Principles of Marketing, 17e (Kotler/Armstrong)

Chapter 15 Advertising and Public Relations

1) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an
identified sponsor is called ________.
A) sales promotion
B) direct marketing
C) advertising
D) personal selling
E) public relations
Answer: C
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.1: Define the role of advertising in the promotion mix.
Difficulty: Easy

2) Advertising is used mostly by ________.

A) governments
B) business firms
C) social agencies
D) independent professionals
E) not-for-profit organizations
Answer: B
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.1: Define the role of advertising in the promotion mix.
Difficulty: Easy

3) Marketing management must make important decisions when developing an advertising

program. Which of the following is NOT one of those decisions?
A) evaluating advertising effectiveness
B) developing advertising strategy
C) setting advertising objectives
D) designing products and distribution
E) setting the advertising budget
Answer: D
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.1: Define the role of advertising in the promotion mix.
Difficulty: Easy

1
4) Competitive parity and task methods are considered when making decisions about ________.
A) sales objectives
B) budget
C) message structure
D) media selection
E) message effectiveness
Answer: B
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.1: Define the role of advertising in the promotion mix.
Difficulty: Easy

5) Advertising is the least used of the major promotion tools, although it has great potential for
building consumer awareness and reference.
Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.1: Define the role of advertising in the promotion mix.
Difficulty: Moderate

6) Advertising is a good way to engage, inform, and persuade, regardless of the objective of the
message.
Answer: TRUE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.1: Define the role of advertising in the promotion mix.
Difficulty: Moderate

7) Marketing management must make four important decisions when developing an advertising
program. Briefly describe these four decisions.
Answer: Marketing management should first set advertising objectives, which can be classified
by primary purpose: to inform, persuade, or remind. Next, the advertising budget needs to be
determined, which will often depend on the product's stage in the product life cycle. The third
step is to develop an advertising strategy, which involves message decisions and media
decisions. The last step is to evaluate the effectiveness of the advertising campaign.
AACSB: Analytical thinking; Written and oral communications
Skill: Concept
Objective: LO 15.1: Define the role of advertising in the promotion mix.
Difficulty: Moderate

2
8) The decisions about impact and engagement of an advertisement fall into the category of
________ decisions.
A) sales objectives
B) budget
C) message
D) media
E) advertising evaluations
Answer: D
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

9) An advertising objective is classified by its primary purpose, which is to inform, persuade, or

________.
A) reciprocate
B) compete
C) remind
D) explain
E) suggest
Answer: C
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

10) Advertising objectives should be based on the marketing mix, positioning, and ________.
A) differentiation
B) past decisions about the target market
C) costs of different media choices
D) ability to create special events
E) novelty of the product advertised
Answer: B
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

3
11) Advertising is a good way to ________, inform, and persuade.
A) educate
B) create
C) define
D) engage
E) harvest
Answer: D
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

12) Which of the following is most likely an objective of informative advertising?

A) build brand preference
B) change customer perceptions of brand value
C) encourage customers to switch brands
D) suggest new uses for a product
E) keep the brand in customer minds during off-seasons
Answer: D
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Challenging

13) When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how the
product cleans grime from walls without removing paint. What type of campaign was most
likely used by P&G for the Mr. Clean Magic Eraser?
A) informative advertising
B) persuasive advertising
C) reminder advertising
D) developmental advertising
E) comparative advertising
Answer: A
AACSB: Reflective thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Challenging

4
14) When the advertising objective is to build primary demand for a new product category,
________ advertising will most likely be used.
A) persuasive
B) informative
C) comparative
D) patronage
E) institutional
Answer: B
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

15) Which of the following is an objective of persuasive advertising?

A) communicate customer value
B) correct false impressions
C) describe available services and support
D) keep the brand in a customer's mind during off-seasons
E) engage customers and create brand community
Answer: E
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Challenging

16) ________ becomes more important as competition increases. With this type of advertising,
a company's objective is to build selective demand.
A) Institutional advertising
B) Informative advertising
C) Reminder advertising
D) Not-for-profit advertising
E) Persuasive advertising
Answer: E
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

5
17) Persuasive advertising becomes ________ advertising when a company directly or
indirectly compares its brand with one or more other brands.
A) informative
B) reminder
C) attack
D) covert
E) institutional
Answer: C
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

18) Comparative advertising is also known as ________ advertising.

A) attack
B) institutional
C) covert
D) reminder
E) informative
Answer: A
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

19) When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?"
slogan to attack AT&T's rumored spotty service. This example best illustrates ________.
A) informative advertising
B) reminder advertising
C) comparative advertising
D) covert advertising
E) institutional advertising
Answer: C
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

6
20) Encouraging customers to switch brands is most likely the objective of ________
advertising.
A) informative
B) reminder
C) covert
D) persuasive
E) institutional
Answer: D
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

21) Which of the following types of advertising will most likely result in an advertising war?
A) covert advertising
B) institutional advertising
C) informative advertising
D) comparative advertising
E) reminder advertising
Answer: D
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

22) Describing available services and support is most likely a goal of ________ advertising.
A) reminder
B) competitive
C) covert
D) attack
E) informative
Answer: E
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

7
23) Keeping the brand in a customer's mind during off-seasons is most likely a goal of
________ advertising.
A) reminder
B) attack
C) informative
D) covert
E) competitive
Answer: A
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

24) Which of the following is one of the primary goals of reminder advertising?
A) maintain customer relationships
B) build brand preference
C) correct false impressions
D) inform the market of a price change
E) restore company image
Answer: A
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

25) A product in the maturity stage will most likely require ________ advertising.
A) informative
B) comparative
C) persuasive
D) reminder
E) covert
Answer: D
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

8
26) Advertising has numerous goals. Which of the following is NOT one of those goals?
A) to help move consumers through the buying process
B) to work with lobbyists and legislators in developing industry regulations
C) to move people to immediate action
D) to build or strengthen long-term customer relationships
E) to engage customers and change the way they think or feel about the brand
Answer: B
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

27) After determining its advertising objectives, a company's next step in developing an
advertising program is to ________.
A) set an advertising budget
B) determine the media vehicle
C) use cash rebate offers
D) evaluate the advertising campaign
E) develop a message strategy
Answer: A
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

28) Which of the following most likely requires the smallest advertising budget?
A) products in competitive markets
B) undifferentiated brands
C) new products
D) low-share brands
E) mature brands
Answer: E
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

9
29) With the help of ________ systems, consumers can avoid watching ads.
A) USB
B) CCTV
C) HDMI
D) DVR
E) XBMC
Answer: D
AACSB: Information technology
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

30) Which of the following brands most likely requires heavy advertising in order to be set
apart from similar products?
A) undifferentiated brands
B) specialty brands
C) international brands
D) mature brands
E) high-share brands
Answer: A
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

31) Brands in a market with many competitors and high advertising clutter must ________.
A) have very high prices compared to competitors
B) be advertised only through print and social media
C) be advertised more heavily to be noticed in the marketplace
D) never be advertised using informative advertising
E) be advertised only during the mature stage of the product life cycle
Answer: C
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

10
32) Which of the following would be the most likely result of slashing ad spending for a
product?
A) increased popularity
B) reduced long-term market share
C) improved brand image
D) increased short-term sales
E) increased long-term market share
Answer: B
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

33) When the product differs greatly from those of competitors, ________.
A) advertising can make customers aware of the product
B) firms should advertise similarly to competitors, to remind consumers of the product
C) advertising can point out the differences to consumers
D) firms should advertise little as the uniqueness will not require education of consumers
E) advertising can reaffirm a consumer's decision to purchase
Answer: C
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

34) Which of the following is a major element of developing an advertising strategy?

A) selecting advertising media
B) using sophisticated statistical models
C) setting advertising objectives
D) evaluating advertising campaigns
E) setting the advertising budget
Answer: A
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

11
35) Which of the following statements is true regarding the vital importance of the media-
planning function?
A) With changing technologies, media costs are declining.
B) Brand content is usually created in-house by the company.
C) Which media to use is sometimes more critical than the creative elements of the messaging.
D) Market targeting has declined in importance in the planning stages.
E) Because so many consumers use the same mobile and social media applications, messaging
can be less focused.
Answer: C
AACSB: Application of knowledge; Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

36) To break through the clutter, many marketers have subscribed to a new merging of
advertising and entertainment, dubbed ________.
A) Madison & Vine
B) Wall St. & Fifth Ave
C) buzz marketing
D) podcasting
E) webisodes
Answer: A
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

37) The aim of ________ is to make an advertisement so useful or entertaining that people want
to watch it.
A) branded entertainment
B) advertainment
C) viral marketing
D) buzz marketing
E) word-of-mouth advertising
Answer: B
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

12
38) In addition to advertainment, advertisers are creating content that ________.
A) provides much more information than ads did in the past
B) they expect to go viral
C) helps the advertiser save money
D) looks less like ads and more like short films or shows
E) confuses viewers about whether they are ads
Answer: D
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

39) Product placement in television programs and movies is an example of ________.

A) branded entertainment
B) advertainment
C) direct marketing
D) buzz marketing
E) sales promotion
Answer: A
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

40) Pepsi being prominently featured on episodes of Empire is an example of ________.

A) advertainment
B) buzz marketing
C) personal selling
D) sales promotion
E) product placement
Answer: E
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

13
41) Which term refers to the general idea that will be communicated to consumers through an
advertisement?
A) advertising appeal
B) message strategy
C) consumer-generated message
D) creative concept
E) message execution
Answer: B
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

42) The first step in creating effective advertising messages is ________.

A) selecting specific media vehicles
B) planning a message strategy
C) determining return on advertising investment
D) choosing media timing
E) executing the message
Answer: B
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

43) Developing an effective message strategy begins with identifying ________ that can be
used as advertising appeals.
A) consumer trends
B) competitors' weaknesses
C) competitors' strengths
D) customer benefits
E) consumer emotions
Answer: D
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

14
44) ________ tend to be straightforward outlines of benefits and positioning points that the
advertiser wants to stress.
A) Promotion mix plans
B) Message strategy statements
C) Creative concept strategies
D) Advertainment statements
E) Branded entertainment plans
Answer: B
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

45) After creating a message strategy statement, the advertiser must develop a compelling
________ that will bring the message strategy to life in a distinctive and memorable way.
A) creative concept
B) customer strategy
C) customer benefit
D) execution style
E) media vehicle
Answer: A
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

46) Which of the following are the three characteristics that an advertising appeal should have?
A) engaging, informative, and stylish
B) trendy, compelling, and appealing
C) meaningful, believable, and distinctive
D) unique, emotional, and entertaining
E) humorous, memorable, and interesting
Answer: C
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

15
47) In its advertisements, Timex promotes its affordable and sturdy watches. Fossil emphasizes
style and fashion in its advertisements, and Rolex stresses luxury and status. These are all
examples of ________ appeals.
A) rational
B) reminder
C) believable
D) entertainment
E) distinctive
Answer: E
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

48) The advertiser must find the best approach, style, words, format, and ________ for
executing the message.
A) media
B) cost
C) visuals
D) tone
E) endorser
Answer: D
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

49) Which message execution style depicts average people using a product in an everyday
setting?
A) lifestyle
B) scientific evidence
C) slice of life
D) personality symbol
E) testimonial evidence
Answer: C
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

16
50) An ad for a new convection oven shows a busy professional woman using the convection
oven to cook dinner for her family. Which of the following message execution styles is
illustrated in this example?
A) testimonial evidence
B) slice of life
C) fantasy
D) scientific evidence
E) mood or image
Answer: B
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

51) An ad for Athleta active wear shows a woman in a complex yoga pose and states: "If your
body is your temple, build it one piece at a time." This ad uses the ________ execution style.
A) slice of life
B) lifestyle
C) fantasy
D) scientific evidence
E) personality symbol
Answer: B
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

52) Which of the following message execution styles focuses on the company's skill and
knowledge in making the product?
A) endorsement
B) scientific evidence
C) slice of life
D) technical expertise
E) testimonial evidence
Answer: D
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

17
53) A pharmaceutical ad features a world-renowned heart surgeon describing the benefits of a
medication. Which of the following message execution styles is illustrated in this example?
A) mood or image
B) fantasy
C) personality symbol
D) musical
E) testimonial evidence
Answer: E
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

54) An IKEA ad shows consumers creating fanciful room designs with IKEA furniture, such as
"a bedroom for a queen made by Bree and her sister, designed by IKEA." Which of the
following message execution styles is illustrated in this example?
A) mood or image
B) musical
C) fantasy
D) lifestyle
E) personality symbol
Answer: C
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

55) Apple used an album by the band U2 to promote the Apple Watch announcement. Which of
the following message execution styles is illustrated in this example?
A) personality symbol
B) musical
C) fantasy
D) lifestyle
E) slice of life
Answer: B
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

18
56) The advertisements that use the Aflac duck or the GEICO gecko are using the message
execution style of ________.
A) lifestyle
B) technical expertise
C) testimonial evidence
D) slice of life
E) personality symbols
Answer: E
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

57) Progressive Insurance uses Flo to represent its product. Which of the following message
execution styles was used by Progressive Insurance?
A) mood or image
B) fantasy
C) personality symbol
D) technical expertise
E) musical
Answer: C
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

58) Which message execution style involves presenting survey data indicating that a brand is
better than other brands?
A) scientific evidence
B) testimonial evidence
C) endorsement
D) technical expertise
E) slice of life
Answer: A
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

19
59) Which of the following message execution styles features a highly believable or likable
source endorsing the product?
A) musical
B) mood or image
C) testimonial evidence
D) lifestyle
E) slice of life
Answer: C
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

60) Maybelline used Gigi Hadid, a model, to endorse a new range of cosmetics. This message
execution style is referred to as ________.
A) lifestyle
B) testimonial evidence
C) image
D) technical expertise
E) personality symbol
Answer: B
AACSB: Application of knowledge
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

61) The McDonald's fast-food restaurant chain uses Ronald McDonald, a clown, as its primary
character. Which message execution style is used by McDonald's?
A) technical expertise
B) lifestyle
C) personality symbol
D) image
E) slice of life
Answer: C
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

20
62) An illustration, a headline, and a copy are the three ________ elements of an advertisement.
A) tone
B) mood
C) format
D) reach
E) frequency
Answer: C
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

63) What is the first element that a reader most likely notices in a print ad?
A) copy
B) illustration
C) headline
D) slogan
E) tone
Answer: B
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

64) The main block of text in a print ad is referred to as the ________.

A) copy
B) testimonial evidence
C) headline
D) slogan
E) message strategy statement
Answer: A
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

21
65) Which of the following is illustrated by an amateur 30-second video, developed by a
consumer, telling the story of the online crafts marketplace, Etsy.com?
A) personal selling
B) consumer-generated messages
C) consumer ethnocentrism
D) sales promotion
E) consumerism
Answer: B
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

66) Television, as a medium of advertisement, is characterized by ________.

A) high audience selectivity
B) low absolute costs
C) poor mass-marketing coverage
D) fleeting exposure
E) high cost per exposure
Answer: D
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

67) What is an advantage of consumer-generated content?

A) It will be less expensive.
B) It cannot be controlled by the company.
C) It can provide new creative ideas.
D) It can entice customers to become brand evangelists.
E) It can use social media sites more effectively than the company can.
Answer: C
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

22
68) Which of the following is a major step in selecting advertising media?
A) determining reach, frequency, and impact
B) selecting message execution style
C) developing a compelling creative concept
D) deciding on format elements
E) planning a message strategy
Answer: A
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

69) ________ is a measure of the percentage of people in a target market who are exposed to an
ad campaign during a given period of time.
A) Frequency
B) Qualitative value
C) Impact
D) Premium
E) Reach
Answer: E
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

70) Which of the following is an advantage of using newspapers as an advertising medium?

A) long life
B) good reproduction quality
C) large pass-along audience
D) broad acceptability
E) no ad competition within the same medium
Answer: D
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

23
71) You receive a report that 68 percent of your target market has been exposed to your ad
campaign during a given period of time. Which of the following aspects of media selection is
represented by this information?
A) frequency
B) reach
C) impact
D) engagement
E) qualitative value
Answer: B
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

72) Which of the following statements about magazines as an advertising medium is true?
A) Magazines have long ad purchase lead times.
B) Magazines cannot offer high geographic selectivity.
C) Magazines lack credibility.
D) Magazines provide better local coverage than newspapers.
E) Magazines have poor reproduction of images.
Answer: A
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

73) The number of times an average person in the target market is exposed to a message is
known as the ________ of the message.
A) quantitative value
B) reach
C) frequency
D) exposure rate
E) turnover rate
Answer: C
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

24
74) Which of the following is a disadvantage of using direct mail as an advertising medium?
A) low audience selectivity
B) no flexibility
C) severe ad competition
D) relatively high cost per exposure
E) lack of personalization
Answer: D
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

75) Which term refers to the qualitative value of message exposure through a given medium?
A) reach
B) turnover rate
C) efficiency
D) media impact
E) frequency
Answer: D
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

76) Which of the following is a media measure?

A) consumer price index
B) GDP per capita
C) wholesale price index
D) click-through rate
E) human development index
Answer: D
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

25
77) Which of the following statements is most likely true about radio as an advertising medium?
A) Radio advertising is typically quite expensive.
B) Radio ensures good attention from the target audience.
C) Radio offers very low audience selectivity.
D) Radio prohibits the use of segmentation strategies.
E) Radio advertising is characterized by good local acceptance.
Answer: E
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

78) Which of the following is a digital medium that is used by advertisers to reach consumers
directly?
A) smartphone
B) direct mail
C) newspapers
D) billboards
E) television
Answer: A
AACSB: Information technology
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

79) Which of the following statements about outdoor media is true?

A) It has no creative limitations.
B) It is characterized by higher costs per exposure.
C) It has good positional selectivity.
D) It has very limited flexibility.
E) It has high audience selectivity.
Answer: C
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

26
80) You want to advertise your new product. You want good mass marketing coverage and low
cost per exposure. You also want to combine sight, sound, and motion and make the
advertisement appealing to the senses. You should choose ________ as your advertising media.
A) newspaper
B) radio
C) magazines
D) television
E) direct mail
Answer: D
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

81) Snappy Cameras is launching a new advertising campaign to demonstrate the high quality
of its digital cameras. Which media option would give the audience the most control over
exposure to the ads and interactive capabilities?
A) the Internet
B) newspaper
C) TV
D) radio
E) billboard
Answer: A
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Challenging

82) Rather than measuring click-through rates, companies now want to track ________ as a
more accurate measure of the engagement of the consumers in the message.
A) ratings
B) consumer expressions
C) listenership
D) consumer impressions
E) readership
Answer: B
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

27
83) While traditional mass media still make up a majority of today's media mixes, companies
have added digital, mobile, and social media that cost less, target more effectively, and
________.
A) are quicker to create
B) involve more departments in the company
C) must be chosen carefully, since there are so many options
D) engage consumers more fully
E) are challenging to schedule
Answer: D
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

84) Finding ads on shopping carts, ATMs, transit buses, and even municipal garbage cans is
known as ________.
A) paid media
B) earned media
C) shared media
D) media multitasking
E) alternative media
Answer: E
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Challenging

85) A Spanish-language channel runs its ads only in Hispanic neighborhoods. This is an
example of ________.
A) broadcasting
B) buzz marketing
C) narrow programming
D) media multitasking
E) personal selling
Answer: C
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

28
86) The term media multitaskers refers to ________.
A) competing brands which use the same media vehicle
B) people who absorb more than one medium at a time
C) media planners who also head the creative department
D) media planners who use more than one advertising medium
E) ad agencies whose clients are competitors of each other
Answer: B
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

87) Modern Family and The Wall Street Journal are both examples of ________—specific
media within each general media type.
A) alternative media
B) major media
C) media vehicles
D) media multitaskers
E) micromedia
Answer: C
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

88) When selecting a media vehicle, the media planner looks both at the total cost of using a
medium and at the ________.
A) cost per thousand persons reached
B) cost of premium offers
C) cost of the magazine it is using
D) profit margin
E) continuity cost
Answer: A
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

29
89) When a media planner determines whether an advertisement for diapers should be placed in
Parents magazine or Sports Illustrated magazine, the planner is evaluating the media vehicle's
________.
A) profit margin
B) flexibility
C) rate of depreciation
D) audience quality
E) cost per exposure
Answer: D
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

90) Audience quality, audience engagement, and editorial quality are most likely to be
considered when a media planner ________.
A) decides on media timing
B) selects an execution style
C) selects a media vehicle
D) evaluates return on investment
E) measures the communication effects of an advertisement
Answer: C
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

91) In the context of media timing, ________ means making decisions on scheduling ads either
following the seasonal pattern, opposing the seasonal pattern, or being the same all year.
A) routing
B) continuity
C) sequencing
D) narrowcasting
E) seasonal advertising
Answer: E
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

30
92) To measure the ________ effects of an ad after it has aired, the advertiser can evaluate how
the ad affected consumer recall, product awareness, attitude changes, and preference.
A) sales
B) profit
C) communication
D) continuity
E) associativity
Answer: C
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

93) Which of the following characterizes standardized global advertising?

A) higher advertising costs
B) no global advertising coordination
C) higher appeal to varying demographics
D) a more consistent worldwide image
E) lower reach
Answer: D
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

31
Refer to the scenario below to answer the following question(s).

Most clients of Second Avenue have learned about the store through word-of-mouth
communication. This small retailer of quality secondhand children's clothing thrives on the sale
of a vast inventory of children's clothing placed on consignment. "Because small children grow
so quickly," Second Avenue's owner commented, "they often outgrow many of their clothes
before they've hardly been worn!"

Second Avenue provides a way for people to sell their children's clothing, earn a few dollars,
and buy the next larger size. "We're extremely picky about the condition of the clothing we
stock," the owner stated, "but we sell most items at a 60-percent discount."

94) Which of the following media options would be the LEAST costly for Second Avenue's
promotional efforts?
A) periodic advertising in a local newspaper that follows a regular monthly schedule
B) daily advertisements on a cable television station
C) daily commercials during the local evening news
D) a billboard placed on the nearest interstate highway
E) a billboard placed in a supercenter
Answer: A
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Challenging

95) Second Avenue has just developed a 30-second television ad that features three different
shoppers enthusiastically shopping in the store and appreciating its products. This ad uses the
________ execution style.
A) slice of life
B) technical expertise
C) personality symbol
D) fantasy
E) image
Answer: A
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Challenging

32
96) A specific communication task to be accomplished with a specific target audience during a
specific period of time is called an advertising objective.
Answer: TRUE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

97) Informative ads are used primarily in the growth stage of the product life cycle.
Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

98) The most important objective of reminder advertising is telling the market about a new
product.
Answer: FALSE
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

99) Persuasive advertising aims to build broad demand.

Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

100) While cuts in advertising may appear to do little short-term harm to sales, reducing ad
spending may cause long-term damage to a brand's image and market share.
Answer: TRUE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

33
101) The aim of advertainment is to make ads so entertaining or useful that people want to
watch them.
Answer: TRUE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

102) The most common form of advertainment is product placement.

Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

103) A brief glimpse of the latest LG phone on the television series Modern Family is an
example of an advertainment.
Answer: FALSE
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

104) Branded entertainment involves making the brand an inseparable part of some other form
of entertainment.
Answer: TRUE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

105) Professional athletes such as Peyton Manning and Maria Sharapova are featured in
advertisements for Gatorade. According to this information, Gatorade is utilizing branded
entertainment.
Answer: FALSE
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

34
106) The purpose of advertising is to get consumers to think about or react to the product or
company in a certain way.
Answer: TRUE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

107) The message execution style of personality symbol involves identifying and presenting
ordinary people saying how much they like a product.
Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

108) Although television advertising has high absolute costs, its cost per exposure is relatively
low.
Answer: TRUE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

109) In an endorsement style of execution, the endorsers can be characters that represent the
product.
Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

110) The direct mail medium has very low cost per exposure.
Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

35
111) Reach is a measure of how many times the average person in the target market is exposed
to the message.
Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

112) While advertisers can accurately measure the communications effects of their ads,
measuring sales and profit effects are more difficult.
Answer: TRUE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

113) The communication effects of advertisements and ad campaigns are more difficult to
measure than the sales and profit effects.
Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

114) Agencies bring an outside point of view to solving a company's problems, along with lots
of experience from working with different clients and situations.
Answer: TRUE
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

115) Recently, the increased use of online social networks and video sharing has reduced the
need for advertising standardization with global brands.
Answer: FALSE
AACSB: Information technology
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

36
116) Standardization of advertising leads to lower advertising costs, greater global advertising
coordination, and a more consistent worldwide image.
Answer: TRUE
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

117) Advertising media costs and availability differ vastly from country to country.
Answer: TRUE
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

118) What is an advertising objective? What are the three primary types of advertising
objectives?
Answer: An advertising objective is a specific communication task to be accomplished with a
specific target audience during a specific period of time. Advertising objectives can be
classified by primary purpose—whether the aim is to inform, persuade, or remind.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

119) Describe the main objectives of informative advertising.

Answer: The main objectives of informative advertising are:
-Communicating customer value
-Building a brand and company image
-Telling the market about a new product
-Explaining how a product works
-Suggesting new uses for a product
-Informing the market of a price change
-Describing available services and support
-Correcting false impressions
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

37
120) Describe the three characteristics that advertising appeals should have?
Answer: Advertising appeals should be meaningful, believable, and distinctive. Meaningful
appeals point out benefits that make the product more desirable or interesting to consumers.
Believable appeals lead consumers to believe that the product or service will deliver the
promised benefits. Finally, distinctive appeals should tell how the product is better than the
competing brands.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

121) When would a marketer most likely use a comparative ad?

Answer: Comparative ads are a type of persuasive ad in which a company directly or indirectly
compares its brand with one or more other brands. This type of ad is used as competition
increases within a category.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

122) Describe the main objectives of reminder advertising.

Answer: The main objectives of reminder advertising are:
-Maintaining customer relationships
-Reminding consumers that the product may be needed in the near future
-Reminding consumers where to buy the product
-Keeping the brand in a customer's mind during off-seasons
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

123) How has clutter in television and other advertising media created an increasingly hostile
advertising environment?
Answer: The majority of Americans believe there are too many television commercials, and
they are faced with almost 20 minutes of commercials for each hour of prime-time television;
viewers are increasingly using technologies to skip past commercials.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

38
124) Discuss the concepts of advertainment and branded entertainment.
Answer: This merging of advertising and entertainment takes one of two forms: advertainment
or branded entertainment. The aim of advertainment is to make ads themselves so entertaining,
or so useful, that people want to watch them.
Branded entertainment (or brand integrations) involves making the brand an inseparable part of
some other form of entertainment. The most common form of branded entertainment is product
placements—embedding brands as props within other programming.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

125) Give an example of a slice-of-life message execution style.

Answer: Student answers will vary. Slice-of-life examples show one or more typical people
using a product in a normal setting. A McDonald's ad featuring a family eating burgers and fries
on a family outing is a slice-of-life message execution.
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

126) How does a personality symbol impact a brand?

Answer: A personality symbol is a character that represents the product and with whom the
consumer can relate; the personality symbol helps a consumer connect with the product.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

127) Give an example of testimonial evidence and explain the importance of the source.
Answer: Students answers will vary. Testimonial evidence features a highly believable or
likable source endorsing the product. Nike uses Maria Sharapova to endorse its sports
equipment and apparel.
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

39
128) Why is reach an important measure for a marketer?
Answer: Reach is a measurement of the percentage of people in the target market who are
exposed to the ad campaign during a given period of time.
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

129) Explain why an ad might need to be modified from one country to the next.
Answer: Differences in culture, demographics, and economic conditions will impact how
effective or acceptable an advertisement will be in other countries. In addition, changes in the
use of language and imagery may be required to be appropriate to the foreign culture. Also,
countries have varying laws regulating advertising.
AACSB: Application of knowledge; Diverse and multicultural work environments
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

130) Describe any three message execution styles.

Answer: Students' answers may include any three of the following.
There are nine message execution styles. They are:
-Slice of life: shows one or more typical people using the product in a normal setting.
-Lifestyle: shows how a product fits in with a particular lifestyle.
-Fantasy: creates a fantasy around the product or its use.
-Mood or image: builds a mood or image around the product or service.
-Musical: shows people or cartoon characters singing about the product.
-Personality symbol: creates a character to represent the product.
-Technical expertise: depicts the company's expertise in making the product or delivering the
service.
-Scientific evidence: presents survey or scientific evidence that the brand is better than other
brands.
-Testimonial evidence/endorsement: features a highly believable or likable source endorsing the
product.
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

40
131) How are companies taking advantage of interactive technologies to tap consumers for
message ideas and actual ads? What are the benefits and disadvantages of consumer-generated
advertising?
Answer: Companies can now search existing video sites such as YouTube, set up their own
Web sites, create accounts on social networks such as Facebook, and sponsor ad-creation
contests. Several companies, such as Coca-Cola, MasterCard, and Frito-Lay, have used
consumer-generated ads in national promotions. Consumer-generated advertising offers
companies a way to gather new perspectives on their products and develop insights into how
their products are used and seen by actual consumers. Also, consumer-generated advertising is
very inexpensive. On the other hand, companies do not control consumer-generated material,
which can lead to conflicting, or even negative, messages about a brand.
AACSB: Application of knowledge; Information technology
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

132) Describe the four major steps in media selection.

Answer: First, the advertiser needs to decide on reach, frequency, and impact. Reach is a
measure of the percentage of people who are exposed to the advertisement; frequency is the
measure of how many times the average person is exposed to the message; impact is how
people feel about the advertisement. Next, media planners need to choose among major media
types: television, newspapers, magazines, direct mail, radio, outdoor, and Internet. They may
also select newer digital media such as cell phones. After the media type is selected, the
specific media vehicles must be identified. The last decision is media timing, which involves
determining how to schedule the advertising over the course of a year.
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

41
133) List any four major media types and identify some of the strengths and weaknesses of each
of them.
Answer: Students' answers may include any four of the following.
-Television: Advantages are good mass marketing coverage, low cost per exposure, and appeals
to the senses; weaknesses are high total costs and high clutter.
-Newspapers: Strengths are timeliness, good local market coverage, and high believability;
weaknesses are short life and poor reproduction quality.
-Direct mail: Strengths are flexibility and capacity for personalization; weaknesses are relatively
high cost per exposure and "junk mail" image.
-Magazines: Strengths are high audience selectivity, credibility, and good pass-along readership;
weaknesses are high costs and long lead times.
-Radio: Strengths are good local acceptance and low cost; weaknesses are low attention and
fleeting exposure to messages.
-Outdoor: Strengths are flexibility, low cost, and low message competition; weaknesses are low
audience selectivity and creative limitations.
-Internet: Strengths include high selectivity, low cost, and interactive capabilities; weaknesses
are audience control of exposure and potentially low impact.
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

134) Advertisers should regularly evaluate two types of advertising results: the communication
effects and the sales and profit effects. How are these two results measured?
Answer: Measuring the communication effects of an ad or ad campaign tells whether the ads
and media are communicating the ad message well. Individual ads can be tested before or after
they are run. Before an ad is placed, the advertiser can show it to consumers, ask how they like
it, and measure message recall or attitude changes resulting from it. After an ad is run, the
advertiser can measure how the ad affected consumer recall or product awareness, knowledge,
and preference. Pre- and post-evaluations of communication effects can be made for entire
advertising campaigns as well. Sales and profit effects of advertising are often much harder to
measure. Sales and profits are affected by many factors other than advertising—such as product
features, price, and availability. One way to measure the sales and profit effects of advertising is
to compare past sales and profits with past advertising expenditures. Another way is through
experiments. For example, to test the effects of different advertising spending levels, a
company could vary the amount it spends on advertising in different market areas and measure
the differences in the resulting sales and profit levels. More complex experiments could be
designed to include other variables, such as differences in the ads or media used.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Moderate

42
135) Explain how seasonality impacts media timing.
Answer: An advertiser must decide how to schedule the advertising over the course of a year.
Suppose sales of a product peak in December and drop in March (for winter outdoor gear, for
instance). The firm can vary its advertising to follow the seasonal pattern, oppose the seasonal
pattern, or be the same all year. Most firms do some seasonal advertising. For example, Mars
currently runs M&M's special ads for almost every holiday and "season," from Easter, Fourth
of July, and Halloween to the Super Bowl season and the Oscar season. The Picture People, the
national chain of portrait studios, advertises more heavily before major holidays, such as
Christmas, Easter, Valentine's Day, and Halloween. Some marketers do only seasonal
advertising: for instance, P&G advertises its Vicks NyQuil only during the cold and flu season.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Challenging

136) Discuss the advantages of using the services of an advertising agency.

Answer: Today's agencies employ specialists who can often perform advertising tasks better
than the company's own staff can. Agencies also bring an outside point of view to solving the
company's problems, along with lots of experience from working with different clients and
situations. So, today, even companies with strong advertising departments of their own use
advertising agencies. Most large advertising agencies have the staff and resources to handle all
phases of an advertising campaign for their clients, from creating a marketing plan to
developing ad campaigns and preparing, placing, and evaluating ads and other brand content.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.2: Describe the major decisions involved in developing an advertising
program.
Difficulty: Easy

137) Which of the following promotion tools involves building up a positive corporate image
and handling unfavorable stories and events?
A) sales promotion
B) personal selling
C) direct marketing
D) public relations
E) advertising
Answer: D
AACSB: Analytical thinking
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Easy

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138) Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly
contacts members of the local and statewide media with information about community events
and charity fundraisers sponsored by her company. This is an example of the ________
function of public relations.
A) press relations
B) product publicity
C) investor relations
D) lobbying
E) development
Answer: A
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Moderate

139) One of the functions performed by a PR department is ________, which involves building
and maintaining relations with legislators and government officials to influence legislation and
regulation.
A) direct marketing
B) press relations management
C) investor relations management
D) lobbying
E) public affairs management
Answer: D
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Easy

140) One of the functions performed by a PR department is ________, which involves working
with donors or members of nonprofit organizations to gain financial or volunteer support.
A) direct marketing
B) press relations management
C) investor relations management
D) development
E) lobbying
Answer: D
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Easy

44
141) The National Pork Board developed "Pork. The Other White Meat" campaign. The
campaign provided nutritional information and pork recipes in an attempt to encourage people
to view pork as a tasty alternative to poultry and fish. Which of the following functions was the
goal of this public relations campaign?
A) influencing government regulations on pork
B) gaining financial support for pork producers
C) creating newsworthy information about pork
D) maintaining relationships with pork producers
E) rebuilding consumer interest in pork
Answer: E
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Challenging

142) Which of the following public relations functions involves maintaining relationships with
shareholders and those in the financial community?
A) direct marketing
B) press relations management
C) investor relations management
D) development
E) lobbying
Answer: C
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Easy

143) Which of the following statements is most likely true of public relations?
A) It requires participating companies to pay for media space or time.
B) It can have the same impact on public awareness as advertising at much lower costs.
C) It is always handled by a third-party agency hired by the firm.
D) It forms a huge portion of the overall marketing budget of most large firms.
E) It plays an insignificant role in brand building with the increasing popularity of advertising.
Answer: B
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Moderate

45
144) How can public relations have a strong impact at a much lower cost than advertising?
A) The firm can pay for content to be spread.
B) Interested consumers can create the content on their own and spread it.
C) Interesting brand stories, events, videos, or other content can be shared by sources out of the
company's control, but to its benefit.
D) Advertising agencies can minimize the impact of competitors' news.
E) Advertising costs have changed dramatically due to changing technologies.
Answer: C
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Moderate

145) Which of the following is NOT one of the publics to which a public relations department
must answer?
A) stockholders
B) legislators
C) the press
D) employees
E) suppliers
Answer: E
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Moderate

146) Which of the following best explains why public relations is often overlooked as a tool for
supporting product marketing objectives?
A) Public relations departments are typically large divisions within corporations.
B) The time and costs associated with public relations prohibit its extensive use.
C) Public relations specialists lack the skills necessary to work with marketing experts.
D) Many public relations professionals see their jobs as communicating, not brand building.
E) The public relations department handles stockholders and legislators but not employees.
Answer: D
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Moderate

46
Refer to the scenario below to answer the following question(s).

Most clients of Second Avenue have learned about the store through word-of-mouth
communication. This small retailer of quality secondhand children's clothing thrives on the sale
of a vast inventory of children's clothing placed on consignment. "Because small children grow
so quickly," Second Avenue's owner commented, "they often outgrow many of their clothes
before they've hardly been worn!"

Second Avenue provides a way for people to sell their children's clothing, earn a few dollars,
and buy the next larger size. "We're extremely picky about the condition of the clothing we
stock," the owner stated, "but we sell most items at a 60-percent discount."

147) The owner of Second Avenue wants to establish a community clothing drive to collect
clothes for a local children's shelter. The owner is planning to set up collection barrels outside
Second Avenue. In this case, which of the following public relations tools is being used by the
owner?
A) press relations
B) product publicity
C) lobbying
D) development
E) public affairs
Answer: E
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Challenging

148) Companies use PR to build good relations with consumers, investors, the media, and their
communities.
Answer: TRUE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Easy

149) PR can have a strong impact on public awareness at a much higher cost than advertising
can.
Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Easy

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150) When using public relations, the company pays for space and time in the media.
Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Easy

151) Changing technologies, especially with digital content, is significantly increasing the role
of public relations in a firm's integrated marketing communications program.
Answer: TRUE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Easy

152) Describe the significance of public relations as a mass-promotion tool.

Answer: Public relations is used to promote products, people, places, ideas, activities,
organizations, and even nations. Companies use PR to build good relations with consumers,
investors, the media, and their communities. Trade associations have used PR to rebuild interest
in commodities, such as eggs, apples, potatoes, milk, and even onions.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Moderate

153) Explain why a public relations campaign can be a more cost-effective option for
corporations than an advertising campaign.
Answer: Public relations can have a strong impact on public awareness at a much lower cost
than advertising can. The company does not pay for the space or time in the media. Rather, it
pays for a staff to develop and circulate information and to manage events. If the company
develops an interesting story or event, it could be picked up by several different media, having
the same effect as advertising that would cost millions of dollars. And it would have more
credibility than advertising.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Moderate

48
154) Describe public relations and any three of its main functions.
Answer: Student answers may include this description and any three function descriptions.
Public relations departments build good relations with the company's various publics by
obtaining favorable publicity, building up a good corporate image, and handling or heading off
unfavorable rumors, stories, and events. Some of its functions are:
-Product publicity: publicizing specific products
-Public affairs: building and maintaining national or local community relations
-Lobbying: building and maintaining relations with legislators and government officials to
influence legislation and regulation
-Press relations: creating and placing newsworthy information in the new media to attract
attention to a person, product, or service associated with the company
-Investor relations: maintaining relationships with shareholders
-Development: working with donors or members of nonprofit organizations to gain financial or
volunteer support
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.3: Define the role of public relations in the promotion mix.
Difficulty: Moderate

155) Which of the following is NOT a major public relations tool?

A) trade shows and conferences
B) stationery, logos, and uniforms
C) public service activities
D) videos
E) annual reports and brochures
Answer: A
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Easy

156) Which of the following is a major tool used by PR professionals?

A) standardized global advertising
B) market penetration
C) news
D) bait-and-switch strategy
E) product packaging
Answer: C
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Easy

49
157) News conferences, press tours, and grand openings are examples of ________, a type of
tool commonly used by public relations professionals.
A) public service activities
B) special events
C) social networking
D) development
E) investor relations
Answer: B
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Easy

158) Which of the following would most likely be included in the written materials prepared by
PR professionals to reach and influence target markets?
A) employee code of conduct
B) annual reports
C) memorandum of association
D) advertisement jingles
E) white papers
Answer: B
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Easy

159) Which of the following is an example of audiovisual material used by PR professionals?

A) blogs
B) logos
C) vision statements
D) brochures
E) online videos
Answer: E
AACSB: Information technology
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Moderate

50
160) Logos, uniforms, brochures, and company trucks are all examples of ________ materials
that can be used to help a company create a visual image which the public can immediately
recognize.
A) direct marketing
B) social marketing
C) public service
D) corporate identity
E) buzz marketing
Answer: D
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Easy

161) In an attempt to set the company apart from its competitors, Central Parcel Service (CPS)
has its employees wear brown uniforms and drive brown trucks. What type of public relations
tool is being used by CPS?
A) buzz marketing
B) corporate logos
C) corporate identity materials
D) product publicity
E) public service materials
Answer: C
AACSB: Analytical thinking
Skill: Application
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Moderate

162) Steps involved in determining when and how to use product public relations include
________, choosing the PR message and media, implementing the PR plan, and evaluating the
results, plus integrating with the full marketing communications effort.
A) defining the budget
B) hiring the media creators
C) collecting feedback
D) setting PR objectives
E) determining the messenger
Answer: D
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Easy

51
163) Corporate identity materials help create a corporate identity that the public immediately
recognizes.
Answer: TRUE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Moderate

164) A company's Web site can be an important public relations vehicle.

Answer: TRUE
AACSB: Information technology
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Easy

165) While a company can choose to participate in public service activities, doing so has no
impact on public goodwill toward the company.
Answer: FALSE
AACSB: Written and oral communication
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Easy

52
166) Public relations specialists use several tools. Identify three of these tools and describe how
they can help a company communicate with the public.
Answer: Students' answers may include any three of the following.
PR professionals find or create favorable news about the company and its products or people.
Sometimes news stories occur naturally, and sometimes the PR person can suggest events or
activities that would create news.
Speeches can also create product and company publicity. Increasingly, company executives
must field questions from the media or give talks at trade associations or sales meetings, and
these events can either build or hurt the company's image.
Another common PR tool is special events, ranging from news conferences, press tours, grand
openings, and fireworks displays to laser shows, hot air balloon releases, multimedia
presentations, or educational programs designed to reach and interest target publics.
Public relations people also prepare written materials to reach and influence their target
markets. These materials include annual reports, brochures, articles, and company newsletters
and magazines.
Audiovisual materials, such as slide-and-sound programs, DVDs, and online videos are being
used increasingly as communication tools.
Corporate identity materials can also help create a corporate identity that the public
immediately recognizes. Logos, stationery, brochures, signs, business forms, business cards,
buildings, uniforms, and company cars and trucks—all become marketing tools when they are
attractive, distinctive, and memorable.
Companies can improve public goodwill by contributing money and time to public service
activities.
AACSB: Application of knowledge
Skill: Concept
Objective: LO 15.4: Explain how companies use PR to communicate with their publics.
Difficulty: Moderate

53