MULTIPLE CHOICE
1. It is evident that firms have not fully exploited all the opportunities that ____ marketing has to offer via communication through devices like smartphones and digital tablet-like devices.
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a.
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direct
|
|
b.
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mobile
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c.
|
local
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d.
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trade channel
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ANS: B DIF: Moderate REF: p. 8 OBJ: 1-Intro
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
2. Which of the following is true regarding advertising?
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a.
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Advertising is a universal communication beyond language and culture.
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b.
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Advertising has as its main responsibility the increase of product sales.
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c.
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Advertising plays a pivotal role in world commerce and the way we experience life.
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d.
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Advertising rarely generates revenue.
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ANS: C DIF: Moderate REF: p. 10 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
3. KidsCause, a metropolitan outreach organization that collects and donates toys for needy children, buys airtime on WXXY (a local TV station) to promote its annual toy collection. Amazing Ads, a local ad agency, shoots the video and produces the 30-second commercial and Downtown Deli donates sandwiches for volunteers on the days they collect, wrap, and distribute toys. In this promotional effort, who is the client?
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a.
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Amazing Ads
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b.
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Downtown Deli
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c.
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WXXY
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d.
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KidsCause
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ANS: D DIF: Moderate REF: p. 11 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Strategy TYP: Application
4. The mayor of a midsize Southern city appears on local television, saying that she should be re-elected because she has brought jobs to the metropolitan area. Obviously, this effort is mass-mediated and is an attempt to persuade. But for it to be considered advertising, which other condition must be met?
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a.
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The message must be received by a target audience.
|
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b.
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There must be a public service announcement included.
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c.
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The airtime must be paid for.
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d.
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The claim must involve a product or service.
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ANS: C DIF: Moderate REF: p. 11 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
5. Public service announcements (PSAs)
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a.
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are a type of advertising run by nonprofit organizations.
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b.
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use copy and visuals in ways very different from traditional advertising.
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c.
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attempt only to inform and not necessarily to persuade.
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d.
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are not paid for like an ad.
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ANS: D DIF: Easy REF: p. 11 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
6. The American Academy of Pediatrics (AAP) wants to launch a message to inform citizens about dangerous crib structures and recalled products. It hires a firm called American Message, which has expertise in working with nonprofit organizations, to create a series of television commercials around this primary theme. There is no charge for airtime on the many syndicated networks on which the ad will be broadcast. In this instance,
|
a.
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the AAP is considered the client because it hired an agency.
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b.
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the syndicated networks are considered the trade channel.
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c.
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American Message is considered the sponsor because the AAP is a nonprofit organization.
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d.
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the AAP is running a public service announcement.
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ANS: D DIF: Difficult REF: p. 11 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
7. For a communication to be classified as advertising, which of the following criteria does not have to be met?
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a.
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It must be paid for.
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b.
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It must be mass-mediated rather than face-to-face.
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c.
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It must promote a product.
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d.
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It must attempt to persuade.
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ANS: C DIF: Moderate REF: p. 11-12 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
8. Based on the criteria that defines the concept of advertising, which of the following communication efforts would be considered advertising?
|
a.
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a candidate for city council going door-to-door urging people to vote for her
|
|
b.
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a television message from a national trade group reminding people to eat pork
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c.
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a public service announcement about the dangers of texting while driving
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d.
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an actor being interviewed on TV about his campaign to aid disabled veterans
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ANS: B DIF: Moderate REF: p. 11-12 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
9. YouTrade, an online broker, purchases a 60-second television commercial to be telecast during the Major League playoffs and the World Series. The commercial touts the reliability of YouTrade’s advice, expertise, and personal attention in assisting Internet customers with stock portfolio creation and management. The spot created by YouTrade is
|
a.
|
not an advertisement since it does not involve a product.
|
|
b.
|
a promotion aimed at a trade channel.
|
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c.
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an unpaid public service announcement.
|
|
d.
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an advertisement promoting a service.
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ANS: D DIF: Difficult REF: p. 11-12 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
10. Integrated brand promotion (IBP) is
|
a.
|
closely monitored and regulated on a federal level by the Federal Trade Commission.
|
|
b.
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the coordination of a number of promotional tools to create widespread brand exposure.
|
|
c.
|
the use of more than one media format to deliver a commercial message.
|
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d.
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a unique concept mainly seen in national advertising campaigns.
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ANS: B DIF: Easy REF: p. 13 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
11. EcoNature is a small manufacturing firm distributing a new line of eco-friendly household cleaning products in Western and Southwestern states. To raise awareness and encourage consumers to trial its products, it buys advertising time on cable TV, places ads in regional issues of women’s magazines, and offers coupons via a number of metropolitan newspapers. Each new communication undergoes a review process to ensure that it displays the new “green” brand logo and carries the same message. Overall, EcoNature is
|
a.
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segmenting its target audience.
|
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b.
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running corporate advertising.
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c.
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creating primary demand.
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d.
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managing the IBP process.
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ANS: D DIF: Moderate REF: p. 13 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Strategy TYP: Application
12. Farm Fresh Market, a local grocery store chain, has decided to run a series of advertisements. For this to be considered an advertising campaign, the Farm Fresh Market ads must
|
a.
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focus on store products rather than store services.
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b.
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target a number of segmented audiences.
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c.
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appear in multiple forms of media.
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d.
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communicate a cohesive and integrated idea or theme.
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ANS: D DIF: Difficult REF: p. 14 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
13. What are the two major components of the mass-mediated communication model, each representing a somewhat independent process?
|
a.
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primary demand and selective demand
|
|
b.
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advertiser and consumer
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c.
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internal position and external position
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d.
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production and reception
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ANS: D DIF: Moderate REF: p. 16 OBJ: 1-2
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
14. In the model of mass-mediated communication, the
|
a.
|
producers of the message control the reception of the content.
|
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b.
|
producers of the message control the interpretation of the content.
|
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c.
|
audience members can interpret advertising any way they want.
|
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d.
|
audience members interpret information the same way.
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ANS: C DIF: Moderate REF: p. 17 OBJ: 1-2
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
15. A husband and wife are watching a cable news program when a commercial comes on that they’ve never seen before. He thinks that the spokesperson in the ad is pretty funny. She thinks the spokesperson is just plain stupid. This is an example of
|
a.
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the creation of different meanings based on social and cultural context.
|
|
b.
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a failure to reach a target audience.
|
|
c.
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an ad that is not effective.
|
|
d.
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one person not exercising intent of interpretation.
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ANS: A DIF: Difficult REF: p. 17 OBJ: 1-2
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
16. During the NCAA championships, a national sports equipment manufacturer runs an edgy, fast-paced commercial featuring a well-known hip hop artist. A group of guys watching in a fraternity house seem to interpret the commercial in roughly the same way. When members of an audience share a similar interpretation of an ad like this, it is most likely the result of the
|
a.
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backgrounds and value systems of audience members.
|
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b.
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frequency of the commercial.
|
|
c.
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content of the commercial.
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d.
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characteristics of the product being advertised.
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ANS: A DIF: Moderate REF: p. 17 OBJ: 1-2
NAT: AACSB Communication | CB&C Model Customer TYP: Application
17. A particular group of consumers that is singled out by an organization for its advertising or IBP campaign is called a(n)
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a.
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target audience.
|
|
b.
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trade channel.
|
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c.
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household.
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d.
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organization.
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ANS: A DIF: Easy REF: p. 18 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
18. A marketer is asked to analyze her company’s advertising industry expenditures by target market. She wants to start with the broad market that is most often selected by advertisers. She begins her work by looking at
|
a.
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members of trade channels.
|
|
b.
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government employees.
|
|
c.
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professionals.
|
|
d.
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household consumers.
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ANS: D DIF: Moderate REF: p. 18 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
19. A well-known manufacturer of office machines needs to hire a new product manager for its line of high-end copying machines for office use. The human resources associate is aware that the new manager she hires will most likely need to
|
a.
|
rely on consumer advertising to reach as many people as possible.
|
|
b.
|
use both personal selling and advertising.
|
|
c.
|
eliminate government organizations as a potential target market.
|
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d.
|
ignore not-for-profit businesses.
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ANS: B DIF: Difficult REF: p. 18 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
20. FoodPro is a manufacturer of innovative versions of traditional small kitchen appliances like toasters, can openers, and blenders. Because it competes with national giants like GE and Sunbeam, the firm decides to launch ads designed to get the attention of shippers, handlers, brokers, and store managers who carry, deliver, distribute, and display its products. Taken together, the retailers, wholesalers, and distributors targeted by FoodPro comprise its
|
a.
|
professional segment.
|
|
b.
|
trade channel.
|
|
c.
|
marketing mix.
|
|
d.
|
target audience.
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ANS: B DIF: Moderate REF: p. 18-19 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
21. A medical equipment supplier is targeting a number of healthcare professionals (doctors, nurses, physical therapists) with its latest advertising. This firm should be aware that the advertising is attempting to reach an audience that
|
a.
|
has little real purchasing power within this industry.
|
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b.
|
can best be found through general interest magazines.
|
|
c.
|
has the same broad and generalized needs as the rest of the population.
|
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d.
|
relies on specific language, images, and terminology.
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ANS: D DIF: Difficult REF: p. 19 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Customer TYP: Application
22. Which of the following would be considered a trade journal?
|
a.
|
a financial publication like The Wall Street Journal
|
|
b.
|
a publication written for health professionals like Nursing
|
|
c.
|
a magazine aimed at fitness enthusiasts like Runners World
|
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d.
|
a metropolitan newspaper like The Boston Globe
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ANS: B DIF: Moderate REF: p. 19 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
23. The advertising aimed at government officials and bureaucrats who have big budgets to spend usually centers around
|
a.
|
local and regional television commercials.
|
|
b.
|
pitches in national magazines and city trade journals.
|
|
c.
|
direct mail, catalogs, and Web ads.
|
|
d.
|
public relations promotions.
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ANS: C DIF: Moderate REF: p. 19 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
24. A marketing manager for a giant beverage firm has been put in charge of all advertising for a new soft drink that appears to have a common appeal in different cultures around the world. This manager will most likely engage in
|
a.
|
national advertising.
|
|
b.
|
international advertising.
|
|
c.
|
multicultural advertising.
|
|
d.
|
global advertising.
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ANS: D DIF: Moderate REF: p. 19 OBJ: 1-3
NAT: AACSB Communication | CB&C Model International Perspective
TYP: Application
25. Which of the following is an example of international advertising?
|
a.
|
Gatorade promoting its new line of six-pack drinks at the Olympics
|
|
b.
|
Sony advertising its flat-screen TVs around the world
|
|
c.
|
Procter & Gamble creating different versions of its Tide ad for various countries
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|
d.
|
Nike featuring its “swish” logo on gear worn by tennis players at Wimbledon
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ANS: C DIF: Moderate REF: p. 20 OBJ: 1-3
NAT: AACSB Communication | CB&C Model International Perspective
TYP: Application
26. A furniture retailer establishes itself in the Pacific Northwest with massive stores in Seattle and Portland. Over the years it expands into the West and Northwest, with large outlets in Billings, Fargo, and Denver. Its promotions throughout these locations would be considered ____ advertising.
|
a.
|
national
|
|
b.
|
corporate
|
|
c.
|
business-to-business
|
|
d.
|
regional
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ANS: D DIF: Easy REF: p. 21 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
27. A family-owned butcher shop has expanded to four locations within the St. Louis metropolitan area and suburbs, running regular promotions in the daily editions of The Kansas City Star. These newspaper ads forms of ____ advertising.
|
a.
|
local
|
|
b.
|
trade
|
|
c.
|
regional
|
|
d.
|
cooperative
|
ANS: A DIF: Easy REF: p. 21-22 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
28. When national companies and local merchants share advertising expenses, they are taking part in ____ advertising.
|
a.
|
external
|
|
b.
|
local
|
|
c.
|
cooperative
|
|
d.
|
selective
|
ANS: C DIF: Easy REF: p. 22 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
29. A marketer has been given the task of monitoring all the elements of the marketing mix for a large Oregon winery. He has many responsibilities, but one aspect that he is not concerned with is the ____ of the winery’s products.
|
a.
|
production
|
|
b.
|
conception
|
|
c.
|
pricing
|
|
d.
|
promotion
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ANS: A DIF: Moderate REF: p. 22 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
30. Which of the following is the result of a company creating a brand extension?
|
a.
|
a public service announcement run by the NFL during Monday Night Football telecasts
|
|
b.
|
a new type of dog collar advertised in Dog World and other magazines for pet owners
|
|
c.
|
a women’s fragrance imitating a popular Calvin Klein cologne
|
|
d.
|
a candy bar created with Oreos and launched by Nabisco
|
ANS: D DIF: Moderate REF: p. 26 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
31. Market segmentation is the process of
|
a.
|
creating a perceived difference between the brand of one firm and the brand of a competitor.
|
|
b.
|
adding a level of value and meaning to a product’s identity.
|
|
c.
|
breaking down a large heterogeneous market into homogeneous submarkets.
|
|
d.
|
identifying a competitive niche for a brand.
|
ANS: C DIF: Moderate REF: p. 28 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
32. What is the term for the effort to create a perceived distinction between an organization's brand and the competition's brand?
|
a.
|
internal positioning
|
|
b.
|
external positioning
|
|
c.
|
market segmentation
|
|
d.
|
differentiation
|
ANS: D DIF: Difficult REF: p. 28 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
33. EarthWorld, a manufacturer of camping gear and apparel, sells several lines of sleeping bags that are very similar to each other. The company does not want one line of sleeping bags to steal market share from the others. To protect against this, EarthWorld must be concerned with the effective use of
|
a.
|
economies of scale.
|
|
b.
|
internal positioning.
|
|
c.
|
primary demand stimulation.
|
|
d.
|
institutional advertising.
|
ANS: B DIF: Difficult REF: p. 30 OBJ: 1-4
NAT: AACSB Analytic | CB&C Model Strategy TYP: Application
34. Effective ________ positioning is accomplished by either developing vastly different products within the firm’s own product line or creating advertising messages that appeal to different consumer needs and desires.
|
a.
|
external
|
|
b.
|
cross-
|
|
c.
|
perceptual
|
|
d.
|
internal
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ANS: D DIF: Easy REF: p. 30 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Strategy
35. A manufacturer creates massive demand for its new plastic sandal and greatly increases its production level. Over time, its high-volume production brought on by demand stimulation results in lower costs. This is an example of
|
a.
|
inelasticity of demand.
|
|
b.
|
economies of scale.
|
|
c.
|
brand loyalty.
|
|
d.
|
symbolic value.
|
ANS: B DIF: Difficult REF: p. 31 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Pricing TYP: Application
36. When the advertising of Brandmoor’s, a regional department store, is created to encourage and maintain brand loyalty, it supports successful price increases. Economists would call this department store’s strategy an example of
|
a.
|
direct response advertising.
|
|
b.
|
selective demand stimulation.
|
|
c.
|
primary demand stimulation.
|
|
d.
|
inelasticity of demand.
|
ANS: D DIF: Difficult REF: p. 31 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
37. A manufacturer of a new electronic device launches a campaign to create demand for the entire product category, since it is new to the public. This is known as
|
a.
|
selective demand stimulation.
|
|
b.
|
latent demand stimulation.
|
|
c.
|
elastic demand stimulation.
|
|
d.
|
primary demand stimulation.
|
ANS: D DIF: Moderate REF: p. 31 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
38. When consumers are brand loyal, the term inelasticity of demand is often used. This means that
|
a.
|
consumers won’t accept price increases for a particular product category.
|
|
b.
|
consumers are less sensitive to price increases for a brand they like.
|
|
c.
|
firms have the flexibility to lower prices if this will increase sales.
|
|
d.
|
firms may decrease production in order to increase demand.
|
ANS: B DIF: Moderate REF: p. 31 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
39. The advertising for a snow blower points out a brand’s unique benefits compared to the snow blowers offered by the competition. This is known as
|
a.
|
selective demand stimulation.
|
|
b.
|
primary demand stimulation.
|
|
c.
|
corporate advertising.
|
|
d.
|
direct response advertising.
|
ANS: A DIF: Moderate REF: p. 33 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
40. The attempt to develop brand awareness and preference over time, as well as emphasize the benefits of using that brand is called
|
a.
|
delayed response advertising.
|
|
b.
|
selective demand stimulation.
|
|
c.
|
corporate advertising.
|
|
d.
|
primary demand stimulation.
|
ANS: A DIF: Difficult REF: p. 33 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
41. Which slogan is an example of corporate advertising rather than brand advertising?
|
a.
|
“Mmm-mmm good” (Campbell’s)
|
|
b.
|
“The quicker picker-upper” (Bounty)
|
|
c.
|
“Snap! Crackle! Pop!” (Kellogg)
|
|
d.
|
“We bring good things to life” (General Electric)
|
ANS: D DIF: Moderate REF: p. 33 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
42. What type of advertising communicates the specific features, values, and benefits of a product offered by a particular company?
|
a.
|
internal advertising
|
|
b.
|
corporate advertising
|
|
c.
|
brand advertising
|
|
d.
|
institutional advertising
|
ANS: C DIF: Moderate REF: p. 33 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Product TYP: Application
43. As the holidays approach, corporate advertising is placed in a trade channel by large retailers such as JCPenney, Macy’s, Sears, and Dillard’s. Their main objective is to get people into their stores and get into the mood to shop rather than to look for a particular item or brand. This is an example of ____ advertising.
|
a.
|
institutional
|
|
b.
|
direct response
|
|
c.
|
external
|
|
d.
|
professional
|
ANS: A DIF: Moderate REF: p. 34 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Product TYP: Application
44. The demand for goods and services is stimulated by advertising in a small Caribbean nation. The economic system of the country should benefit by a(n)
|
a.
|
increase in the gross domestic product.
|
|
b.
|
reduction of expenses needed to compete within that product category.
|
|
c.
|
lessening of inelasticity of demand.
|
|
d.
|
expansion of institutional advertising.
|
ANS: A DIF: Moderate REF: p. 34 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
45. A critic of advertising tells you that the costs of advertising are built into the costs for products, which are then passed on to the consumer. You have decided to argue the issue. You can make many points, but which argument should you not present?
|
a.
|
The increased demand for products that results from advertising can lower the cost of the production of the products.
|
|
b.
|
Economies of scale spread fixed costs over a large number of production units.
|
|
c.
|
The cost of advertising is usually not built into the cost of products.
|
|
d.
|
This must be balanced against the time it would take a person if he or she had to search for information about products without advertising.
|
ANS: C DIF: Difficult REF: p. 35 OBJ: 1-4
NAT: AACSB Analytic | CB&C Model Pricing TYP: Application
46. A brand of soup is perceived by consumers as a “good deal,” one that provides a certain level of comfort and satisfaction that goes well beyond just the money it takes to purchase a few cans. In this way, the soup is said to have
|
a.
|
demand stimulation.
|
|
b.
|
inelastic demand.
|
|
c.
|
positioning.
|
|
d.
|
value.
|
ANS: D DIF: Moderate REF: p. 35 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Customer TYP: Application
47. A greeting card manufacturer runs a commercial indicating that people who receive greeting cards appreciate them much more when they see its company name on the back. This is an example of a company focusing on
|
a.
|
symbolic value.
|
|
b.
|
direct response.
|
|
c.
|
primary demand stimulation.
|
|
d.
|
mobile marketing.
|
ANS: A DIF: Difficult REF: p. 36 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
48. Products that signify a certain class membership for those who purchase them—or hope to purchase them—are said to carry a certain level of ____ with their name and brand.
|
a.
|
symbolic value
|
|
b.
|
social meaning
|
|
c.
|
differentiation
|
|
d.
|
brand equity
|
ANS: B DIF: Difficult REF: p. 36 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Customer TYP: Application
49. By about 1990, the idea of combining various promotional tools came to be known as ____, though over the past two decades this phrase has shifted and evolved, giving way to a new term.
|
a.
|
integrated marketing communications
|
|
b.
|
marketing mix
|
|
c.
|
integrated brand promotion
|
|
d.
|
economies of scale
|
ANS: A DIF: Moderate REF: p. 37-38 OBJ: 1-5
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
50. The reality of today’s promotions, beyond all else, centers around a strong emphasis on the
|
a.
|
communication.
|
|
b.
|
corporation.
|
|
c.
|
media.
|
|
d.
|
brand.
|
ANS: D DIF: Easy REF: p. 38 OBJ: 1-5
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
51. Which acronym refers to the broad concept that defines today’s emphasis on building awareness and preference for brands, beyond merely communicating about products?
|
a.
|
IMC
|
|
b.
|
GDP
|
|
c.
|
IBP
|
|
d.
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PSA
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ANS: C DIF: Easy REF: p. 38 OBJ: 1-5
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
52. What three elements do today’s marketers want to build and maintain through their promotional efforts?
|
a.
|
awareness, identity, and preference
|
|
b.
|
attention, interest, and response
|
|
c.
|
demand, value, and loyalty
|
|
d.
|
information, message, and communication
|
ANS: A DIF: Easy REF: p. 38 OBJ: 1-5
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
Scenario 1-1
In 1996, University of Maryland grad Kevin Plank founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes since the company’s inception. Along with the new product line, says Plank, needs to come a new brand image. “I called our marketing team and said go through this building and find anything that says we are only an apparel brand and throw it away.” The company has also pulled all advertisements carrying the word “apparel,” and will begin exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall “performance” company, which will ultimately enable it to compete with footwear from powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share.
53. (Scenario 1-1) One of Under Armour’s new retail outlets in the U.S. sends a direct mail piece to 500 households within a one mile radius of the new store. In the flyer, the store announces the introduction of its new line of basketball shoes and offers several incentives to any customers that may come in to purchase a pair of shoes from the new line. This direct mail piece
|
a.
|
is paid for, mass mediated, and an attempt to persuade; therefore, it should be considered advertising.
|
|
b.
|
is paid for and an attempt to persuade; however, it is only distributed locally and therefore cannot be considered advertising.
|
|
c.
|
is not received by a large enough number of people to be considered advertising.
|
|
d.
|
is not part of a campaign, and thus is not considered advertising.
|
ANS: A DIF: Moderate REF: p. 11-12 OBJ: 1-1
NAT: AACSB Reflective Thinking | CB&C Model Strategy TYP: Application
54. (Scenario 1-1) Under Armour hopes changing the company’s image from an apparel company to a “performance” brand will help increase footwear sales. To make consumers aware of the change, Under Armour designs a number of commercials, print ads, and Internet advertisements all focusing around the company’s new motto, and immediately begin to apply them. All of these elements make up a(n)
|
a.
|
communication process.
|
|
b.
|
IBP campaign.
|
|
c.
|
advertising campaign.
|
|
d.
|
promotional mix.
|
ANS: C DIF: Moderate REF: p. 14 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
55. (Scenario 1-1) One person receives a direct mail piece from Under Armour that offers a free poster of basketball star Brandon Jennings wearing a pair of the company’s new shoes and thinks the offer is pretty cool. Another person receives the same direct mail piece and immediately throws the offer in the trash. The differing interpretations are most likely the result of
|
a.
|
differing content.
|
|
b.
|
the salient social networks of the recipients.
|
|
c.
|
incorrect target marketing.
|
|
d.
|
the rules and regulations of the direct mail medium.
|
ANS: B DIF: Moderate REF: p. 17 OBJ: 1-2
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
56. (Scenario 1-1) To promote Under Armour’s new brand image, the company creates a number of print ads, and intends to distribute them to markets all over the world (with only a few minor changes for different markets). This is an example of
|
a.
|
international advertising
|
|
b.
|
global advertising.
|
|
c.
|
regional advertising.
|
|
d.
|
national advertising.
|
ANS: B DIF: Moderate REF: p. 19 OBJ: 1-3
NAT: AACSB Reflective Thinking | CB&C Model Strategy TYP: Application
57. (Scenario 1-1) Under Armour decides to sponsor a youth basketball camp to help promote brand awareness for its new shoes. Along with this sponsorship, Under Armour designs new advertisements for the shoes, and even redesigns its website. However, the company soon realizes it has not been sending a consistent message through the various mediums. This attempt at integrated brand promotion will likely be unsuccessful because
|
a.
|
it is not utilizing social media sites such as Facebook and Twitter.
|
|
b.
|
sponsoring a youth basketball camp is not the right target market.
|
|
c.
|
the campaign lacks coordination, which is essential to any IBP effort.
|
|
d.
|
the brand was successful before, and redesigning the company website will cause older customers to grow frustrated with the new direction of the company.
|
ANS: C DIF: Moderate REF: p. 38 OBJ: 1.5
NAT: AACSB Reflective Thinking | CB&C Model Strategy TYP: Application
Scenario 1-2
Chug Enterprises is considering entering the already-crowded sports drink market with a line of products. The first brand will be advertised to teenagers as being the best-tasting sports drink on the market. The second brand will be advertised to adults as being the lowest calorie sports drink you can buy. The third brand will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each brand will have separate, distinctive packaging. However, the drinks inside are actually identical to one another.
58. (Scenario 1-2) To help build brand awareness, preference and loyalty, Chug Enterprises plans a coordinated campaign using a variety of promotional tools including advertising. This process of combining coordinated communication to help customers identify and evaluate the relevance of Chug Enterprises products to their lives and value systems is considered
|
a.
|
delayed response advertising.
|
|
b.
|
integrated brand promotion.
|
|
c.
|
indirect response advertising.
|
|
d.
|
institutional advertising.
|
ANS: B DIF: Moderate REF: p. 13 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
59. (Scenario 1-2) To be successful, Chug Enterprises believes it must convince grocery store chains to carry all three brands. If Chug Enterprises uses what is generally considered to be the major promotional tool available to accomplish this, it will engage in a program that emphasizes
|
a.
|
personal selling.
|
|
b.
|
free sampling.
|
|
c.
|
consumer promotions.
|
|
d.
|
trade advertising.
|
ANS: A DIF: Moderate REF: p. 18-19 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
60. (Scenario 1-2) If the brand aimed at senior citizens is successful in the U.S. market, Chug Enterprises plans to introduce it worldwide. However, appropriate images of senior citizens vary from culture to culture. Therefore, Chug Enterprises would be wise to engage in
|
a.
|
local advertising.
|
|
b.
|
international advertising.
|
|
c.
|
national advertising.
|
|
d.
|
regional advertising.
|
ANS: B DIF: Easy REF: p. 20 OBJ: 1-3
NAT: AACSB Reflective Thinking | CB&C Model International Perspective
TYP: Application
61. (Scenario 1-2) Chug Enterprises chose the positions of the three products to appeal to separate target markets. This was done to keep its brands from competing for market share with one another. This shows that Chug Enterprises understands the importance of
|
a.
|
internal positioning.
|
|
b.
|
external positioning.
|
|
c.
|
inelasticity of demand.
|
|
d.
|
primary demand.
|
ANS: A DIF: Moderate REF: p. 29 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
62. (Scenario 1-2) What would most likely be the least effective strategy Chug Enterprises could pursue in marketing its product to consumers?
|
a.
|
to focus on integrated brand promotion
|
|
b.
|
to use delayed response advertising
|
|
c.
|
to stimulate primary demand
|
|
d.
|
to attempt to increase elasticity of demand
|
ANS: C DIF: Moderate REF: p. 31 OBJ: 1-4
NAT: AACSB Analytic | CB&C Model Strategy TYP: Application
Scenario 1-3
In 2006, gaming giant Nintendo launched an innovative motion-sensing gaming console called the Wii. The Wii quickly took over as the leading gaming console because of its unique activity-enabling qualities, and for nearly four years, dominated hardware sales in the gaming industry as any true competition for the product was yet to be introduced. However, this changed in late 2010 as Sony introduced its own motion-detecting gaming system to the market, the Playstation Move. Sony has marketed the product as a superior product to Nintendo’s, claiming it is more precise and flaunting the Playstation’s high-quality graphics. Sony’s Move has been a topic of great debate, but the reception of the product over the long haul has yet to be seen. To dethrone the Wii, Sony will need to find a way to appeal to those that have not yet bought into “motion-gaming.” And of course, it wouldn’t hurt if Sony somehow found a way to entice Nintendo followers to switch over to its newest addition to the gaming industry.
63. (Scenario 1-3) Through various studies, Sony discovers that 40 percent of U.S. households do not own a Nintendo Wii, so it purchases advertising to directly target those households. The 40 percent to which the advertising is aimed is best described as the
|
a.
|
potential client.
|
|
b.
|
target audience.
|
|
c.
|
receiver.
|
|
d.
|
client.
|
ANS: B DIF: Easy REF: p. 18 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Customer TYP: Application
64. (Scenario 1-3) To have the greatest opportunity for success in selling the Playstation Move, Sony must rely on a number of different tools available in the marketing mix. Which one of the following is true?
|
a.
|
Instructions for the use of the Move are not considered part of the product in the marketing mix.
|
|
b.
|
Advertising is considered one of the four main categories of Sony's marketing mix.
|
|
c.
|
The primary job of Sony's marketing mix is to support the advertising.
|
|
d.
|
Sony's product distribution should be considered part of the marketing mix.
|
ANS: D DIF: Moderate REF: p. 22 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Distribution TYP: Application
65. (Scenario 1-3) The fundamental purpose of marketing the Playstation Move as a superior gaming console to the Wii because of its increased precision and improved graphics is to
|
a.
|
differentiate Sony from other entertainment options such as Nintendo and the Microsoft Xbox.
|
|
b.
|
create and increase the awareness of Sony.
|
|
c.
|
support the promotional mix behind Sony.
|
|
d.
|
establish primary demand stimulation for the Move.
|
ANS: A DIF: Moderate REF: p. 28 OBJ: 1-4
NAT: AACSB Analytic | CB&C Model Promotion TYP: Application
66. (Scenario 1-3) If the advertisements aimed at consumers who do not currently have a gaming system are successful, it may result in the Move being thought of as the best option for today's gaming entertainment at the expense of the Wii. This is an example of
|
a.
|
successful product positioning for Sony.
|
|
b.
|
primary demand stimulation on the part of Sony.
|
|
c.
|
an integrated marketing communications plan.
|
|
d.
|
achievement of internal positioning by Sony.
|
ANS: A DIF: Difficult REF: p. 29 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Product TYP: Application