Exam 1 - Book and Case Study Questions

73.For which of the following would an advertiser be most likely to use a sales-oriented objective? A A direct-response ad for a record album B A commercial for a new type of electric-powered automobile C A political announcement D An antidrug public announcement E A commercial comparing two telecommunication giants

A A direct-response ad for a record album

75.Which of the following is at the base of the communication effects pyramid? A Awareness B Preference C Trial D Purchase E Repurchase

A Awareness

68.Before setting objectives for advertising and promotion, an organization should: A conduct a situation analysis to identify marketing and promotional issues facing the firm. B develop its media plan and allocate the budget to each media. C evaluate the effectiveness of the advertising and promotional strategies. D conduct test marketing to check the effectiveness of the marketing strategies developed for the current products and services. E set its advertising and promotional budgets.

A conduct a situation analysis to identify marketing and promotional issues facing the firm.

47.Division of the market based on age, sex, family size, income, and other measurable characteristics is known as: A demographic segmentation. B psychographic segmentation. C socioeconomic segmentation. D geographic segmentation. E undifferentiated segmentation.

A demographic segmentation.

67.The more specific the firm's advertising objectives, the: A easier it becomes to measure advertising effectiveness. B more difficult it is for competitors' advertising to be effective. C easier it is to measure the advertising-sales response function. D lesser the funding needed to meet advertising goals. E more difficult it is for a competitor to use competitive parity budgeting.

A easier it becomes to measure advertising effectiveness.

65.One important purpose of setting specific advertising goals and objectives is to: A provide a benchmark against which performance can be measured. B put constraints on the creative department. C have a method of determining when to delete products from the product line. D forecast the market share level that can be attained by good advertising. E protect all investors and debt holders.

A provide a benchmark against which performance can be measured.

86.Creative executives from the advertising industry might oppose the DAGMAR approach to setting objectives because it: A puts too much emphasis on the quantitative assessment of an advertising campaign. B requires that speculative presentations be created and used to set benchmark measures. C is only successful if it develops a message that contributes to brand equity. D does not provide any type of communications guidelines. E is too concerned with qualitative assessments of an advertising campaign.

A puts too much emphasis on the quantitative assessment of an advertising campaign.

70.To be effective, marketing objectives need to be: A realistic and attainable. B erudite and challenging. C philosophical and fungible. D unquantifiable. E elaborate.

A realistic and attainable.

88.Auto insurance, as an industry, has perhaps the broadest ________ of any product, and has no ___________. A target audience, niche B niche, product differentiation C target market, product segmentation D target segmentation, niche E none of the above.

A target audience, niche

72.The concept of advertising expenditures producing long-term, rather than immediate, results is known as: A the carryover effect. B the communication effect. C the low-involvement effect. D the halo effect. E the mirror-image effect.

A the carryover effect.

71.Many marketing managers prefer sales-oriented objectives for advertising because they believe: A. the reason a company spends money on advertising and promotion is to sell its products or service. B. the objective of advertising and other promotional mix elements is usually to communicate information or a selling message about a product or service. C the primary role of an IMC program is to communicate. D objectives should be based on the achievement of communication objectives. E they must provide relevant information and create favorable predispositions toward the brand before purchase behavior will occur.

A the reason a company spends money on advertising and promotion is to sell its products or service.

29. Like Integrated Marketing Communications (IMC), the concept of marketing to children also emerged in the ____. A. 1980s B. 1960s C. 1970s D. 1990s E. none of the above.

A. 1980's

10. Samsung hoped these calls to action would motivate consumers to share their experience. A. true B. false C. none of the above.

A. True

17. GEICO's method of conducting business—through direct sales over the phone and via their Web site—is a key distinction in the auto insurance industry. A. true B. false C. partially true D. completely false E. none of the above.

A. True

22. GEICO's unique marketing technique currently features a high volume of ads that reach various individuals. A. true B. false C. mostly true D. definitely false E. none of the above.

A. True

9. The mobile ads incorporated check-in buttons so that consumers could share, with their friends and followers, their location and the experience of playing Angry Birds in stores. By checking in, users could ___________________. A. enter a sweepstakes to win a Samsung Smart TV B. enter a friend's location and win a Samsung Smart TV C. enter a sweepstakes to win a year of free play of Angry Birds D. enter a friend's location and win a sweepstakes E. none of the above.

A. enter a sweepstakes to win a Samsung Smart TV

4. Samsung and the advertising agency sought to get consumers out of their homes and_____. A. into physical retail stores B. out of personal debt C. into physical repair centers D. into their automobiles E. none of the above

A. into physical retail stores

36. Finally, once a link is established, the communication is used to build a ___________ _________ with the customer. A. profitable relationship B. situational expectation C. complex stewardship D. parental affiliation E. none of the above.

A. profitable relationship

15. Auto insurance, as an industry, has perhaps the broadest ________ of any product, and has no ___________. A. target audience, niche B. niche, product differentiation C. target market, product segmentation D. target segmentation, niche E. none of the above.

A. target audience, niche

38. A case study in marketing is a product or service story about a success or failure. A. true B. false C. always D. never E. none of the above.

A. true

40. Another use of a case study is to document an achievement and report a success. A. true B. false C. both D. neither E. none of the above

A. true

52._____ segmentation is most closely related to the 80-20 rule, which states that 80 percent of a company's business comes from 20 percent of its customers. A Geographic B Behavioristic C Demographic D Psychographic E Benefit

B Behavioristic

78.Which of the following statements is true of communications objectives? A It is difficult to translate sales goals into communications objectives. B It is always easy to determine the relationship between communications objectives and sales performance. C Communications objectives cannot serve as operational guidelines to the planning, execution, and evaluation of promotional programs. D All marketing and advertising managers accept communications objectives. E Precise formulas are to be followed when translating sales goals into specific communications objectives.

B It is always easy to determine the relationship between communications objectives and sales performance.

48.Which of the following is a variable of the demographic segmentation strategy? A Personality B Marital status C Values D Lifestyle E Occupation

B Marital status

46.Which of the following is a geographic segmentation variable? A Income B Neighborhood C Sex D Education E Involvement

B Neighborhood

79.Which of the following is at the base of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making? A Awareness B Purchase C Familiarity D Consideration E Imagery

B Purchase

69.Which of the following is true of marketing objectives? A The only aim of a firm's marketing objectives revolves around buying the right media at the right price. B They are usually defined in terms of specific outcomes such as sales volume, market share, profits, or return on investment. C They are stated only in a company's communication plan. D They are statements of what various aspects of the IMC program will accomplish and how a message will be delivered to the target audience. E The only aim of a firm's marketing objective is to communicate information or a selling message about a product or service to the target audience.

B They are usually defined in terms of specific outcomes such as sales volume, market

55.Chill, a beverage manufacturer, offers varied versions of its products that include diet, cherry flavored, vanilla flavored, and caffeine-free versions in addition to its original product. With respect to market coverage alternatives, the given scenario reflects the company's decision to cater to: A a concentrated market. B a differentiated market. C a buzz market. D an undifferentiated market. E a mass market.

B a differentiated market.

53.The fact that some consumers want flavored bottled water and others want it with added minerals provides an opportunity for _____ segmentation. A socioeconomic B benefit C geographic D psychographic E demographic

B benefit

82.According to DAGMAR, the basic function of advertising is to: A create sales. B communicate. C increase market share. D eliminate competition. E change consumer behavior

B communicate.

80.The _____ stage in Russell Colley's hierarchical model of the communication process deals with getting the consumer to purchase the product. A action B conviction C screening D comprehension E awareness

B conviction

44.The market segmentation process: A divides a market into distinct groups that have heterogeneous needs. B divides a market into distinct groups that will respond similarly to marketing actions. C offers one version of the product to all markets. D creates products for several markets that have independent needs. E positions products in the minds of prospects and customers.

B divides a market into distinct groups that will respond similarly to marketing actions.

57.Concentrated marketing involves focusing marketing efforts on: A different countries. B one particular segment. C mass markets. D various segments. E different counties.

B one particular segment.

74.Sales-oriented objectives are appropriate for: A all online-marketing strategies. B retail advertising promoting special events. C products that have been introduced in highly volatile markets. D any advertising campaign aimed at maintaining brand awareness. E bait-and-switch marketing campaigns.

B retail advertising promoting special events.

76.Managers who use the communications effects pyramid to set objectives believe that: A lower-level objectives such as purchase and reuse form the foundation of the communications program. B the foundation of the communications program is set by accomplishing lower-level objectives such as awareness, knowledge, and comprehension. C advertising and promotion should first accomplish lower-level objectives such as trial and purchase. D advertising and promotion should first accomplish higher-order objectives, such as trial and purchase, and then create awareness and brand knowledge. E advertising and promotion cannot accomplish lower-order objectives.

B the foundation of the communications program is set by accomplishing lower-level objectives such as awareness, knowledge, and comprehension.

31. The nag factor or pester power, is where children are persuaded to __________________. A. convince their friends to pester their parents. B. pester their parents into buying a particular product. C. nag their grandparents into buying a product for their parents. D. pester their parents into buying a particular promotion. E. none of the above.

B. Pester their parents into buying a particular product.

5. _______ wanted consumers to _______Smart TV. A. SoLoMo, locate B. Samsung, experience C. The Advertising agency, rate D. Support groups, debunk E. none of the above

B. Samsung, Experience

26. Was Cup Noodle's creative solution a success or a failure? A. a success B. a failure C. results varied D. results have yet to be measured E. none of the above.

B. a failure

34.Research suggests that a person's brand loyalty may begin as early as _____. A. age one B. age two C. age three D. age four E. none of the above.

B. age two

13. GEICO's first customers were: A. secondary customer groups B. government employees and military personnel C. salesmen and community workers D. government employees and auto plant workers E. none of the above.

B. government employees and military personnel

20. GEICO's iconic gecko was introduced in 2000. The computer-generated talking lizard was proposed when consumers were _________. A. losing interest in the iconic caveman. B. pronouncing GEICO as gecko. C. losing interest in the googly-eyed wad of money, known as Kash. D. pronouncing gecko as GEICO. E. none of the above.

B. pronouncing GEICO as gecko.

11. By leveraging hyper-location targeting, the campaign was able to talk to consumers while they ______________________. A. were playing Angry Birds B. were already close to the stores C. were browsing social media D. were sharing their experience on social media E. none of the above.

B. were playing angry birds

56._____ is used when the firm selects one segment and attempts to capture a large share of the market. A Mass marketing B Undifferentiated marketing C Concentrated marketing D Differentiated marketing E Bait-and-switch marketing

C Concentrated marketing

41._____ is a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. A Matrix analysis B Micro analysis C Situation analysis D. Opportunity analysis E Competitive analysis

C Situation analysis

58.Which of the following is true of concentrated marketing strategies? A They are used to promote multiple products in varied markets. B They are used as a precursor to undifferentiated marketing. C They usually involve only a single segment. D They attempt to catch a minority share in the market. E They are synonymous with undifferentiated marketing strategies.

C They usually involve only a single segment.

83.Under the DAGMAR model, a _____ can be performed by, and attributed to, advertising rather than to a combination of marketing factors. A human resources task B financial task C communications task D marketing task E product production task

C communications task

62.Motor Corp., an automobile manufacturer, launched an ad campaign that stated, "We are yet to reach the industry leader's position, so we try harder." In this scenario, the company is positioning itself based on: A price/quality. B use or application. C competition. D product class. E distribution intensity.

C competition.

61.When travelers think of Gallivant Airlines, an Australian airline, the first thing that comes to their mind is the kangaroo. In the given scenario, the strong association between the kangaroo and Gallivant Airlines indicates that the Airlines is receiving the benefit of positioning by: A product class. B use/application. C cultural symbol. D product attribute. E competitor.

C cultural symbol.

66.Arden's task is to determine what was accomplished by his company's advertising and promotional program for a vinyl-siding cleanser. We can tell him that: A his task is impossible. B all he needs is the sales results to determine what the program accomplished. C his task could be made easier by setting specific communication objectives. D he requires just the post-promotional consumer awareness levels to determine what the program accomplished. E all he needs to do is measure the effectiveness of the media used for promoting the product.

C his task could be made easier by setting specific communication objectives.

59.A brand's market position refers to its: A relative market share. B location on store shelves. C image in the mind of the customers. D distribution intensity. E stage in the product lifecycle.

C image in the mind of the customers.

27. Would you consider Cup Noodle's Creative solution a failure? A. depends on the target market B. depends on the tactical tone C. depends on the cultural mores D. depends on the seasonal tactics E. none of the above.

C. Depends on the cultural mores

18. With the launch of their first large-scale television and radio advertising campaign, the company acquired new customers without the aid of _______. A. office managers B. the internet C. sales agents D. a Public Relations strategy E. none of the above.

C. Sales Agents

30. __________, along with Ray Kroc, the founder of McDonald's, are said to be the pioneers in children's advertising A. Walt Whitman B. Charles Schultz C. Walt Disney D. Matt Groening E. none of the above.

C. Walt Disney

25. Korean Cup Noodle developed ______ to raise awareness and interest in pursuing Cup Noodle as a dietary supplement. A. an aggressive repackaging campaign B. an on-target creative solution C. an outdoor campaign D. an off-target print campaign E. none of the above.

C. an outdoor campaign

6. Based on Samsung's consumer research, 86% of people who bought a Samsung Smart TV first experienced the product __________. A. online B. through word-of-mouth C. at retailers D. conducting their own research E. none of the above.

C. at Retailers

42._____ is defined as something unique or special a firm possesses or does that gives it an edge over other firms in a similar industry. A Competitor indexing B Switch marketing C Competitive advantage D Marketing stub E Bait marketing

C. competitive advantage

33. With advances in telecommunications technology, food and beverage marketing is increasingly delivered through_________________. A. integrated vehicles, such as radio, print, television and personal selling B. the parents C. integrated vehicles, such as internet, video games, movies and music D. the grandparents E. none of the above.

C. integrated vehicles, such as internet, video games, movies and music

12. Why was Samsung so successful in driving consumers to retail stores? A. research, and the understanding of Angry Birds B. research, and the understanding of Smart TV C. research, and the understanding of SoLoMo D. research, and the understanding of the target market E. none of the above.

C. research, and the understanding of SoLoMo

39. What is one use of a Case Study? A. to describe the disfunction of a product B. to deflate the success of a product C. to document a problem and raise awareness D. to create ambivalence among the target market E. none of the above.

C. to document a problem and raise awareness

50._____ segmentation divides consumers into groups according to their usage, loyalties, or buying responses to a product. A Benefit B Geographic C Demographic D Behavioristic E Psychographic

D Behavioristic

64.Which of the following best defines branding? A It involves creating new product lines within a company in order to expand and develop the company's product portfolio. B It includes making use of more than one marketing channel to reach a huge number of customers and to cover a large geographical area. C It primarily involves marketing through a mobile device which assists the customers with personalized information. D It features building and maintaining a favorable identity and image of the company and/or its products or services in the mind of the consumer. E It involves taking the help of commercial market research agents to conduct a thorough market research before entering a market with unique products.

D It features building and maintaining a favorable identity and image of the company and/or its products or services in the mind of the consumer.

90.What is the real tactical secret to GEICO's success? A diversity in their target market B diversity in their product offering C diversity in their range of objectives D diversity in their commercials E none of the above.

D diversity in their commercials

43. The first step in the target marketing process is to: A develop positioning strategies. B request government approval. C determine whether to use a market segmentation strategy or a mass marketing strategy. D identify markets with unfulfilled needs. E develop new products.

D identify markets with unfulfilled needs.

85.The DAGMAR approach to setting objectives has: A a negligible effect on the advertising planning process. B focused advertisers' attention on the value of using communications objectives rather than sales objectives. C never been criticized because it focuses on the hierarchy of effects model. D increased the degree of subjectivity used in the selection of objectives toward which planners' efforts should be directed. E been successful because it is easy to implement.

D increased the degree of subjectivity used in the selection of objectives toward

60.Henry's Supermarkets have been very effective in positioning itself as stores that offer superior products at a discounted rate. With respect to the positioning strategies, its strategy reflects positioning based on: A benefit. B applications. C use. D price/quality. E product class.

D price/quality.

87.Leo Goodwin, founder of GEICO, determined he could distribute automobile insurance at reduced prices by A selecting secondary customer groups and marketing directly to them B screening primary customer groups and marketing indirectly to them C selecting tertiary customer groups and marketing directly to them D selecting primary customer groups and marketing directly to them E none of the above.

D selecting primary customer groups and marketing directly to them

16. Specifically, GEICO targets males and females ages ______, and appeals to customers with ________. A. 18-24, debt and no health issues B. 18-54, humor and character C. 24-34, debt and health insurance D. 24-64, humor and wit E. none of the above

D. 24-64, humor and wit

7. Samsung partnered with _________ to demonstrate how motion and ____ control work on the Samsung Smart TV. A. their ad agency, touch B. Angry Birds, remote C.their ad agency, remote. D. Angry Birds, voice E. none of the above.

D. Angry Birds, Voice

8. The campaign goal was to ________ and playing Angry Birds on big TV's. A. get consumers in homes B. get consumers in a frenzy C. get consumers into purchasing D. get consumers in stores E. none of the above.

D. Get consumers in stores

35. McDonald's strategic communication uses a network consisting of various points of contact between the brand and the customer as a message delivery channel, maintaining _________. A. diversity B. selectivity C. dexterity D. consistency E. none of the above.

D. consistency

32. The nag factor or pester power gave rise to_______________. A. hand to mouth marketing B. top to bottom marketing C. person to person marketing D. cradle to grave marketing E. none of the above.

D. cradle to grave marketing

24. What is the real tactical secret to GEICO's success? A. diversity in their target market B. diversity in their product offering C. diversity in their range of objectives D. diversity in their commercials E. none of the above.

D. diversity in their commercials

28. What type of advertising was the Cup Noodle campaign? A. iconic stereotype B. gender specific C. psychographic specific D. gender stereotype E. none of the above.

D. gender stereotype

37. To children, products and brands are probably the most __________ of the marketplace. A. unimportant aspects B. less obvious aspects C. colorful aspects D. most noticeable aspects E. none of the above.

D. most noticeable aspects

23. GEICO's use of an online magazine is just one: A. print tactic B. public relations tactic C. personal selling tactic D. promotional tactic E. all of the above.

D. promotional tactic.

14. Leo Goodwin, founder of GEICO, determined he could distribute automobile insurance at reduced prices by A. selecting secondary customer groups and marketing directly to them B. screening primary customer groups and marketing indirectly to them C. selecting tertiary customer groups and marketing directly to them D. selecting primary customer groups and marketing directly to them E. none of the above.

D. selecting primary customer groups and marketing directly to them

84.According to the DAGMAR model, which of the following is a characteristic of a good objective? A A good objective is elaborative in nature. B A good objective specifies the target audience. C A good objective avoids specifying a time period. D A good objective specifies the current market share. E A good objective is based only on sales results.

E A good objective is based only on sales results.

81._____ is an approach to setting advertising goals and objectives which states that communication effects are the logical basis for advertising goals and objectives against which success or failure should be measured. A SOSTAC B The hierarchy of effects model C The BCG matrix D The Ansoff matrix E DAGMAR

E DAGMAR

63.Which of the following is true of repositioning? A It occurs only in companies that enjoy a monopolistic market structure. B It usually occurs due to a boom in the company's sales. C It must be practiced only during an economic downturn situation. D It involves avoiding any alterations with the brand's existing position. E It is aimed to stem a decline in sales or counter stagnant sales.

E It is aimed to stem a decline in sales or counter stagnant sales.

77.Which of the following is at the top of the communication effects pyramid? A Awareness B Knowledge C Liking D Preference E Repurchase

E Repurchase

89.In 1996, GEICO invested heavily in: A integrated marketing communications B serious print advertising C radio spots D personal selling E all of the above.

E all of the above.

49.Dividing the market on the basis of personality and/or lifestyles is referred to as _____. A geographic segmentation B demographic segmentation C psychographic segmentation D socioeconomic segmentation E behavioral segmentation

E behavioral segmentation

45.Dividing the market into units such as nation, states, town, counties, or even neighborhoods is known as: A demographic segmentation. B psychographic segmentation. C quantified aggregation. D lifestyle aggregation. E geographic segmentation.

E geographic segmentation.

51.Degree of usage as a basis of segmentation is best reflected by: A the VALS principle. B the iceberg principle. C the mirror image rule. D the rule of equity. E the 80-20 rule.

E the 80-20 rule.

54.According to the market coverage alternatives, _____ involves ignoring segment differences and offering just one product or service for the entire market. A bait-and-switch marketing B concentrated marketing C micromarketing D neuromarketing E undifferentiated marketing

E undifferentiated marketing

21. In 1996, GEICO invested heavily in: A. integrated marketing communications B. humor-driven print advertising C. funny radio spots D. direct mail E. all of the above.

E. all of the above.

19. GEICO first developed a clear, five-point message about its insurance. Which choice is not part of the five-point message? A. a 15-minute rate quote B. 15 percent savings C. complete 24-hour service D. 48-hour claims handling E. none of the above.

E. none of the above.

3. Samsung ran a SoLoMo advertising campaign that targeted shoppers based on _______. A. social media B. gaming preferences C. spending habits D. location E. none of the above

Location

2. SoLoMo search relies on a _______ real-time location to provide the user with a stream of information based on their location and interests. A. person's B. smartphone's C. PC user's D. GPS's E. none of the above

Smartphone

1. What does SoLoMo stand for? A. Societal-Location-Module B. Social-Location-Mobile C. Social-Local-Mobile D. Socio-Location-Module E. none of the above

Social-Local-Mobile