Chapter 01
Advertising Today?
True / False Questions
1. IMC helps companies adopt a consumer-centric, rather than marketer-centric, perspective in
creating brand messages.
True False
2. No amount of advertising can win back a customer lost from shoddy products or poor
service.
True False
3. Defensive marketing typically costs less than offensive marketing because it isn’t easy to lure
satisfied customers away from competitors.
True False
4. In a basic transactional relationship, a company sells its product and encourages customers
to call if they encounter any problems.
True False
5. In an accountable relationship, a salesperson phones customers shortly after the sale to
check whether the product meets expectations and asks for product improvement
suggestions and any specific disappointments.
True False
6. High profit margins per customer suggest that the marketer should pursue basic transactional
relationships augmented by brand image advertising.
True False
7. IMC is both a concept and a process.
True False
,8. Synergy is the principal benefit of IMC.
True False
9. Integrated communications pertains to ensuring all elements of the marketing mix converge
on a single idea.
True False
10. Planned messages often have the least impact because they are seen as self-serving.
True False
11. Messages from the product, price, or distribution elements are typically referred to as inferred
messages.
True False
12. Planned messages are "do" messages because they represent what a company does.
True False
13. One of the basic differences between advertising and public relations is that many PR
activities aren’t openly sponsored.
True False
14. According to the interactive model of communication, marketers dominate the exchange of
messages.
True False
15. The sponsor does not usually produce the message.
True False
16. The implied consumers are people in the real world who make up the ad’s target audience
and who critically evaluate the arguments made by the ad.
True False
17. Of all the business functions, marketing is the only one whose primary role is to bring in
revenue.
True False
,18. Most of the advertising we see in the mass media falls under the broad category of business
advertising.
True False
19. Companies aim trade advertising at resellers to obtain greater distribution of their products.
True False
20. B2B advertising rarely uses consumer mass media and is typically invisible to consumers.
True False
21. If two brands are equal in quality, the one with the highest price is the best value.
True False
22. Image advertising, which creates a perception of a company or a personality for a brand, is
rarely explicit about price.
True False
23. In global advertising, messages are rarely consistent in ads placed around the world.
True False
24. The objectives of awareness advertising are to create an image for a product and to position
it competitively with the goal of getting readers or viewers to select the brand the next time
they shop.
True False
25. Media advertising is the only promotional tool that companies use to communicate
information about themselves and their brands.
True False
Multiple Choice Questions
, 26. When a company deliberately coordinates and integrates messages from a variety of sources
about its products or brands, it is practicing _____.
A. Integrated marketing communications
B. Sales promotion
C. Word-of-mouth advertising
D. Personal selling
E. Viral marketing
27. _____ is creating, maintaining, and enhancing long-term bonds with customers and other
stakeholders that result in exchanges of information and other things of mutual value.
A. Transactional marketing
B. Relationship marketing
C. Mass customization
D. Branding
E. Social marketing
28. Companies that commit to relationship marketing are generally trying to:
A. win back customers lost from shoddy products or poor service.
B. make up for the cost of acquiring new customers.
C. develop a full view of the customer by compiling and analyzing customer data.
D. lure customers through offensive marketing.
E. adopt a marketer-centric perspective in creating brand messages.
29. To succeed, companies must focus on managing loyalty among carefully chosen customers
and stakeholders because:
A. it is easy to lure satisfied customers away from competitors.
B. 90 percent of a manufacturer’s profit comes from trial or sporadic purchasers.
C. offensive marketing typically costs less than defensive marketing.
D. no amount of advertising can win back a customer lost from shoddy products or poor
service.
E. reducing customer defections by 25-85 percent can improve profit potential by about 5
percent.
Advertising Today?
True / False Questions
1. IMC helps companies adopt a consumer-centric, rather than marketer-centric, perspective in
creating brand messages.
True False
2. No amount of advertising can win back a customer lost from shoddy products or poor
service.
True False
3. Defensive marketing typically costs less than offensive marketing because it isn’t easy to lure
satisfied customers away from competitors.
True False
4. In a basic transactional relationship, a company sells its product and encourages customers
to call if they encounter any problems.
True False
5. In an accountable relationship, a salesperson phones customers shortly after the sale to
check whether the product meets expectations and asks for product improvement
suggestions and any specific disappointments.
True False
6. High profit margins per customer suggest that the marketer should pursue basic transactional
relationships augmented by brand image advertising.
True False
7. IMC is both a concept and a process.
True False
,8. Synergy is the principal benefit of IMC.
True False
9. Integrated communications pertains to ensuring all elements of the marketing mix converge
on a single idea.
True False
10. Planned messages often have the least impact because they are seen as self-serving.
True False
11. Messages from the product, price, or distribution elements are typically referred to as inferred
messages.
True False
12. Planned messages are "do" messages because they represent what a company does.
True False
13. One of the basic differences between advertising and public relations is that many PR
activities aren’t openly sponsored.
True False
14. According to the interactive model of communication, marketers dominate the exchange of
messages.
True False
15. The sponsor does not usually produce the message.
True False
16. The implied consumers are people in the real world who make up the ad’s target audience
and who critically evaluate the arguments made by the ad.
True False
17. Of all the business functions, marketing is the only one whose primary role is to bring in
revenue.
True False
,18. Most of the advertising we see in the mass media falls under the broad category of business
advertising.
True False
19. Companies aim trade advertising at resellers to obtain greater distribution of their products.
True False
20. B2B advertising rarely uses consumer mass media and is typically invisible to consumers.
True False
21. If two brands are equal in quality, the one with the highest price is the best value.
True False
22. Image advertising, which creates a perception of a company or a personality for a brand, is
rarely explicit about price.
True False
23. In global advertising, messages are rarely consistent in ads placed around the world.
True False
24. The objectives of awareness advertising are to create an image for a product and to position
it competitively with the goal of getting readers or viewers to select the brand the next time
they shop.
True False
25. Media advertising is the only promotional tool that companies use to communicate
information about themselves and their brands.
True False
Multiple Choice Questions
, 26. When a company deliberately coordinates and integrates messages from a variety of sources
about its products or brands, it is practicing _____.
A. Integrated marketing communications
B. Sales promotion
C. Word-of-mouth advertising
D. Personal selling
E. Viral marketing
27. _____ is creating, maintaining, and enhancing long-term bonds with customers and other
stakeholders that result in exchanges of information and other things of mutual value.
A. Transactional marketing
B. Relationship marketing
C. Mass customization
D. Branding
E. Social marketing
28. Companies that commit to relationship marketing are generally trying to:
A. win back customers lost from shoddy products or poor service.
B. make up for the cost of acquiring new customers.
C. develop a full view of the customer by compiling and analyzing customer data.
D. lure customers through offensive marketing.
E. adopt a marketer-centric perspective in creating brand messages.
29. To succeed, companies must focus on managing loyalty among carefully chosen customers
and stakeholders because:
A. it is easy to lure satisfied customers away from competitors.
B. 90 percent of a manufacturer’s profit comes from trial or sporadic purchasers.
C. offensive marketing typically costs less than defensive marketing.
D. no amount of advertising can win back a customer lost from shoddy products or poor
service.
E. reducing customer defections by 25-85 percent can improve profit potential by about 5
percent.
