Chapter 15 Advertising and Public Relations

1) Any paid form of nonpersonal presentation and promotion of ideas, goods,
or services by an identified sponsor is called ________.
A) sales promotion
B) direct marketing
C) advertising
D) personal selling
E) public relations
Answer: C
Diff: 2 Page Ref: 430
Skill: Concept
Objective: 15-1

2) A company\'s total marketing communications package consists of a special
blend of advertising, sales promotion, public relations, personal selling,
and direct-marketing tools that the company uses to communicate customer
value and build customer relationships. This is also called ________.
A) the communications method
B) integrated marketing
C) the promotion mix
D) competitive marketing
E) target marketing
Answer: C
Diff: 1 Page Ref: 428
Skill: Concept
Objective: 15-1

3) According to the opening scenario, GEICO has become the fourth-largest
insurance company by ________.
A) integrating humor and creativity into its minicampaigns
B) targeting a niche market of people with exceptional driving records
C) offering cost savings directly to customers without sales personnel
D) marketing its product through creative print ads in major magazines
E) creating a website that is appealing to both young and old drivers
Answer: A
Diff: 3 Page Ref: 428
Skill: Concept
Objective: 15-1


4) All of the following are important decisions during the process of
developing an advertising program EXCEPT ________.
A) setting advertising objectives
B) setting the advertising budget
C) developing advertising strategy
D) selecting a target market
E) evaluating advertising campaigns
Answer: D
Diff: 2 Page Ref: 430-431
Skill: Concept
Objective: 15-2

5) Advertising ________ define the task that advertising must accomplish
with a specific target audience during a specific period of time.
A) objectives
B) budgets
C) strategies
D) campaigns
E) evaluations
Answer: A
Diff: 1 Page Ref: 431
Skill: Concept
Objective: 15-2

6) An advertising objective is classified by its primary purpose, which is
to inform, persuade, or ________.
A) convince
B) compete
C) remind
D) explain
E) encourage
Answer: C
Diff: 1 Page Ref: 431
Skill: Concept
Objective: 15-2

7) Which of the following is an objective of informative advertising?
A) build brand preference
B) change customer perceptions of brand value
C) encourage customers to switch brands
D) suggest new uses for a product
E) keep brand in customer minds during off-seasons
Answer: D
Diff: 1 Page Ref: 431
Skill: Concept
Objective: 15-2

8) What is one of the primary goals of reminder advertising?
A) maintain customer relationships
B) build brand preference
C) correct false impressions
D) inform the market of a price change
E) restore company image
Answer: A
Diff: 1 Page Ref: 431
Skill: Concept
Objective: 15-2

9) When the advertising objective is to build primary demand for a new
product category, ________ advertising will most likely be used.
A) persuasive
B) informative
C) comparative
D) patronage
E) institutional
Answer: B
Diff: 2 Page Ref: 431
Skill: Concept
Objective: 15-2

10) ________ advertising becomes more important as competition increases.
The company\'s objective is to build selective demand.
A) Reminder-oriented
B) Informative
C) POP promotion
D) Patronage
E) Persuasive
Answer: E
Diff: 2 Page Ref: 431-432
Skill: Concept
Objective: 15-2

11) Persuasive advertising becomes ________ advertising when a company
directly or indirectly compares its brand with one or more other brands.
A) informative
B) reminder
C) comparative
D) POP promotion
E) institutional
Answer: C
Diff: 1 Page Ref: 432
Skill: Concept
Objective: 15-2

12) What is a potential problem associated with comparative advertising?
A) Consumers confuse the positive and negative aspects of the brands
involved in the ad war.
B) Competitors develop new and improved products in an attempt to win the
advertising contest.
C) Consumers are bombarded with competing ads, which causes them to leave
the market completely.
D) Competitors respond with their own ads, which often results in negative
publicity for both brands.
E) Consumers alternate between competing products and never develop brand
loyalties.
Answer: D
Diff: 3 Page Ref: 432
AACSB: Reflective Thinking
Skill: Concept
Objective: 15-2

13) A product in the maturity stage will often require ________
advertising.
A) informative
B) comparative
C) persuasive
D) reminder
E) cooperative
Answer: D
Diff: 1 Page Ref: 432
Skill: Concept
Objective: 15-2

14) Familiar products such as Coca-Cola are more likely to use ________.
A) informative advertising
B) comparative advertising
C) persuasive advertising
D) reminder advertising
E) institutional advertising
Answer: D
Diff: 3 Page Ref: 432
AACSB: Communication
Skill: Concept
Objective: 15-2

15) After determining its advertising objectives, the company\'s next step
in developing an advertising program is to ________.
A) set its advertising budget
B) determine the media vehicle
C) use cash refund offers
D) plan its advertising campaign
E) develop its message strategy
Answer: A
Diff: 2 Page Ref: 432
Skill: Concept
Objective: 15-2

16) All of the following require high advertising budgets EXCEPT ________.

A) products in competitive markets
B) undifferentiated brands
C) new products
D) low-share brands
E) mature brands
Answer: E
Diff: 3 Page Ref: 432
Skill: Concept
Objective: 15-2

17) Which of the following may require heavy advertising in order to be set
apart from similar products?
A) undifferentiated brands
B) specialty brands
C) international brands
D) mature brands
E) flanker brands
Answer: A
Diff: 1 Page Ref: 433
Skill: Concept
Objective: 15-2

18) Some large corporations have developed ________ to help determine the
optimal investment across various media; such tools are useful when
determining the relationship between promotional spending and brand sales.
A) impact studies
B) sales techniques
C) statistical models
D) advertising budgets
E) advertising strategies
Answer: C
Diff: 1 Page Ref: 433
Skill: