Deck 2: Advertisings Role in Marketing

Question 1

In which situation is the product or corporate-focused approach to marketing still used?

A) industries where product innovation is important, such as high technology
B) highly regulated industries
C) highly competitive markets
D) homogeneous markets
E) heterogeneous markets

Answer 1

industries where product innovation is important, such as high technology

Question 2

The act of trading a desired product or service to receive something of value in return is known as which key concept in marketing?

A) marketing concept
B) product concept
C) exchange
D) production concept
E) customer concept

Answer 2

exchange

Question 3

What is exchanged in marketing?

A) goods
B) services
C) money
D) ideas
E) all of the above

Answer 3

all of the above

Question 4

When a brand name or brand mark is legally protected through registration with the Patent and Trademark Office of the Department of Commerce, it becomes a ________.

A) known name
B) generic name
C) brand mark
D) trademark
E) brand identity

Question 5

Which government agency provides a brand name or brand mark trademark protection?

A) Federal Trade Commission
B) Department of Commerce
C) Federal Communication Commission
D) Justice Department
E) Securities and Exchange Commission

Question 6

Which method of adding value to a product is purely psychological?

A) branding
B) quality
C) features
D) convenience
E) service

Question 7

The multitude of products that consumers can purchase at drug and grocery stores are known as ________ goods.

A) shopping
B) package
C) end-user
D) everyday
E) inexpensive

Question 8

Ads targeting which type of market are usually heavier on factual content than on emotional appeals?

A) consumer
B) business-to-business (industrial)
C) international
D) direct
E) indirect

Question 9

Which of the following is NOT considered a type of reseller?

A) wholesaler
B) retailer
C) manufacturer
D) not-for-profit
E) producer

Question 10

In which type of market do businesses spend most of their advertising dollars?

A) consumer
B) business-to-business (industrial)
C) reseller
D) channel
E) institutional

Question 11

Which of the following is NOT considered a key strategic decision in marketing?

A) SWOT analysis
B) objectives
C) segmenting and targeting
D) differentiation and positioning
E) all of the above are considered key strategic decisions in marketing

Question 12

In which type of allowance does the producer share with the reseller the cost of placing an advertisement?

A) off-invoice allowance
B) buying allowance
C) promotional allowance
D) cooperative advertising allowance
E) communication allowance

Question 13

Which pricing strategy uses a single, well-known price for a long period of time?

A) psychological pricing
B) cost-plus pricing
C) customary pricing
D) typical pricing
E) normal pricing

Question 14

In most companies of any size, the marketing function is handled by a(n) ________.

A) agency
B) consultant
C) marketing department
D) brand manager
E) advertising department

Question 15

Who is responsible for all the strategic decisions relating to a brand's product design and manufacture as well as the brand's pricing, distribution, and marketing communications?

A) marketing manager
B) vice-president of marketing
C) director of marketing
D) brand manager
E) advertising manager

Question 16

In marketing theory, every contribution from the supply chain adds ________ to the product.

A) value
B) costs
C) complexity
D) convenience
E) ingredients

Question 17

________ means acknowledging a supplier's brand as an important product feature.

A) Co-branding
B) Ingredient branding
C) Inside branding
D) Inclusive branding
E) Shared branding

Question 18

Which of the following types of businesses is NOT considered part of the distribution chain?

A) dealers
B) wholesalers
C) brokers
D) vendors
E) retailers

Question 19

Wholesalers primarily use which promotion tool?

A) advertising
B) public relations
C) personal selling
D) television
E) all of the above

Question 20

Which of the following is NOT a media vehicle typically used by wholesalers?

A) television
B) direct mail
C) trade papers
D) catalogs
E) all of the above are typically used by wholesalers

Question 21

To whom is retailers' advertising directed?

A) their customers
B) wholesalers
C) brokers
D) manufacturers
E) customers of the manufacturers

Question 22

Which of the following is NOT considered a main benefit of hiring an advertising agency?

A) specialized services
B) more creative advertising
C) objective advice
D) experienced staffing
E) tailored management of all advertising activities and personnel

Question 23

Which of the following is a function included in a full-service agency?

A) account management
B) creative services
C) media planning and buying
D) account planning
E) all of the above

Question 24

Which department of a full-service advertising agency handles internal tracking on completion of projects?

A) account management
B) creative services
C) media planning and buying
D) account planning
E) traffic

Question 25

________ are ad agencies, usually small, that concentrate entirely on preparing the creative execution of client marketing communications.

A) Creative freelancers
B) Creative boutiques
C) Specialized agencies
D) Media-buying services
E) Traffic coordinators

Question 26

Which of the following is NOT a reason media-buying services agencies are in high demand?

A) Media has become more complex as the number of choices grows.
B) Technology has made this function very complicated.
C) The cost of maintaining a competent media department has escalated.
D) Media-buying services often buy media at a low cost because they can group several clients' purchases together to develop substantial buying power.
E) All of the above are reasons media-buying services agencies are in high demand.

Question 27

Which department of an advertising agency acts as a liaison between the client and the agency?

A) account management
B) creative services
C) media planning and buying
D) account planning
E) traffic

Question 28

Which level of account management in a major agency provides leadership on strategic issues and looks for new business opportunities?

A) account supervisor
B) account executive
C) account vice president
D) management supervisor
E) account director

Question 29

The ________ is responsible for day-to-day activities and operates like a project manager in an advertising agency.

A) account supervisor
B) account executive
C) account vice president
D) management supervisor
E) account director

Question 30

Who gathers all available intelligence on the market and consumers and acts as the voice of the consumer, becoming the strategic specialist who prepares comprehensive recommendations about consumers' wants, needs, and relationship to the client's brand and how the advertising should work to satisfy those elements based on insights they derive from consumer research?

A) account manager
B) copywriter
C) account planner
D) management supervisor
E) account director

Question 31

A ________ is the amount an ad agency charges the client as a percentage of the media cost.

A) fee
B) retainer
C) commission
D) flat rate
E) percentage rate

Question 32

________ uses databases to drive communication with customers and keep track of their interactions with a company.

A) Integrated marketing
B) Relationship marketing
C) Permission marketing
D) Customer relationship management
E) International marketing

Question 33

The practice of inviting prospective customers to sign up or self-select themselves into a brand's target market in order to receive marketing communications is referred to as ________.

A) integrated marketing
B) relationship marketing
C) permission marketing
D) customer relationship management
E) selective marketing

Question 34

It is considered inappropriate to use a product or company-focused approach in advertising.

Question 35

Advertising is the process of creating a special meaning for a product, one that makes it distinctive in the marketplace and in its product category.

Question 36

Institutional markets are wholesales, retailers, and distributors who buy finished products and resell them for a profit.

Question 37

Businesses spend most of their advertising dollars on business-to-business markets.

Question 38

The marketing process begins with the production of a product.

Question 39

Gathering information from already existing and published sources is known as primary research.

Question 40

Primary research identifies the brand's strengths and weaknesses, as well as corporate and market opportunities and threats.

Question 41

The product is both the object of the advertising and the reason for marketing.

Question 42

The marketing manager is the person in the marketer's organization responsible for all the strategic decisions relating to the brand's product design and manufacture as well as the brand's pricing, distribution, and marketing communications.

Question 43

Resellers may actually take ownership of the product and participate in the marketing, including the advertising.

Question 44

Retailers' main concern with respect to advertising is that it be directed at their customers as opposed to the customers of the manufacturers.

Question 45

Creative boutiques are ad agencies, usually small, that concentrate entirely on preparing the creative execution of client marketing communications.

Question 46

The management supervisor is the key executive on a client's business and the primary liaison between the client and the agency.

Question 47

A media planner is a type of planner who gathers all available intelligence on the market and consumers and acts as the voice of the consumer.

Question 48

The practice of inviting prospective customers to sign up or self-select themselves into a brand's target market in order to receive marketing communication is referred to as permission marketing.

Question 49

Identify the four key concepts in marketing and explain how they relate to advertising.

Question 50

Compare and contrast push and pull strategies and explain the role of advertising in each.

Question 51

Identify the four important categories of key players in marketing and how the organization of the industry affects advertising.

Question 52

Explain why a company would use an advertising agency and describe the major functions performed by a full-service agency.

Question 53

In the chapter opening vignette, Puma CEO, Jochen Zeitz, explained why individualism is so important to the shoe company saying, "Like the puma as an animal is not a herd animal, we also want people and our brand to stand for individuality . . ." Puma shoes stay hip through design innovation and also by linking up with other hot icons, such as outfitting the tennis great Serena Williams. Which basic concept of marketing does this illustrate?

A) exchange
B) branding
C) added value
D) marketing concept
E) distribution

Question 54

According to a 2007 Business Week article, which company represents the top global. brand in terms of brand equity?

A) Kellogg
B) Aflac
C) Coca-Cola
D) UPS
E) Eli Lilly

Question 55

Tammy works at Procter & Gamble and is responsible for all the strategic decisions relating to P&G's Tide brand of laundry detergent's design and manufacturer as well as the brand's pricing, distribution, and marketing communications. What is most likely Tammy's job title?

A) account supervisor
B) product or brand manager
C) marketing manager
D) account executive
E) product champion

Question 56

What marketing organization ranked number one in 2007?

A) Sony
B) Toyota
C) General Motors
D) Omnigroup
E) Time Warner

Question 57

Your parents own a small business and have asked for your assistance in advertising. Your father has done some advertising on local television that was not very effective, but he doesn't want to spend money on someone to "tell me what I already know." You know there are benefits to hiring an agency, and you are trying to convince your father that he should hire an advertising agency to assist in his advertising efforts. You tell your father several benefits. Which of the following is NOT a benefit of hiring an agency?

A) Agencies provide specialized services.
B) Agencies provide objective advice.
C) Agencies will charge you only for the work based on the increase in sales you experience.
D) Agencies can provide tailored management of all advertising activities and personnel.
E) Agencies have experienced staffing.

Question 58

What is the world's top consolidated agency network in 2007?

A) Dentsu
B) BBDO Worldwide
C) McCann-Erickson Worldwide
D) J. Walter Thompson Company
E) Publicis Worldwide Communications

Question 59

Juan works at BBDO Worldwide advertising agency, and his responsibilities include providing leadership on strategic issues and looking for new business opportunities. He doesn't actually work on any of BBDO's client accounts. What is Juan's job title?

A) account manager
B) management supervisor
C) account supervisor
D) account executive
E) account director

Question 60

MINI-CASE
Johnson & Johnson manufactures health and beauty aid products under several brand names. They sell their products to ultimate consumers through retail stores such as grocery, drug, and discount stores. J&J employs a sales force that calls on intermediaries, such as wholesalers and retailers, and spends part of their promotion budget on trade deals to influence intermediaries to carry their brands. The remainder of J&J's promotion budget is spent on mass advertising and sales promotions, such as coupons, targeted toward consumers.

-Refer to Mini-Case. Which promotion strategy is J&J pursuing primarily?

A) push
B) indirect
C) direct
D) pull
E) combination

Question 61

MINI-CASE
Johnson & Johnson manufactures health and beauty aid products under several brand names. They sell their products to ultimate consumers through retail stores such as grocery, drug, and discount stores. J&J employs a sales force that calls on intermediaries, such as wholesalers and retailers, and spends part of their promotion budget on trade deals to influence intermediaries to carry their brands. The remainder of J&J's promotion budget is spent on mass advertising and sales promotions, such as coupons, targeted toward consumers.

-Refer to Mini-Case. J&J also markets their Tylenol brand of pain relievers to hospitals. What type of market is that?

A) consumer
B) primary
C) institutional
D) reseller
E) secondary

Question 62

MINI-CASE
Johnson & Johnson manufactures health and beauty aid products under several brand names. They sell their products to ultimate consumers through retail stores such as grocery, drug, and discount stores. J&J employs a sales force that calls on intermediaries, such as wholesalers and retailers, and spends part of their promotion budget on trade deals to influence intermediaries to carry their brands. The remainder of J&J's promotion budget is spent on mass advertising and sales promotions, such as coupons, targeted toward consumers.

-Refer to Mini-Case. J&J is interested in launching a new line of skin care products for the female "tween" market, that is, girls between eight and twelve years of age. They decided to use U.S. Census data to help them determine the absolute size of this market. What type of research is this?

A) primary
B) direct
C) indirect
D) secondary
E) public

Question 63

MINI-CASE
Johnson & Johnson manufactures health and beauty aid products under several brand names. They sell their products to ultimate consumers through retail stores such as grocery, drug, and discount stores. J&J employs a sales force that calls on intermediaries, such as wholesalers and retailers, and spends part of their promotion budget on trade deals to influence intermediaries to carry their brands. The remainder of J&J's promotion budget is spent on mass advertising and sales promotions, such as coupons, targeted toward consumers.

-Refer to Mini-Case. Bob works at one of the advertising agencies that do J&J's advertising for skin care products. J&J has decided that this agency will also be the agency that will develop and execute the advertising for their new line of skin care products for the female "tween" market. Bob is the key executive working on J&J's business and the primary liaison between J&J and the agency. What is most likely Bob's job title?

A) management supervisor
B) account supervisor
C) account executive
D) account director
E) manager-of-record

Question 64

Define the marketing concept and when it is used.

Question 65

Explain how Puma communicates its brand image to consumers.

Question 66

Describe the evolution of Procter & Gamble's Ivory soap.

Question 67

Nike is an international brand with a distinctive brand image. Name and describe the four important categories of key players involved in the marketing of this brand.

Question 68

Bob is a brand manager at a large consumer packaged goods company. Describe his responsibilities.

Question 69

Compare and contrast an advertisement for Neutrogena brand of skin care products developed by the manufacturer and one developed by a retailer that sells these products.

Question 70

Andy has conducted extensive research in the marketing process, and now he has some key strategic decisions to make. Name and describe these decisions.

Question 71

What makes Krispy Kreme such a hit with its customers?

Question 72

Carol is a management supervisor for AMM&N, Inc. advertising agency. She is meeting with a small manufacturer of a frozen line of Mexican dinners who wants to start advertising their products but is not sure that they should hire an advertising agency to assist them. What should Carol tell them to convince them that hiring an advertising agency would be beneficial for them?

Question 73

Frank is a partner in a media-buying service, which is a type of advertising agency that specializes in the purchase of media for clients. Frank contacts major national advertisers and tries to convince them to separate the media planning and buying function from the other functions performed by their full-service advertising agencies and is having quite a bit of success. Several of his clients include manufacturers of multiple brands that have "unbundled" the media function from their various agencies-of-record and pooled the media planning and buying function together as well as several full-service advertising agencies that contract out this function to Frank's agency. Why do you think Frank's media-buying service is in high demand?

Question 74

Maria started working at a large advertising agency after graduating with a degree in advertising. Her job title is assistant account executive. Describe what she does.

Question 75

Amanda is a marketing major interested in a career in advertising and wants to work at an advertising agency. She does not have any aptitude, talent, skill, or training to be involved in the creative aspects of advertising, but she feels she can still work in this business. Name and describe the functions of a full-service agency in which Amanda could apply her marketing knowledge and skills.

Question 76

MINI-CASE
Gore-tex is a revolutionary material that is used in several types of outer- and athletic-wear that can keep consumers warm and dry in the winter but also cool in the summer. It is lighter and stronger than other types of materials, such as wool or cotton, and costs more. However, many consumers of these products were not aware of the advantages of Gore-tex when comparing products and were put off by the very high price. To change this, Gore-tex hired an advertising agency to assist them in creating a special meaning for their brand and to communicate the advantages to end-user consumers. They also worked with the manufacturers of the products into which Gore-tex was incorporated to encourage them to call attention to the fact that Gore-tex is used in their products.
-Refer to Mini-Case. Which key concept in marketing is illustrated by Gore-tex's desire to create a special meaning for it, and how can advertising help accomplish this?

Question 77

MINI-CASE
Gore-tex is a revolutionary material that is used in several types of outer- and athletic-wear that can keep consumers warm and dry in the winter but also cool in the summer. It is lighter and stronger than other types of materials, such as wool or cotton, and costs more. However, many consumers of these products were not aware of the advantages of Gore-tex when comparing products and were put off by the very high price. To change this, Gore-tex hired an advertising agency to assist them in creating a special meaning for their brand and to communicate the advantages to end-user consumers. They also worked with the manufacturers of the products into which Gore-tex was incorporated to encourage them to call attention to the fact that Gore-tex is used in their products.
-Refer to Mini-Case. Manufacturers of apparel products using Gore-tex include that information on their product labels as well as in their advertising. What is this known as, and why do these manufacturers do this?

Question 78

MINI-CASE
Gore-tex is a revolutionary material that is used in several types of outer- and athletic-wear that can keep consumers warm and dry in the winter but also cool in the summer. It is lighter and stronger than other types of materials, such as wool or cotton, and costs more. However, many consumers of these products were not aware of the advantages of Gore-tex when comparing products and were put off by the very high price. To change this, Gore-tex hired an advertising agency to assist them in creating a special meaning for their brand and to communicate the advantages to end-user consumers. They also worked with the manufacturers of the products into which Gore-tex was incorporated to encourage them to call attention to the fact that Gore-tex is used in their products.
-Refer to Mini-Case. Gore-tex hired an advertising agency to assist the company in its efforts. The agency purchased $100,000 in media for Gore-tex and was compensated through the standard media commission rate. How much did the agency bill Gore-tex for this work?