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Marketing: An Introduction, 12e (Armstrong/Kotler)


Chapter 12 Engaging Consumers and Communicating Customer Value: Advertising and
Public elations

1) ________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or

services
A) Sales by an identified sponsor.
promotion
B) Personal selling
C) Advertising
D) Public relations
) Direct mar!eting
Ans"er# C
Difficulty# asy
C$apter %&# 1
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

() emington
promises *otors
superior releases
mileage and ae'cellent
ne" line$orsepo"er
of $ybrid electric ve$icles called lectra.
in an environmentally friendly+$e line
automobile.
emington decides to use advertising as t$e promotional tool for t$e cars launc$. -$ic$ of t$e
follo"ing "ould ualify as an advertisement for lectra/
A) a front0page notice of t$e release of lectra in all leading ne"spapers "it$ t$e caption 2reen
Speed
B) a press conference to discuss t$e various safety issues, actual mileage, and environmental
features of lectra
C) t$e use of dedicated sales personnel in dealer s$o"rooms to e'plain t$e ualities of lectra to
potential customers
D) t$e involvement of a celebrity at t$e launc$ of lectra to endorse t$e $ybrid car

) a buyers0only
Ans"er# A lottery "$ere lectra buyers $ave a c$ance of "inning a pri3e
Difficulty# *oderate
C$apter %&# 1
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies
AACSB# Analytic t$in!ing

4) 5n a mar!eting communications mi', ________ refers to any s$ort0term incentives to


encourage t$e purc$ase of a product or service.
A) advertising
B) sales promotion

C)
D) personal selling
cro"dsourcing
) public relations
Ans"er# B
Difficulty# asy
C$apter %&# 1
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

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9) *ercury lectric, a leading manufacturer of !itc$en appliances, releases a ne" line of


blenders called SpinPro. +o boost sales, *ercury lectric gives scratc$0and0"in coupons to all
buyers and provides a t$ree0day trip to :a"aii for t$e "inner. -$ic$ element of t$e promotion
mi' $as *ercury lectric used in t$is scenario/
A) public relations

B) cro"dsourcing
C) advertising
D) sales promotion
) personal selling
Ans"er# D
Difficulty# *oderate
C$apter %&# 1
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies
AACSB# Analytic t$in!ing

8) 5n a promotion mi', ________ performs t$e functions of building a good rapport "it$ entities

outside
events. t$e company, building up a good corporate image, and $andling unfavorable rumors and
A) personal selling
B) sales promotion
C) direct mar!eting
D) advertising
) public relations
Ans"er# 
Difficulty# asy
C$apter %&# 1
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

;) ColaBlue, a soft drin! manufacturer, is sued by an environmental group for not meeting
certain safety standards in its "aste disposal. ColaBlue remedies t$e problem by adding $ig$er0
grade filters and purifiers. -$ic$ of t$e follo"ing actions by ColaBlue "ould constitute a public0
relations effort to address t$e effects of t$e la"suit and t$e conseuent damage to its brand
image/
A) $aving "ell0trained personnel at retail outlets to e'plain t$e different ranges of products t$e
company provides
B) tying up "it$ local restaurants to promote e'clusive sales of ColaBlue soft drin!s
C) lo"ering prices of ColaBlues products in t$e s$ort term
D) $olding a press conference to e'plain t$e remedial steps t$at ColaBlue $as ta!en

) ma!ingDne" advertisements for ColaBlue products and sponsoring s$o"s on television


Ans"er#
Difficulty# *oderate
C$apter %&# 1
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies
AACSB# Analytic t$in!ing

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<) 5n a promotion mi', ________ occurs "$en a firms sales force ma!es individual presentations
to consumers for t$e purpose of promoting sales and building customer relations$ips.
A) advertising
B) public relations
C) cro"dsourcing

D) merc$andising
) personal selling
Ans"er# 
Difficulty# asy
C$apter %&# 1
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

=) +ilt ntertainment, a gaming design firm, $as developed a ne" game called -orld Belo". 5n
order to get "ider distribution, +ilt participates in t$e 2aming ntertainment 'po, "$ic$ is
attended by bot$ sellers and consumers. +ilt sends a team of representatives for game
presentation and negotiation and a team of professional gamers to s$o"case -orld Belo" at t$e

'po. +$e company


promotion also+ilt
mi' tool $as sends a team
used in t$istoscenario/
sell its ot$er games to consumers at t$e 'po. -$ic$
A) cro"dsourcing
B) public relations
C) advertising
D) personal selling
) cro"dcasting
Ans"er# D
Difficulty# *oderate
C$apter %&# 1
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

AACSB# Analytic t$in!ing


>) Da3ed is a bar "$ic$ mostly plays trance music and $as a dedicated day every "ee! for local
bands to perform. +o build strong customer relations, Da3ed sends te't messages to customers,
telling t$em about $appy $ours, bands playing t$at "ee!, dedicated genre nig$ts, and ot$er
activities. -$ic$ of t$e follo"ing promotion mi' tools does Da3ed employ to reac$ target
customers in t$is scenario/
A) public relations
B) personal selling
C) direct mar!eting
D) cro"dcasting

) retailing
Ans"er# C
Difficulty# *oderate
C$apter %&# 1
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies
AACSB# Analytic t$in!ing

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17) 5n a promotion mi', ________ involves personally connecting "it$ carefully targeted
individual consumers to bot$ obtain an immediate response and cultivate lasting customer
relations$ips.
A) direct mar!eting
B) advertising

C)
D) public relations
predictive analytics
) indirect procurement
Ans"er# A
Difficulty# asy
C$apter %&# 1
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

11) -$ic$ of t$e follo"ing is true of consumers in t$e ne" mar!eting communications model/
A) +$ey are more reliant on traditional met$ods of mar!eting for product information.
B) +$ey are less informed t$an before about companies and product mar!eting tec$niues.

C)
D) +$ey
+$ey are
are more reliant ont$an
less po"erful mass0media
before in mar!eting met$ods
affecting t$e "ay a for product
company information.
mar!ets its products.
) +$ey are better euipped to find product and brand information on t$eir o"n.
Ans"er# 
Difficulty# *oderate
C$apter %&# (
Course %&# 5dentify and discuss t$e factors influencing consumer buying be$avior

1() -$ic$ of t$e follo"ing is an effect of t$e advancement of tec$nology on mar!eting/


A) ?ragmented mar!ets $ave assimilated into a fe" mass mar!ets.
B) *ar!eters go t$roug$ more intermediaries to connect "it$ consumers.

C)
D) Consumers rely increasingly
*ar!eters $ave less on mar!eter0supplied
moved to"ardinformation t$an in
mass0mar!eting t$e past.
tec$niues.
) *ar!eters tend to supply less information to consumers t$an in t$e past.
Ans"er# C
Difficulty# *oderate
C$apter %&# (
Course %&# Discuss t$e fundamental concepts of mar!eting
AACSB# 5nformation tec$nology

14) -$ic$ of t$e follo"ing is an e'ample of narro"casting using advertisements/


A) running an ad for a ne" line of cars on cable +@

B)
C) s$o"ing adspromotional
$anding out for diapers toleaflets
"ould0be
for amot$ers in $ospitals
ne" restaurant to passers0by
D) s$o"ing video game ads at a college football game
) uploading movie ads on -eb sites li!e ou+ube
Ans"er# B
Difficulty# Difficult
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies
AACSB# Analytic t$in!ing

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19) -$ic$ tec$niue is used by firms to deliver a unified and consistent image about t$eir
organi3ations and brands to consumers/
A) logistics information management
B) inventory control segmentation
C) nic$e mar!et penetration

D) integrated
) global mar!eting
mar!eting communications
management
Ans"er# D
Difficulty# asy
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

18) -$ic$ of t$e follo"ing is true of mar!eting strategies t$at are being developed in t$e ne"
mar!eting communications model/
A) +$ey are more targeted, social, and engaging.
B) +$ey target muc$ larger customer segments.

C)
D) +$ey
+$ey rely morelittle
use very on mass0media mar!eting tec$niues.
alternative media.
) +$ey include a greater number of print media ads.
Ans"er# A
Difficulty# *oderate
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

1;) -$ic$ of t$e follo"ing is true of advertising in t$e ne" mar!eting communications model/
A) Advertisers are increasingly s$ifting to"ard digital media.
B) Advertisers are spending more on broadcast advertising.

C)
D) Advertisers
Advertisers are
are finding traditional
using less targeted media
media less e'pensive.
to reac$ customers.
) Advertisers $ave replaced print catalogues "it$ digital versions.
Ans"er# A
Difficulty# *oderate
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

1<) -$ic$ of t$e follo"ing is a function of an integrated mar!eting communications system/


A) designing products using environmentally friendly tec$niues
B) allo"ing suppliers or vendors to manage t$e inventory of products

C)
D) controlling
delivering aproduction
consistent levels
messageby on
feedbac! received
t$e product frombrand
to eac$ customers
contact
) s$aring company forecasting details "it$ s$are$olders
Ans"er# D
Difficulty# *oderate
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

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1=) -$ic$ of t$e follo"ing promotion tools "ould best reac$ a geograp$ically dispersed mass
audience in a s$ort period of time/
A) direct mailing
B) telep$one mar!eting
C) door0to0door selling

D) television advertising
) printed0catalog mar!eting
Ans"er# D
Difficulty# asy
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

1>) -$ic$ of t$e follo"ing is a s$ortcoming of advertising/


A) 5t does not allo" dramati3ation of t$e brand or company.
B) 5t only provides one0"ay communication "it$ customers.
C) 5t is too customi3ed and only attracts small, nic$e mar!ets.

D) 5t is
) 5t reac$es targeted
t$e most costlycustomers
promotiontoo slo"ly
tool in most cases.
for companies.
Ans"er# B
Difficulty# *oderate
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

(7) -$ic$ of t$e follo"ing types of promotion tools reuires t$e most interaction "it$ a
customer/
A) digital advertising
B) personal selling

C)
D) sales
publicpromotion
relations
) television advertising
Ans"er# B
Difficulty# asy
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

(1) -$ic$ of t$e follo"ing promotion tools "ill most li!ely ma!e a consumer feel t$e need to
listen and immediately respond to a seller/
A) digital advertising

B)
C) personal selling
sales promotion
D) public relations
) television advertising
Ans"er# B
Difficulty# asy
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

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(() -$ic$ of t$e follo"ing is true of personal selling/


A) 5t is t$e most effective promotional tool for geograp$ically dispersed buyers.
B) 5t allo"s firms to dramati3e product offers t$roug$ arts and visuals.
C) 5t is t$e most e'pensive promotional tool for companies to utili3e.
D) 5t is an ineffective met$od for building long0term customer relations$ips.

) 5t presents
Ans"er# C a firms message as ne"s rat$er t$an as a sales0directed communication.
Difficulty# *oderate
C$apter %&# (
Course %&# Describe t$e steps of t$e personal selling process and discuss t$e process of
managing a sales force

(4) A company t$at offers an early bird discount to t$e first fifty purc$asers of a ne" product is
using t$e promotional tool of ________.
A) direct mar!eting
B) public relations

C)
D) advertising
personal selling
) sales promotion
Ans"er# 
Difficulty# asy
C$apter %&# (
Course %&# Discuss t$e selection of appropriate sales promotion tools

(9) -$ic$ of t$e follo"ing is most li!ely a difference bet"een advertising and sales promotions/
A) Advertising is a sales0directed form of communication, "$ile sales promotions are endorsed
as company ne"s.

B)
t$eAdvertising is an invitation to buy t$e product, "$ile a sales promotion is an incentive to buy
product immediately.
C) Advertising can be used to dramati3e product offers, but sales promotion cannot be used for
t$is purpose.
D) Advertising can trigger uic! sales, "$ile sales promotions cannot.
) Advertising is not as effective in building long0term brand preferences as sales promotions
are.
Ans"er# B
Difficulty# *oderate
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

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(8) A company "$ic$ uses a press release to e'plain t$e resignation of a former C& is using
________ to maintain its brand image.
A) personal selling
B) sales promotion
C) public relations

D) direct mar!eting
) advertising
Ans"er# C
Difficulty# asy
C$apter %&# (
Course %&# Discuss t$e selection of effective public relations tools

(;) -$ic$ of t$e follo"ing is true of public relations/


A) 5t provides uic! incentives to ma!e product purc$ases.
B) 5t is not a sales0directed form of communication.
C) 5t involves training a dedicated sales force to meet customers.

D) 5t is
) 5t cannot be used
t$e most to dramati3e
"idely a product
used promotional or company.
tool.
Ans"er# B
Difficulty# *oderate
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

(<) -$ic$ of t$e follo"ing is an e'ample of a combination of sales promotions and direct
mar!eting/
A) a company giving discounts on t$eir product prices in order to gain a brand image
B) a company releasing a nation"ide television ad about every buyer $aving a c$ance to "in a
lottery pri3e
C) a company $olding a press conference to tal! about t$eir ne" product
D) a companys sales representatives meeting customers directly to present customi3ed offerings
) a company sending an e0mail to a customer about a discount on a product during a $oliday
season
Ans"er# 
Difficulty# Difficult
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies
AACSB# Analytic t$in!ing

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(=) -$ic$ of t$e follo"ing is true of direct mar!eting/


A) 5ts mar!eting message is fi'ed and does not c$ange according to t$e customers reuirements.
B) 5t is suited for $ig$ly targeted mar!eting efforts and for building one0to0one customer
relations$ips.
C) 5t is presented as company ne"s rat$er t$an as a sales0directed communication.

D) 5t is
) 5t does not involve promotion
an impersonal any interaction bet"een
tool t$at t$et"o0"ay
$inders companycommunication.
and its customers.
Ans"er# B
Difficulty# *oderate
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

(>) A company t$at uses telep$one mar!eting to sell its products to customers is most li!ely
using t$e promotion tool of ________.
A) advertising
B) public relations

C)
D) direct mar!eting
retailing
) merc$andising
Ans"er# C
Difficulty# asy
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

47) -$ic$ of t$e follo"ing promotion mi' approac$es involves a producer promoting a product
to different c$annel members "$o in turn promote t$e product to customers/
A) direct mar!eting
B) a pus$ strategy
C) t$e publis$0subscribe met$od
D) a pull strategy
) vertical integration
Ans"er# B
Difficulty# asy
C$apter %&# (
Course %&# 'plain t$e various product and branding decisions mar!eters ma!e

41) A ________ strategy involves a company spending a lot of money on advertising and
promotion to induce consumers into buying t$e product by creating a demand vacuum.
A) pus$
B) direct mar!eting
C) vertical integration
D) pull
) publis$0subscribe
Ans"er# D
Difficulty# asy
C$apter %&# (
Course %&# 'plain t$e various product and branding decisions mar!eters ma!e

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4() Pearl Sands is a resort in t$e to"n of -illington. 5t attracts t$e ma'imum number of
customers in t$e summer. 5n t$e spring, Pearl Sands sponsors s$o"s on +@ and puts up
billboards in -illington and t$e surrounding to"ns. +$e billboards advertise Pearl Sands as an
ideal $oliday spot, "$et$er for a "ee!end geta"ay in t$e summer $eat or for a family vacation.

+$is is an e'ample of a ________ strategy.


A) pus$
B) vertical integration
C) pull
D) publis$0subscribe
) direct mar!eting
Ans"er# C
Difficulty# *oderate
C$apter %&# (
Course %&# 'plain t$e various product and branding decisions mar!eters ma!e
AACSB# Analytic t$in!ing

44) -$ic$ of t$e follo"ing is t$e first step in developing an advertising program/
A) setting t$e advertising budget
B) developing an advertising strategy
C) developing a brand message
D) setting advertising obectives
) evaluating advertising campaigns
Ans"er# D
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

49) ________ advertising is used $eavily "$en introducing a ne" product category.
A) eminder
B) Comparative
C) Personal
D) 5nformative
) Persuasive
Ans"er# D
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

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48) +$e obective of ________ advertising is to build primary demand.


A) reminder
B) comparative
C) personal
D) informative

) persuasive
Ans"er# D
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

4;) 5nglast, a c$ocolate producer, is faced "it$ a class action suit "$en customers find pieces of
plastic in bo'es of cocoa po"der. 5nglast settles t$e case and t$en releases an advertising
campaign to s$o" t$e ne" and improved safety seals on all containers of cocoa po"der. -$ic$
!ind of advertisement $as 5nglast most li!ely used/
A) classified

B)
C) informative
comparative
D) personali3ed
) reminder
Ans"er# B
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign
AACSB# Analytic t$in!ing

4<) +$e primary obective of ________ advertising is to build selective demand.

A) reminder
B) classified
C) personal
D) informative
) persuasive
Ans"er# 
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

4=) ________ advertising "ould most li!ely result in advertising "ars bet"een competitors.
A) eminder
B) Comparative
C) Personal
D) 5nformative
) Classified
Ans"er# B
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

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4>) ________ advertising primarily maintains brand relations$ips and is important for mature
products.
A) Comparative
B) Persuasive

C)
D) Personali3ed
eminder
) Classified
Ans"er# D
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

97) ep$yr 5nc., an electronics manufacturer, "ants to enter t$e commercial trac!ing device
mar!et "it$ its latest product, ?ind5t. nli!e ot$er trac!ing devices, ?ind5t is very small and
relatively c$eap, but it can be used only "it$in small areas as it $as a lo" detection0range. -$ic$

type of advertising
A) informative "ould be best for ?ind5t/
advertising
B) reminder advertising
C) classified advertising
D) comparative advertising
) personali3ed advertising
Ans"er# A
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign
AACSB# Analytic t$in!ing

91) -$ic$ statement is most li!ely true about t$e affordable met$od of setting an advertising
budget/
A) Spending on advertising is calculated based on t$e financial obectives a company "is$es to
accomplis$.
B) Spending on advertising is calculated after operating e'penses, and capital outlays are
deducted from total revenues.
C) Spending on advertising is based on a predetermined percentage of current or forecasted sales
for t$e year.
D) Spending on advertising is calculated as a percentage of t$e unit sales price.
) Spending on advertising is based on a competitors advertising outlays.

Ans"er#
Difficulty#B *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

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9() -$ic$ statement is most li!ely true about t$e affordable met$od of setting an advertising
budget/
A) 5t typically overloo!s $o" promotion affects sales.
B) 5t al"ays results in overspending on advertising.
C) 5t is especially ideal for long0range mar!et planning.

D) 5t is
) 5t leads tooften
most an overly
used fi'ed annual
by firms "it$promotion budget. budgets.
large advertising
Ans"er# A
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

94) -$ic$ met$od of setting advertising budgets best $elps management t$in! about t$e
relations$ip bet"een promotion spending, selling price, and profit per unit/
A) adaptive0control met$od
B) obective0and0tas! met$od

C)
D) competitive0parity
affordable met$od met$od
) percentage0of0sales met$od
Ans"er# 
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

99) 5n t$e competitive0parity met$od of setting an advertising budget, t$e budget is set based on
________.
A) a percentage of future sales

B) t$e amount
C) t$e total revenues t$at
spent by a company
similar ma!esin t$e same industry
companies
D) obectives set by t$e company and t$e cost reuired to accomplis$ t$em
) a percentage of current sales
Ans"er# C
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

98) According to t$e te't, t$e most logical budget0setting met$od in advertising is t$e ________
met$od.

A) adaptive0control
B) obective0and0tas!
C) competitive0parity
D) affordable
) percentage0of0sales
Ans"er# B
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

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9;) -$ic$ of t$e follo"ing best describes t$e term *adison and @ine/
A) utili3ing t$e slice of life style of advertising
B) emp$asi3ing reac$ over impact in advertising
C) using social media for advertising a brand
D) merging advertising "it$ entertainment

) voicingDsocial concerns t$roug$ advertising


Ans"er#
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

9<) +$e aim of ________ is to ma!e ads so engaging or useful t$at people "ant to "atc$ t$em.
A) branded entertainment
B) advertainment
C) social advertising
D) subliminal advertising

) infotainment
Ans"er# B advertising
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

9=) -$ic$ of t$e follo"ing is an e'ample of branded entertainment/


A) a company placing its product in a movie scene
B) a company using a celebrity to endorse a product
C) a company airing its advertisements in movie t$eaters
D) a company using an acclaimed movie director to film an advertisement

) a company
Ans"er# A using a famous song in its advertisement
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

9>) %a3er +elecom, a cell p$one manufacturer, $as signed a contract "it$ a production $ouse to
fund a ne" movie. +$e conditions of t$e agreement state t$at t$e movie "ill feature %a3er
+elecom p$ones onscreen. -$at !ind of advertising tec$niue $as %a3er +elecom most li!ely
adopted in t$is e'ample/
A) geofencing

B)
C) advertainment
product placement
D) vertical integration
) subliminal advertising
Ans"er# C
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign
AACSB# Analytic t$in!ing

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87) +$e ________ style of advertising s$o"s ordinary people clearly using a product in a normal
setting.
A) personality symbol
B) slice of life
C) mood or image

D) testimonial
) tec$nical evidence
e'pertise
Ans"er# B
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

81) +rainstar, a sports"ear euipment manufacturer, releases a ne" line of energy drin!s called
@itaing. +$e television ad for t$e energy drin! s$o"s people ogging, "or!ing out in a gym,
and doing aerobics. +$e actors t$en ta!e a brea! to drin! @itaing, "$ic$ visibly re0energi3es
t$em and leads t$em to continue e'ercising. -$ic$ advertising style is most li!ely used in t$e

@itaing ad/ evidence


A) scientific
B) tec$nical e'pertise
C) personality symbol
D) testimonial evidence
) lifestyle
Ans"er# 
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign
AACSB# Analytic t$in!ing

8() -$ic$ of t$e follo"ing best describes t$e personality symbol style of advertising/
A) using ordinary people to s$o" $o" a product affects t$em in t$eir daily lives
B) using scientific evidence to support claims about a product in an advertisement
C) using an animated c$aracter or mascot to represent a product in an advertisement
D) using a tec$nical e'pert to recommend a product in an advertisement
) using a celebrity to endorse a product in an advertisement
Ans"er# C
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

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84) An ad t$at s$o"s real0life e'amples of people "$ose lives $ave c$anged due to a product is
an e'ample of t$e ________ style of advertising.
A) scientific evidence
B) testimonial evidence
C) tec$nical e'pertise

D) mood or image
) fantasy
Ans"er# B
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

89) -$ic$ of t$e follo"ing is a disadvantage of standardi3ation of advertising messages/


A) 5t gives rise to $ig$er advertising costs.
B) 5t complicates t$e advertising process.
C) 5t is less responsive to local mar!et needs.

D) 5t gives
) 5t tends rise
to suffer from poormessages.
to inconsistent coordination.
Ans"er# C
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

88) -$ic$ of t$e follo"ing media is most suitable for advertising a product t$at needs to be
demonstrated/
A) television
B) radio
C) ne"spaper
D) maga3ine
) billboard
Ans"er# A
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

8;) -$at is t$e primary disadvantage of outdoor advertising/


A) 5t provides lo" fle'ibility.
B) 5t permits lo" repeat e'posure.
C) 5t provides poor positional selectivity.
D) 5t provides little audience selectivity.
) 5t $as $ig$ message competition.
Ans"er# D
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

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8<) -$at is t$e primary advantage of using television as an advertising medium/


A) 5t involves a lo" cost per e'posure.
B) 5t supports a $ig$ degree of audience selectivity.
C) 5t involves lo" absolute costs.
D) 5t contains lo" ad clutter.

) 5t permits
Ans"er# A prominent e'posure.
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

8=) -$ic$ of t$e follo"ing is a disadvantage of using online, mobile, and social media for
advertising/
A) +$e costs are $ig$.
B) Audience selectivity is lo".
C) +$e audience controls ad e'posure.

D) +$e interactive
) +$ere capabilities
is little scope are lo".
for personali3ation.
Ans"er# C
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

8>) -$ic$ of t$e follo"ing is a disadvantage of using a maga3ine as an advertising medium/


A) 5t $as a poor pass0along readers$ip.
B) 5t involves $ig$ costs.
C) 5t $as lo" geograp$ic selectivity.
D) 5t $as lo" credibility and image.
) 5t consists of lo"0uality reproduction.
Ans"er# B
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

;7) -$ic$ of t$e follo"ing is an e'ample of a firm utili3ing public relations as a promotion tool/
A) a firm using its personal sales force at an e'po to sell its products
B) a firm sending its catalog directly to customers t$roug$ e0mail
C) a firm informing customers of special discounts on its -eb site
D) a firm providing interesting information about a product to t$e ne"s media
) a firm using a celebrity to endorse a product in a television commercial
Ans"er# D
Difficulty# *oderate
C$apter %&# 9
Course %&# Discuss t$e selection of effective public relations tools
AACSB# Analytic t$in!ing

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;1) A firm t$at sends e0mail updates to customers about ne" products is engaging in personal
selling.
Ans"er# ?A%S
Difficulty# *oderate
C$apter %&# 1

Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies
;() +$e ne" mar!eting communications model consists of promotional mi'es t$at are designed
to ma!e traditional mass0media obsolete.
Ans"er# ?A%S
Difficulty# asy
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

;4) 5ntegrated mar!eting communications involves carefully coordinating a companys many


communications c$annels to deliver a clear, consistent, and compelling message about t$e

organi3ation
Ans"er# + and its products.
Difficulty# asy
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

;9) Advertising can reac$ masses of geograp$ically dispersed buyers at a lo" cost per e'posure.
Ans"er# +
Difficulty# asy
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

;8) Sales promotion is t$e best promotion tool to build personal and long0lasting relations$ips
"it$ customers.
Ans"er# ?A%S
Difficulty# asy
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

;;) Public relations is t$e form of product advertising t$at is most "idely utili3ed by .S. firms.
Ans"er# ?A%S
Difficulty# asy
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

;<) 5n a pus$ promotion strategy, t$e producer promotes a product to c$annel members "$o in
turn promote it to final consumers.
Ans"er# +
Difficulty# asy
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

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;=) A consumer demanding a product after "atc$ing its ad on television $as responded to pull
advertising.
Ans"er# +
Difficulty# *oderate

C$apter %&# Describe


Course %&# ( t$e decisions involved in developing effective promotion mi' strategies

;>) +$e pus$ promotion strategy tends to be used by business0to0business mar!eters.


Ans"er# +
Difficulty# *oderate
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

<7) An advertisement about a discount t$at can be availed if a product is ordered "it$in (9 $ours
is an e'ample of reminder advertising.

Ans"er#
Difficulty#?A%S
*oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

<1) Comparative advertising is a type of persuasive advertising.


Ans"er# +
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

<() eminder advertising is ideal for maintaining customer relations$ips "it$ mature products.
Ans"er# +
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

<4) +$e affordable met$od of setting an advertising budget depends on t$e total revenues of a
company.
Ans"er# +
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

<9) +$e principle be$ind t$e percentage0of0sales met$od of budget setting is vie"ing sales as t$e
result of advertising.
Ans"er# ?A%S
Difficulty# *oderate
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

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<8) +$e competitive0parity met$od of setting promotion budgets prevents promotion "ars
bet"een companies.
Ans"er# ?A%S
Difficulty# *oderate
C$apter %&# 4

Course %&# Describe t$e steps involved in developing an advertising campaign


<;) Product placement is a form of brand integration.
Ans"er# +
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

<<) 5n t$e conte't of e'ecution styles in advertising, using an animated c$aracter t$at represents a
product in an advertisement is an e'ample of an endorsement.
Ans"er# ?A%S

Difficulty#
C$apter %&#asy
4
Course %&# Describe t$e steps involved in developing an advertising campaign

<=) 5n advertising, reac$ is a measure of t$e percentage of people in t$e target mar!et "$o are
e'posed to an ad campaign during a given period of time.
Ans"er# +
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

<>) 5n advertising media selection, freuency describes t$e ualitative value of message
e'posure t$roug$ a given medium.
Ans"er# ?A%S
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

=7) 5n any medium, t$e relevance of advertising content to an audience is less important t$an
$o" many people t$e advertisement reac$es.
Ans"er# ?A%S
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

=1) Ee"spapers, as a medium of advertising, provide poor local mar!et coverage.


Ans"er# ?A%S
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

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=() Pulsing, as an ad pattern, means sc$eduling ads evenly over a given time period.
Ans"er# ?A%S
Difficulty# asy
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign

=4) Public relations can $ave a strong impact on public a"areness at a muc$ lo"er cost t$an
advertising can.
Ans"er# +
Difficulty# asy
C$apter %&# 9
Course %&# Discuss t$e selection of effective public relations tools

=9) sually, "$en using public relations, a company pays for t$e space or time in t$e media.
Ans"er# ?A%S
Difficulty# asy

C$apter %&# Discuss


Course %&# 9 t$e selection of effective public relations tools

=8) %obbying refers to a P department maintaining relations$ips "it$ s$are$olders and ot$ers
in t$e financial community.
Ans"er# ?A%S
Difficulty# asy
C$apter %&# 9
Course %&# Discuss t$e selection of effective public relations tools

=;) -$at is a promotion mi'/ Define t$e maor tools used in a promotion mi'.
Ans"er# +$e specific blend of promotion tools t$at a company uses to persuasively
communicate customer value and build customer relations$ips is !no"n as promotion mi'. A
companys total promotion mi'Falso called its mar!eting communications mi'Fconsists of t$e
follo"ing promotion tools#
Advertising# Any paid form of nonpersonal presentation and promotion of ideas, goods, or
services by an identified sponsor.
Sales promotion# S$ort0term incentives to encourage t$e purc$ase or sale of a product or service.
Personal selling# Personal presentation by t$e firms sales force for t$e purpose of ma!ing sales
and building customer relations$ips.
Public relations# Building good relations "it$ t$e companys various publics by obtaining
favorable publicity, building up a good corporate image, and $andling or $eading off unfavorable
rumors, stories, and events.
Direct, digital, and social media mar!eting# ngaging in direct connections "it$ carefully
targeted individual consumers to bot$ obtain an immediate response and cultivate lasting
customer relations$ips.
Difficulty# *oderate
C$apter %&# 1
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

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=<) :o" $as t$e ne" communications model c$anged t$e face of todays mar!eting
communications/
Ans"er# GStudents ans"ers may vary. +$e ans"er given belo" is indicative.)
+$e ne" communications model is c$anging t$e face of todays mar!eting communications in
several "ays. ?irst, consumers are c$anging. 5n t$is digital age, "ireless consumers are better

informed andt$ey
information, more communications
can empo"ered.
use t$e 5nternet, at$er
social media, t$an relying
and ot$er on mar!eter0supplied
tec$nologies to find information
on t$eir o"n. Second, mar!eting strategies are c$anging. As mass mar!ets $ave fragmented,
mar!eters are s$ifting a"ay from mass mar!eting. *ore and more, t$ey are developing focused
mar!eting programs designed to build closer relations$ips "it$ customers in more narro"ly
defined micromar!ets. ?inally, s"eeping advances in digital tec$nology are causing remar!able
c$anges in t$e "ays companies and customers communicate "it$ eac$ ot$er. Alt$oug$ net"or!
television, maga3ines, ne"spapers, and ot$er traditional mass media still remain very important,
t$eir dominance is declining. 5n t$eir place, advertisers are no" adding a broad selection of
more0speciali3ed and $ig$ly targeted media to reac$ smaller customer segments "it$ more0
personali3ed, interactive messages. 5n t$e ne" mar!eting communications "orld, rat$er t$an

using
formatsoldletapproac$es
mar!eters t$at
reac$interrupt
smallercustomers and force0feed
groups of consumers t$eminteractive,
in more mass messages, ne" "ays.
engaging media
*ass0media costs are rising, audiences are s$rin!ing, ad clutter is increasing, and vie"ers are
gaining control of message e'posure t$roug$ tec$nologies suc$ as video streaming or D@s t$at
let t$em s!ip disruptive television commercials. As a result, mar!eters are s$ifting ever0larger
portions of t$eir mar!eting budgets a"ay from old media mainstays and moving t$em to digital
and ot$er ne"0age media.
Difficulty# Difficult
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies
AACSB# 5nformation tec$nology

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==) -$y do todays firms need integrated mar!eting communications systems/ :o" do firms
benefit from suc$ systems/
Ans"er# GStudents ans"ers may vary. +$e ans"er given belo" is indicative.)
Consumers today are bombarded by commercial messages from a broad range of sources. But
consumers dont distinguis$ bet"een message sources t$e "ay mar!eters do. 5n t$e consumers

mind,
messagemessages from
about t$e different
company. media andmessages
Conflicting promotional
fromapproac$es all become
t$ese different sourcespart
canofresult
a single
in
confused company images, brand positions, and customer relations$ips. An integrated mar!eting
communications system $elps to integrate its many communications c$annels to deliver a clear,
consistent, and compelling message about t$e organi3ation and its brands. 5ntegrated mar!eting
communications calls for recogni3ing all touc$ points "$ere t$e customer may encounter t$e
company and its brands. ac$ brand contact "ill deliver a messageF"$et$er good, bad, or
indifferent. +$e companys goal s$ould be to deliver a consistent and positive message to eac$
contact. 5ntegrated mar!eting communications leads to a total mar!eting communications
strategy aimed at building strong customer relations$ips by s$o"ing $o" t$e company and its
products can $elp customers solve t$eir problems. 5ntegrated mar!eting communications ties

toget$er all *oderate


Difficulty# of t$e companys messages and images.
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies
AACSB# Analytic t$in!ing

=>) -atson 5nsurance is an insurance company t$at provides coverage for personal property and
bodily inury. +$e company offers customi3ed policy options for individual customers. :ig$
levels of interaction "it$ customers are needed so t$at t$e company can provide t$e best
customi3ed service possible. -$at !ind of promotional tool "ill best $elp -atson 5nsurance to
sell its policies to its target customers/

Ans"er# GStudents
Since -atson ans"ers
5nsurance may$ig$
reuires vary.levels
+$e ans"er given belo"
of interactions "it$ is
itsindicative.)
customers, so as to customi3e
its policies, t$e promotional tool of personal selling "ill best $elp -atson 5nsurance. Personal
selling is t$e most effective tool at certain stages of t$e buying process, particularly in building
up buyers preferences, convictions, and actions. 5t involves personal interaction bet"een t"o or
more people, so eac$ person can observe t$e ot$ers needs and c$aracteristics and ma!e uic!
adustments. Personal selling also allo"s all !inds of customer relations$ips to spring up, ranging
from matter0of0fact selling relations$ips to personal friends$ips. An effective salesperson !eeps
t$e customers interests in mind to build a long0term relations$ip.
Difficulty# Difficult
C$apter %&# (

Course
AACSB# %&# Describe t$e
Application decisions involved in developing effective promotion mi' strategies
of !no"ledge

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>7) 'plain t$e use of sales promotions as a promotion mi' tool.


Ans"er# Sales promotion includes a "ide assortment of toolsFcoupons, contests, discounts,
premiums, and ot$ersFall of "$ic$ $ave many uniue ualities. +$ey attract consumer attention,
offer strong incentives to purc$ase, and can be used to dramati3e product offers and boost
sagging sales. Sales promotions invite and re"ard uic! response. -$ere advertising says, Buy

our product,
$o"ever, and sales
often promotion says, Buy
are not as effective as itadvertising
no". Sales
or promotion effectsinare
personal selling often s$ort
building lived,
long0run
brand preference and customer relations$ips.
Difficulty# *oderate
C$apter %&# (
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies

>1) Contrast pull and pus$ promotion mi' strategies "it$ suitable e'amples.
Ans"er# GStudents ans"ers may vary. +$e ans"er given belo" is indicative.)
*ar!eters can c$oose from t"o basic promotion mi' strategies# pus$ promotion or pull
promotion. A pus$ strategy involves pus$ing t$e product t$roug$ mar!eting c$annels to final

consumers. +$e producer


promotion) to"ard directs
c$annel its mar!eting
members to induceactivities Gprimarily
t$em to carry personal
t$e product andselling
promoteandittrade
to final
consumers. ?or e'ample, Ho$n Deere does very little promoting of its la"n mo"ers, garden
tractors, and ot$er residential consumer products to final consumers. 5nstead, Ho$n Deeres sales
force "or!s "it$ %o"es, :ome Depot, independent dealers, and ot$er c$annel members, "$o in
turn pus$ Ho$n Deere products to final consumers. sing a pull strategy, t$e producer directs its
mar!eting activities Gprimarily advertising and consumer promotion, and direct and digital
media) to"ard final consumers to induce t$em to buy t$e product. ?or e'ample, nilever
promotes its A'e grooming products directly to its young male target mar!et using +@ and print
ads, a brand -eb site, its ou+ube c$annel and ?aceboo! page, and ot$er c$annels. 5f t$e pull
strategy is effective, consumers "ill t$en demand t$e brand from retailers.

Difficulty#
C$apter %&#Difficult
(
Course %&# Describe t$e decisions involved in developing effective promotion mi' strategies
AACSB# Analytic t$in!ing

>() Ironos 5nc., a car manufacturer, ma!es a car called :over t$at runs on t$e force generated by
super magnets. Ironos is t$e first company to use super0magnet tec$nology in automobile
manufacturing, aiming to reduce dependency on non0rene"able fuels. 5f Ironos plans to release
television advertisements about :over, "$at !ind of advertising obective s$ould it pursue "$en
introducing t$e ne" product into t$e mar!et/
Ans"er# GStudents ans"ers may vary. +$e ans"er given belo" is indicative.)

:over uses aa ne"


5ntroducing ne" tec$nology
product andinpotentially
its production, andaits
creating advertisement
ne" s$ould
mar!et reuires an reflect t$at.
advertising
campaign t$at stresses on its uniueness and usability. +$e best advertising model to follo" for
:over "ould be informative advertising. 5nformative advertising is used $eavily "$en
introducing a ne" product category. 5n t$is case, t$e obective is to build primary demand.
Difficulty# Difficult
C$apter %&# 4
Course %&# Describe t$e steps involved in developing an advertising campaign
AACSB# Application of !no"ledge

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>4) -$at met$ods of setting advertising budgets are directly based on company revenues/ -$at
are t$e disadvantages of suc$ met$ods/
Ans"er# &ne of t$e met$ods of setting advertising budgets based on company revenues is called
t$e affordable met$od. +$e team sets t$e promotion budget at t$e level t$ey t$in! t$e company
can afford. Small businesses often use t$is met$od, reasoning t$at a company cannot spend more

on advertising
outlays, t$an
and t$en it $as.some
devote +$eyportion
start "it$ total
of t$e revenues,funds
remaining deduct operating e'penses
to advertising. and capital
+$is met$od of
setting budgets completely ignores t$e effects of promotion on sales. 5t tends to place promotion
last among spending priorities, even in situations in "$ic$ advertising is critical to t$e firms
success. 5t leads to an uncertain annual promotion budget, "$ic$ ma!es long0range mar!et
planning difficult. &t$er companies use t$e percentage0of0sales met$od, setting t$eir promotion
budget at a certain percentage of current or forecasted sales. &r t$ey budget a percentage of t$e
unit sales price. +$e percentage0of0sales met$od $as advantages. 5t is simple to use and $elps
management t$in! about t$e relations$ips bet"een promotion spending, selling price, and profit
per unit. Despite t$ese claimed advantages, $o"ever, t$e percentage0of0sales met$od $as little to
ustify it. 5t "rongly vie"s sales as t$e cause of promotion rat$er t$an as t$e result.

Difficulty#
C$apter %&#Difficult
4
Course %&# Describe t$e steps involved in developing an advertising campaign
AACSB# Analytic t$in!ing

>9) -it$ a suitable e'ample, s$o" $o" advancements in tec$nology $elp consumers avoid
advertisement cluttering. -$at implications does t$is trend $old for advertisers/
Ans"er# GStudents ans"ers may vary. +$e ans"er given belo" is indicative.)
ntil recently, television vie"ers "ere pretty muc$ a captive audience for advertisers. But
todays digital "i3ardry $as given consumers a ric$ ne" set of information and entertainment
c$oices. -it$ t$e gro"t$ in cable and satellite +@, t$e 5nternet, video streaming, tablets, and

smartp$ones,
consumers "it$ todays vie"ers
an arsenal $ave many
of "eapons formore options.
c$oosing "$atDigital tec$nology
t$ey "atc$ $as"atc$.
or dont also armed
5ncreasingly, t$an!s to t$e gro"t$ of D@ systems, consumers are c$oosing not to "atc$ ads.
?orty0si' percent of American +@ $ouse$olds no" $ave D@s, triple t$e number reac$ed only
five years earlier. 5t is estimated t$at D@ o"ners vie" only about 99 percent of t$e
commercials during D@ playbac!. At t$e same time, video do"nloads and streaming are
e'ploding, letting vie"ers "atc$ entertainment on t$eir o"n timeF"it$ or "it$out commercials.
Due to t$ese developments, advertisers can no longer force0feed t$e same old coo!ie0cutter
message content to captive consumers t$roug$ traditional media. Hust to gain and $old attention,
todays content must be better planned, more imaginative, more entertaining, and more
emotionally engaging. Simply interrupting or disrupting consumers no longer "or!s. nless ads

provide
by t$em.information t$at is interesting, useful, or entertaining, many consumers "ill simply s!ip
Difficulty# Difficult
C$apter %&# 4
Course %&# 5dentify and discuss t$e factors influencing consumer buying be$avior
AACSB# Analytic t$in!ing

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>8) uran 5nc., a designer and seller of lifestyle products and ine'pensive furniture, $as decided
to engage in brand integration to advertise its products. +$e decision coincides "it$ urans plan
to release a ne" line of coffee tables t$at fold easily and do not ta!e up muc$ space. -$at are t$e
different "ays in "$ic$ uran can ac$ieve brand integration/
Ans"er# uran can ac$ieve brand integration t$roug$ product placement. Product placement

involves
in a s$o",embedding brands as
or being scripted props
into "it$in+$e
t$e s$o". ot$er programming
uran li!e
coffee table, for+@ s$o"s, could
e'ample, eit$er be
being used
placed
in sitcoms "$ic$ generally $ave $ome settings. +$e product could even be "or!ed into t$e
s$o"s overall storyline, ma!ing it an integral part of t$at episode. 5t can even $ave product
placement in movies, video games, comic boo!s, and even pop music. uran can ac$ieve brand
a"areness by being part of t$e entertainment rat$er t$an interrupting it.
Difficulty# Difficult
C$apter %&# 4
Course %&# 'plain t$e various product and branding decisions mar!eters ma!e
AACSB# Application of !no"ledge

>;) -$atconcept
creative are t$e for
important factors t$at a mar!eter s$ould be a"are of "$en developing a
an advertisement/
Ans"er# An advertiser must develop a compelling creative conceptFor big ideaFt$at "ill bring a
message strategy to life in a distinctive and memorable "ay. +$e creative concept "ill guide t$e
c$oice of specific appeals to be used in an advertising campaign. Advertising appeals s$ould
$ave t$ree c$aracteristics. ?irst, t$ey s$ould be meaningful, pointing out benefits t$at ma!e t$e
product more desirable or interesting to consumers. Second, appeals must be believable.
Consumers must believe t$at t$e product or service "ill deliver t$e promised benefits. :o"ever,
t$e most meaningful and believable benefits may not be t$e best ones to feature. Appeals s$ould
also be distinctive. +$ey s$ould tell $o" t$e product is better t$an competing brands.
Difficulty# *oderate

C$apter %&# Describe


Course %&# 4 t$e steps involved in developing an advertising campaign

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><) Ho$n "or!s as a unior mar!eting e'ecutive at ?rontloop Corporation. ?rontloop Corporation
manufactures guitars and ot$er stringed instruments. 5t designs a ne" guitar, t$e %one"ay,
customi3ed for t$e fol! music genre. 5t plans to attract bot$ fol! artists and fol! music lovers
"it$ its advertising campaigns and decides to e'clusively use mass0media mar!eting tec$niues
to advertise t$e %one"ay guitar. -$at arguments can Ho$n use if $e "ants to convince ?rontloop

to adopt digital
Ans"er# media
GStudents insteadmay
ans"ers of television
vary. +$eadvertising/
ans"er given belo" is indicative.)
+$e %one"ay guitars are specifically designed for fol! music lovers, "$o form a nic$e mar!et in
music. *ar!eting t$ese guitars t$roug$ mass0media outlets li!e television "ill not $elp t$e
company reac$ its target customers efficiently. +$e costs of mass media are rising, and t$eir
audiences are reducing in number. +$oug$ mass media $ave good coverage, t$ey provide lo"
audience selectivity. 5n contrast, t$e digital media, li!e t$e 5nternet, are relatively ine'pensive
and $ig$ly customer selective. +$ey are also $ig$ly interactive. +$e %one"ay guitar ads could be
placed at strategic -eb sites t$at fol! music ent$usiasts freuently visit. +$e ads can be uploaded
on sites li!e ou+ube, or ?aceboo!, "$ic$ are very apt at reac$ing target customers and nic$e
mar!ets. &n t$e ot$er $and, television advertising is $ig$ly cluttered and provides fleeting

e'posure
"$ic$ may to $ave
potential customers.
a $ig$er singlead
ad purc$ase t$e time.
5nternet also saves
:ence, time as
advertising t$ecompared
%one"aytoline
television,
of guitars
t$roug$ online advertising is t$e c$eaper, more audience selective, and customer interactive
outlet t$at t$e ?rontloop Corporation can adopt, especially "$en compared to television
advertising.
Difficulty# Difficult
C$apter %&# 4
Course %&# 'plain t$e various product and branding decisions mar!eters ma!e
AACSB# Application of !no"ledge

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>=) Brand standardi3ation $as many benefits. Counter t$is statement "it$ reference to
international advertising and provide an e'ample.
Ans"er# GStudents ans"ers may vary. +$e ans"er given belo" is indicative.)
Standardi3ation produces many benefitsFlo"er advertising costs, greater global advertising
coordination, and a more consistent "orld"ide image. 5t also $as dra"bac!sFit ignores t$e fact

t$at
+$us,country mar!ets differ
most international greatly inneed
advertisers t$eirtocultures, demograp$ics,
t$in! globally but act and economic
locally. +$ey conditions.
must develop
global advertising strategies t$at ma!e t$eir "orld"ide efforts more efficient and consistent.
+$en t$ey adapt t$eir advertising programs to ma!e t$em more responsive to consumer needs
and e'pectations "it$in local mar!ets. ?or e'ample, alt$oug$ @isa employs its more people go
"it$ @isa t$eme globally, ads in specific locales employ local language and inspiring local
imagery t$at ma!e t$e t$eme relevant to t$e local mar!ets in "$ic$ t$ey appear.
*oreover, advertising media costs and availability differ vastly from country to country.
Countries also differ in t$e e'tent to "$ic$ t$ey regulate advertising practices. *any countries
$ave e'tensive systems of la"s restricting $o" muc$ a company can spend on advertising, t$e
media used, t$e nature of advertising claims, and ot$er aspects of t$e advertising program. Suc$

restrictions often
+$us, alt$oug$ reuire advertisers
advertisers to adapt
may develop t$eir
global campaigns
strategies fromt$eir
to guide country to country.
overall advertising
efforts, specific advertising programs must usually be adapted to meet local cultures and
customs, media c$aracteristics, and regulations.
Difficulty# Difficult
C$apter %&# 4
Course %&# 'plain t$e various product and branding decisions mar!eters ma!e
AACSB# Diverse and multicultural "or! environments

>>) -$at are t$e different functions of a public relations GP) department/
Ans"er# P departments may perform any or all of t$e follo"ing functions#

Press relations
to attract or press
attention agency#product,
to a person, Creatingorand placing ne"s"ort$y information in t$e ne"s media
service.
Product publicity# Publici3ing specific products.
Public affairs# Building and maintaining national or local community relations$ips.
%obbying# Building and maintaining relations$ips "it$ legislators and government officials to
influence legislation and regulation.
5nvestor relations# *aintaining relations$ips "it$ s$are$olders and ot$ers in t$e financial
community.
Development# -or!ing "it$ donors or members of nonprofit organi3ations to gain financial or
volunteer support.
Difficulty# *oderate

C$apter %&# Discuss


Course %&# 9 t$e selection of effective public relations tools

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177) :o" does public relations $elp in creating an integrated mar!eting communications
system/
Ans"er# An integrated mar!eting communications system is reuired to deliver a consistent and
positive message of a companys brand to its customers. Public relations is used to promote
products, people, places, ideas, activities, organi3ations, and even nations. Companies use P to

build good
relations relations
can "it$ consumers,
$ave a strong investors,
impact on public t$e media,
a"areness at a and
muc$t$eir communities.
lo"er Public
cost t$an advertising
can. -$en using public relations, a company does not pay for t$e space or time in t$e media.
at$er, it pays for a staff to develop and circulate information and manage events. 5f t$e
company develops an interesting story or event, it could be pic!ed up by several different media
and $ave t$e same effect as advertising t$at "ould cost millions of dollars. *oreover, public
relations $as t$e po"er to engage customers and ma!e t$em a part of t$e brand story. :ence,
public relations "or!s $and in $and "it$ advertising "it$in an integrated mar!eting
communications program to $elp build brands and customer relations$ips.
Difficulty# *oderate
C$apter %&# 9

Course
AACSB# %&# Discuss
Analytic t$e selection of effective public relations tools
t$in!ing

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