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1. What is the function of informing, persuading, and influencing the consumer’s purchase decision called?
a. salesmanship
b. advertising
c. promotion
d. communication
ANSWER: c

2. What would be a goal of any integrated marketing communication system?

a. to create a unified message at the lowest possible cost
b. to create a message that will keep the consumer from tuning out
c. to hire an agency to handle each element of the promotional strategy
d. to consolidate the promotional responsibilities within an organization
ANSWER: b

3. What does an integrated marketing communications strategy begin with?

a. separating the parts of the promotional mix into categories based on the media that is being utilized
b. isolating and eliminating non-promotional contacts between the consumer and the organization
c. consumer wants and needs, working in reverse to the product, brand, or organization
d. the realization that different components of promotion should deliver different messages to their target
audiences
ANSWER: c

4. Delite, a food and beverage company, is launching a new range of frozen food. Which of the following should be the
first step taken by the marketing department in order to develop an effective IMC strategy?
a. Design ads for the print and electronic media for maximum reach.
b. Identify wants and needs of consumers.
c. Establish the product as a superior addition to the existing product range.
d. Isolate parts of the promotional mix and allocate them to appropriate departments.
ANSWER: c

5. What term refers to the coordination of all a firm’s promotional activities to produce a unified, customer-focused
message?
a. customer orientation
b. the marketing concept
c. integrated marketing communications
d. comprehensive marketing activities
ANSWER: c

6. In an integrated marketing communications program, which of the following is NOT one of the ways in which a
customer may have contact with the organization?
a. direct mail
b. Internet messages
c. personal selling
d. competitor feedback

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ANSWER: d

7. What is said to be at the heart of integrated marketing communications?

a. product
b. brand
c. organization
d. customer
ANSWER: d

8. What will often result from the successful implementation of Integrated Marketing Communications?
a. media saturation
b. higher audience reach
c. identifying several unexpected new target market opportunities
d. synergies and interdependence of the promotional mix elements
ANSWER: d

9. What does teamwork in applying a successful integrated marketing communications program involve?
a. clear definition of the responsibilities of each department in creating the promotional mix
b. in-house resources and outside vendors
c. reorienting employees to put the customer first
d. mutual admiration for the successes of each department in implementing the promotional mix
ANSWER: b

10. Sam just received a free trial sample of cereal bars that he found hanging on his doorknob. What is this an example of?
a. direct sampling
b. direct marketing
c. personal selling
d. guerrilla marketing
ANSWER: a

11. Which of the following acts as the source of the message communicated to the receiver in the communication process?
a. decoder
b. sender
c. messenger
d. sponsor
ANSWER: b

12. What does the D indicate in the AIDA concept?

a. delivery of the promotional message
b. decoding the message
c. desire for the product being promoted
d. decision to listen to the message
ANSWER: c

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13. What do the AIDA concepts refer to?
a. the steps in developing an IMC program
b. the steps in promoting a product
c. the steps in distributing a product
d. the steps in the consumer purchase decision process
ANSWER: d

14. According to the AIDA concept, which of the following is the first function of a promotional message?
a. arousing interest in the good or service
b. gaining the potential consumer’s attention
c. stimulating desire by convincing the potential buyer of the product’s ability to satisfy his or her needs
d. producing an action in the form of a purchase or a more favourable attitude that may lead to a future purchase
ANSWER: b

15. In terms of the communications process, to whom are television ads directed?
a. encoders
b. transmitters
c. receivers
d. coders
ANSWER: c

16. Patricia calls a firm’s 1-800 number and expresses her reaction to a recent television ad. What is this an example of?
a. feedback
b. noise
c. encoding
d. decoding
ANSWER: a

17. From the perspective of the marketing communications process, what do two consumers talking to each other during a
television commercial represent?
a. interaction
b. noise
c. decoding
d. coding
ANSWER: b

18. What can noise take the form of in international communications?

a. a lack of certain vowel sounds in the language that make it impossible to say the product name
b. unreliable radio transmissions
c. multiple languages spoken in the commercial
d. incorrect translations
ANSWER: d

19. In communicating a promotional message, what does decoding refer to?

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a. translation of the message into understandable terms and transmitting it through the communication channel
b. receiver’s interpretation of the message transmitted through the communication channel
c. receiver’s response to the message transmitted through the communication channel
d. noise that interferes with the transmission of the message through the communication channel
ANSWER: b

20. Which of the following is NOT a means of conducting a personal-selling effort?

a. telephone
b. videoconferencing
c. mass media
d. interactive computer links
ANSWER: c

21. Generally, which component of a firm’s promotion mix will be heavily invested in when serving business-to-business
customers?
a. advertising
b. publicity
c. public relations
d. personal selling
ANSWER: d

22. What is ordinarily the dominant promotional mix component for unique, highly technical, or custom-made products?
a. trade shows
b. publicity
c. personal selling
d. advertising
ANSWER: c

23. What is the oldest form of promotion?

a. product placement
b. personal selling
c. guerrilla marketing
d. ambush marketing
ANSWER: b

24. Which factor would NOT support the use of personal selling?
a. limited number of buyers
b. standardized products
c. technically complex products
d. option for trade-ins
ANSWER: b

25. How much of an industrial firm’s budget is generally invested in personal selling compared with producers of
consumer goods?
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a. smaller portion in personal selling than invested in publicity
b. smaller portion in personal selling than invested in advertising
c. approximately equal amounts in personal selling and non-personal selling
d. larger portion in personal selling than invested in advertising
ANSWER: d

26. What is the ideal form of promotion for large, geographically dispersed audiences that will listen to the same
message?
a. advertising
b. publicity
c. public relations
d. sales promotion
ANSWER: a

27. Which of the following is an example of personal selling?

a. banners on websites
b. videoconferencing
c. print ads
d. hoardings
ANSWER: b

28. Which of the following is NOT an advertising format?

a. plastic shopping bags that retailers use to hold merchandise purchased by customers
b. TV monitors at grocery stores
c. billboards
d. a sweepstakes for a year of free gasoline
ANSWER: d

29. Which of the following would be considered advertising?

a. point-of-purchase display of gum
b. billboard promoting Honda cars
c. coupon clipped from the newspaper
d. sample of a product left on your doorstep
ANSWER: b

30. What would be the preferred promotion for markets characterized by a large number of potential customers scattered
over a sizable geographic area?
a. advertising
b. personal selling
c. public relations
d. publicity
ANSWER: a

31. What dominates the promotional mixes for low-unit value products?
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a. personal selling
b. direct mail
c. advertising
d. telemarketing
ANSWER: c

32. How does product placement work as a form of nonpersonal selling?

a. a company pays to have products displayed at the ends of grocery store aisles
b. a company pays to have products displayed prominently in a motion picture
c. companies do promotional tie-ins, such as Disney movie toys as incentives in every McDonald’s Happy Meal
d. a company positions its TV commercials during prime hours for its target market
ANSWER: b

33. What is sales promotion subdivided into?

a. trade and consumer promotion
b. Internet and traditional promotion
c. domestic and international promotion
d. wholesale and retail promotion
ANSWER: a

34. Which group of activities is NOT considered to be a form of sales promotion?

a. trade shows, product demonstrations, and displays
b. telemarketing, publicity, and home shopping channels
c. coupons, rebates, and sweepstakes
d. limited-time discounts on consumer products and services
ANSWER: b

35. Which of the following is considered to be part of the direct marketing category?
a. telemarketing
b. billboards
c. sponsorship
d. customer service
ANSWER: a

36. A popular TV morning chat program shows its host and guests drinking coffee from mugs which have been engraved
with the logo of a popular coffee chain. What is this an example of?
a. personal selling
b. trade promotion
c. product placement
d. sales promotion
ANSWER: c

37. Which statement best describes guerrilla marketing?

a. It is a defensive strategy that places counter-advertising in a market targeted against strong competitive
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products.
b. It is a free promotion initiated by fans, loyal customers, or other interested product users.
c. It is a relatively new approach to promotion that avoids traditional media and attempts to find innovative, low-
cost ways to reach a target market.
d. It is any negative campaign against a product or a company because of poor performance, incited by angered
consumers who share experiences on blogs and message boards.
ANSWER: c

38. Which of the following is generally NOT an advantage of guerrilla marketing?

a. It reaches a wide audience.
b. It has low cost.
c. It attracts attention due to its innovation.
d. It is less cluttered with competitors trying to do the same thing.
ANSWER: a

39. What is a form of guerrilla marketing whereby a firm relies on social networks to transmit a marketing message?
a. product placement
b. viral marketing
c. ambush marketing
d. database marketing
ANSWER: b

40. What element of the promotional mix is the most expensive (cost per contact)?
a. advertising
b. sales promotion
c. personal selling
d. direct marketing
ANSWER: c

41. A manufacturer of a well-known brand of cosmetics is offering buyback allowances to its retailers for its new line of
lip colour. What is this an example of?
a. guerrilla marketing
b. product placement
c. trade promotion
d. personal selling
ANSWER: c

42. What is an outcome of the interactive characteristic of direct marketing?

a. development of databases with wide market segments
b. tailoring of individual responses by marketers to meet consumers’ needs
c. easy assessment of a consumer’s feelings towards a call to action to purchase the product
d. building of relationships with existing customers but not new consumers
ANSWER: b

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43. What do direct marketing and integrated marketing communications have in common?
a. They respond to fragmented media markets and audiences.
b. They succeed when asked to provide standardized products to large target markets.
c. They benefit from the increasing size of network broadcast audiences.
d. They cannot effectively use databases to target specific markets.
ANSWER: a

44. Which of the following would typically NOT be an example of direct mail promotion?
a. catalogue from IKEA advertising a special offer on office furniture
b. promotional DVD sent by a family vacation resort
c. reminder postcard sent to a car owner offering 15 percent off the cost of an oil change
d. advertisement in the newspaper
ANSWER: d

45. What is one of the advantages of the direct mail medium?

a. It offers the ability to reach a broad target market.
b. The per-reader cost is less expensive than other types of advertising.
c. Response rates are measurable and higher than other types of advertising.
d. There is less chance of being misled by the message or source of the message.
ANSWER: c

46. Global Solutions Inc., an IT firm, regularly organizes meetings for its shareholders to update them on the firm’s
performance and achievements. What is this is an example of?
a. guerrilla marketing
b. sales promotion.
c. a product placement program
d. a public relations program
ANSWER: d

47. By definition, what is the communication objective of advertising?

a. to eliminate noise in the transmission, feedback, and encoding of a message
b. to provide direct customer contact through effective public relations
c. to inform or persuade the members of a particular audience
d. to cut promotion costs and decrease the cost of reaching each consumer
ANSWER: c

48. What is product advertising designed for?

a. selling a particular good or service
b. promoting a concept, idea, or philosophy
c. providing information as to the geographic location-seeking firm
d. increasing awareness of the goodwill for a firm, person, or government agency
ANSWER: a

49. What is the name for non-product advertising used by a profit-seeking firm?
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a. cause
b. institutional
c. informative
d. corporate
ANSWER: d

50. What type of advertising is most closely related to public relations?

a. product
b. institutional
c. informative
d. newspaper
ANSWER: b

51. The radio advertisements for Country Fresh Grocers state that the company is the “supermarket to the world.” What
type of advertising is this considered to be?
a. product
b. institutional
c. informative
d. corporate
ANSWER: d

52. Assume Purolator offers a new service that allows home computer users to pay shipping charges and print shipping
labels at home. Purolator advertises the new service on TV and in magazines. What are these ads examples of?
a. product advertising
b. institutional advertising
c. reminder advertising
d. persuasive advertising
ANSWER: a

53. The Canadian Cancer Society runs ads in major magazines promoting its mission and successes. What are these ads
examples of?
a. product advertising
b. reminder advertising
c. institutional advertising
d. persuasive advertising
ANSWER: c

54. What type of advertising is often used to promote a product in the introductory stage of the product life cycle?
a. reminder
b. persuasive
c. cooperative
d. informative
ANSWER: d

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55. What type of advertising seeks to develop initial demand for a newly introduced good, service, organization, person,
place, idea, or cause?
a. informative
b. reminder
c. comparative
d. advocacy
ANSWER: a

56. What is the goal of persuasive advertising?

a. It reinforces the effect of previous promotional activity.
b. It increases demand for an existing good or service, organization, or concept.
c. It develops initial demand for a newly introduced product.
d. It is used primarily in the maturity and decline stages of the product life cycle.
ANSWER: b

57. What type of advertising strives to reinforce previous promotional activity by keeping the name of the good, service,
organization, person, place, idea, or cause before the public?
a. retentive
b. informative
c. reminder
d. promotional
ANSWER: c

58. What type of advertising is Advil using when it advertises that it contains more pain reliever than Tylenol?
a. comparative
b. cooperative
c. advocacy
d. institutional
ANSWER: a

59. Coke and Pepsi feature nearly three dozen movie stars, athletes, musicians, and television personalities as
spokespeople in their effort to increase cola sales. What is this called?
a. comparative advertising
b. advocacy statements
c. celebrity testimonials
d. cooperative advertising
ANSWER: c

60. Which statement is NOT considered to be an advantage of celebrity testimonials?

a. Using a celebrity in an advertisement is a way to break through the clutter and capture the consumer’s
attention.
b. Celebrities provide a marketing bridge to capture the attention of consumers of other cultures domestically or
internationally.
c. The more visibility a celebrity receives through product endorsements, the more valuable he or she is to
marketers.
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d. Consumers look at the product in a new way because the endorsement of the celebrity is seen as credible in
their eyes.
ANSWER: c

61. According to studies, what kind of advertisements do consumers respond to with suspicion?
a. retail source advertisements
b. retail shopping experience advertisements
c. retail message advertisements
d. retail price advertisements
ANSWER: d

62. Best Buy is advertising a specific brand of GPS car navigational system as a present for the holiday season. The
television ad benefits both companies. What type of advertising is this an example of?
a. informative
b. cooperative
c. institutional
d. retail
ANSWER: b

63. Which of the following is NOT an example of an interactive advertising method?

a. the Internet
b. electronic kiosks
c. text messaging
d. direct mail
ANSWER: d

64. What is an advantage of interactive marketing?

a. It provides information on one product only.
b. It is closer to nonpersonal selling.
c. It places the advertiser in control of the flow of information.
d. It provides consumers with more information in less time.
ANSWER: d

65. What does a series of related but different ads that use a single theme and appear in different media within a specified
time period signify?
a. advertising campaign
b. fantasy script
c. special promotion
d. advertising message
ANSWER: a

66. A national insurance company promotes identity theft insurance with an advertisement that warns of stolen credit
cards and falsified social insurance numbers. What appeal is being used in this commercial to motivate the viewer to
action?
a. objective facts
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b. humour
c. sex
d. fear
ANSWER: d

67. Which type of ad typically loses its effectiveness the soonest?

a. fear
b. sex
c. humour
d. objective facts
ANSWER: c

68. Which task is NOT necessary for successful advertisement?

a. gaining attention and interest
b. offering the consumer an entertaining message
c. informing and/or persuading
d. eventually leading to a purchase or other desired action
ANSWER: b

69. What ability of an advertisement does “cutting through the clutter” refer to?
a. informing the audience of the concepts the advertiser wishes to communicate
b. leading to a purchase or other desired action
c. gaining the attention and interest of the audience
d. applying persuasive pressure to the audience
ANSWER: c

70. What part of an ad serves to inform, persuade, and stimulate buying action?
a. body copy
b. headline
c. illustration
d. signature
ANSWER: a

71. The end of an ad may contain a name, address, website address, logo, or any other company symbol. What is this
element called?
a. slogan
b. sign-off
c. tag line
d. signature
ANSWER: d

72. What is the most common style of Internet advertising?

a. interstitial
b. banner
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c. missile
d. pop-up
ANSWER: b

73. What are either online games created by marketers to promote their products to targeted audiences in an interactive
way or product placements inserted into online video games called?
a. interstitials
b. missiles
c. advergames
d. pop-ups
ANSWER: c

74. A customer visits a company’s website and within seconds a link to a competitor’s site appears on the screen. What is
this recent development in Internet advertising called?
a. interstitial
b. advergame
c. missile
d. product placement
ANSWER: c

75. What is the most intrusive form of online advertising, which allows ads to be shown on users’ screens through the use
of software downloaded to their computers without their consent?
a. adware
b. advertorial
c. missile
d. product placement
ANSWER: a

76. Which of the following is NOT an advantage of television as an advertising medium?

a. mass coverage
b. repetition
c. flexibility
d. low cost
ANSWER: d

77. Compared with broadcast networks, what kind of target audience does advertising on cable give marketers access to?
a. smaller target audiences
b. more broadly defined target audiences
c. more narrowly defined target audiences
d. much larger target audiences
ANSWER: c

78. What is one of the fastest-growing media alternatives because it can provide immediate information and entertainment
at home, at work, and in the car?

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a. newspaper
b. magazine
c. radio
d. outdoor advertising
ANSWER: c

79. Which of the following advertising mediums dominates local markets?

a. newspapers
b. network television
c. cable television
d. radio
ANSWER: a

80. For what medium is the lack of flexibility the biggest disadvantage compared to other media?
a. television
b. radio
c. newspapers
d. magazines
ANSWER: d

81. What is NOT an advantage associated with magazine advertising?

a. selectivity in reaching precise target markets
b. long life
c. flexibility
d. quality reproduction
ANSWER: c

82. Along with the high cost per reader, what drawback is associated with direct mail?
a. difficulty in segmenting large markets
b. dependence on quality mailing lists
c. lack of flexibility
d. speed of message delivery
ANSWER: b

83. Which of the following is a reason for the popularity of outdoor advertising?
a. immediate communication of quick and simple ideas
b. lower level of clutter than any other advertising medium
c. brevity of exposure to the advertising message by motorists
d. high level of aesthetics developed by most billboards
ANSWER: a

84. What is setting the timing and sequencing for a series of advertisements known as?
a. media analysis
b. media scheduling
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c. media selection
d. media programming
ANSWER: b

85. Why would an airline reduce advertising during peak travel periods and boost its media schedule during slower travel
months?
a. because of repurchase cycles
b. because of seasonal sales patterns
c. because of frequency goals
d. because of competitors’ activities
ANSWER: b

86. Assume reach is 250,000 households and frequency is two. What is the gross rating point?
a. 125,000
b. 250,000
c. 500,000
d. 1,000,000
ANSWER: c

87. What is the number of times a person is exposed to an advertisement during a certain time period known as?
a. frequency
b. reach
c. enumeration
d. randomization
ANSWER: a

88. What is the process within a company called that builds relationships with customers, employees, shareholders,
suppliers, government agencies, and society?
a. publicity
b. stakeholder relations
c. public communications
d. public relations
ANSWER: d

89. Through what process does a company communicate general management issues to the external environment?
a. publicity
b. nonmarketing public relations
c. marketing public relations
d. sales promotional activities
ANSWER: b

90. What are the narrowly focused public relations activities usually called that are designed to directly support the
company’s marketing goals?
a. publicity stunts

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b. marketing public relations
c. nonmarketing public relations
d. integrated marketing communications
ANSWER: b

91. What do firms generate by creating special events, holding press conferences, and preparing news releases and media
kits?
a. trade promotion in general
b. a sweepstakes
c. publicity
d. bonus packaging
ANSWER: c

92. Which of the following terms refers to the nonpersonal stimulation of demand for a good, service, person, cause, or
organization through unpaid placement of significant news about it in a published medium or through a favourable
presentation of it on the radio or television?
a. publicity
b. advertising
c. product placement
d. sponsoring
ANSWER: a

93. Which statement best describes the use of publicity as a promotional strategy?
a. Companies have to spend more for publicity than advertising or personal selling.
b. Companies have less control over whether the press publishes good or bad news.
c. Consumers tend to believe more in company-disseminated information than in publicity-generated news.
d. Companies tend to view all kinds of publicity—good or bad—as profitable for the company’s reputation and
its brand equity.
ANSWER: b

94. ACME Inc. is issuing a press release announcing a new product and the benefits it offers. Which strategy is this an
example of?
a. direct marketing
b. guerrilla marketing
c. advertising
d. marketing public relations
ANSWER: d

95. What are marketing partners participating in when they share the cost of a promotional campaign that meets their
mutual needs?
a. mutual support
b. cross-promotion
c. spending push money
d. trading promotion

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ANSWER: b

96. Which of the following is NOT a variable of the promotional mix?

a. nature of the product
b. positioning of competitive products
c. stage of the product life cycle
d. product price
ANSWER: b

97. What typically happens to advertising as a product moves into the growth and maturity stages of the product life
cycle?
a. advertising expenditures generally decrease dramatically
b. personal selling starts to become the most preferred form of promotion
c. consumers can no longer be influenced by advertising as a form of promotion
d. advertising gains relative importance in persuading consumers to purchase
ANSWER: d

98. What budgeting method sets the promotional budget allocation based on a predetermined dollar amount for each unit
sold or produced?
a. fixed-sum-per-unit method
b. fixed-cost method
c. standard budgeting
d. variable cost budgeting
ANSWER: a

99. What budgeting method sets aside a specified percentage of sales for promotional mix expenses—either based on past
records or projected for the future?
a. fixed-percent-applied
b. percentage-of-sales
c. fixed-sum-per-unit
d. competitive-match
ANSWER: b

100. What budgeting approach finds out what other organizations spend on promotion and match it, either dollar-for-
dollar or in terms of market share?
a. industry parity
b. category match
c. meeting competition
d. market match
ANSWER: c

101. What method sets specific corporate goals and determines the appropriate promotional activities for each goal as the
two-step process used in developing the promotional budget?
a. marginal analysis
b. economies of scale
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c. the fixed-sum-per-unit
d. the task-objective
ANSWER: d

102. In measuring the effectiveness of promotional spending, marketers prefer the common method of direct-sales-results
testing. What does this testing measure?
a. the conversion rate of Internet shoppers
b. consumer attitudes about product value and performance
c. the impact of promotional spending on product revenue
d. the beginning of the AIDA strategy
ANSWER: c

103. Though difficult and costly, what is an assessment strategy needed for in a marketing plan?
a. creating advertising
b. measuring the effectiveness of advertising
c. defending criticisms of advertising ethics
d. creating selective perception
ANSWER: b

104. What does the simplest and least costly level of assessment of public relations effectiveness involve?
a. conducting extensive focus group assessments
b. counting the number of press releases distributed
c. measuring target audiences to see if the messages were received and understood
d. evaluating governmental response to public relation announcements
ANSWER: c

105. What is assessing an advertisement’s effectiveness before it is actually used called?

a. pretesting
b. post-testing
c. anticipatory evaluation
d. pre-assessment
ANSWER: a

106. What is the technique for assessing how well a particular medium delivers an advertiser’s message known as?
a. message research
b. media research
c. copy coverage research
d. effectiveness assessment
ANSWER: b

107. Which of the following is one of the tools of advertising pretesting?

a. unaided recall test
b. split runs
c. inquiry test
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d. aided recall test
ANSWER: d

108. Why is pretesting advantageous?

a. It assesses the advertisements immediately after they are used.
b. It adjusts current advertising programs.
c. It decreases costs as compared with alternative methods.
d. It lowers the chance of placing ineffective ads.
ANSWER: d

109. It is not uncommon for magazine publishers to run multiple print jobs of the same magazine, in which each job
contains changes in advertising copy to suit the target market requirements of various advertisers. In trade terms, what is
the publisher creating?
a. split runs of the magazine
b. circulation exceptions of the magazine
c. monthly issues of the magazine
d. exception runs of the magazine
ANSWER: a

110. Promotion is defined as affecting the consumer’s purchasing decision through information, persuasion, and
influence.
a. True
b. False
ANSWER: True

111. Communication is the transmission of messages from sender to receiver or, in the case of marketing
communications, the transmission of messages from seller to buyer.
a. True
b. False
ANSWER: True

112. IMC (integrated marketing communications) places responsibility for unifying promotional effort with sales
management because sales have the most direct impact on product revenues.
a. True
b. False
ANSWER: False

113. An IMC strategy sends product-focused messages.

a. True
b. False
ANSWER: False

114. Sending varied, diverse promotional messages is considered effective for stimulating and holding customer interest.
a. True
b. False
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ANSWER: False

115. It is not the goal of IMC (integrated marketing communications) to be concerned with the consumer’s loss of
attention.
a. True
b. False
ANSWER: False

116. An IMC (integrated marketing communications) strategy usually begins with the attributes of the goods and services
and moves to the customers’ wants and needs in creating a unified message.
a. True
b. False
ANSWER: False

117. IMC must not only deliver messages to intended audiences but also gather responses from them.
a. True
b. False
ANSWER: True

118. IMC (integrated marketing communications) broadens the concept of promotion to include all the ways a customer
has contact with the organization, adding packaging, store displays, and online advertising to traditional media.
a. True
b. False
ANSWER: True

119. The elements of the promotional mix can be developed independently and later combined into an IMC (integrated
marketing communications), as long as the message conveyed by each element is consistent.
a. True
b. False
ANSWER: False

120. Successful implementation of IMC (integrated marketing communications) requires that everyone involved—public
relations, advertising, personal selling, and sales promotion—function as independent entities.
a. True
b. False
ANSWER: False

121. An IMC strategy separates the promotional mix into parts and views them as isolated components.
a. True
b. False
ANSWER: False

122. What separates IMC (integrated marketing communications) from marketing communications and promotional
strategy is the use of database technology to further define the target audience and the best type of media needed to reach
it.
a. True
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b. False
ANSWER: True

123. When deciding on promotional messages, each marketing element, from media advertising to product rebates and
coupons, must go through every stage of the communication process.
a. True
b. False
ANSWER: True

124. The AIDA concept relates to the steps consumers must take in reaching a purchase decision.
a. True
b. False
ANSWER: True

125. The first step in the AIDA concept involves convincing the would-be buyer of the product’s ability to satisfy his or
her needs.
a. True
b. False
ANSWER: False

126. The AIDA concept recognizes that the consumers’ attention must first be achieved by a promotional message; then
they must become interested in what it says. Third, they must discover desire for the product to which it refers (or possibly
for more information about it), and finally they must take some sort of action to satisfy that desire.
a. True
b. False
ANSWER: True

127. Noise, which is largely uncontrollable in the communications process, is an effective way to screen out competitors’
information and is therefore welcome in the communication process.
a. True
b. False
ANSWER: False

128. A television commercial for MasterCard contains the phrase, “Life Takes MasterCard.” This is an example of an
encoded message.
a. True
b. False
ANSWER: True

129. The process of communicating promotional messages begins with encoding.

a. True
b. False
ANSWER: True

130. As long as marketers carefully choose their advertising slogans and images, targeted customers will encode the
message easily and consistently.
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a. True
b. False
ANSWER: False

131. Encoding, decoding, and feedback are all aspects of communication that are controllable by a company in the
promotion process.
a. True
b. False
ANSWER: False

132. Anything that interferes with the message in a communications process is known as static.
a. True
b. False
ANSWER: False

133. Noise can also result from distractions within an advertising message itself.
a. True
b. False
ANSWER: True

134. Because of the personal nature of decoding, an organization can do little to control misinterpretation of the messages
that it sends.
a. True
b. False
ANSWER: False

135. The promotional mix comprises the elements of product, price, promotion, and distribution.
a. True
b. False
ANSWER: False

136. Personal selling is an interactive communication that can occur face to face, over the telephone, through
videoconferencing, and via interactive computer links.
a. True
b. False
ANSWER: True

137. The promotional mix requires a carefully designed blend of variables to satisfy the needs of a company’s customers
and achieve organizational objectives.
a. True
b. False
ANSWER: True

138. The combination of the promotional tools of personal selling and nonpersonal selling is referred to as a firm’s
marketing mix.

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a. True
b. False
ANSWER: False

139. Nonpersonal, paid communications sent through various media channels is called advertising.
a. True
b. False
ANSWER: True

140. Product placements in movies and television programs have started to decline in recent years as fees for such
placements have increased dramatically.
a. True
b. False
ANSWER: False

141. Personal selling is the most novel form of promotion.

a. True
b. False
ANSWER: False

142. Product placement is not limited to movies and television programs as companies have started to use video games as
an opportunity to promote brands and to generate immediate sales.
a. True
b. False
ANSWER: True

143. The advantage of using sales promotions in the promotional mix is that they are long-term incentives that allow
repeated viewing of the marketing message by the consumer.
a. True
b. False
ANSWER: False

144. Companies spend as much on trade promotions each year as they do on advertising and consumer-oriented sales
promotion combined.
a. True
b. False
ANSWER: False

145. Sales promotion provides a long-term incentive to emphasize, assist, supplement, or otherwise support the objectives
of the promotional program.
a. True
b. False
ANSWER: False

146. Trade promotions are simply sales promotions aimed at marketing intermediaries.

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a. True
b. False
ANSWER: True

147. Due to its focused and controlled message, traditional advertising is usually more effective at reaching the niche
target market than direct marketing.
a. True
b. False
ANSWER: False

148. Direct marketing is used by both consumer and business-to-business marketers to generate orders and sales leads that
may result in future orders.
a. True
b. False
ANSWER: True

149. Public relations rely on formal corporate presentations designed to stimulate demand for products.
a. True
b. False
ANSWER: False

150. Compared to personal selling, advertising, and sales promotion, the amount spent on public relations is usually high
in most firms.
a. True
b. False
ANSWER: False

151. One of the advantages of guerrilla marketing is its ability to reach a wide audience.
a. True
b. False
ANSWER: False

152. Guerilla marketing is an expensive marketing technique.

a. True
b. False
ANSWER: False

153. The success of Unilever Canada’s “Real Beauty” campaign, which was viewed exclusively on the Internet, can be
attributed to viral marketing.
a. True
b. False
ANSWER: True

154. Advertising can deliver a message to a mass audience; however, measuring advertising effectiveness is often difficult
to do.

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a. True
b. False
ANSWER: True

155. A major advantage to personal selling is the low cost per contact.
a. True
b. False
ANSWER: False

156. One benefit of direct mail is that it can cover a narrow target market quickly.
a. True
b. False
ANSWER: True

157. Guerrilla marketing efforts are best suited to large companies that can afford the high costs associated with this type
of promotional technique.
a. True
b. False
ANSWER: False

158. Providing cash or other resources for a specific event or activity in exchange for a direct association with the event or
activity is known as sponsorship.
a. True
b. False
ANSWER: True

159. Sponsorships are a cost-effective way of gaining exposure for a product.

a. True
b. False
ANSWER: True

160. Escalating costs have made commercial sponsorships a less cost-effective promotional tool than advertising.
a. True
b. False
ANSWER: False

161. Traditional advertising may cost more than a sponsorship, but it is a better way for a marketer to create an individual
message containing an introduction, theme, and conclusion.
a. True
b. False
ANSWER: True

162. In sponsored events, event organizers control the coverage, which typically focuses on the sponsor.
a. True
b. False
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ANSWER: False

163. Sponsorships are viewed in a more positive light by audiences than traditional advertising.
a. True
b. False
ANSWER: True

164. Direct marketing is a promotional technique that is used primarily by business-to-business marketers.
a. True
b. False
ANSWER: False

165. Successful direct marketing should prompt consumers to take action.

a. True
b. False
ANSWER: True

166. The move toward integrated marketing communications is linked to the decline in direct marketing as a form of
promotion.
a. True
b. False
ANSWER: False

167. For a marketer, an advantage of direct mail is the higher response rate and the fact that results are measurable.
a. True
b. False
ANSWER: True

168. Institutional advertising is nonpersonal selling of a good or service marketed by an institution.

a. True
b. False
ANSWER: False

169. Corporate advertising is product promotion conducted by a for-profit organization, while institutional advertising is
conducted by a not-for-profit organization.
a. True
b. False
ANSWER: False

170. An ad promoting skiing in Alberta is an example of product advertising.

a. True
b. False
ANSWER: False

171. Sam watches an ad on TV for a new Sony flat-screen television. This ad is an example of product advertising.
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a. True
b. False
ANSWER: True

172. Informative advertising is most common for products in the introductory stage of the product life cycle.
a. True
b. False
ANSWER: True

173. Marketers of products in the late maturity or early declining stage of the product life cycle rely more heavily on
persuasive advertising than other types of advertising.
a. True
b. False
ANSWER: False

174. Persuasive advertising is a noncompetitive type of promotion used to develop demand for a good or service in its
introductory stage.
a. True
b. False
ANSWER: False

175. Reminder advertising is designed to keep a marketer’s name or product in front of the target market, and is often
used in the introductory stage of the product life cycle.
a. True
b. False
ANSWER: False

176. Advertisements are designed to inform, persuade, and remind the target market to which they are directed.
a. True
b. False
ANSWER: True

177. Comparative advertising makes direct comparisons of the advertiser’s product with dominant brands in its industry.
a. True
b. False
ANSWER: True

178. Market leaders are more likely to engage in comparative advertising.

a. True
b. False
ANSWER: False

179. The use of celebrities can improve product recognition and reduce the impact of advertising clutter.
a. True
b. False
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ANSWER: True

180. A celebrity who endorses too many products may create marketplace confusion.
a. True
b. False
ANSWER: True

181. When a sports equipment manufacturer agrees to pay a portion of a retail sports chain’s print advertisement, it is
participating in interactive advertising.
a. True
b. False
ANSWER: False

182. Cooperative advertising can strengthen vertical links in a marketing channel.

a. True
b. False
ANSWER: True

183. Interactive advertising is closer to personal selling than it is to traditional TV and print advertising.
a. True
b. False
ANSWER: True

184. Interactive advertising has changed the nature of advertising from a two-way to a one-way communication technique.
a. True
b. False
ANSWER: False

185. The actual strategy for creating an advertising message begins with the selection and scheduling of media choices.
a. True
b. False
ANSWER: False

186. The role of advertising is to communicate the attributes of the product that will place it in the desired position in the
marketplace.
a. True
b. False
ANSWER: True

187. An advertising campaign is a series of different but related ads that use a single theme and appear in different media
within a specified time period.
a. True
b. False
ANSWER: True

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188. Ellen DeGeneres has been featured in a series of American Express TV advertisements. These commercials, along
with others featuring personal moments with celebrities, end with the tag line, “My Life. My Card.” Coupled with the
corresponding print ads, these commercials are classified as part of an advertising campaign.
a. True
b. False
ANSWER: True

189. In recent years, the use of advertisements based on fear appeals has diminished as the result of public disdain for
these types of ads.
a. True
b. False
ANSWER: False

190. One of the challenging aspects of humourous ads is that what one person finds amusing may not be funny at all to
someone else.
a. True
b. False
ANSWER: True

191. Sex-based appeals can capture the viewer’s attention, which translates into higher ad content recall rates.
a. True
b. False
ANSWER: True

192. The development of the actual advertisement begins with the promotional theme that has been chosen by the
marketers.
a. True
b. False
ANSWER: True

193. Advertising often fails when the audience is not informed about how to purchase the advertised products.
a. True
b. False
ANSWER: True

194. Using advertisement to stimulate buying action is often difficult because an advertisement alone cannot actually
close a sale.
a. True
b. False
ANSWER: True

195. Marketers are not satisfied with an advertisement that gains attention, informs, or persuades. They want only an ad
that can produce measurable sales results.
a. True
b. False
ANSWER: False
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196. In print advertising, headlines and illustrations are intended to impart information, while the signature informs and
stimulates buying action.
a. True
b. False
ANSWER: False

197. Some of the major advantages of Web advertising are speed, provision of information, and two-way communication.
a. True
b. False
ANSWER: True

198. Interstitials and advertorials are essentially the same thing except that advertorials pop up in a separate browser
window.
a. True
b. False
ANSWER: False

199. Banners or advertisements that appear on a website that link to an advertiser’s site are the least common type of
advertising on the Web today.
a. True
b. False
ANSWER: False

200. Missiles are online games created by marketers that promote products to targeted audiences in an interactive way.
a. True
b. False
ANSWER: False

201. Media selection is a five-step process that includes identifying the target market, matching the target with the
appropriate media, estimating necessary media coverage without waste, and a comparison of alternative media options
before the final purchase decision is made.
a. True
b. False
ANSWER: True

202. TD Bank advertises its investment services in TV commercials, radio ads, and highway billboards. All three of these
formats are considered broadcast media.
a. True
b. False
ANSWER: False

203. The objective of media selection is to reach the target audience without advertising beyond the identifiable limits of
the potential market.
a. True
b. False
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ANSWER: True

204. The attractiveness of television advertising is that advertisers can reach local and national markets.
a. True
b. False
ANSWER: True

205. A recent trend in television advertising is the abbreviated spot—a 14- or 30-second ad—that costs less to make and
buy, and is too quick for most viewers to zap with their remote control.
a. True
b. False
ANSWER: True

206. One of the newest trends in television advertising is virtual ads: streaming headlines that run across news and
sporting events and mini-commercials that air before a consumer can change the channel.
a. True
b. False
ANSWER: True

207. A recent study shows that DVRs have no impact at all on purchasing patterns.
a. True
b. False
ANSWER: False

208. Print media includes newspapers, magazines, outdoor advertising, and direct mail.
a. True
b. False
ANSWER: True

209. Radio advertising has become one of the fastest-growing media alternatives as a result of the increase in the number
of commuters and the need for immediate information and entertainment.
a. True
b. False
ANSWER: True

210. Radio is less flexible, more costly per listener, and less segmented than target markets available through television.
a. True
b. False
ANSWER: False

211. A primary advantage of newspapers is flexibility because advertising can vary from one locality to the next.
a. True
b. False
ANSWER: True

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212. Magazines offer the advantages of good colour reproduction, ability to target specific audiences, and flexibility in
modifying the message on short notice.
a. True
b. False
ANSWER: False

213. Magazines can be divided into two broad categories: consumer magazines and business magazines.
a. True
b. False
ANSWER: True

214. Advantages of direct mail include speed, flexibility, and the ability to practise market segmentation.
a. True
b. False
ANSWER: True

215. Consumer attitude toward junk mail has vastly improved in recent years.
a. True
b. False
ANSWER: False

216. Outdoor advertising is especially effective for communicating quick and simple ideas, providing repeated exposure
to a message, and promoting locally available products.
a. True
b. False
ANSWER: True

217. Compared to other forms of advertising, outdoor advertising is not subject to clutter.
a. True
b. False
ANSWER: False

218. Keyword ads dominate online advertising and represent less than 25 percent of annual online spending
internationally.
a. True
b. False
ANSWER: False

219. With respect to planning media schedules, the term “reach” refers to the number of different people or households
exposed to an advertisement at least once during a certain time period, typically four weeks.
a. True
b. False
ANSWER: True

220. In media scheduling, “frequency” refers to the number of times an individual person is exposed to an advertisement

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during a certain time period.
a. True
b. False
ANSWER: True

221. Multiplying an advertisement’s reach by its frequency yields a figure describing the total weight of a media effort
called the campaign’s “gross rating point.”
a. True
b. False
ANSWER: True

222. Over the years, experience has developed a standardized media schedule for each product category that is followed
by most firms, especially the market leaders.
a. True
b. False
ANSWER: False

223. “Public relations” is the relationship a firm has with organizations or individuals with whom interaction may occur.
This includes society at large.
a. True
b. False
ANSWER: True

224. Due to increased public pressure, public relations now plays a much smaller role within the promotional mix.
a. True
b. False
ANSWER: False

225. The Internet has allowed public relations representatives to have more direct access to the public and greater control
over their messages.
a. True
b. False
ANSWER: True

226. Non-marketing public relations refers to a company’s messages about general management issues.
a. True
b. False
ANSWER: True

227. Nonpersonal stimulation of demand for a company’s product by unpaid placement of significant news regarding the
product in some media is known as publicity.
a. True
b. False
ANSWER: True

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228. Publicity is frequently used to promote a corporate image or point of view, but does not serve the purpose of
providing information about goods and services.
a. True
b. False
ANSWER: False

229. Publicity is the aspect of public relations that is most directly related to promoting a firm’s products and services.
a. True
b. False
ANSWER: True

230. Cross-promotion involves training employees across various functional areas to provide promotional ideas.
a. True
b. False
ANSWER: False

231. When a fast-food restaurant chain joins with a movie studio to promote a new film, it is an example of cross-
promotion.
a. True
b. False
ANSWER: True

232. In Canada, the Competition Act regulates deceptive ads relating to pricing.
a. True
b. False
ANSWER: True

233. In Canada, Advertising Standards Canada is a government body that oversees the advertising industry to ensure that
consumer rights are being served.
a. True
b. False
ANSWER: False

234. An effective promotion mix depends on certain variables that include the nature of the market, characteristics of the
product, product life cycle, product price, and company’s promotional resources.
a. True
b. False
ANSWER: True

235. When there are a large number of potential customers scattered over a sizable geographic area, a marketer is likely to
use personal selling as the key element in the promotional mix.
a. True
b. False
ANSWER: False

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236. The promotional mix for highly standardized consumer products tends to rely more on advertising than on personal
selling.
a. True
b. False
ANSWER: True

237. A manufacturer is introducing a new contact lens solution to the marketplace. The strategy that would work best for
this product is to advertise heavily in trade magazines to get intermediaries to purchase the product, publish articles in
journals of medicine to reach doctors, and use personal selling between the doctor and consumer to sell the product.
a. True
b. False
ANSWER: False

238. Each stage of the product life cycle requires re-evaluation of the promotional mix.
a. True
b. False
ANSWER: True

239. The cost of supporting a sales force constitutes a significant expense for a company, which is why personal selling is
the best option when the product is expensive.
a. True
b. False
ANSWER: True

240. The most effective promotional budgeting occurs at the point at which each additional promotional dollar spent is
matched by a dollar of revenue.
a. True
b. False
ANSWER: True

241. In its second year of operation, Dean’s Specialty Foods earned $1 million in sales revenues, with $100,000 in
promotional expenses. Dean’s is budgeting an additional $30,000 in expenditures for the coming year in anticipation of
sales revenues rising to $1.3 million. The budget process used by Dean’s is called the percentage-of-sales method.
a. True
b. False
ANSWER: True

242. Marketers require flexibility in determining the promotion mix expenditures for their products; therefore, allocating a
fixed amount of promotional dollars for each product would never be considered.
a. True
b. False
ANSWER: False

243. The problem with simply matching competitors’ promotional expenditures is that what may be appropriate for one
company may not be for another.
a. True
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b. False
ANSWER: True

244. Nike spends $750 million on promotional activity for 50 percent of the domestic athletic shoe market. Reebok, at 17
percent of the market, decides to increase its share to 23 percent by increasing its promotional activity. Reebok estimates
that Nike spends $150 million dollars for each 10 percent increment in market share. Reebok increases its current budget
by $75 million to capture the extra 5 percent of the market. Budgeting in this manner is called the meeting-competition
method.
a. True
b. False
ANSWER: True

245. The statement “Promotional expenses average 6 percent of sales in our industry” would be relevant if using the
fixed-sum-per-unit method.
a. True
b. False
ANSWER: False

246. The most realistic budgeting method is the task-objective method since it allocates promotional dollars based on
realistic communication objectives and the selection of the appropriate promotional activity required to meet those
objectives.
a. True
b. False
ANSWER: True

247. Setting specific sales objectives and determining how much to spend to achieve those objectives is the sales-
objective method of promotional budgeting.
a. True
b. False
ANSWER: False

248. The effectiveness of promotional spending is best determined by the methods of direct sales results tests and indirect
evaluations.
a. True
b. False
ANSWER: True

249. Although marketers consistently measure the sales results against the promotional expenditures, this does not
necessarily give the full picture because extraneous variables are not incorporated into the equation.
a. True
b. False
ANSWER: True

250. Cost-per-impression and click-through rates are measures of the number of people who have seen the product name
and possibly the whole advertisement. However, neither measurement can determine to what extent the advertisement
motivated consumers to actually buy the product.

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a. True
b. False
ANSWER: True

251. Conversion rate is the measure of how many consumers view an advertisement and actually make an effort to find
out more information about the product.
a. True
b. False
ANSWER: False

252. As long as companies vary the media used for promotional messages, measuring the effectiveness of promotion is
usually not worth the expense.
a. True
b. False
ANSWER: False

253. Assessing promotional effectiveness starts with an evaluation of the different promotional options in an attempt to
prevent mistakes before large monetary outlays are made.
a. True
b. False
ANSWER: True

254. Message research assesses how well a particular medium delivers messages.
a. True
b. False
ANSWER: False

255. Pretesting evaluates the likely effectiveness of an advertisement before it appears in the selected medium.
a. True
b. False
ANSWER: True

256. Post-testing is more desirable than pretesting because it can avoid the cost of placing ineffective ads.
a. True
b. False
ANSWER: False

257. Post-testing can be helpful in adjusting current advertising programs.

a. True
b. False
ANSWER: True

258. Unaided recall tests are used to see which advertisements audience members or readers can remember when shown
portions of the advertisements later.
a. True
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b. False
ANSWER: False

259. Split runs allow advertisers to test two or more ads at the same time by placing different versions in newspapers and
magazines.
a. True
b. False
ANSWER: True

260. Unlike other forms of marketing communications, organizations cannot measure public relations results.
a. True
b. False
ANSWER: False

261. Click-throughs measure the number of times a viewer sees an ad.

a. True
b. False
ANSWER: False

262. The use of cookies or small text files that are automatically downloaded to a user’s computer whenever a site is
visited is an ethical issue that surrounds online advertising.
a. True
b. False
ANSWER: True

263. Discuss the role that integrated marketing communications (IMC) plays in the development of a promotional mix.
ANSWER: IMC is a new approach to developing an optimal promotional mix. It requires that all promotional activities—
media advertising, direct mail, personal selling, sales promotion, and public relations—are coordinated to
produce a unified promotional message that is customer focused. Such cooperation frequently results in a
competitive advantage for its users in their efforts to reach and serve their target market.

Successful implementation of IMC depends on the people involved in the various elements of the promotional
mix functioning as a team. They must present a consistent, coordinated promotional effort at every point of
customer contact with the organization.

Finally, IMC uses database technology to more fully understand the wants and needs of the target audience.
Using this level of detail can help a company find new opportunities to increase sales and profits by analyzing
the characteristics of each prospective buyer.

264. Explain the communication process. What are the three tasks that an effective message should accomplish?
ANSWER: In the communication process, the sender acts as the source in the communication system as he or she seeks to
convey a message (a communication of information, advice, or a request) to a receiver.

The communication process begins with encoding the message—that is, translating it into understandable
terms and transmitting it through a communications channel. Decoding is the receiver’s interpretation of the
message. The receiver’s response, known as feedback, completes the system. Throughout the process, noise
can interfere with the transmission of the message and reduce its effectiveness. An effective message

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accomplishes three tasks:

1. It gains the receiver’s attention.

2. It achieves understanding by both receiver and sender.

265. It stimulates the receiver’s needs and suggests an appropriate method of satisfying them.

PTS: 1 DIF: 3 REF: 399 OBJ: 14-1

NOT: AACSB Analytic | TB&E Model Promotion

3. Explain the AIDA concept.

ANSWER: a. The prospect’s attention must be gained.
b. The promotional message seeks to arouse interest in the product or service.
c. Desire is stimulated by convincing the prospect of the product’s utility.
d. The sales presentation, advertisement, or sales promotion technique attempts to produce action in the form
of a purchase or a more favourable attitude that may lead to future purchases.

Attention, Interest, Desire, Action = AIDA

266. Discuss the transmission process for marketing messages. How can noise interfere with the transmission?
ANSWER: Messages must be encoded, or translated into understandable terms, and transmitted through a
communications channel. Decoding is the receiver’s interpretation of the message. The challenge for the
marketer is to encode a message in a way that matches the frame of reference of the target audience. The
receiver’s response, known as feedback, completes the system. Throughout the process, noise (in such forms
as ineffective promotional appeals, inappropriate advertising media, or poor radio or television reception) can
interfere with the transmission of the message and reduce its effectiveness.

267. Discuss the importance of feedback in the communication process in the context of promotional messages.
ANSWER: The receiver’s response to a promotional message is known as feedback. It completes the communication
process. Feedback lets marketers evaluate the effectiveness of the message and tailor their responses
accordingly. It may take the form of attitude change, a purchase, or a nonpurchase. Even a nonpurchase is a
feedback because failure to purchase may result from ineffective communication.

268. What are the components of the promotional mix? Provide a description for each.
ANSWER: The components of the promotional mix are personal selling and nonpersonal selling. Personal selling, which
is conducted on a person-to-person basis with the buyer, may be accomplished face to face, by telephone,
through videoconferencing, or by means of interactive computer links. Nonpersonal selling includes
advertising, sales promotion, trade promotion, direct marketing, public relations, and publicity. There is no
direct interaction between buyer and seller in nonpersonal selling.

269. Define nonpersonal selling. Discuss advertising as a type of nonpersonal selling.

ANSWER: Nonpersonal selling is defined as promotion that includes advertising, product placement, sales promotion,
direct marketing, public relations, and guerilla marketing—all conducted without being face-to-face with the
buyer.

Advertising is any paid, nonpersonal communication through various media about a business firm, not-for-
profit organization, product, or idea by a sponsor identified in a message intended to inform, persuade, or
remind members of a particular audience. Mass consumption and geographically dispersed markets make
advertising particularly appropriate for marketing goods and services aimed at large audiences likely to
respond to the same promotional messages. Advertising primarily involves the mass media, such as
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newspapers, television, radio, magazines, movie screens, and billboards, but it also includes electronic and
computerized forms of promotion such as Web commercials, streaming videos, and TV monitors at
supermarkets.

270. Why do marketers sometimes use guerrilla marketing? What are some of the drawbacks of using a guerrilla
marketing strategy?
ANSWER: Guerrilla marketing is used by firms that lack the necessary funds for a traditional promotional campaign.
Often, these firms cannot afford the huge costs of print and broadcasting, so they try to find an innovative,
low-cost way of reaching their market.

Guerrilla marketing may not reach as many people as other forms of promotion, such as direct marketing or
advertising. Further, if the tactics used are too outrageous, some potential customers may be offended.

271. Discuss sponsorship and why it is an attractive alternative to traditional advertising.

ANSWER: Sponsorship involves providing cash or other resources to support an event in exchange for a direct
association with the event or activity. Examples include sponsorship of sports, cultural, and cause- related
programs. Sponsorship creates exposure and builds goodwill between the sponsoring organization and those
who enjoy such events, in the expectation that those who enjoy the event will then view the sponsoring
organization more favourably and purchase the sponsor’s products and services. Sponsorship is an attractive
alternative to traditional advertising because

a. Higher costs in traditional advertising make sponsorships a cost-effective choice.

b. Greater media coverage of events provides more exposure for the sponsor.
c. An increasingly global media provides opportunities for international exposure.
d. Sponsorship represents an effective way to generate goodwill and strengthen sales.
e. Consumers react differently, often more favourably, to sponsorships than to traditional advertising.
f. Sponsorships of stadiums, theatres, and other fixed assets can create a form of permanent advertising for a
company.
g. Companies can support events or teams that have the same image as their brand.

272. Discuss product advertising, institutional advertising, and corporate advertising.

ANSWER: 1. Product advertising is nonpersonal selling of a particular good or service. This is the type of advertising the
average person usually thinks of when talking about most promotional activities.
2. Institutional advertising promotes a concept, idea, philosophy, or goodwill of an industry, company,
organization, person, geographic location, or government agency. This definition is much broader than that of
product advertising.
3. Corporate advertising is narrower than institutional advertising, referring to non-product advertising by a
profit-seeking firm. Thus, it may include many of the concepts promoted by institutional advertising, but the
source must be profit-seeking.

273. Discuss the three primary objectives of advertising.

ANSWER: Marketers use advertising messages to accomplish three primary objectives: to inform, to persuade, and to
remind. These objectives may be used individually or, more typically, in conjunction with each other.

Informative advertising is promotion that seeks to develop initial demand for a good, service, organization,
person, place, idea, or cause. The success of a new market entry often depends simply on announcing its
availability or explaining its benefits. Persuasive advertising is promotion that attempts to increase demand for
an existing good, service, organization, person, place, idea, or cause. Reminder advertising is advertising that
reinforces previous promotional activity by keeping the name of a good, service, organization, person, place,
idea, or cause before the public.
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Informative advertising tends to work best during the early stages, while reminder advertising is effective later
on. Persuasive advertising, if done well, can be effective through the entire lifecycle.

274. What is comparative advertising and who are its users?

ANSWER: Comparative advertising is an advertising strategy that emphasizes messages with direct or indirect
promotional comparisons between competing brands. Comparative advertising is generally used by companies
not selling the dominant brand in the industry or firms whose products are not the leaders in their markets. By
contrast, advertising by market leaders seldom acknowledges that competing products even exist, and when
they do, they do not point out any benefits of the competing brands.

275. Define retail advertising. Discuss how cooperative advertising benefits the parties involved in it?
ANSWER: Advertising by stores that sell goods or services directly to the consuming public is called retail advertising.
Cooperative advertising is a retail advertising strategy where the manufacturer shares the advertisement cost
with the retailer in return for product displays over and above the stocked shelf, or more importantly, for joint
promotion of the manufacturer’s product in the retailer’s circular, newspaper ad, or TV commercials. It
benefits both the retailer and the manufacturer. Retailers who might not otherwise afford frequent print media
or TV advertising now have an opportunity when expenses are pooled with that of the manufacturers’.
Through this interaction between manufacturers and intermediaries, vertical relationships are strengthened.

276. What is an advertising campaign? How do you think current technology might help a marketer with the success of an
advertising campaign?
ANSWER: An advertising campaign is a series of different but related ads that use a single theme and appear in different
media within a specific time period. The ads can include TV, radio, magazine, newspaper, and electronic
media. Current Internet technology allows consumers to capture and transmit catchy advertisements
informally. The advantage of this is no cost to the marketer for the extra exposure that the commercial is
receiving. YouTube alone can provide tens of thousands of additional exposures.

277. Discuss fear and humour as types of advertising appeals. Give examples of advertisements that make use of either or
both types of appeals.
ANSWER: Selecting the tone of an advertisement is a critical decision in the creation of memorable ads that possess the
strengths needed to accomplish promotional objectives. In recent years, marketers have relied increasingly on
fear appeals. Ads for insurance, autos, and even batteries imply that the wrong buying decision could lead to
property loss, injury, or other bad outcomes. Fear appeals can backfire, however.
Viewers are likely to practice selective perception and tune out statements they perceive as too strong or not
credible. A humourous ad seeks to create a positive mood related to a firm’s goods or services, but advertising
professionals differ in their opinions of the ads’ effectiveness. Some believe humour distracts attention from
brand and product features; consumers remember the humour but not the product. Humourous ads, because
they are so memorable, may lose their effectiveness sooner than ads with other kinds of appeals. In addition,
humour can be tricky because what one group of consumers finds funny may not be funny at all to another
group.

Students’ examples will vary.

278. Discuss the major types of advertising media.

ANSWER: The major types of advertising media are:
1. Television: It offers mass coverage and flexibility, but at a high cost for a temporary message.
2. Radio: It gives immediacy at a low cost, but for a temporary message.
3. Newspapers: They are flexible, offer community prestige and intensive coverage, but have a short life span
and relatively poor reproduction quality.
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4. Magazines: They are selective, target well-defined segments, have a long life, and offer many extra services
to their advertisers, but at the expense of flexibility.
5. Outdoor advertising: It conveys quick and simple ideas through brevity of message and repetition.
6. Direct mail: It offers selectivity, intensive coverage, speed, flexibility, and personalization.
7. Interactive: It is the new medium offering audience involvement, creativity, and the ability to deliver
lengthy messages.

TS: 1

279. Compare and contrast marketing public relations with nonmarketing public relations.
ANSWER: Nonmarketing public relations refers to a company’s messages about general management issues. When a
company makes a decision that affects any of its publics, input from PR specialists can help smooth its
dealings with those publics. Companies that have a plan of action and can effectively handle a crisis by
generating positive public relations generally can survive these types of crises. In contrast, marketing public
relations (MPR) refers to focused PR activities that directly support marketing goals. MPR involves an
organization’s relationships with consumers or other groups about marketing concerns and can be either
proactive or reactive.

TS: 1

280. How does publicity differ from public relations? List the advantages and disadvantages of both.
ANSWER: Public relations is a firm’s communications and relationships with its various publics. Publicity is the
marketing-oriented aspect of public relations.
The advantages of public relations and publicity include creating a positive attitude toward a product or
company and enhancing credibility. One drawback includes not being able to accurately measure the effect on
sales.

281. Define cross-promotion. Explain why it is used. Give examples of cross-promotion.

ANSWER: Cross-promotion is a promotional technique in which marketing partners share the cost of a promotional
campaign that meets their mutual needs. It helps build relationships and is also a response to the rising cost of
media campaigns. Marketers realize these joint efforts between established brands provide greater benefits in
return for both organizations; investments of time and money on such promotions will become increasingly
important to many partners’ growth prospects. Two types of cross promotion are co-branding and co-
marketing.
Students’ examples will vary.

282. Identify the five variables that impact a company’s decision about which elements (personal selling and nonpersonal
selling) will be used in the promotional mix.
ANSWER: Nature of the market: A large, geographically dispersed consumer audience is best reached through
advertising. A small number of consumers, industrial and business customers, professionals, institutions, and
organizations are best reached through personal selling.

Nature of the product: A standardized, low-tech, low-cost product with broad appeal and minimal servicing
requirements is best promoted through advertising. Business products, high-ticket products, technically
complex, custom-made, or products requiring servicing, trade-ins and installation are promoted best through
personal selling. In general, a convenience product requires advertising, shopping products require personal
selling, and specialty products require both personal selling and advertising.

Stage of the product life cycle: With consumer products, as the product moves through its life cycle,
advertising starts out high and general and begins to peak in the growth and maturity stage in which
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differentiation through advertising is most important. Advertising begins to taper off in the decline stage
unless the company can breathe new life into the product with modifications or repositioning in the
marketplace.

Price: In general, the lower the product’s per-unit-cost, the more advertising is required because it is too costly
to staff sales personnel for low-cost items. As the price of the product increases, personal selling becomes
more important.

Funds available for promotion: A barrier to any promotional mix choice is the amount of money that a
company can budget to promotion. Large budgets can use advertising in addition to endorsements and
sponsorships. Low-budget marketers might employ more guerrilla marketing.

283. What are the four most common methods of developing a promotional budget?
ANSWER: The percentage-of-sales method, perhaps the most common method, allocates a percentage of
a.
either actual past sales or forecast future sales to the current year’s promotional effort.
The fixed-sum-per-unit method dedicates a certain sum of money to be spent on promotion
b.
for each unit sold in the past period or each unit forecast to be sold in the present period.
The approach of meeting competition either matches competitors’ expenditures for promotion
c.
dollar for dollar or on a market share basis.
The task-objective method develops a promotional budget based on an evaluation of the
d. firm’s promotional objectives by defining realistic communications goals and determining the
amount and type of activity needed to meet those goals.
None of these methods meets the ideal of marginal analysis, which would spend money effectively on
promotion until each dollar spent is realized as a dollar in profits.

284. List and describe the major types of post-tests used to evaluate advertising effectiveness.
ANSWER: The major types of post-tests used to evaluate advertising effectiveness are:

1. Readership tests: Readership tests interview people who have read selected magazines to determine whether
or not they have observed various printed ads. The magazine is actually used in the interview process. The
assumption is that recognition will lead to future sales.
2. Unaided recall tests: With unaided recall tests, respondents do not see the magazine after the initial read-
through. They are asked questions to determine ad recall.
3. Inquiry tests: Inquiry tests are based on actual responses to an ad's offer of a gift. The number of responses
is used as a measure of the effectiveness of the advertisement.
4. Split run tests: Split run tests run different versions of ads in the same newspaper or cable program aired or
distributed in different markets. The other three methods listed above are then used to evaluate the
effectiveness of the different ads.

Match each item to the statement or sentence listed below.

a. noise
b. advertising
c. promotion
d. publicity
e. sales promotion
f. guerrilla marketing
g. posttesting
h. split runs
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i. cooperative advertising
j. marketing public relations
k. media scheduling
l. pretesting
m. informative advertising
n. persuasive advertising
o. retail advertising
p. missiles
q. cross-promotion
r. interactive advertising
s. sponsorship
t. institutional marketing

285. The function of informing, persuading, and influencing the consumer’s purchase decision is known as _____.
ANSWER: c

286. Ineffective promotional appeals, inappropriate advertising media, or poor radio or television reception that interferes
with the transmission of the message and reduce its effectiveness are examples of _____ in a communication channel.
ANSWER: a

287. Paid, nonpersonal communication through various media about a business firm, not-for-profit organization, product,
or idea by a sponsor identified in a message intended to inform or persuade members of a particular audience is called
_____.
ANSWER: b

288. Marketing activity other than personal selling, advertising, guerrilla marketing, and public relations that stimulates
consumer purchasing and dealer effectiveness is called _____.
ANSWER: e

289. Nonpersonal stimulation of demand for a good, service, person, cause, or organization through unpaid placement of
significant news about it in a published or broadcast medium is called _____.
ANSWER: d

290. is an unconventional, innovative, and low-cost marketing techniques designed to get consumers’ attention in unusual
ways.
ANSWER: f

291. Relationship in which an organization provides funds or in-kind resources to an event or activity in exchange for a
direct association with that event or activity is called a(n) _____.
ANSWER: s

292. Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person,
geographic location, or government agency is called _____.
ANSWER: t

293. Promotion that seeks to develop initial demand for a good, service, organization, person, place, idea, or cause is
called _____.
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ANSWER: m

294. Promotion that attempts to increase demand for an existing good, service, organization, person, place, idea, or cause
is called _____.
ANSWER: n

295. Advertising by stores that sell goods or services directly to the consuming public is called _____.
ANSWER: o

296. A strategy in which a retailer shares advertising costs with a manufacturer or wholesaler is known as _____.
ANSWER: i

297. involves two-way promotional messages transmitted through communication channels that induce message recipients
to participate actively in the promotional effort.
ANSWER: r

298. Banners have evolved into a more target-specific technique for Internet advertising with the advent of _____ which
are messages that appear on the screen at exactly the right moment.
ANSWER: p

299. Setting the timing and sequence for a series of advertisements is called _____.
ANSWER: k

300. Focused public relations activities that directly support marketing goals are called _____.
ANSWER: j

301. Promotional technique in which marketing partners share the cost of a promotional campaign that meets their mutual
needs is known as _____.
ANSWER: q

302. Research that evaluates an ad during its development stage is called _____.
ANSWER: l

303. Research that assesses advertising effectiveness after it has appeared in a print or broadcast medium is called _____.
ANSWER: g

304. are methods of testing alternate ads by dividing a cable TV audience using two different ads, and then evaluating the
relative effectiveness of each.
ANSWER: h

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