MIDTERM EX.

What statement is true about the marketing plan?

It forces all departments to focus on the customer.

Why is local advertising so critically important?

Most consumer sales are made locally, so it's important to develop lasting customer relationships. Local advertising is critically important because most consumer sales are made (or lost) locally. When it comes to making the sale and dealing with customers, local advertising is where the action is—where relationships often start and truly develop.

Which statement about using secondary data is true?

Secondary data may be inaccurate, out of date, or obsolete.

True or False: The term "mass media" includes print media only. The other media are part of general media.

false Mass media are print or broadcast media that reach very large audiences. They include radio, television, newspapers, magazines, and billboards.

What is the principal benefit of integrated marketing communications (IMC)?

the synergy it creates

What is the job title used for the individual in the ad agency who serves as the liaison between the agency and the client?

account executive

Ray had a procedure yesterday at a local surgery center. A representative called him today to ask how he was doing and whether he had any questions. Which of Kotler and Armstrong's levels of relationships is illustrated by this call?

accountable relationship

The process of market segmentation involves two steps: identifying groups of people (or organizations) with shared needs and characteristics and ___

combining these groups into larger market segments according to their interest in the product's utility.

Advertising is considered a nonpersonal form of communication because it is most often

directed to groups of people rather than individuals.

What type of research is being used when the survey administrator asks, "How do you think shoppers feel about plant-based meat products?"

projective technique

Gladys usually purchases one of the top two, brand-name dishwashing liquids for removing grease and stuck-on foods from pots and pans. Last night, she saw a commercial on TV for the top brand that cleaned up cute ducklings and other animals after an accidental oil spill. Gladys decided to buy that brand to support their efforts. What user status would Gladys be in this scenario?

repertoire user

What is the best example of a sales-target objective?

to increase sales volume by 5 percent in the next six months

What is the major objective of all brand marketing?

to produce brand loyalty

True or False: In large agencies, when account planners and account managers work side-by-side, the account planners bring a research perspective and represent the consumer, while the account manager brings more of a business perspective and represents the client.

true

True or False: Integrated marketing communications involves strategically coordinating and integrating brand messages across all consumer contact points.

true

True or False: Relationship marketing means creating, maintaining, and enhancing long-term relationships with customers and other stakeholders that result in exchanges of information and other things of mutual value.

true

True or False: Higher levels of consumer involvement with the product and the message would most likely involve the central route to persuasion.

true The central route to persuasion is one of two ways communication can persuade consumers. When a consumer's level of involvement is high, the central route to persuasion is more likely.

True or False: The first step in the marketing research process is to analyze the situation and define the problem.

True

Shaquille O'Neal, as an athlete spokesperson for IcyHot®, would be an example of a(n) __________ for the topical pain relief product.

opinion leader

True or False: The billboard that displays an advertisement for a new Internet service provider is an example of a medium.

true

True or False: The company that embraces IMC accepts the idea that every corporate activity has a message component.

true

True or False: B2B advertisers use consumer mass media much of the time.

False Business advertising (also called business-to-business, or B2B, advertising) rarely uses consumer mass media, although businesses spend billions on advertising to businesses every year.

True or False: Advertising research is the systematic gathering, recording, and analysis of information to help managers identify consumer needs and to assess the effectiveness of promotional activities.

False Marketing research is the systematic gathering, recording, and analysis of information to help managers make marketing decisions Advertising research is the systematic gathering and analysis of information to help develop or evaluate advertising strategies, individual ads, and entire campaigns.

True or False: Most adults are exposed to thousands of ads each day and are able to remember at least half of them due to the principle of perception.

False The average adult may be exposed to thousands of ads each day but notices only a handful and remembers even fewer. This is due to the principle of perception.

True or False: the fundamental differentiating device between any two competing products is the product life cycle.

False The fundamental differentiating device for all products is the brand—that combination of name, words, symbols, or design that identifies the product and its source and distinguishes it from competing products.

True or False: The most common method of gathering primary quantitative research data is by conducting ethnographic research.

False The most common method of gathering primary quantitative research data is the survey. Ethnographic research is an intensive qualitative research method that tries to understand how people live their lives.

True or False: A target audience is a segment of the market that displays a varying degree of loyalty to certain brands and products.

False A target audience is a specific group of individuals to whom the advertising message is directed.

The account executive, working with a new local travel agency, suggested that their client advertise in an upscale regional publication. This travel agency, specializing in custom European vacations, plans to buy a quarter-page ad featuring a 10-day trip to London and Paris. The ad would cost $500. How much money would the ad agency send the publication to pay for the ad?

The magazine would receive $425 even though the travel company paid the agency $500. The $75 is the agency's 15 percent media commission. The typical media commission is 15 percent.

A new Greek yogurt has recently appeared in store refrigerated cases. The company chose several stores that stock its yogurt and asked customers buying yogurt some questions comparing similar brands. The company was satisfied with the insights it received. Which statement is true?

This is a nonprobability sample. Researchers often use nonprobability samples because they are easier, less expensive, and less time-consuming than probability samples. Nonprobability (or convenience) samples select respondents based on their availability (e.g., because they volunteered). Companies use nonprobability samples because, in many instances, marketing and advertising research needs only approximate insights. Sampling methods that provide accurate information about a universe are called probability samples (sometimes referred to as random samples) because everyone in the universe has an equal chance of being selected.

True or False: Advertising is more effective when it is guided by a firm's overall IMC program.

True In the past, advertising campaigns were created without much thought to how the ads would work with other marketing communications. Today, advertising is just one element in the marketing communications toolbox and is more effective when guided by a firm's overall integrated marketing communications (IMC) program.

True or False: The organization that classifies all U.S. businesses and collects and publishes industry statistics on them using the NAICS codes is the U.S. Census Bureau.

True That U.S. Census Bureau classifies all U.S. businesses—and collects and publishes industry statistics on them—using the North American Industry Classification System (NAICS) codes.

A company is introducing fresh, not frozen, plant-based burgers into supermarket meat cases. After creating awareness for the product, the company wants to communicate that the product has a great burger taste, is healthier than regular burgers, and is produced in a way that protects the environment. The message that the company wants to communicate represents the ________ task of the advertising pyramid.

comprehension

Advertisers are aware that even from an early age, our family communications affect our socialization as consumers; however, this influence usually fades away during the teen years when other influences dominate.

false Advertisers are aware that from an early age, family communication affects our socialization as consumers—our attitudes toward many products and our purchasing habits. This influence is usually strong and long-lasting.

True or False: Cotton Comfort Signature Brands sends a ready-made advertisement to a regional magazine published in Omaha, Nebraska, and the magazine publisher inserts the name, address, and phone number of a local business that carries the line of luxury bed linens, comforters, and bath towels. Cotton Comfort pays 75 percent of the cost of running the ad. The local business pays the other 25 percent. This is an example of centralized advertising.

false Cooperative (co-op) advertising helps distributors, dealers, or retailers increase sales. Cotton Comfort shared the cost of ad production and placement with the local retailer, so the firm used co-op advertising. The purpose of the ad was to build the manufacturer's brand image and to help its retailers make more sales.

True or False: Corporate objectives are expressed in terms of specific target market needs and specific sales goals.

false Corporate objectives are stated in terms of profit or return on investment, or net worth, earnings ratios, growth, or corporate reputation. Marketing objectives, which derive from corporate objectives, should relate to the needs of target markets as well as to specific sales goals.

The advertising business has four distinct groups: advertisers, consumer advertising agencies, business-to-business agencies, and suppliers.

false The advertising business has four distinct groups. The two main ones are the advertisers and the agencies. A third group, suppliers, includes the photographers, illustrators, printers, digital service bureaus, video production houses, digital developers, and others who provide their services to advertisers and agencies. Suppliers also include consultants, research firms, and professional services. The fourth group, media, sells time (on radio and TV) and space (in print, outdoor) or both (digital media) for connecting the advertiser's message with the target audience.

Today's IMC model shows advertising communication between a company and its customers as a pyramid—the advertiser talks, and the customers listen.

false The advertising pyramid reflects the traditional mass-marketing monologue. The advertiser talks and the customer listens. But today, as the IMC model shows, many marketers have databases of information on their customers—about where they live, what they buy, and what they like and dislike. When marketers can have a dialogue and establish a relationship, the model is no longer a pyramid but a circle.

What are the two categories of media available to the international advertiser?

foreign media and international media

Sophie works in the marketing department for an outdoor furniture company that is preparing for the rollout of next year's product line. Sophie's boss asked her to determine costs for this year's rollout. To do so, Sophie gathers sales reports, product shipment figures, customer data records and costs related to warranty claims. Sophie is ___

gathering internal secondary data.

Negatively originated motives are also called __________ motives.

informational

The ________ perspective of integrated marketing communications (IMC) sees customers as partners in an ongoing relationship, recognizes the terminology they use, acknowledges the importance of the whole communications system, and accepts the many ways they come into contact with the company or the brand.

outside-in

Which word best describes advertising?

persuasive

What are the two types of perceptual screens consumers use?

physiological and psychological There are two types of screens, physiological and psychological. The physiological screens comprise the five senses: sight, hearing, touch, taste, and smell. They detect incoming data and measure the dimension and intensity of the stimuli. Each consumer uses psychological screens to evaluate, filter, and personalize information according to subjective standards.

When Chipotle uses the slogan "Food with Integrity" to appeal to consumers who want healthy food sourced from the best ingredients with respect to the environment and the farmers, it is using the strategy of

positioning.

Mountain Dew started in Knoxville, Tennessee in the 1940s as a tasty mixer for bourbon and featured Willy the Hillbilly on its label. PepsiCo, the brand's owner, introduced its "Do the Dew" campaign in the early 1990s to brand Mountain Dew as a high-energy, youth oriented, uniquely flavored soft drink. What type of positioning strategy did PepsiCo use with its new ad campaign?

product user

The marketing mix is four elements, called the 4Ps, that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy. What are the 4Ps?

product, price, place, and promotion

Paul Mitchell distributes its hair care products primarily to high-end salons. Paul Mitchell is most likely using ________ distribution.

selective Paul Mitchell utilizes selective distribution, and its products are distributed primarily at high-end salons.

Nora bought a vacuum cleaner online from a major manufacturer. After two years, the brushroller quit spinning. Nora called customer service and the company sent a replacement part. When Nora received the part, it did not fix the problem. She no longer had her sales receipt and the warranty had expired. Much to her surprise, the customer service agent said the company would send her a new vacuum. This ________ message impressed Nora so much that she wrote a glowing online review and told her friends.

service

True or False: Noah just finished working on a social media ad campaign targeting young consumers who prefer comparing and purchasing their sports equipment online. Noah most likely works in an interactive agency.

true A heightened interest in IMC and digital advertising has led to a new breed of specialist—the interactive agency—an advertising agency that specializes in creating ads for a digital medium.

True or False: The eight fundamental purchase and usage motives identified by Rossiter and Percy are an example of how modern researchers translated Maslow's theory about needs and motives into more strategic concepts for use by marketers and advertisers.

true Modern researchers translated Maslow's theory about needs and motives into more strategic concepts for use by marketers and advertisers. Rossiter and Percy, for example, identified eight fundamental purchase and usage motives—five which are negatively originated (informational) motives and three as positively originated (transformational) motives.

True or False: The U.S. economy is based on the concept of free-market competition.

true Our capitalist economy is based on the notion of free-market competition. While there is no such thing as perfect competition, there are four fundamental assumptions of free-market economics that a market-driven society strives to achieve: self-interest, complete information, many buyers and sellers, and absence of externalities (social costs).

True or False: When it comes to advertising in social media, it has been argued that local advertisers have an advantage over national advertisers because they share a community with their customers.

true Social media such as Facebook, Twitter, and LinkedIn have the capacity to dramatically change the strategies of local advertisers. Joe Morsello, a communications manager at a local business trade association, argues that local advertisers have an advantage over national advertisers in social media because they share a community with their customers. When things happen locally (bad weather, a town festival, a breaking news story), local advertisers can target customers about these shared events.