bambach exam 1

Which of the following is true of advertising?

Which of the following is true of advertising?

advertising is a valuable tool for building brand and company equity

A to Z, a supermarket in New Jersey, placed a weekly advertisement in the local newspapers. The advertisement stated that A to Z would provide its customers all vegetables at a flat rate of $5 from Monday to Wednesday between 1 p.m. and 3 p.m. at select locations in the city. A to Z most likely used ____

retail advertising

retail/local advertising often takes the form of

direct-action advertising

Milky Way Inc., a manufacturer of dairy products, has come up with new global ads that promote the benefits of drinking milk as well as demonstrate the various uses of milk. This is an example of:

primary-demand advertising

which of the following is an example of retail advertising?

A newspaper ad for a 3-day discount in a restaurant located on the outskirts of San Diego

Advertisements for CL brake products, True spark plugs, AM chassis parts, and Stone wheels featured in Tire Review, a journal for owners/operators of auto shops, are examples of _____ advertising

business-to-business

_____ advertising is targeted at marketing channel members such as wholesalers, distributors, and retailers in order to encourage them to stock more of a particular brand.

Trade

Venus Corp. is a company that sells collectible plates. If you order one plate from the company, you will receive multiple mails each month providing you with information relating to new products and offers. Which promotional element is Venus Corp. using in this scenario?

Direct marketing

_____ includes those marketing activities that provide extra value or incentives for purchasing a product, such as coupons and premiums.

Sales promotion

Sales promotion programs targeted at marketing intermediaries such as wholesalers, distributors, and retailers are part of:

trade-oriented sales promotion

A local newspaper published an article about Pluto Inc.'s latest line of shoes. The shoes were made with used clothing sourced from households across the country. The article also included select photographs and offered consumers a "sneak peak" into the manufacturing process. This form of nonpersonal marketing communication is known as:

publicity

A review of a movie in a local magazine or on a popular daily television show is an example of:

publicity

Which of the following statements describes a disadvantage of publicity?

Publicity is not always under the control of an organization and is sometimes unfavorable.

Which of the following is best defined as areas where there are favorable demand trends, customer needs and wants are not being satisfied, and where a company thinks it can compete effectively?

Market opportunities

A situational analysis:

includes an assessment of its individual brands.

Merry Inc. is a non-profit organization that employs a large number of underprivileged people. It sells art and handicrafts made by these individuals at reasonable prices. Merry's target market consists of people who believe in helping others. It uses _____ segmentation.

psychographic

_____ segmentation is most closely related to the 80-20 rule, which states that 80 percent of a company's business comes from 20 percent of its customers.

Behavioristic

The fact that some consumers want flavored bottled water and others want it with added minerals provides an opportunity for _____ segmentation.

benefit

_____ is used when the firm selects one segment and attempts to capture a large share of the market.

Concentrated marketing

Star Furniture designs and sells bedroom furniture for people who are over six-feet tall, which is a relatively small target market. Which of the following strategies is the company employing in this scenario?

Concentrated marketing

Which of the following is true of concentrated marketing strategies?

They usually involve only a single segment.

The tagline on an ad for Baker Grill, a manufacturer of gas grills, reads, "The Ultimate Durable Grill" Baker Grill is using a positioning strategy based on:

product attributes and benefits.

Initially, Flash Parcel Service (FPS) built its advertising campaign around the slogan, "Our business quality speaks the language of speed." Back then, the company was trying to make the customers aware of the speed with which it delivers the service. Later, FPS modified its slogan and designed new ads to make customers aware of the different aspects of its delivery such as reliability, cost-efficiency, and punctuality. By moving away from promoting itself as simply a parcel delivery company, FPS has:

used a repositioning strategy

The meaning a consumer attributes to a product or brand and what he or she experiences in purchasing it is known as:

product symbolism

Which of the following is true of brand equity?

It is goodwill that results from a favorable impression.

Which of the following best defines brand equity?

It is an intangible asset of added value or goodwill that results from the favorable image and/or the strength of consumer attachment to a company name.

The primary function of most media is to:

provide information and entertainment to their audience.

Which of the following statements is true about the role of top management in the advertising and promotion decision making process?

The top management is usually interested in how the advertising program represents the organization.

A company often uses a centralized organizational system when:

it does not have many product lines or brands to advertise.

A company often uses a decentralized organizational system when:

it has multiple divisions and many different products.

Diva Boutique, located in Manhattan, relies on external advertising agencies for its advertising needs, but due to its growing global presence, it is now worried that using external agencies may lead to inconsistency in delivery of its brand image. It also wants to maintain tighter control over its advertising and promotional activities. Which of the following advertising agencies should it adopt?

In-house agency

Which of the following statements is true about account services?

It is the link between the advertisement agency and its clients.

_____ are drawings that show what the print ad will look like and from which the final artwork will be produced.

Layouts

Defenders of the commission system argue that:

it is generally easier to administer and keeps the emphasis in agency compensation on nonprice factors.

_____ is a system whereby the commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase.

Negotiated commission system

As more companies adopt the integrated marketing communications approach to their advertising and promotions:

they are reducing their reliance on mass media advertising that is leading to changes in the way they compensate their agencies.

_____ specialize in the development and management of sweepstakes, refund and rebate offers, and incentive programs.

Sales promotion agencies

Interactive agencies are also called _____.

digital agencies

Which of the following best defines integrated marketing communications?

It involves coordinating the various promotional elements and other marketing activities that interact with a firm's customers.

Sales promotions targeted at the ultimate users of a product, such as sampling, coupons, contests, or sweepstakes are part of:

consumer-oriented sales promotion.

_____ segmentation divides consumers into groups according to their usage, loyalties, or buying responses to a product.

Behavioristic

Venus Corporation engaged in a multi-million dollar campaign to alter its image among many of its customers. The company's customers had a perception that the company was simply a hardware manufacturer. Venus wants customers to see it as a services and technology provider. In this scenario, Venus is:

using a repositioning strategy.