True/False Indicate whether the
statement is true or false.
|
|
|
1.
|
Advertising purchased on all network programs aired simultaneously so that all
consumers viewing TV at this time will be exposed to the brand’s advertising is called a
roadblock.
|
|
|
2.
|
For media planners, the choice of media and vehicles is, in many respects, the
most straightforward of all marketing communications activities.
|
|
|
3.
|
Media planning is the design of a strategy that shows how investments in
advertising time and space will contribute to the achievement of marketing objectives.
|
|
|
4.
|
Geographic information generally provides the most meaningful basis for
segmenting target audiences.
|
|
|
5.
|
The percentage of a target audience that is exposed, at least once, during a
specified time frame to the vehicles in which an advertising message is inserted represents
reach.
|
|
|
6.
|
The time frame used by the majority of media planners for measuring reach is
usually two weeks.
|
|
|
7.
|
Frequency refers to the number of people who purchased a product as a result of
an advertisement.
|
|
|
8.
|
Gross ratings points are calculated by dividing reach by frequency.
|
|
|
9.
|
If the media schedule for a brand yields 210 gross rating points and reaches 70
percent of the market, the frequency would be 3.
|
|
|
10.
|
Effective reach is based on the idea that an advertising schedule is effective
only if it does not reach members of the target audience too few or too many times during the media
scheduling period.
|
|
|
11.
|
According to the concept of effective reach, there is a theoretical optimum
range of exposures to an advertisement with minimum and maximum limits.
|
|
|
12.
|
Brands with lower market share require fewer advertising exposures to achieve
minimal levels of effectiveness.
|
|
|
13.
|
According to the three-exposure hypothesis, it is best to use three different
mediums to maximize advertising effectiveness.
|
|
|
14.
|
The objective of frequency value planning is to select the media schedule that
generates the most exposure value per gross rating point.
|
|
|
15.
|
The first step in frequency value planning is to define the budget.
|
|
|
16.
|
In a continuous advertising schedule, an equal or relatively equal amount of ad
dollars are invested throughout the campaign.
|
|
|
17.
|
Pulsing and flighting advertising schedules are similar in that they both
involve similar levels of advertising expenditures throughout the year.
|
|
|
18.
|
According to the shelf-space model, the consumers' second exposure to an
advertisement for a brand is the most powerful.
|
|
|
19.
|
The shelf-space model assumes that the role of advertising is to teach
consumers.
|
|
|
20.
|
CPM stands for cost per month.
|
|
|
21.
|
CPM is a measure of a media vehicle’s effectiveness.
|
|
|
22.
|
The first step involved in using media-planning software is to select the
criterion for schedule optimization.
|
|
|
23.
|
National advertising is clearly the mainspring of newspapers.
|
|
|
24.
|
The NAB offers a variety of services that assist both newspapers and national
advertisers by simplifying the task of buying newspaper space and by offering discounts that make
newspapers a more attractive medium.
|
|
|
25.
|
Lack of flexibility is a limitation of newspaper advertising.
|
|
|
26.
|
A magazine's media kit provides demographic and lifestyle profiles of that
magazine's readership.
|
|
|
27.
|
Market Research Corporation of America provides cost per thousand information
for many magazines.
|
|
|
28.
|
A strength of magazine advertising is that it provides more geographic options
than other media.
|
|
|
29.
|
Magazines are a poor source for providing detailed product information.
|
|
|
30.
|
A limitation of magazine advertising is the long closing dates that require
advertising materials to be on hand for weeks in advance of the actual publication date.
|
|
|
31.
|
Subscription counting is an inadequate way of determining a magazine’s
readership.
|
|
|
32.
|
An advantage of radio advertising is its ability to reach prospective customers
on a personal and intimate level.
|
|
|
33.
|
Nielsen is the major company at both the national and local levels involved in
measuring radio listenership and audience demographics.
|
|
|
34.
|
The period preceding and following prime time television is known as fringe
time.
|
|
|
35.
|
Network television advertising, although expensive in terms of per-unit cost,
can be a cost-efficient means to reach mass audiences.
|
|
|
36.
|
More than any other medium, television is able to use humor as an effective
advertising strategy.
|
|
|
37.
|
Zapping takes place when ads that have been recorded along with program material
using a video cassette recorder or a digital video recorder are fast-forwarded when the viewer
watches the prerecorded material.
|
|
|
38.
|
Consumers’ Internet usage continues to grow at the expense of the
traditional media.
|
|
|
39.
|
The Internet is quickly becoming the main element of IMC programs and receives
the majority of an advertiser’s media budget, basically replacing conventional media.
|
|
|
40.
|
Individualization refers to the fact that advertisers can control the flow of
information to individual consumers.
|
|
|
41.
|
Interactive advertising is defined as encompassing all media that enable the
user (who no longer is a “receiver” in the traditional, passive model of
communication) to control the amount or rate of information that she or he wishes to acquire from a
commercial message.
|
|
|
42.
|
The Internet user is in a “leaning forward” mind-set, which means he
or she is goal driven and ads represent an interruption to them.
|
|
|
43.
|
The Web site for a brand is an invaluable advertising medium for conveying
information about the brand, its character, and its promotional offerings.
|
|
|
44.
|
The major difference between Web sites and other alternative on-line ad formats
is that users seek out Web sites in a goal-oriented fashion.
|
|
|
45.
|
Banner ads are the least common form of Internet advertising.
|
|
|
46.
|
Click-through rates (CTRs) to banner ads are very high, averaging more than 30
percent.
|
|
|
47.
|
DoubleClick Inc. is perhaps the most prominent Internet ad-server
company.
|
|
|
48.
|
Pop-ups are ads that appear between (rather than within a page) two content Web
pages.
|
|
|
49.
|
Interstitials are ads that appear in a separate window that materializes on the
screen seemingly out of nowhere while a selected Web page is loading.
|
|
|
50.
|
With interstitials, users have to wait until the entire ad has been
shown.
|
|
|
51.
|
Superstitials are short, animated ads that play over or on top of a Web
page.
|
|
|
52.
|
Unsolicited e-mail messages are referred to as spam.
|
|
|
53.
|
Regulations against unsolicited e-mail (spam) are much more stringent in North
America than in Europe.
|
|
|
54.
|
E-zines tend to focus on traditional issues, such as family and religion.
|
|
|
55.
|
Phishing occurs when a competitor or other party clicks on a sponsored link
repeatedly in order to foul up advertising effectiveness.
|
|
|
56.
|
Electronic measurement of a sample of users is possibly the most valuable tool
for assessing Internet usage activity.
|
|
|
57.
|
The CPM metric is a simple way to measure an Internet ad’s
effectiveness.
|
|
|
58.
|
Direct advertising enables the advertiser to convey a message to a target market
that has been selected with precision.
|
|
|
59.
|
One reason for the growth of p-mail is the rising cost of television advertising
and increasing audience fragmentation.
|
|
|
60.
|
On a cost per thousand basis, p-mail is less expensive than other media.
|
|
|
61.
|
An up-to-date database can offer varied messages to different groups of
customers.
|
|
|
62.
|
An up-to-date database provides firms with a number of assets, including the
ability to calculate the lifetime value of a product.
|
|
|
63.
|
If a marketer focuses on customer retention rather than just customer
acquisition, customer lifetime value can be increased.
|
|
|
64.
|
The problem with databases is that they are small in size with few addresses and
few variables for each database entrant.
|
|
|
65.
|
The R in a company's R-F-M formula stands for referral rate.
|
|
|
66.
|
The M in a company's R-F-M formula stands for motivation.
|
|
|
67.
|
Companies are increasingly using the audio-visual medium (i.e., videotapes,
CD-ROMs, or DVDs) to present customers with detailed product information.
|
|
|
68.
|
Although unverified in a scientific sense, it stands to reason that video
advertising is potentially less entertaining than comparable print advertising and is, thus, less
effective in gaining attention and influencing memorability of an advertising message.
|
|
|
69.
|
The yellow pages is an advertising medium that consumers turn to when they are
seeking a product or service supplier and are prepared to make a purchase.
|
|
|
70.
|
The yellow pages represent a huge advertising medium with annual revenues
exceeding $140 billion.
|
|
|
71.
|
Research shows that users of yellow pages tend to have relatively low household
incomes.
|
|
|
72.
|
Videogames provide an excellent advertising medium for reaching young
males.
|
|
|
73.
|
Mediamark has developed a service to measure videogame audiences.
|
|
|
74.
|
One advantage of brand placements is that they are generally less intrusive than
advertisements and thus less likely to be avoided.
|
|
|
75.
|
Product placements in movies date back to the 1940s, yet the frequency of
occurrence is greater now than ever.
|
|
|
76.
|
Brand placements have occurred in songs.
|
|
|
77.
|
Promotion refers to any incentive used by a manufacturer to induce the trade
and/or consumers to buy a brand and to encourage the sales force to aggressively sell it.
|
|
|
78.
|
Sales promotion is better suited than advertising to enhance buyer attitudes and
augment brand equity.
|
|
|
79.
|
Less money is spent on consumer sales promotions compared to trade sales
promotions.
|
|
|
80.
|
A pull strategy consists of advertising and promotion directed at
consumers.
|
|
|
81.
|
American marketing has experienced a shift from less push marketing to more pull
marketing.
|
|
|
82.
|
In recent years, the balance of power has been shifting from the retailer to the
manufacturer.
|
|
|
83.
|
Recent changes in accounting standards now require that promotions expenditures
be treated in exactly the same fashion as advertising expenditures, namely, as current expenses that
are deducted from top-line revenue.
|
|
|
84.
|
The difference between the “old” and “new” accounting
procedures with respect to promotions is in the amount for the top-line revenue.
|
|
|
85.
|
Sales promotion can facilitate the introduction of new products and
brands.
|
|
|
86.
|
Sales promotion can be used to offset competitors' advertising and
sales-promotion efforts.
|
|
|
87.
|
Sales promotion can provide consumers with a compelling, long-term reason to
continue purchasing a brand.
|
|
|
88.
|
Sales promotion can permanently stop an established brand's declining sales
trend.
|
|
|
89.
|
The most effective trade promotions are those that target long-term sales
goals.
|
|
|
90.
|
The objectives of trade allowances for retailers often conflict with the
objectives of manufacturers.
|
|
|
91.
|
Retailers are usually contractually bound to pass along discounted prices to
consumers.
|
|
|
92.
|
Manufacturers estimate that retailers usually comply with trade allowance
agreements and pass through to consumers most of the trade funds that they provide to
retailers.
|
|
|
93.
|
Bill-back allowances are for retailers who feature the manufacturer's brand
in advertisements or for providing special displays.
|
|
|
94.
|
Manufacturers pay slotting allowances to retailers to get the retailer to
purchase the product.
|
|
|
95.
|
Slotting allowances are a mechanism used by manufacturers to exploit the
competition among retailers.
|
|
|
96.
|
Manufacturers can avoid paying slotting allowances by investing in a pull
strategy to create consumer demand for their brands.
|
|
|
97.
|
In a deslotting allowance agreement, the risk of a new brand introduction is
transferred from the manufacturer to the retailer.
|
|
|
98.
|
The Federal Trade Commission (FTC) recently passed a ruling that prohibits the
use of slotting fees in the marketing of food products.
|
|
|
99.
|
Everyone benefits from forward buying because a substantial portion of
retailers' savings are passed on to consumers.
|
|
|
100.
|
While manufacturers incur increased costs due to forward buying, their margins
are increased to off-set the price discounts.
|
|
|
101.
|
Most retailers acknowledge that they have engaged in the practice of
diverting.
|
|
|
102.
|
Diverting occurs when products intended for foreign markets are diverted back
into a domestic market.
|
|
|
103.
|
The quality and safety of a product could be jeopardized as a result of
diverting.
|
|
|
104.
|
Almost all retailers welcome everyday low pricing.
|
|
|
105.
|
Retailers tend to prefer pay-for-performance programs more so than do
manufacturers.
|
|
|
106.
|
The use of scanning technology is critical to the implementation of a
pay-for-performance program.
|
|
|
107.
|
As with off-invoice allowance promotion, account-specific marketing directs
promotional dollars to specific retailers.
|
|
|
108.
|
Temporary retail price reductions substantially increase sales, both in the
short- and long-term.
|
|
|
109.
|
Higher market share brands are more deal elastic.
|
|
|
110.
|
The effects of promoting higher- and lower-quality brands are symmetric.
|
|
|
111.
|
Whereas sales promotion makes consumers aware of your brand and promotes a
positive image, advertising serves to consummate the transaction.
|
|
|
112.
|
All promotion techniques provide consumers with rewards.
|
|
|
113.
|
Consumers who use sales promotions receive various utilitarian and hedonic
benefits.
|
|
|
114.
|
In general, consumers are more responsive to delayed rewards because they are
usually larger than immediate rewards.
|
|
|
115.
|
While samples offer consumers an immediate reward, all types of coupons merely
offer delayed rewards.
|
|
|
116.
|
Promotions are capable of accomplishing more than a single objective.
|
|
|
117.
|
Manufacturers use consumer-oriented sales promotions also to leverage trade
support.
|
|
|
118.
|
Coupons are the premier sales-promotion device for generating trial
usage.
|
|
|
119.
|
Sampling is effective because it provides consumers with an opportunity to
personally experience a new brand.
|
|
|
120.
|
The vast majority of manufacturers use sampling as part of their marcom programs
for purposes of generating trial or retrial and leveraging trade support.
|
|
|
121.
|
Brand managers are increasingly distributing samples online.
|
|
|
122.
|
A coupon is a promotional device that rewards consumers for purchasing the
coupon-offering brand by providing either cents-off savings or free merchandise.
|
|
|
123.
|
More coupons are distributed in the United States than elsewhere.
|
|
|
124.
|
Only a small amount of couponing occurs in France.
|
|
|
125.
|
Freestanding inserts account for the majority of all coupons distributed in the
United States.
|
|
|
126.
|
Retailers typically hire another company, called a clearinghouse, to sort and
redeem coupons.
|
|
|
127.
|
The major source of coupon misredemption is large-scale professional
misredeemers.
|
|
|
128.
|
A greater percentage of consumers take advantage of free mail-in offer premiums
than any other type of premium offer.
|
|
|
129.
|
Price-off promotions are effective when the marketer's objective is to
reward present brand users.
|
|
|
130.
|
Price-offs cannot reverse a downward sales trend.
|
|
|
131.
|
Price-off labels may be used on new brands.
|
|
|
132.
|
The Federal Trade Commission states that there must be a hiatus period of at
least 90 days between price-off label promotions on any given brand size.
|
|
|
133.
|
Bonus packs are extra quantities of a product that a company gives to consumers
at the regular price.
|
|
|
134.
|
Bonus packs are intended to encourage trial from consumers.
|
|
|
135.
|
Bonus packs are sometimes used as an alternative to price-off deals.
|
|
|
136.
|
One drawback for manufacturers offering rebates is that many consumers never
bother to redeem them.
|
|
|
137.
|
Rebate fraud can be committed by manufacturers, retailers, and consumers.
|
|
|
138.
|
Contests and sweepstakes are used primarily to enhance a brand's
image.
|
|
|
139.
|
Contests generate greater response than sweepstakes.
|
|
|
140.
|
Compared with many other sales-promotion techniques, sweepstakes are relatively
expensive.
|
|
|
141.
|
The major objective of continuity promotions is to enhance the image of the
brand.
|
|
|
142.
|
Identifying the objectives is the first step in evaluating sales promotion
ideas.
|
|
|
143.
|
The issue surrounding evaluating promotions is whether or not to even evaluate
promotions.
|
|
|
144.
|
All new products can rely on publicity for successful introductions.
|
|
|
145.
|
Proactive marketing public relations is dictated by a company’s marketing
budget.
|
|
|
146.
|
Reactive marketing public relations deals typically with changes that have
negative consequences for an organization.
|
|
|
147.
|
Executive-statement releases may address such topics as forecasts of future
sales or views on the economy.
|
|
|
148.
|
Executive-statement releases are typically published in the business section of
a publication.
|
|
|
149.
|
Feature articles are detailed descriptions of products or other newsworthy
programs that are written by a public relations firm for immediate publication or airing by print or
broadcast media or distribution via appropriate Internet sites.
|
|
|
150.
|
Feature articles are expensive to prepare.
|
|
|
151.
|
Commercial rumors are widely circulated but unverified propositions about a
product, brand, company, store, or other commercial target.
|
|
|
152.
|
Conspiracy rumors deal with undesirable or harmful product or store
features.
|
|
|
153.
|
The only effective way for marketers to handle a commercial rumor is to ignore
it.
|
|
|
154.
|
Opinion leaders are found in every social class.
|
|
|
155.
|
Market mavens are individuals who have information about many kinds of products,
stores, and other facets of markets, and initiate discussion with consumers and respond to requests
from consumers for market information.
|
|
|
156.
|
Sponsorship marketing involves investments in events or causes for the purpose
of achieving various corporate objectives.
|
|
|
157.
|
Companies are able to avoid the clutter inherent in advertising media by
attaching their names to special events and causes.
|
|
|
158.
|
Sponsorship of special events and causes enables marketers to target their
communication and promotional efforts to specific geographic regions and/or to lifestyle
groups.
|
|
|
159.
|
Brands are increasingly customizing their own events because it can be more
effective and less costly than a preexisting event.
|
|
|
160.
|
Some critics have claimed that sponsorship arrangements often involve little
more than managerial ego trips.
|
|
|
161.
|
Cause-oriented sponsorships typically involve supporting athletic events.
|
|
|
162.
|
Reaching new market segments is a benefit of cause-related marketing.
|
|
|
163.
|
Out-of-home (OOH) advertising is also known as outdoor advertising, and it is
the oldest form of advertising.
|
|
|
164.
|
Billboard advertising is the major outdoor medium.
|
|
|
165.
|
The two general categories of on-premise signs are external and internal.
|
|
|
166.
|
The major forms of billboard advertising are painted bulletins and
kiosks.
|
|
|
167.
|
Painted panels are the type of billboards that are regularly seen alongside
highways and in other heavily traveled locales.
|
|
|
168.
|
Poster panel billboards are silk-screened or lithographed and then pasted in
sheets to the billboard.
|
|
|
169.
|
Painted bulletins are hand painted directly on the billboard by artists hired by
the billboard owner.
|
|
|
170.
|
Showings for out-of-home advertising are quoted in increments of 25 and are
designated as #25, #50, #75, and #100.
|
|
|
171.
|
Tobacco advertisers are the heaviest users of outdoor advertising in the United
States.
|
|
|
172.
|
Lack of verified data regarding audience characteristics has retarded the growth
of the out-of-home industry and has prevented many advertisers from investing heavily in this type of
advertising medium.
|
|
|
173.
|
On-premise signs enable consumers to identify and locate businesses and can
influence their store-choice decisions and prompt impulse purchasing.
|
|
|
174.
|
Point-of-Purchase displays benefit all participants in the marketing
process.
|
|
|
175.
|
Point-of-Purchase displays can create a synergistic effect when used in
conjunction with advertisements and promotions.
|
|
|
176.
|
Informing consumers is P-O-P’s most basic communications function.
|
|
|
177.
|
The encoding specificity principle states that information recall is enhanced
when the context in which people attempt to retrieve information is at least similar to the context
in which they originally encoded the information.
|
|
|
178.
|
A brand lift index of 48 percent for a specific product category means that
sales of that product category are 48 percent greater when a display is used.
|
|
|
179.
|
P-O-P materials supplied by manufacturers rarely go unused by retailers.
|
|
|
180.
|
One reason why some point-of-purchase materials go unused would be because they
take up too much space for the amount of sales they generate.
|
|
|
181.
|
One reason manufacturer-supplied P-O-P materials go unused by retailers is that
they merely serve to transfer sales from one brand to another but do not increase the
retailer’s overall sales and profits for the product category.
|
|
|
182.
|
For marketing communicators, ethics involves matters of right and wrong, or
moral, conduct pertaining to any aspect of marketing communications.
|
|
|
183.
|
One criticism of advertising is that it creates and perpetuates
stereotypes.
|
|
|
184.
|
The mission of the National Association of Advertising (NAA) is to improve and
strengthen the ad agency business, to advocate advertising, to influence public policy, to resist
advertising-related legislation that it regards as unwise or unfair, and to work with government
regulators to achieve desirable social and civic goals.
|
|
|
185.
|
Four aspects of packaging that involve ethical issues include label information,
packaging graphics, packaging safety, and environmental implications of packaging.
|
|
|
186.
|
Consumers, as well as marketers, can be guilty of unethical behavior in the area
of sales promotions.
|
|
|
187.
|
Consumer privacy is an ethical issue that transcends all marcom
activities.
|
|
|
188.
|
The Golden Rule test states that you should take actions that would be viewed as
proper by an objective panel of your professional colleagues.
|
|
|
189.
|
Regulation is always justified.
|
|
|
190.
|
A regulatory disadvantage is increased prices resulting from a reduction in a
seller’s “informational market power.”
|
|
|
191.
|
Costs of regulation include cost of complying, enforcement costs, and costs
resulting from unintended side effects.
|
|
|
192.
|
A false claim is, by definition, deceptive.
|
|
|
193.
|
According to the FTC, a misrepresentation is said to occur when qualifying
information necessary to prevent a practice, claim, representation, or reasonable expectation or
belief from being misleading is not disclosed.
|
|
|
194.
|
A material representation involves information that is important to consumers
and that is likely to influence their choice or conduct regarding a product.
|
|
|
195.
|
Unfair advertising is also deceptive advertising.
|
|
|
196.
|
Corrective advertising is designed to punish a firm for deceiving
consumers.
|
|
|
197.
|
The NAD cannot impose fines on deceptive advertisers, but the NARB can.
|
|
|
198.
|
Green Seal, a Washington, D.C., nonprofit organization, has developed standards
and awarded seals to companies that meet environmental standards.
|
|
|
199.
|
One of the Federal Trade Commission’s guidelines for environmental
marketing claims states that “claims should not overstate an environmental attribute or
benefit, either expressly or by implication.”
|
|
|
200.
|
In Germany, the White Angel seal represents a promise to consumers that a
product carrying an environment claim is in fact legitimate.
|