Deck 16: Advertising, Publicity, and Sales Promotion

Question 1

Motor vehicles producers spend a higher percentage of their sales on advertising than do perfumes and cosmetics producers.

Answer 1

False

Question 2

Product advertising tries to sell a specific product, while institutional advertising tries to promote an organization rather than a specific product.

Answer 2

True

Question 3

Advertising in Europe accounts for roughly half of worldwide ad spending.

Answer 3

False

Question 4

Total advertising spending in other countries is much lower than in the U.S.

Question 5

By 2010, advertising expenditures in the United States were more than $200 billion.

Question 6

On average, U.S. corporations spend only about 2.5 percent of their sales on advertising.

Question 7

The U.S. has about 462,000 people working directly in the advertising industry, and half of them work for advertising agencies.

Question 8

Furniture stores spend a higher percentage of their sales on advertising than do grocery stores.

Question 9

Advertising objectives should be very specific, even more specific than personal selling objectives.

Question 10

The main problem with advertising is that it costs so much--on average about one third of sales dollars for U.S. companies.

Question 11

International dimensions do not affect sales promotion decisions, because consumers throughout the world have the same responses to sales promotion methods.

Question 12

Games and toys producers spend a higher percentage of their sales on advertising than do footwear producers.

Question 13

During the last decade, the rate of advertising spending has increased in the U.S., but it has decreased in the rest of the world.

Question 14

Marketing managers should set overall advertising objectives, but then it's usually the advertising manager's job to set specific objectives for each ad.

Question 15

Advertising in the U.S. accounts for about 35 percent of worldwide advertising spending.

Question 16

Producers of business products generally spend a larger percent on advertising than do producers of consumer products.

Question 17

Eating places spend a higher percentage of their sales on advertising than do amusement parks.

Question 18

It's a common belief that half of the money spent on advertising and sales promotion is wasted.

Question 19

Although advertising expenditures in the United States by 2010 were more than $200 billion, the major expense was for media time and space--not payroll expense to people who worked in the advertising industry.

Question 20

The basic strategy planning decisions for advertising, publicity, and sales promotion are the same regardless of where in the world the target market is located.

Question 21

Institutional advertising is advertising aimed at business customers and intermediaries.

Question 22

Product advertising is aimed at final consumers; institutional advertising is aimed at intermediaries.

Question 23

Indirect competitive advertising aims for immediate buying action while direct competitive advertising aims for future buying action.

Question 24

Competitive advertising is typically used in the market introduction stage of the product life cycle--to develop primary demand.

Question 25

Institutional advertising emphasizes a particular product and plays down the name of the company.

Question 26

Advertising allowances are price reductions given to firms further along in the channel to encourage them to advertise or otherwise promote a producer's products locally.

Question 27

A chemical company might use institutional ads to highlight its concern for the environment.

Question 28

An insurance company might use institutional ads to highlight its concern for safe driving.

Question 29

Institutional advertising may try to inform, persuade, or remind, but it usually focuses on the name and prestige of an organization or industry.

Question 30

Many countries forbid comparative advertising, but it is now legal in the U.S.

Question 31

Reminder advertising is most likely to be useful in the market maturity or sales decline stages of the product life cycle--especially when the product has achieved brand insistence or brand preference.

Question 32

Comparative advertising tries to keep the product's name before the public.

Question 33

Comparative advertising has been banned by the Federal Trade Commission because it was so effective in winning sales from competing products named in ads.

Question 34

The direct type of competitive advertising tries to obtain immediate buying action.

Question 35

Comparative advertising makes specific brand comparisons using actual product names.

Question 36

When a retailer advertises a "special 24-hour sale on GE brand air conditioners," direct competitive advertising is being used.

Question 37

Competitive advertising tries to develop selective demand for a specific brand.

Question 38

Reminder advertising is likely to be most useful in the market growth stage of the product life cycle.

Question 39

When a firm's advertising says "our motorcycles will outperform any other brand," it is using competitive advertising to develop selective demand.

Question 40

The basic job of pioneering advertising is to persuade, not inform.

Question 41

The purpose of an Internet banner ad is to encourage the target market to visit the advertiser's Web site for more information.

Question 42

Cooperative advertising involves intermediaries and producers sharing in the cost of ads.

Question 43

Most Internet ads seek a delayed response.

Question 44

The largest share of total advertising expenditures in the United States goes for TV (including cable) advertising.

Question 45

If the objective of an ad is to inform, telling a detailed story and using precise pictures, then print advertising is right.

Question 46

A cooperative advertising program can help a producer achieve coordination and integration of ad messages in the channel of distribution.

Question 47

Even though the cost per person may be higher and the number of persons reached may be smaller, specialized media is sometimes more effective than mass media.

Question 48

One advantage of the major mass media is that the advertiser does not have to pay for the whole audience the media delivers, but instead just pays based on the number of potential customers in the audience.

Question 49

Many Internet users in the U.S. spend more time surfing the Web than they do watching television, listening to radio, or reading newspapers and magazines.

Question 50

In general, advertising media are becoming more targeted in that they aim for more narrowly defined market segments.

Question 51

Cooperative advertising is not very economical--because media rate structures usually require local firms to pay more for local advertising than the same ad would cost a national advertiser.

Question 52

The medium with the lowest "cost per 1,000 people" has the greatest potential to reach the advertiser's target market at the lowest cost.

Question 53

To guarantee good media selection, the advertiser must specify its target market and then choose media that will reach these target customers.

Question 54

The effectiveness of an advertising medium depends on how well it fits with the rest of a particular marketing strategy.

Question 55

"Clickthrough" is the number of people who actually click on the Internet ad and link to the advertiser's Web site.

Question 56

The largest share of total advertising expenditures in the United States goes for newspaper advertising.

Question 57

The best advertising medium is television, but some advertisers must use other media because they do not have enough money for TV.

Question 58

Even with specialized media, consumers may selectively tune out ads that don't interest them.

Question 59

Some advertising media are "must buys" because they are obvious choices to reach the target audience.

Question 60

To guarantee good media selection, the advertiser first must clearly specify its target market.

Question 61

On average, the 500,000 advertising agencies in the United States are large, employing about 200 people each.

Question 62

A lot more firms will put ads on Web sites if there is a direct relationship between costs and results.

Question 63

Pop-up ads are small rectangular boxes that usually include text, graphics, and sometimes video to create interest.

Question 64

Instead of trying to force consumers to view unwanted ads, marketing-oriented firms should try to do a better job of targeting.

Question 65

The AIDA model can help plan messages for advertisements.

Question 66

Because of cookies, some advertisers already know where customers have been on the Web and what they did there.

Question 67

At some Web sites, Internet ads are free if the ads don't get results.

Question 68

Getting attention to a particular advertisement is always easy.

Question 69

One of the big problems with using an advertising agency is that the advertiser must stick with the agency for a long time--at least two years--even if the agency's work is not satisfactory.

Question 70

Copy thrust is what the words and illustrations should communicate.

Question 71

Although there are millions of Web sites on the Internet, some are better than others for reaching target customers.

Question 72

"Copy thrust" refers to the choice of media to deliver a message to the target audience.

Question 73

With Internet advertising, noncompeting firms that share a similar target market can post ads on each other's Web site.

Question 74

Pay-per-click advertising means advertisers pay only if the customer clicks on the ad and links to the advertiser's Web site.

Question 75

Search ads already know what customers are looking for.

Question 76

Advertising can be useful in a marketing strategy for getting attention, holding interest, arousing desire, and obtaining action.

Question 77

The vast majority of advertising agencies are small, with 10 or fewer employees.

Question 78

The vast majority of advertising agencies are large (20 or more employees), but the smaller, more creative agencies account for most of the billings.

Question 79

Cookies are a cost-effective way for advertisers to target ads and boost online sales.

Question 80

Cookies give customers information about advertisers.