70 test bank for advertising and integrated brand promotion 5th edition by oguinn

70 Test Bank for Advertising and Integrated Brand
Promotion 5th Edition by Oguinn

Mutiple Choice Questions
Great Outdoors, a manufacturer of camping equipment, sells several lines
of tents that are very similar to each other. The company does not want
one line of its tents to steal market share from another line of its tents. To
protect against this, it must be concerned with
1.

a.creating differences between the lines of tents, based on tangible, real
differences.

2.

b.making sure advertising for one line of tents does not appear in the same
medium as advertising for another line.

3.

c.primary demand stimulation.

4.

d.effective internal positioning.

Attempts to create brand awareness or reinforce the benefits of using a
brand is
1.

a.corporate advertising.

2.

b.selective demand stimulation.

3.

c.delayed response advertising.

4.

d.primary demand stimulation.

A critic of advertising tells you that the costs of advertising are built into
the costs for products, which are then passed on to the consumer. You
have decided to argue the point with him. Which argument should you not
present?
1.

a.This must be balanced against the time it would take a person if he or she had to
search for information about products without advertising.

2.

b.Economies of scale spread fixed costs over a large number of production units


3.

c.The increased demand for products that results from advertising can lower the

cost of the production of the products.

4.

d.This is a misconception. Often, the costs of advertising are not built into the
costs for products.

Hallmark runs a commercial saying that people who receive greeting
cards appreciate the cards more when they see the Hallmark name on the
back. This is an example of
1.

a.primary demand stimulation.

2.

b.direct response advertising.

3.

c.attempting to add symbolic value to a product.

4.

d.integrated marketing communications.

The sharing of advertising expenses between national advertisers and
local merchants is called ____ advertising.
1.

a.cooperative

2.

b.local

3.

c.augmented

4.

d.split support

Acme products markets a new line of eco-friendly household cleaning
products in Southwest Florida. To raise awareness and encourage trial,
they buy advertising time on cable TV, place full page ads in women’s
magazines, and provide “cents off” coupons via local newspapers. Each
new communication undergoes a review process to ensure that it displays
the new “green” brand logo. Acme is doing which of the following:
1.

a.Segmenting its target audience

2.

b.Commissioning an advertising campaign

3.

c.Managing the IBP process

4.

d.None of these


Which one of the following communication efforts would be considered
advertising?
1.

a.A public service announcement urging motorcycle riders to wear helmets

2.

b.A musician on a radio talk show plugging his concert tour

3.

c.A politician going door-to-door urging people to vote for him

4.

d.A television message from the National Milk Council urging everyone to drink
milk

Public service announcements (PSAs)
1.

a.are not mass-mediated.

2.

b.are not paid for.

3.

c.are not an attempt to persuade.

4.

d.do not use copy similar to advertising.

Honda purchases a 30-second television commercial on ESPN to run in a
telecast of an NCAA men's basketball game. The commercial touts the
reliability of Honda and its new 100,000 mile manufacture warranty. This
advertising for Honda is all the following except:
1.

a.paid for.

2.

b.mass-mediated.

3.

c.an attempt to create needs.

4.

d.a communication.

Which of the following is an accurate description of advertising?
1.

a.Advertising plays a pivotal role in world commerce.

2.

b.Advertising is a big part of our language and culture.

3.

c.Advertising reflects the way we think about things and see ourselves.

4.

d.All of these are accurate descriptions of advertising.


GM is trying to reinvent the Cadillac brand with new car designs and a
new brand story. They commission an integrated marketing
communications campaign using several media. A key component of their
ads is music by contemporary groups like the Teddy Bears and Melikka.
GM is considered:
1.

a.the client

2.

b.the advertising agency.

3.

c.regulatory agencies that control advertising.

4.

d.the audience member who receives a message.

The model of mass-mediated communication presents the processes of
message production and message reception as
1.

a.most often totally independent of each other.

2.

b.most often an interaction of the two elements.

3.

c.either face-to-face or through a medium.

4.

d.independent of cultural influences.

When demand for goods and services is stimulated by advertising, the
economic system of the country benefits by
1.

a.increased brand loyalty.

2.

b.an increase in the gross domestic product.

3.

c.increased inelasticity of demand.

4.

d.reducing the amount of money needed to compete within a product category.

Daffy’s retail chain has stores in New York City, southern New York state
and northern New Jersey and advertises only in those locations. This is
an example of:
1.

a.cooperative advertising.

2.

b.regional advertising.

3.

c.an advertising campaign.

4.

d.business-to-business advertising.

You have been placed in charge of all the elements of the marketing mix
for a regional brewery. Which one of the following is not one of your
responsibilities?
1.

a.The conception of products

2.

b.The production of products

3.

c.The pricing of products

4.

d.The promotion of products

You have been placed in charge of all advertising for a product that has
common appeal in different cultures around the world. You will most likely
engage in

1.

a.global advertising.

2.

b.international advertising.

3.

c.national advertising.

4.

d.regional advertising.

Market segmentation is
1.

a.breaking down a large, heterogeneous market into submarkets that are more
homogeneous.

2.

b.aggregating small, homogeneous submarkets into a large, homogeneous
market.

3.

c.creating a perceived difference in the mind of the consumer between the

advertiser's brand and competitors' brands.

4.

d.identifying a competitive niche the brand will occupy.

When an advertiser seeks to create demand for a product category in
general, this is known as
1.

a.selective demand stimulation.


2.

b.primary demand stimulation.

3.

c.latent demand stimulation.

4.

d.elastic demand stimulation.

In 2000, Volkswagen spent about $551 million per year in advertising.
Volkswagen sales were around $15.7 billion. Volkswagen's advertising
spending as a percentage of sales was approximately 3.4 percent. General
Motors spent about $3.9 billion in advertising over the same period of
time. GM's sales were around $136 billion. GM's advertising spending as a

percentage of sales was approximately 2.8 percent. According to the
book, this information supports the argument that
1.

a.it is difficult to identify a predictable relationship between advertising and sales.

2.

b.the cost of advertising results in higher prices for consumers.

3.

c.advertising does not stimulate competition.

4.

d.advertising does not ultimately benefit the economy as a whole.

A series of coordinated messages and promotional efforts that
communicate a cohesive and integrated brand theme is known as ____.
1.

a.an advertisement

2.

b.an advertising campaign

3.

c.integrated brand promotion

4.

d.accommodation and negotiation

A small private college situated in a rural geographic setting, a research
lab at a bio-tech company and an attorney could all be considered:
1.

a.too diverse to be audiences for advertising.

2.

b.not aligned, therefore not efficient.

3.

c.appropriate audiences for an advertising campaign.

4.

d.too complex to be reached by pure advertising.


As president of a successful advertising agency, you have been asked by
a potential client to tell her about the roles advertising can play for her
business. Which one of the following should you not tell the potential
client?
1.

a.Advertising has the greatest reach and creative power of any available
promotional tool.

2.

b.Advertising can contribute to economies of scale.

3.

c.Effective advertising can create inelasticity of demand.

4.

d.Effective advertising can make up for an ineffective marketing mix to generate
sales.

An incumbent senator appears on television, saying that she should be reelected because she has brought jobs to the state. Obviously, this effort is
mass mediated and is an attempt to persuade. For it to be considered
advertising, which other condition must be met?
1.

a.The claim must be regulated by the Federal Communications Commission.

2.

b.The airtime must be paid for.

3.

c.It must be a public service announcement.

4.

d.The other candidates' opinions must be presented.

Lowering the cost of each item produced because of high-volume
production brought on by demand stimulation is
1.

a.brand loyalty.

2.

b.inelasticity of demand.

3.

c.economies of scale.

4.

d.economies of sales.

Which of the following is NOT an element of the marketing mix?
1.

a.Product

2.

b.Price


3.

c.People

4.

d.Distribution

Titleist, the manufacturer of golf balls, runs a commercial featuring
professional golfer John Daly. A group of people watching the commercial
at a country club all interpret the commercial in a similar manner. When
members of an audience share a similar interpretation of an advertisement
like this, it is most likely the result of
1.

a.the content of the commercial.

2.

b.the choice of spokesperson.

3.

c.the similar background and social standing of the audience.

4.

d.the characteristics of the product being advertised.

For a communication to be classified as advertising, which of the
following essential criteria must be met?
1.

a.The communication must be paid for.

2.

b.The communication must be delivered to the audience by mass media.

3.

c.The communication must be attempting to persuade.

4.

d.All of these are true.

You are product manager for a company that manufactures copy
machines for offices. Therefore, you will most likely
1.

a.ignore not-for-profit businesses.

2.

b.use consumer advertising to reach as many people as possible.

3.

c.eliminate government organizations as a potential target market.

4.

d.use both personal selling and advertising.


CampusTown Foods, a local grocery store, has decided to run a series of
advertisements. For this to be considered an advertising campaign, which
one of the following conditions must be met?
1.

a.The advertisements must communicate a cohesive and integrated idea or
theme.

2.

b.The advertisements must appear over an extended period of time.

3.

c.The advertisements must appear in multiple media.

4.

d.The advertisements must focus on store products rather than store services.

Advertising that is designed to generate demand for a particular
company's brand is known as ____.
1.

a.corporate advertising

2.

b.selective demand stimulation

3.

c.direct response advertising

4.

d.primary demand stimulation

When advertising acts to encourage and maintain brand loyalty it
supports successful price increases. Economists call this:
1.

a.inelasticity of demand

2.

b.selective demand stimulation

3.

c.direct response advertising

4.

d.primary demand stimulation

In the model of mass-mediated communication presented in the text, the
processes of production and reception are considered partially
independent because
1.

a.the producers of the message cannot control the reception of content.

2.

b.the producers of the message cannot control the interpretation of content.

3.

c.audience members can interpret advertising any way they want.


4.

d.all of these.

You have been asked to analyze advertising industry expenditures by
target market. You want to start with the market that is most often targeted
by advertisers. You begin by looking at
1.

a.household consumers.

2.

b.government employees.

3.

c.professionals.

4.

d.members of trade channels.

Integrated Brand Promotion
1.

a.is only important for national advertising campaigns.

2.

b.pertains only to campaigns involving three or more media options.

3.

4.

c.uses various promotional tools, including advertising, in a coordinated manner to
build and maintain brand preference and loyalty.

d.Is regulated on a federal level by the Federal Trade Commission (FTC).

____ is the process of creating a perceived difference between an
organization's brand and the competition's.
1.

a.Differentiation

2.

b.Positioning

3.

c.An external position

4.

d.An internal position

In targeting professionals (such as doctors, lawyers, and teachers) with
advertising, the advertiser must be aware that
1.

a.the language and images used in the advertising for this audience often rely on
esoteric terminology.

2.

b.the advertising is best placed in general interest magazines such as Time.

3.

c.members of this audience have broad, generalized needs.


4.

d.there are only common circumstances that members of the audience recognize.

In the language of advertising, a particular group of consumers singled
out for an advertisement is(are)
1.

a.household consumers.

2.

b.a trade channel.

3.

c.a target audience.

4.

d.professionals and business organizations.

According to the model of mass-mediated communication, which of the
following statements is not true?

1.

a.Advertising content is the product of interacting institutions.

2.

b.Advertising content is, in part, a function of the conventions, rules, and
regulations of the media being used.

3.

c.Advertising content is, in part, a function of the advertiser's expectations of its
audience.

4.

d.all of these

FireFighters is a company that manufactures smoke detectors. It runs a
newspaper advertisement that reminds people of the need to have a
smoke detector on every floor of their house. In the advertisement, the
company also asks people to think about this the next time they're in the
smoke detector section of a hardware store. According to the information
provided here, this is an example of
1.

a.direct response advertising.

2.

b.private label advertising.

3.

c.primary demand stimulation.

4.

d.selective demand stimulation.


You and your best friend watch the same television commercial together.
You think that the spokesperson in the ad is quite humorous. Your friend
thinks that the spokesperson is just plain stupid. This is an example of
1.

a.the result of differing content upon viewers.

2.

b.the creation of different meanings based on social and cultural context.

3.

c.an ad that cannot be effective.

4.

d.one person not exercising intent of interpretation.

True - False Questions
Household consumers are the most conspicuous audience in that most
mass media advertising is directed at them.
1.

True

2.

False

Will Smith, the actor, appears on the Late Show With David Letterman to
promote his newest action-adventure movie. This is not an example of a
successful use of advertising.
1.

True

2.

False

For advertising strategies to be effective, they must work within the
confines of the overall marketing strategy.
1.

True

2.

False


Motorola's worldwide advertising campaign for cell phones is an attempt
to provide a common theme and presentation in all markets including
consumers in North America, Europe, Asia, Africa, Australia and South
America. This is an example of a global advertising campaign.
1.

True

2.

False

IBP is the use of many tools, including advertising, in a coordinated
manner to build and maintain brand awareness, identity, and preference.
1.

True

2.

False

To be effective, brand differentiation must be based on tangible as well as
intangible differences between brands.
1.

True

2.

False

Integrated brand communications is the process of using promotional
tools in a unified way to build brand awareness, identity and preference.
1.

True

2.

False

Advertising is a paid, mass-mediated attempt to persuade.
1.

True

2.

False

Value is the perception by consumers that a band provides satisfaction
greater than the cost incurred to acquire the product or service.
1.

True

2.

False


A target audience is the group of customers that is singled out to be
reached by an advertising campaign or other promotion.
1.

True

2.

False

Attempting to develop recognition and approval of a brand over time,
direct response advertising relies on imagery and message themes that
emphasize the benefits and characteristics of a brand.
1.

True

2.

False

A target audience is a the whole group of consumers that will see an
advertisement or an advertising campaign.
1.

True

2.

False

A good advertisement will produce the same meaning for all members of
the audience.
1.

True

2.

False

A public service announcement (PSA) for the Partnership for a Drug Free
America is aired on three major television networks for free. This is an
example of a public information message, not advertising.
1.

True

2.

False


Spin, a small, upscale bicycle manufacturer in southern Oregon, employs
three owner/entrepreneurs, five production craftsmen, four distribution

technicians and Guy Gaylord as Director of Sales & Marketing. It could be
said that Gaylord's Marketing Department has the primary responsibility
to generate brand perceptions.
1.

True

2.

False

The communication production process produces the content of all
advertising messages. The communication reception process produces
the same interpretations among all audience members.
1.

True

2.

False

Mass communication has two major components: production and
reception.
1.

True

2.

False

When trying to deliver an advertising message to a professional audience,
the medium of trade journals is most predominantly used.
1.

True

2.

False

Advertising is important to marketers because it is the best way dramatize
a brand’s values beyond its physical features.
1.

True

2.

False


Advertising plays an important role in helping a firm develop and manage
its brands.
1.

True

2.

False

Advertising increases levels of consumer purchase of specific brands
which in turn affects gross domestic product.
1.

True

2.

False

Altoids uses various promotional tools, including advertising, in-store
displays, sampling and cents-off coupons to build and maintain sales
levels. This is an example of Integrated Brand Promotion (IBP).
1.

True

2.

False

A company that markets a vitamin supplement produces a commercial
that has the stated purpose of simply delivering straight information about
the product. It is still an attempt to directly generate sales.
1.

True

2.

False

Albertson’s is a retail chain that sells groceries. It has stores in 31
western, northwestern, mid-western and southern states. It is most likely
to use national advertising to reach its target market.
1.

True

2.

False

The responsibilities of conception, pricing, positioning, and distribution of
ideas, goods, or services are referred to as the marketing mix.
1.

True


2.

False

Free Text Questions
By definition, a communication must meet three criteria to be considered
an advertisement. Describe a public service announcement that you have

seen recently, then outline how it meets, or fails to meet, each of these
criteria.
Answer Given

The three criteria that must be met for a communication to be considered an
advertisement are that it must be paid for, it must be mass mediated, and it must
be an attempt to persuade. A public service advertisement is mass mediated and
an attempt to persuade. However, by definition, a public service announcement is
not paid for and cannot be considered advertising.

Outline the four main components of a marketing mix. List two factors that
must be considered for each component. Describe advertising's role in
the marketing mix.
Answer Given

The four main components of a marketing mix are product, price, promotion, and
distribution. Exhibit 1.20 contains an extensive list of factors that must be
considered for each component. Advertising must work to support the
organization's more general marketing strategies. Some of the most basic
strategies that it can support are market segmentation, product differentiation, and
positioning.

List and describe the two main components that comprise the model of
communications presented in the book. Explain why they are considered
partially independent.
Answer Given

The two main components are the production and reception of messages. In
production the content of any communication is produced. It is the product of the
interaction of many institutions. In reception, individual members of the audience

interpret communications according to a set of factors, governed largely by their
salient social networks. This is where the meaning is determined. The processes
of production and reception are partially independent because the producers of a


message cannot control or even closely monitor the actual reception and
interpretation of the content.

Audiences can be considered geographic entities by advertisers. The
book offered five different types of advertising that result from this. List
three of these different types of advertising defined by geography.
Describe when the use of each of the three types you list is appropriate.
Answer Given

(1) Global advertising is possible only when brands and the messages about
those brands have a similar appeal across diverse cultures. (2) International
advertising occurs when firms prepare and place different advertising in different
national markets. It is appropriate when a product does not have cross-cultural
appeal and global recognition. (3) National advertising is used when a single
message needs to reach all of the geographic areas of one nation. (4) Regional
advertising is carried out by producers, wholesalers, distributors, and retailers that
concentrate their efforts in a relatively large, but not national, geographic region.
(5) Local advertising is directed at an audience in a single trading area, either a
city or state.

Explain the evolution of Integrated Marketing Communications to
Integrated Brand Promotion over the last decade and why IBP is crucial to
brand success.
Answer Given

For the last 10 years or so, the concept of mixing various promotional tools has
generally been referred to as integrated marketing communications. The IMC
process uses promotional tools in a unified way so that a synergistic
communication effect is created. Current thinking is that the emphasis on
communication is not as important as the emphasis on the brand. The result is
that there has been a recent evolution from an IMC perspective to an IBP
perspective.