PM EXam 3

Advertising space is generally sold on the basis of space units such as full page, half page, and quarter page.

T Advertising space is generally sold on the basis of space units such as full page, half page, and quarter page, although some publications quote rates on the basis of column inches.

Companies sponsor programs to gain more control over the shows carrying their commercials.

T Companies sponsor programs to gain more control over the shows carrying their commercials, with regard to the number, placement, and content of commercials.

Direct marketing is a form of advertising.

T Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, a direct-response offer is an ad.

One of the main advantages of using magazines as an advertising medium is their ability to reach a specific target audience.

T One of the main advantages of using magazines as an advertising medium is their selectivity, or ability to reach a specific target audience. Magazines are the most selective of all media except direct mail.

Declining advertising revenue and circulation has led magazines including Newsweek, Sporting News, Jet, and Lucky to shutter their print editions and solely offer their magazines online.

T Publishers have found it difficult to raise ad rates to offset the reduction in ad pages.

Consumers perceive radio advertising to be more personally relevant to them than ads on television or the Internet.

T The Radio Advertising Bureau has conducted studies in conjunction with several research firms which show that consumers perceive radio advertising to be more personally relevant to them than ads on television or the Internet. The studies have found that radio listeners have a unique relationship with radio as a medium because they often are more emotionally connected to the radio stations to which they listen.

The increase in viewing options and the penetration of DVDs, DVRs, remote controls, and other automatic devices have made it easier for TV viewers to avoid commercial messages.

T The increase in viewing options and the penetration of DVDs, DVRs, remote controls, and other automatic devices have made it easier for TV viewers to avoid commercial messages.

A minute on network radio may cost only $5,000, which translates into a cost per thousand of only $3 or $4.

T The low relative costs of radio make it one of the most efficient of all advertising media.

Weekly newspapers usually ignore national and world news.

T Weekly newspapers focus primarily on news, sports, and events relevant to a local area and usually ignore national and world news, sports, and financial and business news.

Which of the following is true of infomercials?

They are designed to be viewed as regular TV shows.

Which of the following is true of consumer magazines?

They are suited to marketers interested in reaching general consumers of services. Consumer magazines are bought by the general public for information and/or entertainment. Consumer magazines are best suited to marketers interested in reaching general consumers of products and services as well as to companies trying to reach a specific target market.

Which of the following statements is an advantage of outdoor advertising?

Wide coverage of local markets

Which of the following is an example of mobile billboard advertising?

ads painted on a truck

Ads that appear on store floors, gas pumps, washrooms stalls, elevator walls, park benches, and telephones are examples of:

ambient advertising

Which of the following is considered to be a primary user of local display advertising?

department stores

Katherine saw a television commercial for a juicer. The commercial contained all essential details about product usage and flashed a toll-free number that one could dial to order the product. This is an example of:

direct-response advertising.

The largest radio audiences (and thus the highest rates) occur during the:

early morning and late afternoon drive times.

Newspapers have experienced a(n) ________________ percent decline in their revenue from classified advertising over the past decade.

eighty

When it comes to reach, frequency, and other effects, outdoor advertising is easy to accurately measure.

false

Mars Inc., a premium cosmetics company, takes out ads in the Philadelphia, Boston, and Seattle editions of PlutoMag, a national magazine. In this scenario, the company is trying to achieve:

geographic selectivity

Which of the following is an advantage of magazines?

greater creative flexiblity

A long-running television ad for Bedazzle Mascara is aired on various radio channels in the United States. The radio ad makes use of the audio portion of the television commercial. This process of converting a television commercial into a radio ad is known as:

image transfer

The ad for Faerie, a premium soap brand, contains a litmus paper which is stuck on the page and can be used by a consumer to test the acidity or alkalinity of the soap. This is an example of a(n):

insert

A small-town automobile dealer wants to market and advertise its deals in the neighborhoods nearby. The dealer has a limited advertising budget and wishes to advertise within a 20-mile radius. Which of the following types of announcements would best suit the company's purpose?

local advertising

After it attained commercial success, HouseFull, a popular network sitcom, was purchased by many individual stations to be rerun in Harrisburg, New York, and San Diego. This is an example of:

off-network syndication

While on a flight from San Francisco to New York City, James read several magazines offered by the airlines. However, he did not purchase the magazines as they were purchased and owned by the airline. With reference to the types of readership, which of the following has been illustrated in this scenario?

pass-along readership

Which of the following magazines has experienced declines in circulation as well as advertising pages?

people

When parents with children at different age levels can be approached with their child's name in the appeal, it is leveraging the ________________ advantage of direct marketing.

personalization

The Promotional Products Association International (PPAI):

provides public relations support for specialty advertising

CL Inc. printed two versions of the same ad in order to test the effectiveness of each individual ad. One ad contained an image of a popular female celebrity while the other contained a lesser-known model on the front cover. In this scenario, the company is using:

split runs

If 50 million households watch a specific sitcom, and there are a total of 200 million households in the United States, the national rating for the sitcom is:

25%

At the parking lot of her office, Rhonda noticed that two of her colleagues' personal cars had small stickers of McFrank's, a multinational fast food chain, on their windows. Which of the following types of advertising do the stickers represent?

Ambient Advertising

support media are also known as

Below-the-line media

Which of the following statements is true of direct marketing?

Consumer credit cards have led to the increased attractiveness of direct marketing as a tool for promotion for both buyers and sellers.

Jacques received a letter from a charity organization seeking donations. The letter contained details about the charity organization, the benefits of donating, and a self-addressed envelope in which a check could be sent to the organization. Various toll-free numbers of the charitable organization were also provided for Jacques to seek further information. Which of the following techniques of promotion is illustrated in the scenario?

Direct marketing

Which of the following is an advantage of direct marketing?

Direct marketing allows for a strong ability to test the effectiveness of the overall program as well as specific elements.

Michelle received mail from a fashion store announcing the launch of the end-of-season sale. The mail began with the headline, "Flat 50% off all merchandise," and subsequently invited her to participate in the "Fly to Paris for free" contest. Which of the following combinations of promotional activities is illustrated in the scenario?

Direct marketing and sales promotion

Blimps are a form of transit advertising

False

Which movie won the award for Achievement for Product Placement in a Single Film in 2015?

Fast and Furios

Independent local TV stations that send their signals nationally via satellite to cable operators to make their programs available to subscribers are known as:

superstations

Which of the following statements is true of direct mail?

Mailing lists are the key to the success of direct mail.

Which of the following statements is true of newspaper advertising?

Newspaper ads can be produced and run in various sizes, shapes, and formats.

Camilla is a consultant at Mesmeric Inc., a cosmetics manufacturer. She frequently hosts social events at her friends' homes where she invites groups of people and demonstrates the uses of Mesmeric's products. She explains the proper product usage by applying it on herself. Which of the following forms of direct marketing is illustrated in this scenario?

Party plan

One of the advantages of outdoor ads is they offer timely exposures due to their proximity to shopping areas and vehicles on the way to shopping areas.

true

Specialty advertising is also known as promotional products marketing.

true

Traditionally, most of the prime-time commercial spots, especially on the popular shows, are sold during the ___________________.

up-front market

Alice regularly watches a TV show which airs between 8:00 and 9:00 P.M. During the commercial breaks, she switches channels in order to watch music videos. This is known as:

zapping

_______________ and product integration valuation company iTVX have combined efforts to measure Results-Oriented Integration for product placements.

Rentrak

Direct-mail and online services can effectively create a desirable mood among receivers.

F In direct-response advertising, mood creation is limited to the surrounding program and/or editorial content. Direct-mail and online services are unlikely to create a desirable mood.

In a two-step approach, the medium is used directly to obtain an order.

F A one-step approach uses the medium directly to obtain an order. The two-step approach may involve more than one medium and has a separate screening/qualifying step.

Using Customer Lifetime Value (CLTV), advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated.

F Advertisers use cost per order (CPO) to evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated. CLTV is a formula that is used to determine the dollar value associated with a long-term relationship with a customer.

All companies use direct marketing with an objective to seek a behavioral response.

F Not all direct marketing seeks a behavioral response. Many organizations use direct marketing to build an image, maintain customer satisfaction, and inform and/or educate customers in an attempt to lead to future actions.

The high cost of commercials on cable and satellite channels has led to a decline in the use of infomercials as a direct-marketing media.

F The lower cost of commercials on cable and satellite channels has led advertisers to a new form of advertising. An infomercial is a long commercial that is designed to fit into a 30-minute or 1-hour time slot.

The first step of a direct-marketing program is to determine which markets to target through the use of a mailing list or a marketing database.

F To successfully implement direct-marketing programs, companies must make a number of decisions. As in other marketing programs, they must determine (1) what the program's objectives will be, (2) which markets to target (through the use of a list or marketing database), (3) what direct-marketing strategies will be employed, and (4) how to evaluate the effectiveness of the program.

Radio offers a very low degree of geographic selectivity.

F A major advantage of radio is the high degree of audience selectivity available through the various program formats and geographic coverage of the numerous stations.

Direct marketing and direct-response media are the same thing, and can be used interchangeably.

F Direct marketing is an aspect of total marketing—it involves marketing research, segmentation, evaluation, etc. Direct-response media are the tools by which direct marketers implement the communication process.

When advertisers buy newspaper space based on combination rates, it means the advertiser gets no discount for quantity or repeated space buys.

F Flat rates mean there is no discount for quantity or repeated space buys. Combination rates offer a discount for using several newspapers as a group.

Newspapers account for 50 percent of advertising expenditures for national advertisers.

F Newspapers account for less than 5 percent of advertising expenditures for national advertisers, so they are very dependent on regional and local marketers for their advertising revenue.

One of the advantages of television is it offers a fleeting message, with nothing tangible for the viewer to examine or consider.

F One of the disadvantages of television is it offers a fleeting message, with nothing tangible for the viewer to examine or consider.

One of the main disadvantages of radio as an advertising medium is its high cost.

F One of the main strengths of radio as an advertising medium is its low cost. Radio commercials are very inexpensive to produce.

Radio is often referred to as the ideal advertising medium, and, as such, it is the first medium that comes to mind when developing a media strategy.

F Television is the ideal advertising medium. Radio is not the first medium that comes to mind when developing a media strategy.

Newspapers and magazines are often referred to as low-involvement media.

F The print media are not intrusive like radio and TV, and they generally require some effort on the part of the reader for the advertising message to have an impact. For this reason, newspapers and magazines are often referred to as high-involvement media.

Arbitron introduced the __________________, which is a wearable, page-size device that electronically tracks what consumers listen to on the radio by detecting inaudible identification codes that are embedded in the programming, in response to calls from the radio and advertising industries for Arbitron to provide more detailed measures of radio audiences.

PPM

Which of the following statements is true of radio advertising?

Radio advertising provides a high degree of audience selectivity.

Which of the following is an example of a mobile billboard ad?

Samantha sees a truck painted with an ad for "Glory Jeans"

RFM analysis is a marketing technique used to determine quantitatively which customers are the most profitable by examining how recently a customer has purchased, how often he or she purchases, and how much money the customer spends.

T RFM stands for recency, frequency, and monetary, so it is true-RFM analysis is a marketing technique used to determine quantitatively which customers are the most profitable by examining how recently a customer has purchased (recency), how often he or she purchases (frequency), and how much the customer spends (monetary).

The more successful a magazine, the greater the amount of clutter it contains.

T The clutter problem for magazines is something of a paradox: The more successful a magazine becomes, the more advertising pages it attracts, and this leads to greater clutter.

Which of the following statements is true of television as an advertising medium?

TV lets the marketers reach mass markets in a cost-efficient manner.

Darryl sees a television commercial for Praxis treadmill. He immediately dials the toll-free number displayed on his television screen to place an order. The commercial announces that the first 200 callers to place an order will receive Praxis treadmill accessories at no additional cost. In this scenario, Praxis is utilizing:

a one-step approach to direct marketing.

Pizza Vertex, a chain of fast food restaurants, paid $1 million to have its new logo embossed on a blimp. Which of the following forms of advertising did Pizza Vertex make use of?

aerial advertising

The ___________________ audience of people 18 to 49 for station KCBQ during the weekday morning daypart is 26,300.

cume

The various phone calls that consumers receive from credit card companies trying to market their credit cards are examples of a combination of:

direct marketing and personal selling.

Mobile billboards are not viable for small organizations owing to the huge costs of building and maintaining them.

false

Outdoor media tends to have a higher cost per thousand (CPM) rate when compared to other media.

false

Support media supports only the primary media and cannot be used as the sole medium for promotion.

false

The NsDaily, a newspaper, charges $50 per square inch of its advertisement space. Irrespective of the size and nature of the ad, the newspaper does not change its rates. In this scenario, The NsDaily is offering a(n):

flat rate

Zest & Taste Corp. came up with a new ad for the food products that it wanted to advertise in a renowned national food magazine. However, the ad created by its creative team was way larger than the normal page size specified by the magazine publisher. Zest & Taste's creative team wanted the ad to be spread over three continuous pages in the magazine. This could be done with the use of:

gatefolds

Tia sees ads for "Betty's Butter" on the shopping carts at Windford, a retail outlet. This is an example of:

in-store advertising

A national health-food company has assumed responsibility for the production and content of a new program called "Master Quiz." Additionally, the company also takes responsibility for the advertising that appears within it. Which of the following methods of media buying time has the company adopted?

sponsorship

Henry records all the episodes of a well-known soap opera because the show airs while he is at work. When he watches the recorded episodes, he usually fast-forwards through the commercials. This is known as:

zipping