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Test Bank for Advertising and Promotion 11th Edition

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Test Bank for Advertising and Promotion 11th Edition 1. Digital/online advertising account for the majority of companies' marketing communications expenditures. True False 2. Not all marketing transactions involve the exchange of money for a product or service. True False 3. The status gained from owning a particular brand is an example of a functional benefit. True False 4. As marketers embraced the concept of integrated marketing communications, they began to rely primarily on media advertising. True False 5. The integrated marketing communications approach calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. True False Chapter 01 Test Bank Key 1. Digital/online advertising account for the majority of companies' marketing communications expenditures. FALSE By 2016, $127 billion was being spent on traditional media advertising (television, radio, magazines, newspapers, outdoor, cinema), while only $68 billion was being spent on digital/online advertising. Total digital advertising is expected to reach $100 billion by 2020, at which point it will represent 45 percent of all media advertising spending. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Role of Advertising 2. Not all marketing transactions involve the exchange of money for a product or service. TRUE Not all marketing transactions involve the exchange of money for a product or service. Nonprofit organizations such as various causes, charities, religious groups, the arts, and colleges and universities receive millions of dollars in donations every year. Many nonprofit organizations use ads to solicit contributions from the public. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Strategic Marketing Planning 3. The status gained from owning a particular brand is an example of a functional benefit. FALSE Value is the customer's perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it. Benefits can be functional (the performance of the product), experiential (what it feels like to use the product), and/or psychological (feelings such as self-esteem or status that result from owning a particular brand). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Strategic Marketing Planning 01-27 4. As marketers embraced the concept of integrated marketing communications, they began to rely primarily on media advertising. FALSE As marketers embraced the concept of integrated marketing communications, they began asking their ad agencies to coordinate the use of a variety of promotional tools rather than relying primarily on media advertising. A number of companies also began to look beyond traditional advertising agencies and use other types of promotional specialists. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC 5. The integrated marketing communications approach calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. TRUE The integrated marketing communications approach seeks to have all of a company's marketing and promotional activities project a consistent, unified image to the marketplace. It recognizes that every customer interaction with a company or brand across a host of contact points represents an opportunity to deliver on the brand promise, strengthen customer relationships, and deepen loyalty. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

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Test Bank for Advertising and Promotion 11th Edition
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01-1

,1. Digital/online advertising account for the majority of companies' marketing communications expenditures.
True False



2. Not all marketing transactions involve the exchange of money for a product or service.
True False



3. The status gained from owning a particular brand is an example of a functional benefit.
True False



4. As marketers embraced the concept of integrated marketing communications, they began to rely primarily on media advertising.
True False



5. The integrated marketing communications approach calls for a centralized messaging function so that everything a company says
and does communicates a common theme and positioning.
True False



6. The goal of integrated marketing communications (IMC) is to generate both short-term financial returns and build long-term brand
and shareholder value.
True False



7. One reason marketers are adopting the IMC approach is they understand the value of strategically integrating the various
communications functions.
True False



8. There has been an evolution to micromarketing as the mass audience assembled by network television and augmented by other
mass media is fragmenting at an accelerating rate.
True False




01-2

,9. Traditional print advertising is expected to increase by 45 percent from 2016 to 2020.
True False



10. Most consumers in the millennial generation age cohort are very receptive to traditional advertising.
True False



11. Implicit communication has been defined as the coordination of all seller-initiated efforts to set up channels of information and
persuasion in order to sell goods and services or promote an idea.
True False



12. The nonpersonal nature of advertising means that there is generally ample opportunity for immediate feedback from the message
recipient.
True False



13. Media advertising is still the most cost-effective way to reach large numbers of consumers with an advertising message.
True False



14. Primary-demand advertising focuses on creating demand for a specific company's brands.
True False



15. Business-to-business advertising is limited to industrial goods; services such as insurance and finance and banking are not
included in this category.
True False



16. Advertising targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a
company's product in their business operations is referred to as trade advertising.
True False



17. Traditionally, direct selling via independent contractors has been the primary medium for direct-response advertising.
True False



18. Omnichannel retailing involves using a combination of physical or offline channels as well as digital or online channels to
influence a customer’s shopping experience, including research before a purchase and service after a sale.
True False



01-3

, 19. When Bumble Bee Tuna participates in a trade show to encourage retailers to stock and promote its products, it is engaged in a
consumer-oriented sales promotion.
True False



20. An advantage of publicity over other forms of promotion is its credibility.
True False



21. Publicity is always under the control of an organization, so the organization can make sure it is positive.
True False



22. Unexpected touch points are unanticipated references or information about a company or brand that a customer or prospect
receives that is beyond the control of the organization.
True False



23. Earned media refers to channels of marketing communication that a company controls, such as its websites, blogs, and mobile
apps as well as social media channels such as Facebook, Twitter, Instagram, and YouTube.
True False



24. The first step in the IMC planning process is to review the marketing plan and objectives.
True False



25. Companies or brands that are new to the market or those for whom perceptions are negative should focus on the benefits or
attributes of the specific product or service, and not on their image.
True False



26. Analysis of the communication process may involve preliminary discussions on media-mix options and their cost implications.
True False



27. Which of the following is an example of a marketing exchange?
A. The waitress gave Cyrus a menu and he placed his food order.
B. Griffin helped Mandy replace the air filter in her lawn mower.
C. Ken and Maggie gave their son an MP3 player for his birthday.
D. Mrs. Maloney gave Larry a box of homemade fudge in return for painting her fence.
E. Jenny asked Melisa if she could borrow her pen for a while since her pen had stopped working.




01-4

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