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Basic Marketing: A Global Managerial Approach, 10/e

Stanley J. Shapiro
Kenneth B. Wong, Queens School of Business
William D. Perreault, University of North Carolina
E. Jerome McCarthy, Michigan State University

Advertising and Sales Promotion

Quiz Questions


1	The largest advertisers in Canada are financial service companies.
		A)	True
		B)	False


2	Advertising expenditures for the Yellow Pages and other directories exceeded those for radio.
		A)	True
		B)	False


3	Many companies under-utilize their co-op advertising efforts because they view co-op allowances as little more than another form of incentive for their intermediaries.
		A)	True
		B)	False


4	Even with specialized media, consumers may selectively tune out ads that don't interest them.
		A)	True
		B)	False


5	An Internet banner ad is an ad on a fabric banner hung across a downtown street advertising an Internet service provider (ISP).
		A)	True
		B)	False


6	Each of the sales promotion activities:
		A)	is part of personal selling.
		B)	is an industry unto itself.
		C)	is aimed at competitors.
		D)	reduces interest, trial, or purchase by final consumer.
		E)	has the same capacity and limitations as the others.


7	Which of the following is the LEAST appropriate advertising objective?
		A)	to increase a brand's market share by 10 percent
		B)	to obtain 20 new accounts in the St. John's area
		C)	to increase target customers' brand awareness by 50 percent this year
		D)	to increase sales by 20 percent this year
		E)	to improve consumer goodwill and help sell the product


8	When a firm's president appears in TV testimonial ads to assure customers, employees and shareholders that the firm is making a fast recovery from some problem, this is:
		A)	pioneering advertising.
		B)	comparative advertising.
		C)	institutional advertising.
		D)	reminder advertising.
		E)	competitive advertising.


9	Pioneering advertising is often needed during the __________ stage of the product life cycle.
		A)	market growth
		B)	market introduction
		C)	market maturity
		D)	sales decline
		E)	turbulence


10	What is the best way for you as a marketing manager to evaluate an ad as being effective?
		A)	The words it uses are pleasing to me.
		B)	It has music that I find soothing.
		C)	It will impress my boss.
		D)	The target audience likes it.
		E)	I judge it to be innovative.


11	What is the main reason some advertisers now grade the work done by their agencies?
		A)	Because of previous shoddy agency work.
		B)	There is a trend in society to standardized testing, such as in education.
		C)	So they can tie compensation to the results generated by the campaign.
		D)	To aid in the fixed commission payment system.
		E)	To discourage agencies from using inexpensive media.


12	Price reductions given to channel members to encourage them to advertise or otherwise promote a firm's products locally are:
		A)	advertising allowances.
		B)	trade incentives.
		C)	push money allowances.
		D)	quantity discounts.
		E)	brokerage allowances.


13	Regarding advertising media selection, which of the following is the best advice?
		A)	Make sure your first media choice reaches the whole target market.
		B)	Set very general promotion objectives to stay flexible.
		C)	Avoid the local media.
		D)	There is no such thing as a "must buy."
		E)	Be sure the media match your target market.


14	When selecting advertising media, a good advertising manager knows that:
		A)	magazines can't be used for reaching specific business or trade audiences.
		B)	the cost of reaching the real target market goes up fastest when the irrelevant audience is very large.
		C)	big national magazines, like Macleans, may have wide circulation, but are not practical for reaching regional markets.
		D)	TV typically reaches more targeted households than radio.
		E)	integrated direct marketing is not a good alternative unless you already have your own mailing list.


15	An ad that offers the consumer $1.00 off on his or her next grocery store visit is most likely aimed at:
		A)	holding interest.
		B)	arousing desire.
		C)	getting attention.
		D)	obtaining action.
		E)	none of the above.


16	A brand manager for a cookie producer says that she is looking for a "full service" advertising agency. Apparently, in addition to having the agency purchase media, she wants an agency to help:
		A)	create the actual advertisements.
		B)	plan package development.
		C)	provide market research.
		D)	develop sales promotions.
		E)	A full-service agency might help with any of the above.


17	Analysis of sales increases for measuring the effectiveness of a firm's advertising makes the most sense with _________________ advertising.
		A)	direct response
		B)	magazine
		C)	institutional
		D)	broadcast (TV or radio)
		E)	comparative


18	Research to evaluate advertising effectiveness:
		A)	is especially difficult with direct response promotion.
		B)	can be problematic because nothing can be done until after the ad has actually run.
		C)	includes experiments conducted using split runs on cable TV systems.
		D)	should focus primarily on measuring increases in sales.
		E)	All of the above are true.


19	Sales promotion activities:
		A)	usually take longer to implement and get results later than advertising.
		B)	are intentionally designed to erode brand loyalty.
		C)	may be aimed at final consumers, intermediaries, and/or a firm's own sales force.
		D)	are designed to cause consumers to ponder their purchase and delay action.
		E)	All of the above are correct.


20	Internet advertising holds promise for the future because:
		A)	consumers will become accustomed to having their mailboxes filled with spam e-mail:
		B)	it is ideal for a shotgun approach to attract lots of consumers.
		C)	pointcasting gives consumers information that is irrelevant to them.
		D)	it has the potential to combine the flexibility of customization with the efficiency of mass selling.
		E)	it has already taken 80 percent of advertising dollars away from TV advertising.

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