Promotion & Advertising Chp 1-7

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1. Whichof the following statements best defines value? A. The coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea B. The combination of factors like name, logo, design, and packaging that comes to mind when consumers think about a brand C. The desire and ability of two or more parties to exchange something of importance with one another D. The customer's perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it E. The amount of funds invested by the shareholders of a company in promoting its product portfolio

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D. The customer's perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it

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2. Product, price, promotion, and _____are the 4Ps of the marketing mix. A. people B. place C. package D. print E. privilege

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B. place

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3. Price, product, place, and promotion together formthe: A. points-of-parity. B. promotional mix. C. marketing mix. D. supply chain components. E. exchange mix.

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C. marketing mix.

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4. Prior to the development of integrated marketingcommunications, the promotional function in most companies was dominatedby: A. mass-media advertising. B. sales promotion. C. public relations. D. publicity. E. direct marketing.

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A. mass-media advertising.

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5. CL Inc., a new firm, used mass media to gain traction amongcustomers. The company used sales promotions and public relations to achievethe long-term targets and goals identified by the top management. It also optedfor direct marketing on a project-to-project basis. The assimilation of thesevarious promotional tools is commonly referred to as: A. bait-and-switch marketing. B. sales promotion activities. C. integrated marketing communications. D. double loop marketing. E. segmented marketing communications.

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C. integrated marketing communications.

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6. Which of the following is true of integrated marketingcommunication? A. It does not include sales promotion. B. It calls for a "big picture" approach to promotional activities. C. It segregates and highlights various promotional activities. D. It is also typically referred to as buzz marketing. E. It personifies advertising as the dominant form of promotion

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B. It calls for a "big picture" approach to promotional activities.

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7. According to the marketing and promotions process model, themarketing process begins with the: A. development of the brand equity. B. development of a marketing strategy. C. development of the promotional mix. D. determination of the promotional budget. E. establishment of a nano-campaign marketing strategy.

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B. development of a marketing strategy.

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8. _____ is a detailed assessment of thecurrent marketing conditions facing the company, its product lines, or itsindividual brands. A. Matrix analysis B. Micro analysis C. Situation analysis D. Opportunity analysis E. Competitive analysis

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C. Situation analysis

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9. Which of the following is best definedas areas where there are favorable demand trends, customer needs and wants arenot being satisfied, and where a company thinks it can compete effectively? A. Market opportunities B. Market segmentations C. Marketing channels D. Marketing-stubs E. Market economics

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A. Market opportunities

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10. _____ is defined as something unique or special a firmpossesses or does that gives it an edge over other firms in a similarindustry. A. Competitor indexing B. Switch marketing C. Competitive advantage D. Marketing-stub E. Bait marketing

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C. Competitive advantage

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11. _____ are the major participants in the integrated marketing communications process who pay for advertising campaigns and promotions. A. Collateral service providers B. Clients C. Advertising agencies D. Media organizations E. Special service organizations

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B. Clients

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12. In the ad agency industry, clients refer to: A. an advertiser or organization that has the product, service, or cause that needs to be marketed. B. any media, which plays a crucial role in the process of marketing communication. C. a purchaser of the consumer product advertised. D. a market for business or consumer products. E. an advertising agency that specializes in the creation of the communications message.

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A. an advertiser or organization that has the product, service, or cause that needs to be marketed.

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13. A(n) _____ is an outside firm thatspecializes in the creation, production and/or placement of the communicationsmessage and that may provide other marketing and promotions related services. A. media organizationB. sales promotion firmC. research organizationD. advertising agencyE. creative boutique

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D. advertisingagency

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14. A company that uses an in-house agencymight turn its advertising and promotion tasks over to an outside agency inorder to: A. obtain greater control over the advertising process. B. reduce costs. C. obtain greater objectivity. D. make coordination of the advertising and promotional process easier. E. save media commissions.

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C. obtain greater objectivity.

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15. Superagencies were formed: A. because advertisers were disenchanted with large agencies. B. because advertisers wanted agencies to be more flexible and responsive than traditional agencies. C. to save money for clients. D. so that agencies could provide their clients with integrated marketing communications services worldwide. E. tolessen the need for competitive pricing.

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D. so that agencies could provide their clients with integrated marketing communications services worldwide.

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16. Which of the following statements explainwhy an organization would want to use an external advertising agency? A. It reduces advertising and promotional costs for the client. B. It enables the client to gain more control of the promotional activities. C. It allows more access to the top management of the client firm. D. It helps provide a consistent and integrated global brand image. E. It provides the client with the services of highly skilled individuals.

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E. It provides the client with the services of highly skilled individuals.

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17. An ad agency that offers its clients acomplete range of marketing, communication, and promotion services is known asa(n): A. creative boutique. B. media buying service. C. account service agency. D. full-service agency. E. buzz marketing agency.

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D. full-service agency.

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18. Which of the following statements is true about account services? A. It is an in-house service for the advertisement agency which is independent of its clients' obligations. B. It is an advertisement agency which solely provides media space and time. C. It provides the creative team with in-depth storyboards. D. It is a research department in the advertisement agency which assists in creating the advertising message for the client. E. It is the link between the advertisement agency and its clients.

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E. It is the link between the advertisement agency and its clients.

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19. In a full-service agency, the function ofgathering, analyzing, and interpreting information that is useful in developingadvertising is the responsibility of the _____ department. A. audit B. personnel C. media D. account management E. Research

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E. Research

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20. The _____ is a document that the agency'screative department uses to guide the development of advertising ideas andconcepts. A. tagline brief B. product data sheet C. creative brief D. copywriter collateral E. marketingplan

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C. creative brief

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21. Which of the following departments of afull-service agency, analyzes, selects, and contracts for space or time topublish or broadcast the client's advertising message? A. Research department B. Media department C. Account management department D. Creative services department E. Art department

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B. Media department

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22.____are the individuals in the creative services department of an ad agency whoconceive the ideas for the ads and compose the advertising message. A. Copywriters B. Art directors C. Account planners D. Account executives E. Media planners

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A. Copywriters

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23. In the creative services department of anad agency, the _____ department is responsible for creating the visual portionof an ad, such as layouts and commercial storyboards. A. account servicesB. serviceC. product managementD. researchE. art

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E. Art

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24._____are drawings that show what the print ad will look like and from which the finalartwork will be produced. A. Creative briefs B. Packshots C. Layouts D. Art infusions E. Product sheets

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C. Layouts

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25. The_____ department coordinates all phases of production to see that the ads arecompleted on time and that all deadlines for submitting the ads to the mediaare met. A. research B. production C. art D. traffic E. Personnel

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D. traffic

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26. With respect to the creative servicesdepartment of a full-service agency, the layout for TV commercials is known asa(n): A. storyboard. B. logo. C. art infusion. D. packshot. E. creative brief.

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A. Storyboard

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27. Independent companies that exclusivelyhelp in purchase of radio and television time are known as: A. creative boutiques. B. SMM organizations. C. macro-marketing agencies. D. media specialist companies. E. storyboard specialists.

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D. media specialist companies.

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28. CL Ads, an ad agency, provides mediaservices for its clients. It prepares and places ads in local and nationalmagazines at a specified cost. However, the agency bills its clients a flat 15percent of the ad cost as revenue. In this scenario, the agency is using a(n)_____ system. A. incentive-based B. flexible revenue C. cost-plus D. commission E. fixed-fee

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D. commission

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29._____are agencies that specialize in offering services, such as database management,and the ability to create, produce, and disseminate different types ofcommunications that go straight to target customers. A. Digital-Interactive agencies B. Sales promotion agencies C. Direct-marketing agencies D. Public relations firms E. Creative boutiques

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C. Direct-marketing agencies

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30._____specialize in the development and management of sweepstakes, refund and rebateoffers, and incentive programs. A. Sales promotion agencies B. Direct-response agencies C. Creative boutiques D. Interactive agencies E. Collateral agencies

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A. Sales promotion agencies

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31. A _____ is the type of firm an organization would hire to develop and implement programs to manage the organization's image and affairs with consumers and other relevant audience. A. PR agency B. sales promotion agency C. media mix organization D. creative boutique E. direct-response agency

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A. PR agency

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32. Interactive agencies are also called_____. A. digital agencies B. public relation firms C. creative boutiques D. sales promotion agencies E. collateral agencies

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A. digital agencies

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33._____can be defined as the process and activities people engage in when searchingfor, selecting, purchasing, using, evaluating, and disposing of products andservices so as to satisfy their needs and desires. A. Consumer socialization B. Consumer culture C. Consumer behavior D. Consumer retention E. Consumer assimilation

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C. Consumer behavior

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34. Robert, an automobile engineer, detects astrange noise emanating from the engine of his car. As he is an expertmechanic, he diagnosed that the car required a new fan belt. Which of thefollowing stages of the consumer decision-making process is represented in thisscenario? A. External search B. Post purchase evaluation C. Problem recognition D. Purchase decision E. Alternative evaluation

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C. Problem recognition

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35. With respect to motivation research, whichof the following is a technique in which a small number of people with similarbackgrounds and/or interests are brought together to discuss a particularproduct, idea, or issue? A. In-depth interview B. Delphi technique C. Focus groups D. Nominal group technique E. Association tests

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C. Focus groups

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36.Beforepurchasing a car, John sought advice from his friends and researched for autoreviews on the Internet. He also visited car dealers and requested for atest-drive. In which of the following stages of the consumer decision-makingprocess is John engaged? A. Internal information search B. External information search C. Post purchase evaluation D. Problem recognition E. Evoked set manipulation

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B. External information search

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37. Various brands of perfume use scented stripsin their ads to influence _____ and to increase the probability that the adwill be perceived. A. the consumer's level of sensory input B. consumer personality C. the internal information search D. the consumer's cognitive dissonance E. echoic memory

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A. the consumer's level of sensory input

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38._____is a preference for a particular brand that results in its repeatedpurchase. A. Brand extension B. Brand stretching C. Brand spin-off D. Brand loyalty E. Brand equity

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D. Brand loyalty

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39._____is a state of psychological tension or post purchase doubt a consumer mayexperience after making a difficult purchase decision. A. Availability heurism B. Self-serving bias C. Cognitive dissonance D. Impact bias E. Subliminal erudition

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C. Cognitive dissonance

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40._____is defined as the passing of information, the exchange of ideas, or process ofestablishing a commonness of thought between a sender and a receiver. A. Negotiation B. Source integration C. Assimilation D. Perception E. Communication

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E. Communication

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41. The _____ of a communication is the personor organization that has information to share with another person or group ofpeople. A. essence B. source C. message D. receiver E. channel

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B. Source

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42. Commercials for Vinnie's marshmallowsdescribe its marshmallows as a delicious snack for all ages. The commercialsshow toddlers eating marshmallows as part of their usual diet as well as adultsroasting marshmallows over a fire. In these commercials, Vinnie's is the: A. channel messenger. B. encoder. C. decoder. D. source. E. receiver.

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D. Source

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43. The communication process begins with theprocess of _____. A. encoding B. encrypting C. channeling D. decoding E. bolstering

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A. Encoding

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44. Marketers typically select spokespeoplewhose traits will maximize their message influence. According to HerbertKelman, the three categories of source attributes that should be consideredduring the selection process are: A. power, image, and knowledge. B. credibility, attractiveness, and power. C. knowledge, fee, and differentiability. D. consistency, credibility, and continuity. E. credibility, reputation, and individuality.

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B. credibility, attractiveness, and power.

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45. Which of the following statements is trueof celebrity endorsements? A. Consumers who are very knowledgeable about a product or service tend to be most persuaded by celebrity endorsers. B. When a celebrity endorses several products simultaneously, it leads to enhanced popularity of the celebrity and also results in increased sales of all the products the celebrity endorses. C. Advertisers should select a celebrity spokesperson who will attract attention and enhance the sales message, yet not overshadow the company's brand. D. Typically, the use of celebrity endorsers is highest among news and business publications. E. Marketers do not have to worry about the personal image of celebrities while choosing one to endorse a product or a service.

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C. Advertisers should select a celebrity spokesperson who will attract attention and enhance the sales message, yet not overshadow the company's brand.

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46. Which of the following sourcecharacteristics is likely to suffer when a celebrity endorses too many productsand is seen too often by consumers? A. Expertise B. Trustworthiness C. Physical attractiveness D. Compliance E. Internalization

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B. Trustworthiness

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47. Before setting objectives for advertisingand promotion, an organization should: A. conduct a situation analysis to identify marketing and promotional issues facing the firm. B. develop its media plan and allocate the budget to each media. C. evaluate the effectiveness of the advertising and promotional strategies. D. conduct test marketing to check the effectiveness of the marketing strategies developed for the current products and services. E. set its advertising and promotional budgets.

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A. conduct a situation analysis to identify marketing and promotional issues facing the firm.

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48. Which of the following is true of marketingobjectives? A. The only aim of a firm's marketing objectives revolves around buying the right media at the right price. B. They are usually defined in terms of specific outcomes such as sales volume, market share, profits, or return on investment. C. They are stated only in a company's communication plan. D. They are statements of what various aspects of the IMC program will accomplish and how a message will be delivered to the target audience. E. The only aim of a firm's marketing objective is to communicate information or a selling message about a product or service to the target audience.

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B. They are usually defined in terms of specific outcomes such as sales volume, market share, profits, or return on investment.

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49. Which of the following statements bestdescribes the relationship between marketing and communicationsobjectives? A. Marketing objectives and communications objectives are synonymous. B. Marketing objectives evolve from communications objectives. C. Communications objectives are derived from marketing objectives. D. Communications objectives can be developed before the development of marketing objectives. E. Both communications and marketing objectives are defined only in terms of the reach of a promotional strategy.C. Communications objectives are derived from marketing objectives.

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C. Communications objectives are derived from marketing objectives.

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50. Which of the following is at the base ofthe communication effects pyramid? A. Awareness B. Preference C. Trial D. Purchase E. Repurchase

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A. Awareness