Advertising Exam 1 || A+ Guaranteed.
Advertising correct answers The structured and composed non personal communication of
information, usually paid for and usually persuasive in nature, about products (goods, services,
and ideas) by identified sponsors through various media
Public Service Announcement (PSA) correct answers An advertisement serving the public
interest, often for a nonprofit organization, carried by the media at no charge
Product correct answers The particular good or service a company sells
Goods correct answers Tangible products such as suits, soap, and soft drinks
Services correct answers A bundle of benefits that may or may not be physical, that are
temporary in nature, and that come from the completion of a task
Ideas correct answers Economic, political, religious, or social viewpoints that advertising may
attempt to sell
Medium correct answers An instrument or communications vehicle that carries or helps transfer
a message from the sender to the receiver
Mass media correct answers Print or broadcast media that reach very large audiences. Mass
media include radio, television, newspapers, magazines, and billboards
Word-of-mouth (WOM) Advertising correct answers The passing of information, especially
product recommendations, by verbal communication, in an informal, unpaid, person-to-person
manner, rather than by advertising or other forms of traditional marketing (NOT
ADVERTISING)
Marketing (Definition and Primary Role) correct answers DEFINITION: an organizational
function and a set of processes for creating, communicating, and delivering value to customers
and for managing customer relationships in ways that benefit the organization and its
stakeholders
PRIMARY ROLE: bring in revenue
"4 Ps" of the Marketing Mix correct answers 1. developing PRODUCTS
2. PRICING them strategically
3. distributing them so they are available to customers at appropriate PLACES
4. PROMOTING them through sales and advertising activities
4 Assumptions of Free Market Competition correct answers 1. SELF-INTEREST: people and
organizations tend to act in their own self-interest so open competition between sellers and
buyers leads to greater product availability
,2. COMPLETE INFORMATION: access by buyers and sellers to all information at all times
about what products are available leads to greater competition and lower prices for all
3. MANY BUYERS AND SELLERS: having a wide range of sellers ensures that if one
company does not meet customer needs, another one will
4. ABSENCE OF EXTERNALITIES (SOCIAL COSTS): sometimes 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 (restrictions on tobacco advertisers)
7 Functions of Advertising as a Marketing Tool correct answers 1.to IDENTIFY products and
differentiate them from others
2. to COMMUNICATE information about the product, its features, and its place of sale
3. to INDUCE consumers to try new products and to suggest reuse
4. to STIMULATE the distribution of a product
5. to INCREASE product use
6. to BUILD value, brand preference, and loyalty
7. to LOWER the overall COST of sales
Preindustrial Age correct answers Period of time between the beginning of written history and
roughly the start of the nineteenth century, during which the invention of PAPER and the
PRINTING PRESS and increased literacy gave rise to the first forms of written advertising
Industrializing Age correct answers The period of time from the mid 1700s through the end of
WWI when manufacturers were principally concerned with production
MAJOR INVENTIONS: machines to mass produce, railroad and steamship, first ad agency,
photography, magazine ads, motion pictures
Industrial Age correct answers First 70 years of the 20th century that was marked by tremendous
growth and maturation of the U.S. Industrial base. It saw the development of new, often
inexpensive brands of the luxury and convenience goods we now classify as consumer packaged
goods
MAJOR INVENTIONS: radio, television after WWII
Postindustrial Age correct answers Period of cataclysmic change, starting in about 1980, when
people first became truly aware of the sensitivity of the environment, advertising was SLOWED
Unique Selling Proposition (USP) correct answers The distinctive benefits that make a product
different than any other. The reason marketers believe consumers will buy a product even though
it may seem no different from many others just like it.
Market Segmentation correct answers Strategy of identifying groups of people or organizations
with certain shared needs and characteristics within the broad markets for consumer or business
products and aggregating these groups into larger market segments according to their mutual
interest in the product's utility
Demarketing correct answers term coined during the energy shortage of the 1970s and 1980s
when advertising was used to slow the demand for products
, Megamerger correct answers to expand their power globally, big multinational companies and
and their advertising agencies went on a binge, buying other big companies and creating a new
word in the financial lexicon: MEGAMERGER
Sales Promotion correct answers A direct inducement offering extra incentives all along the
marketing route- from manufacturers through distribution channels to customers- to accelerate
the movement of the product from the producer to the consumer (coupons, direct mail, direct
marketing)
Narrowcasting correct answers Delivering programming to a specific group defined by
demographics and/or program content, rather than mass appeal. Usually used to describe cable
networks. The opposite of broadcasting
Externalities correct answers benefit or harm caused by the sale or consumption of products to
people who are not involved in the transaction and didn't pay for the product
Advertising & Standard of Living correct answers The level of advertising investment in a
country is directly proportional to to its standard of living
(Mexico, Brazil and Chile at bottom)
(UK, Japan, and US at top)
Chain Reaction of Advertising correct answers The economic effect of advertising is like the
break shot in pool. The moment a company begins to advertise, it sets off a chain reaction of
economic events
(Communicators>Customers>Organizations>Individuals)
Added Value correct answers the increase in worth of a product or service as a result of a
particular activity. In the context of advertising, the added value is provided by the
communication of benefits over and above those offered by the product itself (some believe a
product's image created by advertising is an inherent feature of the product itself, like Coca Cola
and iPod)
Advertising's effects on prices correct answers -the amount spent on advertising is very small
compared with the total cost of the product
-advertising often enables manufacturers to engage in mass production, which in turn lowers the
unit cost of products (lower prices)
-when industries are regulated, advertising has affected price, usually downward, but not always
-in retailing, advertising tends to hold prices down
-national manufacturers use advertising to stress features that make their brands better;
advertising tends to support higher prices
Primary Demand correct answers consumer demand for a whole product category (helps get new
products off the ground)
Advertising correct answers The structured and composed non personal communication of
information, usually paid for and usually persuasive in nature, about products (goods, services,
and ideas) by identified sponsors through various media
Public Service Announcement (PSA) correct answers An advertisement serving the public
interest, often for a nonprofit organization, carried by the media at no charge
Product correct answers The particular good or service a company sells
Goods correct answers Tangible products such as suits, soap, and soft drinks
Services correct answers A bundle of benefits that may or may not be physical, that are
temporary in nature, and that come from the completion of a task
Ideas correct answers Economic, political, religious, or social viewpoints that advertising may
attempt to sell
Medium correct answers An instrument or communications vehicle that carries or helps transfer
a message from the sender to the receiver
Mass media correct answers Print or broadcast media that reach very large audiences. Mass
media include radio, television, newspapers, magazines, and billboards
Word-of-mouth (WOM) Advertising correct answers The passing of information, especially
product recommendations, by verbal communication, in an informal, unpaid, person-to-person
manner, rather than by advertising or other forms of traditional marketing (NOT
ADVERTISING)
Marketing (Definition and Primary Role) correct answers DEFINITION: an organizational
function and a set of processes for creating, communicating, and delivering value to customers
and for managing customer relationships in ways that benefit the organization and its
stakeholders
PRIMARY ROLE: bring in revenue
"4 Ps" of the Marketing Mix correct answers 1. developing PRODUCTS
2. PRICING them strategically
3. distributing them so they are available to customers at appropriate PLACES
4. PROMOTING them through sales and advertising activities
4 Assumptions of Free Market Competition correct answers 1. SELF-INTEREST: people and
organizations tend to act in their own self-interest so open competition between sellers and
buyers leads to greater product availability
,2. COMPLETE INFORMATION: access by buyers and sellers to all information at all times
about what products are available leads to greater competition and lower prices for all
3. MANY BUYERS AND SELLERS: having a wide range of sellers ensures that if one
company does not meet customer needs, another one will
4. ABSENCE OF EXTERNALITIES (SOCIAL COSTS): sometimes 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 (restrictions on tobacco advertisers)
7 Functions of Advertising as a Marketing Tool correct answers 1.to IDENTIFY products and
differentiate them from others
2. to COMMUNICATE information about the product, its features, and its place of sale
3. to INDUCE consumers to try new products and to suggest reuse
4. to STIMULATE the distribution of a product
5. to INCREASE product use
6. to BUILD value, brand preference, and loyalty
7. to LOWER the overall COST of sales
Preindustrial Age correct answers Period of time between the beginning of written history and
roughly the start of the nineteenth century, during which the invention of PAPER and the
PRINTING PRESS and increased literacy gave rise to the first forms of written advertising
Industrializing Age correct answers The period of time from the mid 1700s through the end of
WWI when manufacturers were principally concerned with production
MAJOR INVENTIONS: machines to mass produce, railroad and steamship, first ad agency,
photography, magazine ads, motion pictures
Industrial Age correct answers First 70 years of the 20th century that was marked by tremendous
growth and maturation of the U.S. Industrial base. It saw the development of new, often
inexpensive brands of the luxury and convenience goods we now classify as consumer packaged
goods
MAJOR INVENTIONS: radio, television after WWII
Postindustrial Age correct answers Period of cataclysmic change, starting in about 1980, when
people first became truly aware of the sensitivity of the environment, advertising was SLOWED
Unique Selling Proposition (USP) correct answers The distinctive benefits that make a product
different than any other. The reason marketers believe consumers will buy a product even though
it may seem no different from many others just like it.
Market Segmentation correct answers Strategy of identifying groups of people or organizations
with certain shared needs and characteristics within the broad markets for consumer or business
products and aggregating these groups into larger market segments according to their mutual
interest in the product's utility
Demarketing correct answers term coined during the energy shortage of the 1970s and 1980s
when advertising was used to slow the demand for products
, Megamerger correct answers to expand their power globally, big multinational companies and
and their advertising agencies went on a binge, buying other big companies and creating a new
word in the financial lexicon: MEGAMERGER
Sales Promotion correct answers A direct inducement offering extra incentives all along the
marketing route- from manufacturers through distribution channels to customers- to accelerate
the movement of the product from the producer to the consumer (coupons, direct mail, direct
marketing)
Narrowcasting correct answers Delivering programming to a specific group defined by
demographics and/or program content, rather than mass appeal. Usually used to describe cable
networks. The opposite of broadcasting
Externalities correct answers benefit or harm caused by the sale or consumption of products to
people who are not involved in the transaction and didn't pay for the product
Advertising & Standard of Living correct answers The level of advertising investment in a
country is directly proportional to to its standard of living
(Mexico, Brazil and Chile at bottom)
(UK, Japan, and US at top)
Chain Reaction of Advertising correct answers The economic effect of advertising is like the
break shot in pool. The moment a company begins to advertise, it sets off a chain reaction of
economic events
(Communicators>Customers>Organizations>Individuals)
Added Value correct answers the increase in worth of a product or service as a result of a
particular activity. In the context of advertising, the added value is provided by the
communication of benefits over and above those offered by the product itself (some believe a
product's image created by advertising is an inherent feature of the product itself, like Coca Cola
and iPod)
Advertising's effects on prices correct answers -the amount spent on advertising is very small
compared with the total cost of the product
-advertising often enables manufacturers to engage in mass production, which in turn lowers the
unit cost of products (lower prices)
-when industries are regulated, advertising has affected price, usually downward, but not always
-in retailing, advertising tends to hold prices down
-national manufacturers use advertising to stress features that make their brands better;
advertising tends to support higher prices
Primary Demand correct answers consumer demand for a whole product category (helps get new
products off the ground)
