Chapter 1 2 3 7 Quizzes PDF

# Chapter 1: 1. There are four fundamental assumptions of free-market economics that a market-driven society strives to achieve. What statement most closely matches the assumption of self-interest? - A wide range of sellers ensures that if one company does not meet customer needs, another will...

# Chapter 1: 1. There are four fundamental assumptions of free-market economics that a market-driven society strives to achieve. What statement most closely matches the assumption of self-interest? - A wide range of sellers ensures that if one company does not meet customer needs, another will capitalize on the situation by producing a more market-responsive product. - The outcome of efficient competition is better quality products at lower prices. - People usually want more for less, and successful companies strive to earn revenue. - The effects of advertising, when executed correctly, may be dramatic. - The marketing strategy will help determine who the targets of advertising should be, in what markets the advertising should appear, and what goals the advertising should accomplish. 2. After World War II, advertising grew rapidly, and in time achieved its current status as the largest advertising medium in terms of revenues. - digital - TV - radio - word-of-mouth - print 3. The modern practice of coordinating and integrating brand messages across all consumer contact points is called - product differentiation. - integrated marketing communication. - positioning strategy. - marketing segmentation. - unique selling proposition. 4. What is a characteristic of advertising? - unstructured - personal communication - free - non-mediated - directed to target audiences 5. A strategy of product differentiation allows manufacturers to separate a particular brand from its competitors by associating that brand with a particular set of needs that rank high on the consumer's priority list. - False - True 6. ESPN on cable television is an example of narrowcasting. - True - False 7. Which is the best example of a good? - a medical examination - a blood pressure test - a thermometer - membership in a health club - a physical therapy session 8. Complete information, one of the four fundamental assumptions of free market economics that a market-driven society strives to achieve, refers to the idea that society benefits from having a wide range of sellers and buyers. - False - True 9. In the 1960s, Volkswagen launched an ad campaign, “Think small," emphasizing its difference from large, road-hogging, American car brands. What kind of strategy was Volkswagen most likely using? - market differentiation - positioning - product allocation - demarketing - deceptive advertising 10. The advertising profession has struggled with issues of truthfulness and ethics. During what time period did the simmering resentment finally boil over into a full-blown consumer movement, which led to government regulation and ultimately to industry efforts at self-regulation? - early-2000s - mid-1800s - late-1900s - early 1900s - mid-1900s # Chapter 2: 1. What economic principle best demonstrates the importance of advertising? - opportunity cost principle - normative theory - theory of supply and demand - utilitarian principle - abundance principle 2. The U.S. has established stricter guidelines regarding advertising to children than any other country. - False - True 3. Advertising adds value to a brand by educating customers about new uses for a product. - True - False 4. Under current advertising law, the only product claims - explicit or implied - that can be considered deceptive are those that: - contain puffery. - include subliminal messages. - are factually false or convey a false impression. - do not contain complete information. - are biased. 5. What was the result of the 1998 settlement between the tobacco industry and U.S. states? - Cigarette advertisements in magazines were prohibited. - The Children's Advertising Review Unit was established. - Tobacco promotions were eliminated at all sporting events. - The use of puffery in all tobacco advertising was forbidden. - The use of cartoon characters in cigarette ads was banned. 6. A small glass manufacturer, attempting to gain market share rapidly, introduced a new “shatterproof” windshield last year. Although the company did not have research or evidence supporting its “shatterproof" claim, the company advertised the windshields as such. This is an example of \_\_\_\_\_\_\_\_\_\_\_ advertising. - deceptive - subliminal - unethical - corrective - comparative 7. An advertisement that makes a vague, emotional claim about a product is considered deceptive advertising. - False - True 8. The European General Data Protection Regulation (GDPR) provides strong consumer protections for how personal data is collected and shared. Since the law only applies to European companies, U.S. companies have not changed their policies to conform. - False - True 9. When PETA ran a billboard in 2009 with the headline "Save the Whales" and an image of an overweight woman, the advertisement was criticized for promoting fatphobia. Advertisements like this are often challenged by \_\_\_\_\_\_\_\_\_\_\_ that actively work to protect consumer rights by investigating advertising complaints received from the public and those that grow out of their own research. - lobbying groups - privacy rights groups - consumer advocate groups - federal regulatory committees - anti-advertising agencies 10. The \_\_\_\_\_\_\_\_\_\_\_ protects all copyrighted material, including advertising, in the United States. - Federal Trade Commission - Library of Congress - U.S. Copyright Office - Department of Commerce - Better Business Bureau # Chapter 3: 1. Larry works at Damico & Sons Advertising Group and is responsible for producing dealer ads, window posters, point-of-purchase displays, and dealer sales materials. Larry most likely works in the \_\_\_\_\_\_\_\_\_\_\_ department. - Sales promotion - Media planning - Graphics - Traffic - Production 2. If profit margins in entrepreneurial agencies are often slimmer, what allows them to succeed? - They search for larger agencies to hire them as subcontractors. - They offer the hands-on involvement of the firm's principals, and their work is extraordinarily creative. - They have carved a niche for themselves by exclusively serving domestic businesses. - They only work with clients who sell to other businesses. - Since they earn fewer commissions, they increase their client fees to enhance their profits. 3. Why is local advertising so critically important? - Local advertisers want total control, so it's important to remain separate from national campaigns. - Most consumer sales are made locally, so it's important to develop lasting customer relationships. - Most consumer sales are made nationally, so it's important to create follow-up local ads. - Local advertisers depend on national advertising for their knowledge of the market. - National companies compete against a few competitors, so their focus is gross sales, but local companies battle for market share. 4. When it comes to advertising in social media, it has been argued that local advertisers have a disadvantage over national advertisers because they share a community with their customers. - False - True 5. Marisol wrote the copy for a brochure to sell timeshares. Ron used Marisol's copy to design the brochure, so the verbal and visual symbols would work together. Ron is most likely a(n) - Account executive - Sales promotion specialist - Copywriter - Media director - Art director 6. EZ-Green Lawn Care sends a ready-made advertisement to a regional newspaper published in Columbia, Missouri. The newspaper publisher inserts the name, address, and phone number of a local business that carries EZ-Green's line of high-end lawn care tools, grass seed, and garden supplies. EZ-Green pays 75 percent of the cost of running the ad. The local business pays the other 25 percent. This is an example of centralized advertising. - False - True 7. Institutional advertising promotes a specific service or product and stimulates short-term action. - False - True 8. Allie just finished working on a social media ad campaign targeting young consumers who prefer comparing and purchasing their fitness equipment online. Allie most likely works in an interactive agency. - True - False 9. What is the job title used for the individual in the ad agency who defends the consumer's point of view and the creative strategy in the debate between the agency's creative team and the client? - Department administrator - Media planner - Account executive - Account planner - Web designer 10. The \_\_\_\_\_\_\_\_\_\_\_ protects all copyrighted material, including advertising, in the United States. - Federal Trade Commission - Library of Congress - U.S. Copyright Office - Department of Commerce - Better Business Bureau # Chapter 7: 1. Aaron is charged with developing a positioning strategy for a new cologne from Calvin Klein. To reach the cologne’s target audience and set it apart from competitors, he'd like to use pop singer Charlie Puth as a spokesperson for the cologne. Which approach is Aaron most likely using in his positioning strategy development? - Product class - Product user - Cultural symbol - Price/quality - Use/application 2. Pure Necessities produces a line of natural home cleaning products. It just developed an easy-to-use hardwood floor cleaner that thoroughly disinfects the floor without leaving any sticky residue or dulling of the woodgrain. If Pure Necessities follows the common practice for firms with a new product, which method of allocating funds will it most likely use? - Percentage-of-sales - Budget buildup - Share-of-market/voice - Objective/task - Unit of sale 3. What is the principal benefit of integrated marketing communications (IMC)? - The quality of service it provides to stakeholders - The cost benefit it provides - The synergy it creates - The technological know-how it creates - The flexibility it provides 4. What statement is true about the marketing plan? - It reflects the goals of the advertising department. - It should be as long and detailed as possible. - It can be long and complex or very brief. - It does not factor in the customer. - It provides general strategies for achieving goals. 5. Plants Over Pork is introducing fresh, not frozen, plant-based breakfast sausage into supermarket meat cases. After creating awareness for the product, the company wants to communicate that the product has a classic breakfast sausage taste, is healthier than regular sausage, and is produced sustainably. The message that the company wants to communicate represents the \_\_\_\_\_\_\_\_\_\_\_ task of the advertising pyramid. - Conviction - Comprehension - Time and dollars - Action - Desire 6. The \_\_\_\_\_\_\_\_\_\_\_ perspective of integrated marketing communications (IMC) sees customers as partners in an ongoing relationship, recognizes the terminology they use, acknowledges the importance of the whole communications system, and accepts the many ways they come into contact with the company or the brand. - Bottom-up - Top-down - Stakeholder - Inside-out - Outside-in 7. Angie had an outpatient procedure yesterday at a local medical center. A representative called her today to ask how she was doing and whether she had any questions. Which of Kotler and Armstrong's levels of relationships is illustrated by this call? - Proactive relationship - Reactive relationship - Basic transactional relationship - Partnership - Accountable relationship 8. Review and revision of a formal marketing plan is an ongoing activity. - True - False 9. Corporate objectives are expressed in terms of net worth, earnings ratios, growth, or corporate reputation. - True - False 10. Relationship marketing is also called transactional marketing. - True - False Though many factors affect the relationship between agencies and their clients, the four most important are - Chemistry, conduct, communication, and changes. - Planning, motivating, organizing, and controlling. - Creativity, independence, location, and size. - Price, product, placement, and presentation. - Market, media, motivation, and message.