Deck 1: The Evolution of Advertising

Question 1

The retailer of Craftsmen tools is using product differentiation when it advertises that unlike other tools, Craftsman tools have a lifetime warranty.

Answer 1

True

Question 2

Advertising is just one type of marketing communications tool.

Answer 2

True

Question 3

A product's USP is the feature that differentiates it from competitive products.

Answer 3

True

Question 4

For Americans, the profession of advertising began when Volney
B. Palmer set up business in Philadelphia in 1841.
B. Palmer set up business in Philadelphia is 1841.
For Americans, the profession of advertising began when Volney

Question 5

The billboard that displays an advertisement for a new Internet service provider is an example of a medium.

Question 6

Our economy is based on the concept of perfect competition.

Question 7

Bo Jangles, a fast food restaurant chain, is using a positioning strategy when it claims its chicken has the "true taste of New Orleans."

Question 8

The ultimate goal of the marketing process is to build a strong brand image.

Question 9

One of the basic functions of advertising is to communicate information about the product, its features, and its location of sale.

Question 10

The preindustrial age extended from the beginning of recorded history to the first decades of the 1900s.

Question 11

With the advent of public schooling, the United States reached an unparalleled 90 percent literacy rate.

Question 12

Integrated marketing communications involves the coordination of messages from multiple sources including PR, television, radio, and digital media.

Question 13

One of the functions of advertising as a marketing tool is to build value, brand preferences, and loyalty.

Question 14

The industrial age ended shortly after World War II.

Question 15

The term mass media includes print media only. The other mediums are part of the general media.

Question 16

Product differentiation is a strategy of identifying groups of people or organizations with certain shared needs and characteristics.

Question 17

Computer repair, ergonomic keyboards, and printer ink cartridges are all examples of goods.

Question 18

The marketing strategy refines the target audience and defines what responses the advertiser is seeking-what the audience should notice, think, and feel.

Question 19

During the industrializing age, manufacturers were primarily concerned with production rather than marketing.

Question 20

Benjamin Franklin was an early critic of advertising.

Question 21

In 1914, Congress passed the Federal Trade Commission Act to protect the public's health and control drug advertising.

Question 22

Which of the following is an example of a good?

A) A medical examination
B) An Internet provider
C) A copier
D) A haircut
E) A car warranty

Question 23

Which of the following statements about advertising is true?

A) It rarely involves branding.
B) It is usually free or inexpensive.
C) It has an identifiable sponsor.
D) It is intended to provide information.
E) It is restricted to a single medium.

Question 24

Which fundamental assumption of free-market economics suggests that people are acquisitive and always want more-for less?

A) Many buyers and sellers
B) Absence of externalities
C) Presence of opportunity costs
D) Self-interest
E) Complete information

Question 25

Since advertising is typically directed to groups of people rather than to individuals, advertising is defined as a:

A) channel.
B) subtle medium.
C) sponsor-driven strategy.
D) market segmentation strategy.
E) kind of nonpersonal communication.

Question 26

Demarketing, which was popular in the industrial age, is no longer used today.

Question 27

Which of the following statements is true about word-of-mouth advertising?

A) It is not a communication medium.
B) It is not an advertising medium.
C) It is a paid form of advertising.
D) It is an openly-sponsored form of advertising.
E) It has a structured form.

Question 28

Sales promotion is a more cost-effective marketing communication tool than advertising.

Question 29

_____ has driven the growth of advertising since its earliest beginnings and has made it one of the hallmarks of the free enterprise system.

A) The cultural environment
B) Tactical management strategy
C) Economics
D) Literacy
E) Socialism

Question 30

As a social force, advertising has been a major factor in improving the standard of living in the United States.

Question 31

The 4 Ps of the marketing mix are:

A) product, price, place, and promotion.
B) product, people, process, and promotion.
C) people, price, place, and product.
D) product, process, people, and physical evidence.
E) place, people, product, and process.

Question 32

Of all the business functions, _____ is the only function whose primary role is to bring in revenue.

A) finance
B) operations management
C) human resource management
D) marketing
E) accounting

Question 33

Only the Internet provides advertisers with the ability to engage in narrowcasting.

Question 34

Which of the following is the best example of a service?

A) A seminar on how to quit smoking
B) A gift basket of fruit
C) Vitamins to improve one's health
D) Gift wrapping paper sold at a school fund-raiser
E) A donation of clothes to the Salvation Army

Question 35

_____ is the process of creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

A) Management
B) Advertising
C) Communications
D) Logistics
E) Marketing

Question 36

_____ is the structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products or ideas by identified sponsors through various media.

A) Marketing
B) Sales promotion
C) Advertising
D) Feedback
E) Message channeling

Question 37

Advertising reaches us through various channels of communication referred to as:

A) feedback mechanisms.
B) media.
C) encoding tools.
D) distribution methods.
E) information processes.

Question 38

Which of the following organizations is most likely to use a public service announcement (PSA)?

A) The Humane Society
B) Dell Computer
C) American Stock Exchange
D) Delta Airlines
E) Walmart

Question 39

When Mollie buys a box of disposable diapers and June purchases a copy of the Wall Street Journal, both are acting as:

A) buying centers.
B) consumers.
C) product innovators.
D) strategic points of service.
E) product adopters.

Question 40

Which of the following would most likely involve a Public Service Announcement (PSA)?

A) Dell recalling laptops to correct manufacturing defects
B) Verizon promoting a new data plan with unlimited texting
C) Walmart advertising year-end discounts and clearance items
D) American Red Cross promoting blood donation opportunities
E) A local Chevrolet dealer providing the address of its new showroom

Question 41

Who is considered the father of advertising art?

A) Francis Ayer
B) Benjamin Franklin
C) VolneyB. Palmer
D) Johannes Gutenberg
E) N. W. Ayer

Question 42

A decade after World War I ended, a significant event occurred that caused consumer sales resistance, corporate budget cutting, and advertising expenditures to plummet. This event was:

A) the imposition of a personal income tax by the federal government.
B) the defeat of Germany and its default on loans granted by the Allies.
C) the stock market crash and the beginning of the Great Depression.
D) the creation of the World Bank, which made loans available to state and federal banks.
E) strong challenges to the consumer credit system as established by the federal government.

Question 43

During the preindustrial age, most advertisements took the form of signs with symbols such as a beer tankard indicating a tavern because:

A) most people were illiterate and could not read.
B) most firms could not afford more sophisticated advertisements.
C) local laws prohibited advertising in newspapers.
D) most churches would not approve other forms of advertising.
E) signs and symbols were considered lucky.

Question 44

What did the first ad in English advertise?

A) A plow
B) A farm
C) A prayer book
D) A religious service
E) A pub

Question 45

Why is 1896 considered an extremely important year for direct mail advertising and mail-order selling?

A) Advertising agencies were allowed to charge commissions for their services.
B) The U.S. Post Office was created.
C) The Office of Consumer Affairs guaranteed that consumers could return products that did not meet their needs.
D) The Federal Communications Commission took control of all mail order and direct mail advertising.
E) The Federal Government inaugurated rural free mail delivery.

Question 46

Which of the following statements best describes how Volney B. Palmer influenced advertising?

A) In 1729, he became the first to use "white space" and illustration in ads.
B) In 1841, he set up the first professional advertising agency in the United States.
C) In 1869, his advertising agency becomes the first to prepare ads for manufacturers.
D)In 1888, he founded the Printer's Ink magazine.
E)In 1912, he became the first advertising agent to reach $2 million in sales.

Question 47

Which of the following ages in the evolution of advertising was characterized by the Chinese inventing paper, Johannes Guttenberg inventing the printing press, and the Boston Newsletter beginning to carry advertisements that appealed to American colonists?

A) Age of reason
B) Industrial age
C) Preindustrial age
D) Industrializing age
E) Mercantile age

Question 48

Benjamin Franklin:

A) was the first American known to use illustrations in ads.
B) was the first to print color ads.
C) was the first American to use copy in ads.
D) printed ads with no clutter.
E) minimized white space in ads.

Question 49

Which term best refers to items such as detergent, nail polish, soda, and pretzels?

A) Customized packaged goods
B) Consumer packaged goods
C) In-house products
D) Branded products
E) Serviceable goods

Question 50

According to the history of advertising, the _____ made possible the first advertising formats-posters, handbills, signs, and newspapers.

A) quill pen
B) printing press
C) silk screen
D) ability to mold lead
E) ability to copy and draw

Question 51

As a marketing tool, advertising is most likely used to:

A) create unfair advantages among competitors.
B) encourage buyers to compare prices.
C) control viral commercialization.
D) increase product use.
E) create feedback.

Question 52

What role did the firm N. W. Ayer & Son play in the history of U.S. advertising?

A) It was the first printer to use illustrations in its ads.
B) It was the first manufacturer to use national advertising.
C) It was the first ad agency to charge a commission based on the "net cost of space."
D) Its advertising claims were the first examined by the Food & Drug Administration.
E) It published the first colonial newspaper with advertisements for local businesses.

Question 53

Why did magazines become the ideal medium for advertising in the 1840s?

A) Magazines offered the best quality reproduction.
B) Magazines were less expensive than newspapers.
C) Magazines were read more often than newspapers.
D) Advertisers were tired of using newspapers to carry their messages.
E) No taxes were imposed on magazine advertising unlike newspaper advertising.

Question 54

During the _____ age, manufacturers were principally concerned with production, and the primary burden of marketing fell on the wholesalers.

A) preindustrial
B) postindustrial
C) industrializing
D) industrial
E) isolation

Question 55

With respect to the evolution of advertising in the United States, the _____ age started around the turn of the twentieth century and lasted well into the 1970s.

A) service marketing
B) relationship marketing
C) industrial
D) production
E) mercantile

Question 56

In the context of free-market economics, the use of taxation and/or regulation to compensate for or eliminate the social cost when the sale or consumption of products may benefit or harm other people who are not involved in the transaction and didn't pay for the product, falls under the assumption of:

A) many buyers and sellers.
B) absence of externalities.
C) presence of opportunity costs.
D) self-interest.
E) complete information.

Question 57

The term _____ best explains why most automobile manufacturers produce similar products yet consumers have preferences for specific brands.

A) market segmentation
B) market formatting
C) product differentiation
D) strategic marketing
E) product segmentation

Question 58

The industrializing age of the nineteenth century saw the shift of orientation from:

A) production to consumption.
B) sales to consumption.
C) sales to customer relationship management.
D) production to sales.
E) consumption to production.

Question 59

The period in the evolution of advertising that extended from the beginning of recorded history to roughly the start of the nineteenth century was called the:

A) sales era.
B) positioning age.
C) industrial age.
D) industrializing age.
E) preindustrial age.

Question 60

Which of the following occurred near the end of the nineteenth century and accelerated the usage of print ads by manufacturers?

A) World War I finally ended.
B) Global advertising agencies formed.
C) Newspaper advertisements decreased in cost.
D) The United States reached a 90 percent literacy rate.
E) English was established as the official language of the United States.

Question 61

Which of the following terms explains the availability of cable networks devoted to food, home repair, golf, history, or animals?

A) Mass marketing
B) Two-way media
C) Relationship marketing
D) Narrowcasting
E) Broadcasting

Question 62

As the U.S. economy slowed in the 1980s, which cost-effective method did companies use to trim their advertising budgets?

A) Mass market advertising
B) Viral marketing
C) Sales promotions
D) Internet advertising
E) Word-of-mouth advertising

Question 63

The _____ age, which began around 1980, has been a period of cataclysmic change due to increased environmental awareness.

A) service-market
B) post-production
C) market relationship
D) postindustrial
E) customization

Question 64

For years Levi-Strauss advertised its jeans to baby boomers because that is what most baby boomers wore during the 1960s, and many baby boomers are trying to buy back their youth. Unfortunately, this strategy of making Levi's a baby boomer icon has decreased the brand's appeal to today's teens who perceive the Levi brand as old-fashioned. In this example, the _____ did not produce a positive effect.

A) positioning strategy
B) market aggregation strategy
C) logistical strategy
D) promotional mix
E) universal sales promotion

Question 65

During a drought in the southeastern United States, marketing campaigns were implemented to encourage consumers to use less water by increasing rates and issuing fines to those who used more than their fair share. A marketing effort such as this would best be classified as:

A) co-marketing.
B) eco-marketing.
C) demarketing.
D) relationship marketing.
E) cause marketing.

Question 66

A(n) _____ is an effective way to separate a particular brand from its competitors by associating that brand with a particular set of customer needs that rank high on the consumer's priority list.

A) logistical strategy
B) universal sales promotion
C) positioning strategy
D) market aggregation strategy
E) promotional mix

Question 67

The Cold War ended when the Berlin Wall came down and Western companies and financiers began to invest heavily in what were once called the Warsaw Pact countries. Big multinational companies and their advertising agencies went on a binge, buying other big companies and adding a new term to the financial lexicon. This term was:

A) partnering.
B) capitalism.
C) oligopoly.
D) mega merger.
E) service economy.

Question 68

Two related economic factors characterized the marketing world of the late 1980s and early 1990s in the United States. One of those factors was:

A) an aging upper management that led to a lack of innovation.
B) the growing burden of financial debt, which forced governments to return to high tax policies directed toward business.
C) the implementation of affirmative action policies.
D) the aging of traditional products and a corresponding growth of competition.
E) the development of strong consumer trust.

Question 69

By publicizing the material, social, and cultural opportunities of a free enterprise society, advertising has encouraged:

A) increased productivity by both management and labor.
B) interactive consumption on a global level.
C) relationship marketing.
D) a service economy.
E) nonprofit organizations.

Question 70

Which of the following is the largest advertising medium in terms of advertising revenues?

A) Internet
B) Newspapers
C) Magazines
D) Television
E) Radio

Question 71

In 2005, Comcast created AZN, a television network for Asian Americans. What type of strategy did Comcast use when it found this unique group of consumers whose specific needs were not being addressed by a cable station?

A) Positioning
B) Demarketing
C) Product differentiation
D) Market aggregation
E) Market segmentation

Question 72

Many urban hotels are creating women-only floors for female travelers. Enhanced security and toiletries more likely to appeal to women such as bubble bath and curling irons are made available. To specifically target women who are traveling on their own, these hotels have implemented a _____ strategy.

A) product segmentation
B) targeted diversification
C) demarketing
D) market segmentation
E) market aggregation

Question 73

The term integrated marketing communications means:

A) developing a long-term marketing strategy.
B) communicating marketing information to a target audience.
C) linking the sales and communication departments in a firm.
D) training a sales force to use proper marketing skills.
E) coordinating a firm's messages from a variety of sources.

Question 74

To differentiate its candy from that produced by other candy manufacturers, the manufacturer of Green & Black brand confections advertises that it is the only company to make its chocolate organically. This commitment to market only organic chocolate is an example of a(n):

A) perceptual value.
B) unique selling proposition.
C) economic differential.
D) economic advantage.
E) differential value.

Question 75

Due to mobile phones, PCs, the Internet, e-mail, and cable TV, advertising is evolving into a(n):

A) two-way medium.
B) broadcast medium.
C) analog medium.
D) narrowcasting medium.
E) reiterative advertising medium.

Question 76

Which term refers to the distinctive benefits that make a product different than any other?

A) Perceptual value
B) Unique selling proposition
C) Economic differential
D) Economic advantage
E) Differential value

Question 77

_____ is a process by which marketers search for unique groups of people whose needs can be addressed through more specialized products.

A) Product segmentation
B) Targeted diversification
C) Demarketing
D) Market segmentation
E) Market aggregation

Question 78

What type of strategy is being used by a Web site like www.CNNMoney.com when it describes itself as "a one-stop destination covering everything a small-business owner needs to know" in order to associate itself with benefits that are important to small business owners?

A) Market penetration
B) Target differentiation
C) Positioning
D) Market segmentation
E) Sales promotion

Question 79

_____ is a type of marketing used to slow down the demand for certain products, such as energy-consuming goods.

A) Co-marketing
B) Demarketing
C) Environmental advertising
D) Eco-marketing
E) Systems marketing

Question 80

There is some of the most beautiful scenery in the world at the Banff National Park in Canada. Too many tourists have led to potential ecological disasters in the park. In response, park officials are trying to decrease the number of visitors to the park. They could most likely use _____ to accomplish this objective.

A) positioning
B) eco-marketing
C) co-marketing
D) demarketing
E) relationship marketing