MKG 420 Midterm

When a company deliberately coordinates and integrates messages from a variety of sources about its products or brands, it is practicing _____.

Integrated Marketing Communications

To succeed, companies must focus on managing loyalty among carefully chosen customers and stakeholders because:

No amount of advertising can win back a customer lost from shoddy products or poor service

In a(n) _____, a salesperson sells products and encourages customers to call if they encounter any problems.

Reactive Relationship

In a(n) _____, the company works continuously with customers (and other stakeholders) to discover ways to deliver better value.

Partnership

Which is true about a company’s stakeholders?

There is often significant overlap in stakeholder roles.

According to Nowak and Phelps, which of the following tactics does the IMC approach focus on?

Less emphasis on advertising via the mass media

Ensuring the various marketing mix elements such as advertising direct-response, sales promotions, and the like, work together is referred to as _____.

Coordinated Marketing Communications

_____ messages often have the least impact because they are seen as self-serving.

Planned

According to the integration triangle, what is a "say" messages?

Planned messages

_____ is the structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products by identified sponsors through various media.

Advertising

The company that is advertising a product or idea is known as the _____.

Sponsor

The _____, who are addressed by the ad’s spokesperson, are not real.

Implied

A horse stable operator comes across an ad for a worming medicine in the local newspaper. He decides to call the toll-free number provided in the ad to see if the company can deliver 40 doses of its worming medicine before Saturday morning. In the context of the advertising, this is a form of _____.

Feedback

A firm’s marketing activities are always aimed at a particular segment of the population called the _____.

Target market

______ advertising is aimed at people who buy the product for their own or someone else’s use.

Consumer

Some products are publicized using _____, in which an ad claims the product is equal in quality to higher priced brands.

Price advertising

Fresh Zone is a supermarket based in New York that has branches in two other states, Ohio and Illinois. It uses _____, in which ads are placed in the local media or territorial editions of the national media.

Regional advertising

Retailers that sell within one small trading area typically use _____ advertising often placed in direct mail.

Local

In order to convey the benefits of sponsorship to a potential sponsor, a rodeo show would most likely use _____. This enables the marketer to answer the prospect’s questions on the spot.

Personal selling

The drawback to personal selling is _____.

Its high cost

An ad promoting a company’s mission or philosophy is called _____.

Nonproduct advertising

Which of the following types of advertising is considered good at creating awareness and credibility for a business firm at relatively low cost?

Public relations advertising

Which of the following is an assumption that characterizes a free-market economy?

Self-interest

During the _____, the Chinese invented paper and Gutenberg invented the printing press in Germany.

Pre-industrial age

Which famous English literary figure’s observation that advertisements were so numerous that they were "negligently perused" and that it had become necessary to gain attention "by magnificence of promise", led to the beginning of puffery in advertising?

Samuel Johnson

In the context of early advertising, the invention of the _____ made advertising via posters, handbills, and signs possible.

Printing Press

In the industrial age, fresh mass markets developed for new and inexpensive brands of luxury and convenience goods called _____.

Consumer packaged goods

An ad in a fitness magazine offered a 30-day, free, at-home trial of an exercise bicycle with free shipping, and the option of returning the bicycle if the customer was not satisfied with it. The primary function of the ad was to:

Induce customers to try the bicycle

During the 1800s, wholesalers placed ads in publications called _____ that informed retailers about the sources of supply and shipping schedules for commodities

Price currents

Scientific Advertising, the bible of the era of salesmanship in the 1920s, was written by _____.

Claude Hopkins

What is an example of product differentiation?

A manufacturer of cosmetics trying to portray that its brands are not only different from its competitors but also superior in terms of quality and variety

Which of the following strategies best describes a company’s efforts to slow the demand for cigarettes through public service messages?

Demarketing

Which of the following is the primary objective of demarketing?

To dampen demand for products, especially those that create unwanted costs for society

In the context of advertising, market segmentation is the process of:

Searching for unique groups of people whose needs could be addressed through more specialized products.

A product’s unique selling proposition refers to:

A feature that differentiates it from competitive products.

_____ is an effective way to separate a particular brand from its competitors by associating that brand with a particular set of customer needs that rank high on the consumer’s priority list.

Positioning strategy

Gold Sheen, a cosmetic company, introduced a new range of herbal cosmetics in a market largely dominated by non-herbal products. Aware of the growing customer concern surrounding the overuse of chemicals in beauty products, Gold Sheen’s strategy was to associate its brand with long-term safety that ranked high on consumers’ priority list. Which of the following strategies does Gold Sheen use in this instance?

Positioning strategy

During the postindustrial age, a growing affluence and sophistication of the consuming public characterized the marketing world of that time period in America. This trend was led by the _____.

Baby boomer generation

_____ created a social media company called Facebook.

Mark Zuckerberg

Who among the following developed AdWords, an advertising program for Google?

Page and Brin

The record decline in advertising activity in America in 2001 resulted from:

A mild recession, a weak stock market and the burst of the dot-com

In the context of advertising, which of the following refers to a major feature of TiVo?

The ability to target potential customers and measure effectiveness against that target

What significantly contributed and eventually led to the declines in music sales in the recording industry in the postindustrial age?

File-sharing technologies

Which of the following is true about the impact of advertising on the society and the economy?

Advertising has been a major factor in improving the standard of living in the United States and around the world.

Simon Bates, a market analyst, believes that advertising sometimes causes prices of products to increase which, in turn, affect consumer demand adversely. In this instance, Bates is focusing on the _____ role of advertising.

Economic

David visited the supermarket to buy soft drinks. In this instance, David’s demand for soft drinks can be classified as _____.

Primary demand

An ad for a soft drink that uses the slogan: "Life is good" is employing _____.

A non-product fact

An ad for a beauty product claimed that its skin-whitening properties could "cure the blackness of the darkest Africans." Watchdog groups are most likely to accuse such an ad of _____.

Perpetuating of a stereotype

A socially responsible company is most likely to:

Act in the interest of the community

If an ad is deceptive, it is most likely to:

Contain misrepresentation or omission of facts

If a suspected violator cites survey findings or scientific studies, the FTC is likely to ask for _____.

Substantiation

When Melissa looked at the container of weed and grass killer on a store shelf, she noticed a label on the container that read, "Avoid contact with eyes. This product can cause eye irritation." This is this an example of _____.

An affirmative disclosure

A(n) _____ refers to a document the advertiser signs agreeing to stop the objectionable advertising without admitting any wrongdoing

Consent decree

Which of the following is true of a trademark?

It is used by a manufacturer to identify his goods and distinguish them from those manufactured or sold by others

As a cost of doing business, advertising is paid for by the _____.

Consumers

For a snack on a cold day, Teresa wants a bowl of Lin’s chicken noodle soup. Which of the following types of demand does Teresa have?

Selective demand

In declining markets:

The only effect advertising will have on primary demand is to slow the rate of decline

Which of the following is a feature of puffery?

Exaggeration

Which of the following comprise the first level of ethical responsibility?

Societal level

Green Life, a supermarket based in Louisiana, recently came under scrutiny when it distributed leaflets that explicitly discouraged consumers from shopping at Appleton Supermarket, Green Life’s rival. In the leaflet, Green Life provided a comparative price chart that compared the prices of similar merchandise available at both the supermarkets. The price chart promoted the view that Green Life provided far better value for consumer dollars than did Appleton. Appleton alleged that Green Life’s claims were not only misleading but also instrumental in jeopardizing its sales. In this instance, Green Life had engaged in _____.

Deceptive advertising

Redwagon, an automobile manufacturer, was charged for its failure to warn elderly customers about safety problems in one of its models, the Red Auto. Elderly users of the Red Auto were substantially inconvenienced owing to the lack of information pertaining to the safety problem in their cars. In this case, the FTC found that Redwagon had failed to address this safety issue in their ads for the Red Auto. This is an example of _____.

Unfair advertising

If a suspected violator cites survey findings or scientific studies, the FTC is likely to ask for _____.

Substantiation

A(n) _____ refers to a document the advertiser signs agreeing to stop the objectionable advertising without admitting any wrongdoing.

Consent decree

The advertising business has evolved into four distinct groups. Which is not one of these groups?

Customers

Advertising is organized around four distinct groups. The _____ group includes the photographers, the illustrators, video production houses, and digital service bureaus.

Suppliers

What about local advertising is true?

Local advertising is critical because most consumer sales are made or lost locally.

_____ advertising promotes a specific good or service and stimulates short-term action while building awareness of the business.

Product

A national manufacturer assisting a distributor in product promotion by providing direct mail flyers is an example of _____ advertising.

Cooperative

Jill & Joel Co., owned by Jill and Joel Hudson, sells and installs above-ground swimming pools and hot tubs. The manufacturer of the hot tub a letter to Jill & Joel in which it offers to pay 60 percent of the advertising cost if the Hudson’s run a newspaper ad featuring the hot tubs. What type of advertising is the hot tub manufacturer planning to undertake with the Hudsons?

Vertical cooperative advertising

Which of the following is an advantage of using a decentralized advertising department?

Increased divisional flexibility

One of the disadvantages for a company that uses a decentralized advertising department is:

Focus on what is good for the department rather than what is good for the entire organization

What is true about general consumer agencies?

They concentrate on consumer accounts

A company buys unsold television and radio media time and resells this time and space to advertisers and agencies. This company is an example of a(n):

Media-buying service

The _____ is in charge of the nonverbal communication portion of an ad.

Art director

Medium and large advertising agencies are usually structured according to:

Group or departmental systems

An ad agency in Atlanta, Georgia, buys a quarter-page ad in a golfing magazine for a travel agency that specializes in preparing all-inclusive, hassle-free golf travel packages, on a 15 percent commission basis. The cost of the ad is $300. How much money should the agency pay the publication?

$255

If an agency were to buy an ad in a magazine for a company that sells customized fabric, the ad would cost $5,000. How much money would the agency send the publication after deducting its media commission?

$4,250

A golf company has developed a golf club that has a wider shaft and is 40 grams lighter than other clubs currently available in the market. It has hired an agency to develop an advertising campaign for this new club. The golf company has offered to pay the agency 3 percent of its profits if it sells more than 30,000 clubs during its first full year of production. This bonus is an example of a(n):

Incentive system

The primary reason some advertisers set up a wholly owned in-house ad agency is to:

Tighten control over their advertising

What is true about a speculative presentation?

It is a presentation prepared by an agency to demonstrate its capabilities to a prospect.

During the _____ stage, the agency and the client are at the peak of their optimism and eager to develop a mutually profitable relationship

Development

The year-in, year-out, day-to-day working relationship is called the _____ stage.

Maintenance

At some point, an irreconcilable difference may occur, and the relationship reaches the _____ stage.

Termination

The many factors that affect the client-agency relationship can best be grouped into the following categories:

Chemistry, conduct, communication, and changes.

In the advertising agency business, _____ are people and organizations that provide specialized services.

Suppliers

_____ is a product’s ability to satisfy both functional needs and symbolic wants

Utility

_____ markets are made up of organizations that buy services, natural resources, and component products that they resell, use to conduct their work, or use to manufacture another product.

Business

Which of the following is an interpersonal influencing factor?

Culture

The term _____ refers to the information we receive through our five senses.

Perception

Tony views fishing lures as tools that help him catch big fishes, whereas Hugh feels that the lures could cause him bodily harm. Their differing opinions are most likely due to differences in _____.

Perception

_____ is the theory of learning associated with the Russian psychologist Pavlov.

Classical conditioning

_____ is the consumer’s conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually.

Brand loyalty

_____ remind(s) current customers of the value of their original purchase and encourage them to continue purchasing.

Reinforcing habits

Paula always drinks a Softpop, a brand of soda. If the department store where she usually shops does not stock Softpop, she refuses to buy a different brand and goes to another store to find it. In this instance, she displays _____ for Softpop through her behavior.

Brand loyalty

_____ refers to the underlying forces that contribute to our actions.

Motivation

An advertisement for car tires shows how road accidents can be summarily avoided if the consumer buys the brand. According to Maslow’s hierarchy of needs, which of the following levels of needs does the advertisement promise to satisfy?

Safety need

According to Abraham Maslow’s hierarchy of needs model, which of the following is the highest need?

Self-actualization need

_____ motives are also called informational motives because the consumer actively seeks information to reduce the mental state.

Negatively originated

Problem removal and problem avoidance are _____ motives.

Negatively originated

Jane, a high school student, dresses like her friends, copies their hairstyle, watches the same television shows, and agrees to their opinions on many subjects. Which of the following is a term used to describe her friends who exert substantial influence on her?

Reference group

Gina Anderson is a popular American actor with a huge fan following. She endorses a number of high-selling beauty products. In fact, whatever product she endorses experiences phenomenal sales just because her name is associated with it. Therefore, it can be concluded that Gina is a(n) _____.

Innovator

A famous basketball player endorses a brand of sportswear. For the brand’s target market that consists of young males, the basketball player is most likely to be a(n) _____.

Opinion leader

Which of the following is true of the influence of culture on advertising?

Global marketers are especially concerned with the purchase environment.

A segment within a culture that shares a set of meanings, values, or activities that differ in certain respects from those of the overall culture is known as a(n) _____.

Subculture

While waiting in the queue near the cash register at the supermarket, Harry noticed a basket of colorful candies. Although he did not need candy, he decided to buy them anyway. This scenario exemplifies the influence of _____ in a consumer’s purchase decision.

Environment

The evoked set refers to:

The alternatives that consumers evaluate before making a purchase decision.

According to the _____, people strive to justify their behavior by reducing the inconsistency between their perceptions or beliefs and reality.

Theory of cognitive dissonance

Which of the following is the first step of the market segmentation process?

To identify groups of people with certain shared needs

_____ segmentation refers to a way of segmenting markets by grouping consumers according to the manner in which they buy products

Behavioristic

In terms of user status, _____ perceive two or more brands to have superior attributes and will buy at full price.

Repertoire users

In terms of user status, aware nontriers:

Use competitive products in the category but have not taken a liking to a particular brand.

Many people give fine chocolates as Christmas presents to friends and co-workers. There is an increase in the number of advertisements for gourmet chocolates during November and December, as companies try to create awareness about their products in the minds of consumers looking for the perfect gift. This is an example of segmentation on the basis of:

Purchase occassion

_____ segmentation enables marketers to view people as individuals with feelings and inclinations.

Psychographic

Which of the following is a dimension on which VALS, a psychographic classification system, is based?

Primary motivation

Which of the following activities is most likely to take place in a business market?

Sale of buttons and zippers to a jeans manufacturing company

The North American Industry Classification System (NAICS) codes:

Organize all industries into 20 broad sectors such as mining, manufacturing, wholesale trade, and information.

The _____ process determines the content, look, and feel of product advertisements

Target marketing

What about the target marketing process is true?

The first step in target marketing is to assess which of the newly created segments offer the greatest profit potential.

The _____ refers to the consumer’s perception of the product as a bundle of values of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants and needs.

Product concept

To appeal to a new target market, a coffee manufacturer changed the product’s package design, reformulated the coffee, began advertising price discounts in magazines, and started distributing samples of the new product at coffee shops. In this scenario, the coffee manufacturer changed the _____ in order to boost sales.

Marketing mix

A product which is in the introductory stage of the product life cycle will most likely target _____.

Early adopters

_____ refers to sales promotion efforts aimed at the retail trade.

A push strategy

In the _____ stage of the product life cycle, competition intensifies and profits diminish. Companies increase their promotional efforts but emphasize selective demand.

Maturity

In the _____ stage of the product life cycle, the marketplace becomes saturated with competing products and the number of new customers dwindles, so industry sales reach a plateau.

Maturity

Which of the following is an example of a people-based service?

Management consulting

The basic goal of a positioning strategy is to:

Own a word that ranks the product in the prospect’s mind.

The difference between regular soup and organic soup is not readily visible. The organic brand differentiates itself by claiming to be healthier as it uses natural ingredients and vegetables that have been grown without the use of harmful chemical fertilizers. This is an example of a(n) _____.

Hidden difference

_____ represent(s) the value of a brand’s capital.

Brand equity

Pantene, Head & Shoulders, and Herbal Essences are all shampoos marketed by Procter & Gamble. Each of these brands has their own distinct image and target markets. These are examples of _____ brands.

Individual

Which of the following is true of a manufacturer’s brand?

It is expensive for manufacturers to market such brands.

What is true about product packaging?

Packaging must reflect the tone, image, and personality of the product concept in order to penetrate consumers’ psychological screens.

What is true of the key factors influencing price?

Economic conditions, government regulations and marketing costs influence product prices

Many industrial companies market their products through reps or distributors to _____ who may use the product as a component in their own product, which is then sold to their customers.

Original equipment manufacturers

What is true of intensive distribution?

Consumers can buy products with a minimum of effort.

In the case of selective distribution:

Manufacturers can cut their distribution and promotion costs.

What product would be best suited for intensive distribution?

Batteries

What term, also known as mass selling, attempts to inform, persuade, and remind customers about particular products and services?

Advertising

_____ is defined as the systematic gathering and analysis of information to help develop or evaluate message strategies, individual promotions, and whole campaigns.

IMC Research

What is meant by a media vehicle?

It refers to a particular publication or program used for advertising.

In the marketing research process, what would a researcher undertake while conducting informal research?

The researcher will gather internal and external secondary data.

During _____, the second step in marketing research, researchers may discuss the problem with wholesalers, distributors, or retailers outside the firm; with informed sources inside the firm; with customers; or even with competitors.

Exploratory research

According to the marketing research process, what should researchers do immediately after completing informal research?

They should establish their research objectives

What is true of quantitative research?

Many interviews are conducted in order to give a projectable scientific sample

Which of the following is true of the observation method of conducting marketing research?

It involves monitoring consumer activities in their native environments.

Which of the following is true of the Universal Product Code label?

It gives stores and manufacturers accurate point-of-purchase date sensitive to the impact of price, in-store promotion, couponing, and advertising

The _____ method of conducting marketing research is used to measure cause-and-effect relationships.

Experimental

When advertising is the dominant element or the only variable in the company’s marketing plan, _____ tests are a useful measure of advertising effectiveness.

Sales

What is true of sample units?

It refers to the individuals, families, or companies being surveyed.

What is true of conducting marketing research in foreign countries?

Conducting research overseas is often more expensive than domestic research.

What dictates the role of promotional messages in the marketing mix?

Marketing plan

A(n) _____ refers to a short description of an organization’s purpose and philosophy.

Mission

A(n) _____ refer(s) to a detailed description of a brand’s current marketing position.

Situation

Which of the following uses the facts contained in a situation analysis to point out strengths, weaknesses, opportunities, and threats for a brand?

SWOT Analysis

What is the first step in a traditional top-down marketing plan?

Situation Analysis

What is true of sales-target objectives?

In good economic times, a company may set ambitious sales-target objectives.

What is true of the objectives and outcomes of DAGMAR, a hierarchical model introduced by Russell Colley?

It specifies the qualities of a good objective.

What best describes how the company plans to meet its marketing objectives?

Marketing strategy

_____ refer(s) to the place a brand occupies competitively in the minds of consumers.

Positioning

Which approach to developing a positioning strategy sets the brand apart by stressing a particular product feature important to consumers?

Product attribute

The _____ approach to developing a positioning strategy involves positioning apart from competitors through the creation or use of some recognized icon.

Cultural symbol

The product competitor approach to developing a positioning strategy involves:

Positioning against competitors using the strength of the competitor’s position to help define the subject brand.

After product positioning, what is the next step in the development of a marketing strategy?

Determining the marketing mix

What is the first step in the bottom-up marketing plan?

Finding a unique marketing tactic

What is true of the IMC approach to marketing and campaign planning?

Using the outside-in process, the IMC approach starts with the customer

According to Wang and Schultz’s IMC planning model, which of the following steps should be taken immediately after a marketer identifies what brand contacts and changes in attitude are required to support the consumer’s continuance or change of purchase behavior?

Setting communications objectives and strategies for reaching the consumer and influencing his or her attitudes, beliefs, and purchase behavior

In terms of the IMC plan, what is true of the process of setting objectives?

Objectives should be specific, realistic, and measurable

According to the IMC pyramid, comprehension involves:

Communicating enough information about a product so that some aware consumers recognize its purpose, image, or position.

According to the IMC pyramid, conviction refers to:

Communicating enough information about a product to persuade a certain number of people to actually believe in the product’s value.

The "bundle of values" the advertiser presents to the consumer is referred to as the _____.

Product Concept

In terms of IMC strategy, which of the following depicts the degree and the kind of involvement a consumer brings to the purchase decision for different products?

Kim-Lord Grid

As an element of creative strategy, the _____ are all the vehicles that might transmit the marketer’s message.

Communications media

_____ refer(s) to computer-based programs developed by major advertisers and agencies to develop IMC budgets. They rely on input of sophisticated data, history, and assumptions.

Quantitative mathematical models

According to the _____ method of developing an IMC budget, when a new brand is introduced, the budget for the first two years should be about one and a half times the brand’s targeted share of the market in two years.

Share of market/ share of voice

In the _____ method of developing an IMC budget, a company runs a series of tests in different markets with different budgets to determine the best level of advertising expenditure.

Empirical research

Which of the following is a reason for the increasing cost of reaching target audiences for almost all media?

People can cope with only so many messages, so the media have to restrict the number of ads they sell.

_____ often employ(s) communications vehicles outside traditional media planning, such as public relations activities, sales promotion, and direct marketing.

Value-added packages

The _____ defines the market need and the company’s sales objectives and details strategies for attaining those objectives.

Top-down marketing plan

The elements of the _____ are the product concept, target audience, advertising message, and communications media.

Creative mix

What is the purpose of an advertising plan?

To determine what to communicate through ads

In terms of media-planning activities, which of the following is the purpose of determining media strategy?

To translate media goals into general guidelines that will control the planner’s selection and use of media

Media planners select _____ that refer to particular magazines or shows according to how well they "deliver" or expose the message to the media audience that most closely resembles the desired target consumer.

Media Vehicles

_____ refers to the total size of the audience for a set of ads or an entire campaign.

Message Weight

An _____ refers to a possible exposure of the advertising message to one audience member.

Advertising Impression

The _____, or potential exposures, possible in a medium is arrived at by multiplying the medium’s total audience size by the number of times an advertising message is used during the period.

Gross Impressions

_____ refers to the total number of unique (or different) people or households exposed, at least once, to a medium during a given period of time, usually four weeks.

Reach

The _____ of an ad is defined as being the average number of times a person must see or hear a message before it becomes effective.

Effective Frequency

According to Erwin Ephron, for fast-moving consumer products, the concept of _____ is based on "the idea that most advertising works by influencing the brand choice of consumers who are ready to buy."

Recency Planning

The _____ describes how the advertiser will achieve its stated media objectives.

Media Strategy

As an element of the media mix, _____ refers to the overall strategy of selecting and scheduling media vehicles to achieve the desired message weight, reach, frequency, and continuity objectives.

Methodology

A(n) _____ media plan may cover several adjoining metropolitan areas, an entire state or province, or several neighboring states and may typically employ a combination of local media, spot TV and radio, and the Internet.

Regional

The _____ indicates the sales potential of a particular brand in a specific market area.

Brand development index

What is an advantage of using the radio as a media vehicle?

Ability to change message quickly

A(n) _____ is the total number of people or households exposed to a medium.

Audience

Which of the following terms refers to the concept of how many people an ad "sees" rather than the other way round?

Exposure Value

A reason for using the _____ approach, which refers to a combination of media, is to reach people who are unavailable through only one medium.

Mixed-media

In a _____ media schedule, advertising runs steadily and varies little over the campaign period.

Continuous

Advertisers use the _____ media scheduling pattern for products consumers purchase regularly.

Continuous

For high-ticket items that require careful consideration, a method for media scheduling known as _____ that refers to running the same commercial every half hour on the same network during prime time can be effective.

Bursting

Which of the following is the Web-based system developed by Interactive Market Systems (IMS) that consolidates and summarizes planning data in a single relational database?

Agency RollUp