, Chapter 1 - The World of Advertising and Integrated Brand Promotion
TRUE/FALSE
1. In the new world of advertising, mass media are just about dead and gone.
ANS: F DIF: Easy REF: p. 7 OBJ: 1-Intro
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
2. One ongoing change in today’s promotions can be seen in the way that the lines between information,
entertainment, networking, and commercial messages are blurring.
ANS: T DIF: Easy REF: p. 7 OBJ: 1-Intro
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
3. Today, unlike years past, if a company produces and disseminates enough digital, mobile, online, and
even traditional advertising for its offering, even a brand that does not meet consumers needs can
succeed.
ANS: F DIF: Moderate REF: p. 8 OBJ: 1-Intro
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
4. The company or organization that pays for an advertisement is referred to as the client or sponsor.
ANS: T DIF: Easy REF: p. 11 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
5. Brad Pitt is interviewed on the red carpet walk to the Academy Awards about his latest movie, for
which he has been nominated for an Oscar. TV cameras and reporters zoom in to catch his comments.
This is a form of advertising.
ANS: F DIF: Moderate REF: p. 11 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
6. A commercial created by the Partnership for a Drug-Free America shows eggs dropping into a frying
pan, with the caption, “This is your brain on drugs.” It is aired on three major television networks for
free. Though this sounds like a public service message, it is actually an advertisement.
ANS: F DIF: Moderate REF: p. 11 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
7. A firm that manufactures a device that alleviates sleep apnea produces a print ad and a television
commercial that have the stated purpose of simply delivering straight information about the product.
Therefore, it is not an attempt to persuade.
ANS: F DIF: Moderate REF: p. 12 OBJ: 1-1
NAT: AACSB Ethics | CB&C Model Strategy TYP: Application
8. The marketers at Apple use a number of communication methods—including advertising in many
forms of media, personal selling, public relations, event sponsorship, corporate advertising, social
networking, and point-of-purchase, among others—in a coordinated process to build and maintain
brand exposure. The Apple promoters are demonstrating a form of integrated brand promotion (IBP).
ANS: T DIF: Moderate REF: p. 13 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
9. Essentially, the idea behind integrated brand promotion (IBP) is to pay for the use of many tools,
including advertising, and coordinate them to launch products and boost sales.
ANS: F DIF: Moderate REF: p. 13 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
10. A single ad—or a series of coordinated ads with a similar look, feel, and message—that revolves
around one consistent theme is called a promotion.
ANS: F DIF: Moderate REF: p. 14 OBJ: 1-1
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
11. Mass-mediated communication has three major components: production, reception and distribution.
ANS: F DIF: Easy REF: p. 16 OBJ: 1-2
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
, 12. All the consumers who ultimately see an advertisement or an advertising campaign are considered its
target audience.
ANS: F DIF: Easy REF: p. 18 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
13. Government buyers are the most conspicuous audience today, in that most mass media advertising is
directed at them.
ANS: F DIF: Moderate REF: p. 18 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
14. A producer of educational materials wants to deliver an advertising message to a professional audience
of teachers, principals, and school administrators. In this case, a trade journal would not be an
appropriate medium to use.
ANS: F DIF: Difficult REF: p. 19 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
15. A well-known computer manufacturer runs a worldwide advertising campaign for its desktops,
laptops, notebooks, and other computer equipment in an attempt to provide a common theme and
presentation in all markets including consumers in North America, Europe, Asia, Africa, Australia and
South America. This is an example of an international advertising campaign.
ANS: F DIF: Moderate REF: p. 20-21 OBJ: 1-3
NAT: AACSB Communication | CB&C Model International Perspective
TYP: Application
16. A large retail chain sells groceries through its stores in 31 Western, Northwestern, Midwestern, and
Southern states. However, it would not use national advertising to reach its target market.
ANS: T DIF: Easy REF: p. 21 OBJ: 1-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
17. The marketing mix involves four areas of responsibility—conceiving, pricing, promoting, and
distributing—involved in the promotion of goods, services, or even ideas.
ANS: T DIF: Moderate REF: p. 22-23 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
18. Advertising is only one area of the marketing mix, and it represents only one of many different IBP
tools used in the marketing mix.
ANS: T DIF: Moderate REF: p. 23 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
19. A brand variant is created when a company adapts and expands its current brand into a totally new
product area.
ANS: T DIF: Easy REF: p. 25-26 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
20. The set of assets linked to a brand that is built over time—such as its name, symbol, logo, etc.—is
considered its brand equity.
ANS: T DIF: Moderate REF: p. 26 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
21. Consumers’ perceptions can be based on tangible differences or on image and style factors with brand
differentiation.
ANS: T DIF: Moderate REF: p. 28 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
22. A kitchen appliance manufacturer attempts to create a distinctive competitive position based on design
features, pricing, distribution, and promotion or advertising strategy. In this way, the company is
making an external-positioning decision.
ANS: T DIF: Moderate REF: p. 29 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
23. Emphasizing performance features of a product through advertising is rarely enough to create a
difference in the mind of the consumer between an organization’s brands and its competitors.
, ANS: F DIF: Moderate REF: p. 29 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
24. The fundamental purpose of marketing (and the advertising that is used in marketing) is to generate
revenue.
ANS: T DIF: Easy REF: p. 30 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
25. When an organization creates large-scale demand for its brand, the quantity of product produced is
increased, and unit production costs increase.
ANS: F DIF: Easy REF: p. 31 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
26. Organizations that have tried to stimulate primary demand in mature product categories have had
considerable success.
ANS: F DIF: Easy REF: p. 32 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion
27. A late-night television commercial for kitchen knives urges viewers to “call this toll-free number in the
next 30 minutes to receive a free cutting board” and assures them that “operators are on duty.” This is
an example of a direct response ad.
ANS: T DIF: Moderate REF: p. 33 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
28. Delayed response advertising attempts to develop recognition and approval of a brand over time,
relying on imagery and message themes that emphasize the benefits and satisfying characteristics of a
brand.
ANS: T DIF: Moderate REF: p. 33 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
29. Gross domestic product, or GDP, is the measure of the total value of goods and services produced by a
given company.
ANS: F DIF: Moderate REF: p. 34 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Product TYP: Knowledge
30. In some indirect ways, advertising can affect gross domestic product. It acts to increase product
demand when it helps to introduce new products, thereby increasing sales, which in turn affects GDP.
ANS: T DIF: Difficult REF: p. 34 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Product TYP: Knowledge
31. When a brand is perceived by consumers as providing some form of satisfaction that is beyond the cost
to purchase the brand, it is said to have brand equity.
ANS: F DIF: Moderate REF: p. 35 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
32. Essentially, the difference between value and symbolic value is that the first term refers to ads aimed at
consumers, and the second term refers to ads aimed at businesses.
ANS: F DIF: Moderate REF: p. 35-36 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
33. In the advertising industry, the term social meaning refers to the perception by consumers that a brand
provides satisfaction that is greater than the cost incurred to acquire the product or service.
ANS: F DIF: Moderate REF: p. 36 OBJ: 1-4
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
34. Nowadays, advertising is virtually the only promotional tool that is used to attract, impress, and
persuade consumers.
ANS: F DIF: Easy REF: p. 37 OBJ: 1-5
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
35. To survive in today’s marketplace, contemporary businesses and organizations are strongly focusing
on one single concept—communication.
ANS: F DIF: Moderate REF: p. 37-38 OBJ: 1-5
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