail

D. radio - Radio is advantageous because it is characterized by a wide reach and segmented audience, yet it is inexpensive. However, it suffers from weak attention and short exposure.

Advertisers should keep in mind that A. advertisers, but not ad agencies, can be held responsible for false and misleading ads. B. the FTC does not accept a vague claim in ads that cannot be proved or disproved. C. the FTC does not have the power to require corrective advertising or affirmative disclosures. D. what is seen as positioning in one country may be viewed as unfair or deceptive in another. E. regulations related to advertising are similar across the globe.

D. what is seen as positioning in one country may be viewed as unfair or deceptive in another. - Advertisers should remember that what is seen as positioning in one country may be viewed as unfair or deceptive in another. If the FTC decides that a particular practice is unfair or deceptive, it has the power to require affirmative disclosures—such as the health warnings on cigarettes—or corrective advertising—ads to correct deceptive advertising.

Cassidy Crafts makes special paper, stickers, and related items that are used in scrapbooking. Most of Cassidy's sales are done by craft stores and other retailers, and it feels that ads for its products are more effective and economical if they appear in the craft stores' weekly flyers. With this in mind, Cassidy offers ______, or price reductions to these retailers to encourage them to promote Cassidey's products locally. A. cooperative advertising B. viral advertising C. institutional promotion D. teaser dollars E. advertising allowances

E. advertising allowances

Business123.com runs numerous ads on its website and pays people to click on those ads, regardless of whether or not they are actually interested in the products being advertised. The advertisers then must pay business123.com a fee for each click. This is an example of A. copy thrust. B. retargeting. C. cookies. D. click bait. E. click fraud.

E. click fraud.

Which of the following types of advertising promotes an organization's image, reputation, or ideas rather than a specific product? A. pioneering advertising B. reminder advertising C. competitive advertising D. product advertising E. institutional advertising

E. institutional advertising

Most websites use the ______ advertising model, which requires advertisers to pay media costs only when a customer uses the ad to link to the advertiser's website. A. pay-per-view B. audience view rate C. unique visitor cost D. flat-rate payment E. pay-per-click

E. pay-per-click

A first-of-its-kind mobile application used for tracking budgets is in the market introduction stage of the product life cycle. Advertisers want to inform potential customers about the new app and turn them into adopters. Which of the following kinds of advertising is usually most appropriate in this case? A. indirect competitive advertising B. institutional advertising C. reminder advertising D. comparative advertising E. pioneering advertising

E. pioneering advertising - Pioneering advertising tries to develop primary demand for a product category rather than demand for a specific brand. Pioneering advertising is usually done in the early stages of the product life cycle; it informs potential customers about the new product and helps turn them into adopters. In this case, since the product is new and consumers would not know about its benefits, pioneering advertising is most appropriate.

"Cooperative advertising" refers to a practice that consists of A. producers paying for all of the advertising that is done by its intermediaries. B. producers and intermediaries sharing in the cost of advertising that is done by the producer. C. producers doing some advertising and expecting their intermediaries to cooperate by providing the rest of the promotion blend. D. customers actively participating in the promotional efforts of the producers. E. wholesalers and retailers doing advertising that is partially paid for by the producer.

E. wholesalers and retailers doing advertising that is partially paid for by the producer. - It helps the producer get more promotion for its advertising dollars because media usually give local advertisers lower rates than national or international firms.

comparative advertising

advertising that makes specific brand comparisons using actual product names

pioneering advertising

advertising that tries to develop primary demand for a product category rather than demand for a specific brand - usually done in early stages of product lifecycle -- inform potential customers

competitive advertising

advertising that tries to develop selective demand for a specific brand rather than a product category - growth stage of product life cycle

institutional advertising

advertising that tries to promote an organizations image, reputation, or ideas rather than a specific product

product advertising

advertising that tries to sell a specific products - 3 categories: pioneering, competitive, and reminder

reminder advertising

advertising to keep the product's name before the public - reinforce brand preference or insistence and previous promotion efforts - market maturity or sales decline stages

pay-per-click

an advertiser pays media costs only when a customer clicks on the ad that leads to the advertiser's website

direct competitive advertising

competitive advertising that aims for immediate buying action

indirect competitive advertising

competitive advertising that points out product advantages—to affect future buying decisions.

retargeting

displaying ads to a web user based on sites he or she has previously visited; also called behavioral retargeting - A.I. and programmatic delivery - banner ads and pop ups

advertising allowances

price reductions to firms in the channel to encourage them to advertise or otherwise promote the firm's products locally

cooperative advertising

producers sharing in the cost of ads with wholesalers or retailers - helps intermediaries compete in their local markets

click-through rate

the number of people who click on the ad divided by the number of people the as is presented to

copy thrust

what the words and illustrations of an ad should communicate - job of advertising specialists - getting attention is ads first job - holding interest more difficult -- relate to specific emotions - as must convince customers that the product can meet their needs - getting action is the difficult final requirement