Chapter 14 Integrated Marketing Communications Advertising and Digital Communications

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Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

1. What is the function of informing, persuading, and influencing the consumer’s purchase decision called?
a. salesmanship
b. advertising
c. promotion
d. communication
ANSWER: c
2. What would be a goal of any integrated marketing communication system?

a. to create a unified message at the lowest possible cost
b. to create a message that will keep the consumer from tuning out
c. to hire an agency to handle each element of the promotional strategy
d. to consolidate the promotional responsibilities within an
organization
ANSWER: b
3. What does an integrated marketing communications strategy begin with?

a. separating the parts of the promotional mix into categories based on the media that is
being utilized
b. isolating and eliminating non-promotional contacts between the consumer and the
organization
c. consumer wants and needs, working in reverse to the product, brand, or organization
d. the realization that different components of promotion should deliver different
messages to their target audiences
ANSWER: c
4. Delite, a food and beverage company, is launching a new range of frozen food. Which of the following should be the
first step taken by the marketing department in order to develop an effective IMC strategy?
a. Design ads for the print and electronic media for maximum reach.
b. Identify wants and needs of consumers.
c. Establish the product as a superior addition to the existing product range.
d. Isolate parts of the promotional mix and allocate them to appropriate
departments.
ANSWER: c
5. What term refers to the coordination of all a firm’s promotional activities to produce a unified, customer-focused
message?
a. customer orientation
b. the marketing concept
c. integrated marketing communications
d. comprehensive marketing activities
ANSWER: c
6. In an integrated marketing communications program, which of the following is NOT one of the ways in which a
customer may have contact with the organization?
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a. direct mail
b. Internet messages
c. personal selling
d. competitor feedback
ANSWER: d
7. What is said to be at the heart of integrated marketing communications?

a. product
b. brand
c. organization
d. customer
ANSWER: d
8. What will often result from the successful implementation of Integrated Marketing Communications?
a. media saturation
b. higher audience reach
c. identifying several unexpected new target market opportunities
d. synergies and interdependence of the promotional mix elements
ANSWER: d
9. What does teamwork in applying a successful integrated marketing communications program involve?
a. clear definition of the responsibilities of each department in creating the promotional
mix
b. in-house resources and outside vendors
c. reorienting employees to put the customer first
d. mutual admiration for the successes of each department in implementing the
promotional mix
ANSWER: b
10. Sam just received a free trial sample of cereal bars that he found hanging on his doorknob. What is this an example of?
a. direct sampling
b. direct marketing
c. personal selling
d. guerrilla marketing
ANSWER: a
11. Which of the following acts as the source of the message communicated to the receiver in the communication process?
a. decoder
b. sender
c. messenger
d. sponsor
ANSWER: b

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12. What does the D indicate in the AIDA concept?
a. delivery of the promotional message
b. decoding the message
c. desire for the product being promoted
d. decision to listen to the message
ANSWER: c
13. What do the AIDA concepts refer to?

a. the steps in developing an IMC program
b. the steps in promoting a product
c. the steps in distributing a product
d. the steps in the consumer purchase decision process
ANSWER: d
14. According to the AIDA concept, which of the following is the first function of a promotional message?
a. arousing interest in the good or service
b. gaining the potential consumer’s attention
c. stimulating desire by convincing the potential buyer of the product’s ability to satisfy
his or her needs
d. producing an action in the form of a purchase or a more favourable attitude that may
lead to a future purchase
ANSWER: b
15. In terms of the communications process, to whom are television ads directed?
a. encoders
b. transmitters
c. receivers
d. coders
ANSWER: c
16. Patricia calls a firm’s 1-800 number and expresses her reaction to a recent television ad. What is this an example of?
a. feedback
b. noise
c. encoding
d. decoding
ANSWER: a
17. From the perspective of the marketing communications process, what do two consumers talking to each other during a
television commercial represent?
a. interaction
b. noise
c. decoding
d. coding

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ANSWER: b
18. What can noise take the form of in international communications?

a. a lack of certain vowel sounds in the language that make it impossible to say the
product name
b. unreliable radio transmissions
c. multiple languages spoken in the commercial
d. incorrect translations
ANSWER: d
19. In communicating a promotional message, what does decoding refer to?

a. translation of the message into understandable terms and transmitting it through the
communication channel
b. receiver’s interpretation of the message transmitted through the communication
channel
c. receiver’s response to the message transmitted through the communication channel
d. noise that interferes with the transmission of the message through the communication
channel
ANSWER: b
20. Which of the following is NOT a means of conducting a personal-selling effort?

a. telephone
b. videoconferencing
c. mass media
d. interactive computer links
ANSWER: c
21. Generally, which component of a firm’s promotion mix will be heavily invested in when serving business-to-business
customers?
a. advertising
b. publicity
c. public relations
d. personal selling
ANSWER: d
22. What is ordinarily the dominant promotional mix component for unique, highly technical, or custom-made products?
a. trade shows
b. publicity
c. personal selling
d. advertising
ANSWER: c
23. What is the oldest form of promotion?

a. product placement
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b. personal selling
c. guerrilla marketing
d. ambush marketing
ANSWER: b
24. Which factor would NOT support the use of personal selling?

a. limited number of buyers
b. standardized products
c. technically complex products
d. option for trade-ins
ANSWER: b
25. How much of an industrial firm’s budget is generally invested in personal selling compared with producers of
consumer goods?
a. smaller portion in personal selling than invested in publicity
b. smaller portion in personal selling than invested in advertising
c. approximately equal amounts in personal selling and non-personal
selling
d. larger portion in personal selling than invested in advertising
ANSWER: d
26. What is the ideal form of promotion for large, geographically dispersed audiences that will listen to the same
message?
a. advertising
b. publicity
c. public relations
d. sales promotion
ANSWER: a
27. Which of the following is an example of personal selling?

a. banners on websites
b. videoconferencing
c. print ads
d. hoardings
ANSWER: b
28. Which of the following is NOT an advertising format?

a. plastic shopping bags that retailers use to hold merchandise purchased by
customers
b. TV monitors at grocery stores
c. billboards
d. a sweepstakes for a year of free gasoline
ANSWER: d

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29. Which of the following would be considered advertising?
a. point-of-purchase display of gum
b. billboard promoting Honda cars
c. coupon clipped from the newspaper
d. sample of a product left on your doorstep
ANSWER: b
30. What would be the preferred promotion for markets characterized by a large number of potential customers scattered
over a sizable geographic area?
a. advertising
b. personal selling
c. public relations
d. publicity
ANSWER: a
31. What dominates the promotional mixes for low-unit value products?

a. personal selling
b. direct mail
c. advertising
d. telemarketing
ANSWER: c
32. How does product placement work as a form of nonpersonal selling?

a. a company pays to have products displayed at the ends of grocery store aisles
b. a company pays to have products displayed prominently in a motion picture
c. companies do promotional tie-ins, such as Disney movie toys as incentives in every
McDonald’s Happy Meal
d. a company positions its TV commercials during prime hours for its target market
ANSWER: b
33. What is sales promotion subdivided into?

a. trade and consumer promotion
b. Internet and traditional promotion
c. domestic and international
promotion
d. wholesale and retail promotion
ANSWER: a
34. Which group of activities is NOT considered to be a form of sales promotion?

a. trade shows, product demonstrations, and displays
b. telemarketing, publicity, and home shopping channels
c. coupons, rebates, and sweepstakes
d. limited-time discounts on consumer products and services

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ANSWER: b
35. Which of the following is considered to be part of the direct marketing category?

a. telemarketing
b. billboards
c. sponsorship
d. customer service
ANSWER: a
36. A popular TV morning chat program shows its host and guests drinking coffee from mugs which have been engraved
with the logo of a popular coffee chain. What is this an example of?
a. personal selling
b. trade promotion
c. product placement
d. sales promotion
ANSWER: c
37. Which statement best describes guerrilla marketing?

a. It is a defensive strategy that places counter-advertising in a market targeted against
strong competitive products.
b It is a free promotion initiated by fans, loyal customers, or other interested product
. users.
c. It is a relatively new approach to promotion that avoids traditional media and attempts
to find innovative, low-cost ways to reach a target market.
d It is any negative campaign against a product or a company because of poor
. performance, incited by angered consumers who share experiences on blogs and
message boards.
ANSWER: c
38. Which of the following is generally NOT an advantage of guerrilla marketing?

a. It reaches a wide audience.
b. It has low cost.
c. It attracts attention due to its innovation.
d. It is less cluttered with competitors trying to do the same
thing.
ANSWER: a
39. What is a form of guerrilla marketing whereby a firm relies on social networks to transmit a marketing message?
a. product placement
b. viral marketing
c. ambush marketing
d. database marketing
ANSWER: b

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40. What element of the promotional mix is the most expensive (cost per contact)?
a. advertising
b. sales promotion
c. personal selling
d. direct marketing
ANSWER: c
41. A manufacturer of a well-known brand of cosmetics is offering buyback allowances to its retailers for its new line of
lip colour. What is this an example of?
a. guerrilla marketing
b. product placement
c. trade promotion
d. personal selling
ANSWER: c
42. What is an outcome of the interactive characteristic of direct marketing?

a. development of databases with wide market segments
b. tailoring of individual responses by marketers to meet consumers’ needs
c. easy assessment of a consumer’s feelings towards a call to action to purchase the
product
d. building of relationships with existing customers but not new consumers
ANSWER: b
43. What do direct marketing and integrated marketing communications have in common?

a. They respond to fragmented media markets and audiences.
b. They succeed when asked to provide standardized products to large target
markets.
c. They benefit from the increasing size of network broadcast audiences.
d. They cannot effectively use databases to target specific markets.
ANSWER: a
44. Which of the following would typically NOT be an example of direct mail promotion?
a. catalogue from IKEA advertising a special offer on office furniture
b. promotional DVD sent by a family vacation resort
c. reminder postcard sent to a car owner offering 15 percent off the cost of an oil
change
d. advertisement in the newspaper
ANSWER: d
45. What is one of the advantages of the direct mail medium?

a. It offers the ability to reach a broad target market.
b. The per-reader cost is less expensive than other types of advertising.
c. Response rates are measurable and higher than other types of advertising.

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d. There is less chance of being misled by the message or source of the
message.
ANSWER: c
46. Global Solutions Inc., an IT firm, regularly organizes meetings for its shareholders to update them on the firm’s
performance and achievements. What is this is an example of?
a. guerrilla marketing
b. sales promotion.
c. a product placement program
d. a public relations program
ANSWER: d
47. By definition, what is the communication objective of advertising?

a. to eliminate noise in the transmission, feedback, and encoding of a
message
b. to provide direct customer contact through effective public relations
c. to inform or persuade the members of a particular audience
d. to cut promotion costs and decrease the cost of reaching each consumer
ANSWER: c
48. What is product advertising designed for?

a. selling a particular good or service
b. promoting a concept, idea, or philosophy
c. providing information as to the geographic location-seeking firm
d. increasing awareness of the goodwill for a firm, person, or government
agency
ANSWER: a
49. What is the name for non-product advertising used by a profit-seeking firm?

a. cause
b. institutiona
l
c. informative
d. corporate
ANSWER: d
50. What type of advertising is most closely related to public relations?

a. product
b. institutiona
l
c. informative
d. newspaper
ANSWER: b

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51. The radio advertisements for Country Fresh Grocers state that the company is the “supermarket to the world.” What
type of advertising is this considered to be?
a. product
b. institutiona
l
c. informative
d. corporate
ANSWER: d
52. Assume Purolator offers a new service that allows home computer users to pay shipping charges and print shipping
labels at home. Purolator advertises the new service on TV and in magazines. What are these ads examples of?
a. product advertising
b. institutional advertising
c. reminder advertising
d. persuasive advertising
ANSWER: a
53. The Canadian Cancer Society runs ads in major magazines promoting its mission and successes. What are these ads
examples of?
a. product advertising
b. reminder advertising
c. institutional advertising
d. persuasive advertising
ANSWER: c
54. What type of advertising is often used to promote a product in the introductory stage of the product life cycle?
a. reminder
b. persuasive
c. cooperativ
e
d. informativ
e
ANSWER: d
55. What type of advertising seeks to develop initial demand for a newly introduced good, service, organization, person,
place, idea, or cause?
a. informative
b. reminder
c. comparative
d. advocacy
ANSWER: a
56. What is the goal of persuasive advertising?

a. It reinforces the effect of previous promotional activity.
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b. It increases demand for an existing good or service, organization, or concept.
c. It develops initial demand for a newly introduced product.
d. It is used primarily in the maturity and decline stages of the product life
cycle.
ANSWER: b
57. What type of advertising strives to reinforce previous promotional activity by keeping the name of the good, service,
organization, person, place, idea, or cause before the public?
a. retentive
b. informative
c. reminder
d. promotional
ANSWER: c
58. What type of advertising is Advil using when it advertises that it contains more pain reliever than Tylenol?
a. comparative
b. cooperative
c. advocacy
d. institutional
ANSWER: a
59. Coke and Pepsi feature nearly three dozen movie stars, athletes, musicians, and television personalities as
spokespeople in their effort to increase cola sales. What is this called?
a. comparative advertising
b. advocacy statements
c. celebrity testimonials
d. cooperative advertising
ANSWER: c
60. Which statement is NOT considered to be an advantage of celebrity testimonials?

a. Using a celebrity in an advertisement is a way to break through the clutter and capture
the consumer’s attention.
b Celebrities provide a marketing bridge to capture the attention of consumers of other
. cultures domestically or internationally.
c. The more visibility a celebrity receives through product endorsements, the more
valuable he or she is to marketers.
d Consumers look at the product in a new way because the endorsement of the celebrity
. is seen as credible in their eyes.
ANSWER: c
61. According to studies, what kind of advertisements do consumers respond to with suspicion?

a. retail source advertisements
b. retail shopping experience advertisements
c. retail message advertisements
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d. retail price advertisements
ANSWER: d
62. Best Buy is advertising a specific brand of GPS car navigational system as a present for the holiday season. The
television ad benefits both companies. What type of advertising is this an example of?
a. informative
b. cooperative
c. institutiona
l
d. retail
ANSWER: b
63. Which of the following is NOT an example of an interactive advertising method?

a. the Internet
b. electronic kiosks
c. text messaging
d. direct mail
ANSWER: d
64. What is an advantage of interactive marketing?

a. It provides information on one product only.
b. It is closer to nonpersonal selling.
c. It places the advertiser in control of the flow of
information.
d. It provides consumers with more information in less time.
ANSWER: d
65. What does a series of related but different ads that use a single theme and appear in different media within a specified
time period signify?
a. advertising campaign
b. fantasy script
c. special promotion
d. advertising message
ANSWER: a
66. A national insurance company promotes identity theft insurance with an advertisement that warns of stolen credit
cards and falsified social insurance numbers. What appeal is being used in this commercial to motivate the viewer to
action?
a. objective facts
b. humour
c. sex
d. fear
ANSWER: d

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67. Which type of ad typically loses its effectiveness the soonest?
a. fear
b. sex
c. humour
d. objective facts
ANSWER: c
68. Which task is NOT necessary for successful advertisement?

a. gaining attention and interest
b. offering the consumer an entertaining message
c. informing and/or persuading
d. eventually leading to a purchase or other desired action
ANSWER: b
69. What ability of an advertisement does “cutting through the clutter” refer to?
a. informing the audience of the concepts the advertiser wishes to
communicate
b. leading to a purchase or other desired action
c. gaining the attention and interest of the audience
d. applying persuasive pressure to the audience
ANSWER: c
70. What part of an ad serves to inform, persuade, and stimulate buying action?

a. body copy
b. headline
c. illustration
d. signature
ANSWER: a
71. The end of an ad may contain a name, address, website address, logo, or any other company symbol. What is this
element called?
a. slogan
b. sign-off
c. tag line
d. signature
ANSWER: d
72. What is the most common style of Internet advertising?

a. interstitia
l
b. banner
c. missile
d. pop-up

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ANSWER: b
73. What are either online games created by marketers to promote their products to targeted audiences in an interactive
way or product placements inserted into online video games called?
a. interstitials
b. missiles
c. advergames
d. pop-ups
ANSWER: c
74. A customer visits a company’s website and within seconds a link to a competitor’s site appears on the screen. What is
this recent development in Internet advertising called?
a. interstitial
b. advergame
c. missile
d. product placement
ANSWER: c
75. What is the most intrusive form of online advertising, which allows ads to be shown on users’ screens through the use
of software downloaded to their computers without their consent?
a. adware
b. advertorial
c. missile
d. product placement
ANSWER: a
76. Which of the following is NOT an advantage of television as an advertising medium?

a. mass coverage
b. repetition
c. flexibility
d. low cost
ANSWER: d
77. Compared with broadcast networks, what kind of target audience does advertising on cable give marketers access to?
a. smaller target audiences
b. more broadly defined target audiences
c. more narrowly defined target audiences
d. much larger target audiences
ANSWER: c
78. What is one of the fastest-growing media alternatives because it can provide immediate information and entertainment
at home, at work, and in the car?
a. newspaper
b. magazine
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c. radio
d. outdoor advertising
ANSWER: c
79. Which of the following advertising mediums dominates local markets?

a. newspapers
b. network television
c. cable television
d. radio
ANSWER: a
80. For what medium is the lack of flexibility the biggest disadvantage compared to other media?
a. television
b. radio
c. newspaper
s
d. magazines
ANSWER: d
81. What is NOT an advantage associated with magazine advertising?

a. selectivity in reaching precise target markets
b. long life
c. flexibility
d. quality reproduction
ANSWER: c
82. Along with the high cost per reader, what drawback is associated with direct mail?
a. difficulty in segmenting large
markets
b. dependence on quality mailing lists
c. lack of flexibility
d. speed of message delivery
ANSWER: b
83. Which of the following is a reason for the popularity of outdoor advertising?

a. immediate communication of quick and simple ideas
b. lower level of clutter than any other advertising medium
c. brevity of exposure to the advertising message by
motorists
d. high level of aesthetics developed by most billboards
ANSWER: a
84. What is setting the timing and sequencing for a series of advertisements known as?

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a. media analysis
b. media scheduling
c. media selection
d. media programming
ANSWER: b
85. Why would an airline reduce advertising during peak travel periods and boost its media schedule during slower travel
months?
a. because of repurchase cycles
b. because of seasonal sales patterns
c. because of frequency goals
d. because of competitors’ activities
ANSWER: b
86. Assume reach is 250,000 households and frequency is two. What is the gross rating point?
a. 125,000
b. 250,000
c. 500,000
d. 1,000,000
ANSWER: c
87. What is the number of times a person is exposed to an advertisement during a certain time period known as?
a. frequency
b. reach
c. enumeration
d. randomization
ANSWER: a
88. What is the process within a company called that builds relationships with customers, employees, shareholders,
suppliers, government agencies, and society?
a. publicity
b. stakeholder relations
c. public communications
d. public relations
ANSWER: d
89. Through what process does a company communicate general management issues to the external environment?
a. publicity
b. nonmarketing public relations
c. marketing public relations
d. sales promotional activities
ANSWER: b

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90. What are the narrowly focused public relations activities usually called that are designed to directly support the
company’s marketing goals?
a. publicity stunts
b. marketing public relations
c. nonmarketing public relations
d. integrated marketing communications
ANSWER: b
91. What do firms generate by creating special events, holding press conferences, and preparing news releases and media
kits?
a. trade promotion in general
b. a sweepstakes
c. publicity
d. bonus packaging
ANSWER: c
92. Which of the following terms refers to the nonpersonal stimulation of demand for a good, service, person, cause, or
organization through unpaid placement of significant news about it in a published medium or through a favourable
presentation of it on the radio or television?
a. publicity
b. advertising
c. product placement
d. sponsoring
ANSWER: a
93. Which statement best describes the use of publicity as a promotional strategy?

a. Companies have to spend more for publicity than advertising or personal selling.
b Companies have less control over whether the press publishes good or bad news.
.
c. Consumers tend to believe more in company-disseminated information than in
publicity-generated news.
d Companies tend to view all kinds of publicity—good or bad—as profitable for the
. company’s reputation and its brand equity.
ANSWER: b
94. ACME Inc. is issuing a press release announcing a new product and the benefits it offers. Which strategy is this an
example of?
a. direct marketing
b. guerrilla marketing
c. advertising
d. marketing public relations
ANSWER: d
95. What are marketing partners participating in when they share the cost of a promotional campaign that meets their
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mutual needs?
a. mutual support
b. cross-promotion
c. spending push money
d. trading promotion
ANSWER: b
96. Which of the following is NOT a variable of the promotional mix?

a. nature of the product
b. positioning of competitive products
c. stage of the product life cycle
d. product price
ANSWER: b
97. What typically happens to advertising as a product moves into the growth and maturity stages of the product life
cycle?
a. advertising expenditures generally decrease dramatically
b. personal selling starts to become the most preferred form of promotion
c. consumers can no longer be influenced by advertising as a form of
promotion
d. advertising gains relative importance in persuading consumers to purchase
ANSWER: d
98. What budgeting method sets the promotional budget allocation based on a predetermined dollar amount for each unit
sold or produced?
a. fixed-sum-per-unit method
b. fixed-cost method
c. standard budgeting
d. variable cost budgeting
ANSWER: a
99. What budgeting method sets aside a specified percentage of sales for promotional mix expenses—either based on past
records or projected for the future?
a. fixed-percent-applied
b. percentage-of-sales
c. fixed-sum-per-unit
d. competitive-match
ANSWER: b
100. What budgeting approach finds out what other organizations spend on promotion and match it, either dollar-for-
dollar or in terms of market share?
a. industry parity
b. category match
c. meeting competition
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d. market match
ANSWER: c
101. What method sets specific corporate goals and determines the appropriate promotional activities for each goal as the
two-step process used in developing the promotional budget?
a. marginal analysis
b. economies of scale
c. the fixed-sum-per-
unit
d. the task-objective
ANSWER: d
102. In measuring the effectiveness of promotional spending, marketers prefer the common method of direct-sales-results
testing. What does this testing measure?
a. the conversion rate of Internet shoppers
b. consumer attitudes about product value and
performance
c. the impact of promotional spending on product revenue
d. the beginning of the AIDA strategy
ANSWER: c
103. Though difficult and costly, what is an assessment strategy needed for in a marketing plan?
a. creating advertising
b. measuring the effectiveness of
advertising
c. defending criticisms of advertising ethics
d. creating selective perception
ANSWER: b
104. What does the simplest and least costly level of assessment of public relations effectiveness involve?
a. conducting extensive focus group assessments
b. counting the number of press releases distributed
c. measuring target audiences to see if the messages were received and
understood
d. evaluating governmental response to public relation announcements
ANSWER: c
105. What is assessing an advertisement’s effectiveness before it is actually used called?

a. pretesting
b. post-testing
c. anticipatory evaluation
d. pre-assessment
ANSWER: a

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106. What is the technique for assessing how well a particular medium delivers an advertiser’s message known as?
a. message research
b. media research
c. copy coverage research
d. effectiveness
assessment
ANSWER: b
107. Which of the following is one of the tools of advertising pretesting?

a. unaided recall test
b. split runs
c. inquiry test
d. aided recall test
ANSWER: d
108. Why is pretesting advantageous?

a. It assesses the advertisements immediately after they are
used.
b. It adjusts current advertising programs.
c. It decreases costs as compared with alternative methods.
d. It lowers the chance of placing ineffective ads.
ANSWER: d
109. It is not uncommon for magazine publishers to run multiple print jobs of the same magazine, in which each job
contains changes in advertising copy to suit the target market requirements of various advertisers. In trade terms, what is
the publisher creating?
a. split runs of the magazine
b. circulation exceptions of the
magazine
c. monthly issues of the magazine
d. exception runs of the magazine
ANSWER: a
110. Promotion is defined as affecting the consumer’s purchasing decision through information, persuasion, and
influence.
a. True
b. Fals
e
ANSWER: True
111. Communication is the transmission of messages from sender to receiver or, in the case of marketing
communications, the transmission of messages from seller to buyer.
a. True
b. Fals

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e
ANSWER: True
112. IMC (integrated marketing communications) places responsibility for unifying promotional effort with sales
management because sales have the most direct impact on product revenues.
a. True
b. Fals
e
ANSWER: Fals
e
113. An IMC strategy sends product-focused messages.

a. True
b. Fals
e
ANSWER: Fals
e
114. Sending varied, diverse promotional messages is considered effective for stimulating and holding customer interest.
a. True
b. Fals
e
ANSWER: Fals
e
115. It is not the goal of IMC (integrated marketing communications) to be concerned with the consumer’s loss of
attention.
a. True
b. Fals
e
ANSWER: Fals
e
116. An IMC (integrated marketing communications) strategy usually begins with the attributes of the goods and services
and moves to the customers’ wants and needs in creating a unified message.
a. True
b. Fals
e
ANSWER: Fals
e
117. IMC must not only deliver messages to intended audiences but also gather responses from them.
a. True
b. Fals
e
ANSWER: True
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118. IMC (integrated marketing communications) broadens the concept of promotion to include all the ways a customer
has contact with the organization, adding packaging, store displays, and online advertising to traditional media.
a. True
b. Fals
e
ANSWER: True
119. The elements of the promotional mix can be developed independently and later combined into an IMC (integrated
marketing communications), as long as the message conveyed by each element is consistent.
a. True
b. Fals
e
ANSWER: Fals
e
120. Successful implementation of IMC (integrated marketing communications) requires that everyone involved—public
relations, advertising, personal selling, and sales promotion—function as independent entities.
a. True
b. Fals
e
ANSWER: Fals
e
121. An IMC strategy separates the promotional mix into parts and views them as isolated components.
a. True
b. Fals
e
ANSWER: Fals
e
122. What separates IMC (integrated marketing communications) from marketing communications and promotional
strategy is the use of database technology to further define the target audience and the best type of media needed to reach
it.
a. True
b. Fals
e
ANSWER: True
123. When deciding on promotional messages, each marketing element, from media advertising to product rebates and
coupons, must go through every stage of the communication process.
a. True
b. Fals
e
ANSWER: True

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124. The AIDA concept relates to the steps consumers must take in reaching a purchase decision.
a. True
b. Fals
e
ANSWER: True
125. The first step in the AIDA concept involves convincing the would-be buyer of the product’s ability to satisfy his or
her needs.
a. True
b. Fals
e
ANSWER: Fals
e
126. The AIDA concept recognizes that the consumers’ attention must first be achieved by a promotional message; then
they must become interested in what it says. Third, they must discover desire for the product to which it refers (or possibly
for more information about it), and finally they must take some sort of action to satisfy that desire.
a. True
b. Fals
e
ANSWER: True
127. Noise, which is largely uncontrollable in the communications process, is an effective way to screen out competitors’
information and is therefore welcome in the communication process.
a. True
b. Fals
e
ANSWER: Fals
e
128. A television commercial for MasterCard contains the phrase, “Life Takes MasterCard.” This is an example of an
encoded message.
a. True
b. Fals
e
ANSWER: True
129. The process of communicating promotional messages begins with encoding.

a. True
b. Fals
e
ANSWER: True
130. As long as marketers carefully choose their advertising slogans and images, targeted customers will encode the
message easily and consistently.
a. True
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b. Fals
e
ANSWER: Fals
e
131. Encoding, decoding, and feedback are all aspects of communication that are controllable by a company in the
promotion process.
a. True
b. Fals
e
ANSWER: Fals
e
132. Anything that interferes with the message in a communications process is known as static.
a. True
b. Fals
e
ANSWER: Fals
e
133. Noise can also result from distractions within an advertising message itself.
a. True
b. Fals
e
ANSWER: True
134. Because of the personal nature of decoding, an organization can do little to control misinterpretation of the messages
that it sends.
a. True
b. Fals
e
ANSWER: Fals
e
135. The promotional mix comprises the elements of product, price, promotion, and distribution.
a. True
b. Fals
e
ANSWER: Fals
e
136. Personal selling is an interactive communication that can occur face to face, over the telephone, through
videoconferencing, and via interactive computer links.
a. True
b. Fals
e
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ANSWER: True
137. The promotional mix requires a carefully designed blend of variables to satisfy the needs of a company’s customers
and achieve organizational objectives.
a. True
b. Fals
e
ANSWER: True
138. The combination of the promotional tools of personal selling and nonpersonal selling is referred to as a firm’s
marketing mix.
a. True
b. Fals
e
ANSWER: Fals
e
139. Nonpersonal, paid communications sent through various media channels is called advertising.
a. True
b. Fals
e
ANSWER: True
140. Product placements in movies and television programs have started to decline in recent years as fees for such
placements have increased dramatically.
a. True
b. Fals
e
ANSWER: Fals
e
141. Personal selling is the most novel form of promotion.

a. True
b. Fals
e
ANSWER: Fals
e
142. Product placement is not limited to movies and television programs as companies have started to use video games as
an opportunity to promote brands and to generate immediate sales.
a. True
b. Fals
e
ANSWER: True
143. The advantage of using sales promotions in the promotional mix is that they are long-term incentives that allow
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repeated viewing of the marketing message by the consumer.
a. True
b. Fals
e
ANSWER: Fals
e
144. Companies spend as much on trade promotions each year as they do on advertising and consumer-oriented sales
promotion combined.
a. True
b. Fals
e
ANSWER: Fals
e
145. Sales promotion provides a long-term incentive to emphasize, assist, supplement, or otherwise support the objectives
of the promotional program.
a. True
b. Fals
e
ANSWER: Fals
e
146. Trade promotions are simply sales promotions aimed at marketing intermediaries.

a. True
b. Fals
e
ANSWER: True
147. Due to its focused and controlled message, traditional advertising is usually more effective at reaching the niche
target market than direct marketing.
a. True
b. Fals
e
ANSWER: Fals
e
148. Direct marketing is used by both consumer and business-to-business marketers to generate orders and sales leads that
may result in future orders.
a. True
b. Fals
e
ANSWER: True
149. Public relations rely on formal corporate presentations designed to stimulate demand for products.
a. True
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b. Fals
e
ANSWER: Fals
e
150. Compared to personal selling, advertising, and sales promotion, the amount spent on public relations is usually high
in most firms.
a. True
b. Fals
e
ANSWER: Fals
e
151. One of the advantages of guerrilla marketing is its ability to reach a wide audience.
a. True
b. Fals
e
ANSWER: Fals
e
152. Guerilla marketing is an expensive marketing technique.

a. True
b. Fals
e
ANSWER: Fals
e
153. The success of Unilever Canada’s “Real Beauty” campaign, which was viewed exclusively on the Internet, can be
attributed to viral marketing.
a. True
b. Fals
e
ANSWER: True
154. Advertising can deliver a message to a mass audience; however, measuring advertising effectiveness is often difficult
to do.
a. True
b. Fals
e
ANSWER: True
155. A major advantage to personal selling is the low cost per contact.
a. True
b. Fals
e
ANSWER: Fals
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e
156. One benefit of direct mail is that it can cover a narrow target market quickly.
a. True
b. Fals
e
ANSWER: True
157. Guerrilla marketing efforts are best suited to large companies that can afford the high costs associated with this type
of promotional technique.
a. True
b. Fals
e
ANSWER: Fals
e
158. Providing cash or other resources for a specific event or activity in exchange for a direct association with the event or
activity is known as sponsorship.
a. True
b. Fals
e
ANSWER: True
159. Sponsorships are a cost-effective way of gaining exposure for a product.

a. True
b. Fals
e
ANSWER: True
160. Escalating costs have made commercial sponsorships a less cost-effective promotional tool than advertising.
a. True
b. Fals
e
ANSWER: Fals
e
161. Traditional advertising may cost more than a sponsorship, but it is a better way for a marketer to create an individual
message containing an introduction, theme, and conclusion.
a. True
b. Fals
e
ANSWER: True
162. In sponsored events, event organizers control the coverage, which typically focuses on the sponsor.
a. True

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b. Fals
e
ANSWER: Fals
e
163. Sponsorships are viewed in a more positive light by audiences than traditional advertising.
a. True
b. Fals
e
ANSWER: True
164. Direct marketing is a promotional technique that is used primarily by business-to-business marketers.

a. True
b. Fals
e
ANSWER: Fals
e
165. Successful direct marketing should prompt consumers to take action.

a. True
b. Fals
e
ANSWER: True
166. The move toward integrated marketing communications is linked to the decline in direct marketing as a form of
promotion.
a. True
b. Fals
e
ANSWER: Fals
e
167. For a marketer, an advantage of direct mail is the higher response rate and the fact that results are measurable.
a. True
b. Fals
e
ANSWER: True
168. Institutional advertising is nonpersonal selling of a good or service marketed by an institution.

a. True
b. Fals
e
ANSWER: Fals
e
169. Corporate advertising is product promotion conducted by a for-profit organization, while institutional advertising is
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conducted by a not-for-profit organization.
a. True
b. Fals
e
ANSWER: Fals
e
170. An ad promoting skiing in Alberta is an example of product advertising.

a. True
b. Fals
e
ANSWER: Fals
e
171. Sam watches an ad on TV for a new Sony flat-screen television. This ad is an example of product advertising.
a. True
b. Fals
e
ANSWER: True
172. Informative advertising is most common for products in the introductory stage of the product life cycle.
a. True
b. Fals
e
ANSWER: True
173. Marketers of products in the late maturity or early declining stage of the product life cycle rely more heavily on
persuasive advertising than other types of advertising.
a. True
b. Fals
e
ANSWER: Fals
e
174. Persuasive advertising is a noncompetitive type of promotion used to develop demand for a good or service in its
introductory stage.
a. True
b. Fals
e
ANSWER: Fals
e
175. Reminder advertising is designed to keep a marketer’s name or product in front of the target market, and is often
used in the introductory stage of the product life cycle.
a. True
b. Fals
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e
ANSWER: Fals
e
176. Advertisements are designed to inform, persuade, and remind the target market to which they are directed.
a. True
b. Fals
e
ANSWER: True
177. Comparative advertising makes direct comparisons of the advertiser’s product with dominant brands in its industry.
a. True
b. Fals
e
ANSWER: True
178. Market leaders are more likely to engage in comparative advertising.

a. True
b. Fals
e
ANSWER: Fals
e
179. The use of celebrities can improve product recognition and reduce the impact of advertising clutter.
a. True
b. Fals
e
ANSWER: True
180. A celebrity who endorses too many products may create marketplace confusion.
a. True
b. Fals
e
ANSWER: True
181. When a sports equipment manufacturer agrees to pay a portion of a retail sports chain’s print advertisement, it is
participating in interactive advertising.
a. True
b. Fals
e
ANSWER: Fals
e
182. Cooperative advertising can strengthen vertical links in a marketing channel.

a. True
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b. Fals
e
ANSWER: True
183. Interactive advertising is closer to personal selling than it is to traditional TV and print advertising.
a. True
b. Fals
e
ANSWER: True
184. Interactive advertising has changed the nature of advertising from a two-way to a one-way communication technique.
a. True
b. Fals
e
ANSWER: Fals
e
185. The actual strategy for creating an advertising message begins with the selection and scheduling of media choices.
a. True
b. Fals
e
ANSWER: Fals
e
186. The role of advertising is to communicate the attributes of the product that will place it in the desired position in the
marketplace.
a. True
b. Fals
e
ANSWER: True
187. An advertising campaign is a series of different but related ads that use a single theme and appear in different media
within a specified time period.
a. True
b. Fals
e
ANSWER: True
188. Ellen DeGeneres has been featured in a series of American Express TV advertisements. These commercials, along
with others featuring personal moments with celebrities, end with the tag line, “My Life. My Card.” Coupled with the
corresponding print ads, these commercials are classified as part of an advertising campaign.
a. True
b. Fals
e
ANSWER: True

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189. In recent years, the use of advertisements based on fear appeals has diminished as the result of public disdain for
these types of ads.
a. True
b. Fals
e
ANSWER: Fals
e
190. One of the challenging aspects of humourous ads is that what one person finds amusing may not be funny at all to
someone else.
a. True
b. Fals
e
ANSWER: True
191. Sex-based appeals can capture the viewer’s attention, which translates into higher ad content recall rates.
a. True
b. Fals
e
ANSWER: True
192. The development of the actual advertisement begins with the promotional theme that has been chosen by the
marketers.
a. True
b. Fals
e
ANSWER: True
193. Advertising often fails when the audience is not informed about how to purchase the advertised products.
a. True
b. Fals
e
ANSWER: True
194. Using advertisement to stimulate buying action is often difficult because an advertisement alone cannot actually
close a sale.
a. True
b. Fals
e
ANSWER: True
195. Marketers are not satisfied with an advertisement that gains attention, informs, or persuades. They want only an ad
that can produce measurable sales results.
a. True
b. Fals
e
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ANSWER: Fals
e
196. In print advertising, headlines and illustrations are intended to impart information, while the signature informs and
stimulates buying action.
a. True
b. Fals
e
ANSWER: Fals
e
197. Some of the major advantages of Web advertising are speed, provision of information, and two-way communication.
a. True
b. Fals
e
ANSWER: True
198. Interstitials and advertorials are essentially the same thing except that advertorials pop up in a separate browser
window.
a. True
b. Fals
e
ANSWER: Fals
e
199. Banners or advertisements that appear on a website that link to an advertiser’s site are the least common type of
advertising on the Web today.
a. True
b. Fals
e
ANSWER: Fals
e
200. Missiles are online games created by marketers that promote products to targeted audiences in an interactive way.
a. True
b. Fals
e
ANSWER: Fals
e
201. Media selection is a five-step process that includes identifying the target market, matching the target with the
appropriate media, estimating necessary media coverage without waste, and a comparison of alternative media options
before the final purchase decision is made.
a. True
b. Fals
e
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ANSWER: True
202. TD Bank advertises its investment services in TV commercials, radio ads, and highway billboards. All three of these
formats are considered broadcast media.
a. True
b. Fals
e
ANSWER: Fals
e
203. The objective of media selection is to reach the target audience without advertising beyond the identifiable limits of
the potential market.
a. True
b. Fals
e
ANSWER: True
204. The attractiveness of television advertising is that advertisers can reach local and national markets.
a. True
b. Fals
e
ANSWER: True
205. A recent trend in television advertising is the abbreviated spot—a 14- or 30-second ad—that costs less to make and
buy, and is too quick for most viewers to zap with their remote control.
a. True
b. Fals
e
ANSWER: True
206. One of the newest trends in television advertising is virtual ads: streaming headlines that run across news and
sporting events and mini-commercials that air before a consumer can change the channel.
a. True
b. Fals
e
ANSWER: True
207. A recent study shows that DVRs have no impact at all on purchasing patterns.
a. True
b. Fals
e
ANSWER: Fals
e
208. Print media includes newspapers, magazines, outdoor advertising, and direct mail.
a. True
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b. Fals
e
ANSWER: True
209. Radio advertising has become one of the fastest-growing media alternatives as a result of the increase in the number
of commuters and the need for immediate information and entertainment.
a. True
b. Fals
e
ANSWER: True
210. Radio is less flexible, more costly per listener, and less segmented than target markets available through television.
a. True
b. Fals
e
ANSWER: Fals
e
211. A primary advantage of newspapers is flexibility because advertising can vary from one locality to the next.
a. True
b. Fals
e
ANSWER: True
212. Magazines offer the advantages of good colour reproduction, ability to target specific audiences, and flexibility in
modifying the message on short notice.
a. True
b. Fals
e
ANSWER: Fals
e
213. Magazines can be divided into two broad categories: consumer magazines and business magazines.
a. True
b. Fals
e
ANSWER: True
214. Advantages of direct mail include speed, flexibility, and the ability to practise market segmentation.
a. True
b. Fals
e
ANSWER: True
215. Consumer attitude toward junk mail has vastly improved in recent years.

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a. True
b. Fals
e
ANSWER: Fals
e
216. Outdoor advertising is especially effective for communicating quick and simple ideas, providing repeated exposure
to a message, and promoting locally available products.
a. True
b. Fals
e
ANSWER: True
217. Compared to other forms of advertising, outdoor advertising is not subject to clutter.

a. True
b. Fals
e
ANSWER: Fals
e
218. Keyword ads dominate online advertising and represent less than 25 percent of annual online spending
internationally.
a. True
b. Fals
e
ANSWER: Fals
e
219. With respect to planning media schedules, the term “reach” refers to the number of different people or households
exposed to an advertisement at least once during a certain time period, typically four weeks.
a. True
b. Fals
e
ANSWER: True
220. In media scheduling, “frequency” refers to the number of times an individual person is exposed to an advertisement
during a certain time period.
a. True
b. Fals
e
ANSWER: True
221. Multiplying an advertisement’s reach by its frequency yields a figure describing the total weight of a media effort
called the campaign’s “gross rating point.”
a. True
b. Fals
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e
ANSWER: True
222. Over the years, experience has developed a standardized media schedule for each product category that is followed
by most firms, especially the market leaders.
a. True
b. Fals
e
ANSWER: Fals
e
223. “Public relations” is the relationship a firm has with organizations or individuals with whom interaction may occur.
This includes society at large.
a. True
b. Fals
e
ANSWER: True
224. Due to increased public pressure, public relations now plays a much smaller role within the promotional mix.
a. True
b. Fals
e
ANSWER: Fals
e
225. The Internet has allowed public relations representatives to have more direct access to the public and greater control
over their messages.
a. True
b. Fals
e
ANSWER: True
226. Non-marketing public relations refers to a company’s messages about general management issues.
a. True
b. Fals
e
ANSWER: True
227. Nonpersonal stimulation of demand for a company’s product by unpaid placement of significant news regarding the
product in some media is known as publicity.
a. True
b. Fals
e
ANSWER: True
228. Publicity is frequently used to promote a corporate image or point of view, but does not serve the purpose of
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providing information about goods and services.
a. True
b. Fals
e
ANSWER: Fals
e
229. Publicity is the aspect of public relations that is most directly related to promoting a firm’s products and services.
a. True
b. Fals
e
ANSWER: True
230. Cross-promotion involves training employees across various functional areas to provide promotional ideas.
a. True
b. Fals
e
ANSWER: Fals
e
231. When a fast-food restaurant chain joins with a movie studio to promote a new film, it is an example of cross-
promotion.
a. True
b. Fals
e
ANSWER: True
232. In Canada, the Competition Act regulates deceptive ads relating to pricing.
a. True
b. Fals
e
ANSWER: True
233. In Canada, Advertising Standards Canada is a government body that oversees the advertising industry to ensure that
consumer rights are being served.
a. True
b. Fals
e
ANSWER: Fals
e
234. An effective promotion mix depends on certain variables that include the nature of the market, characteristics of the
product, product life cycle, product price, and company’s promotional resources.
a. True
b. Fals
e
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ANSWER: True
235. When there are a large number of potential customers scattered over a sizable geographic area, a marketer is likely to
use personal selling as the key element in the promotional mix.
a. True
b. Fals
e
ANSWER: Fals
e
236. The promotional mix for highly standardized consumer products tends to rely more on advertising than on personal
selling.
a. True
b. Fals
e
ANSWER: True
237. A manufacturer is introducing a new contact lens solution to the marketplace. The strategy that would work best for
this product is to advertise heavily in trade magazines to get intermediaries to purchase the product, publish articles in
journals of medicine to reach doctors, and use personal selling between the doctor and consumer to sell the product.
a. True
b. Fals
e
ANSWER: Fals
e
238. Each stage of the product life cycle requires re-evaluation of the promotional mix.
a. True
b. Fals
e
ANSWER: True
239. The cost of supporting a sales force constitutes a significant expense for a company, which is why personal selling is
the best option when the product is expensive.
a. True
b. Fals
e
ANSWER: True
240. The most effective promotional budgeting occurs at the point at which each additional promotional dollar spent is
matched by a dollar of revenue.
a. True
b. Fals
e
ANSWER: True

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241. In its second year of operation, Dean’s Specialty Foods earned $1 million in sales revenues, with $100,000 in
promotional expenses. Dean’s is budgeting an additional $30,000 in expenditures for the coming year in anticipation of
sales revenues rising to $1.3 million. The budget process used by Dean’s is called the percentage-of-sales method.
a. True
b. Fals
e
ANSWER: True
242. Marketers require flexibility in determining the promotion mix expenditures for their products; therefore, allocating a
fixed amount of promotional dollars for each product would never be considered.
a. True
b. Fals
e
ANSWER: Fals
e
243. The problem with simply matching competitors’ promotional expenditures is that what may be appropriate for one
company may not be for another.
a. True
b. Fals
e
ANSWER: True
244. Nike spends $750 million on promotional activity for 50 percent of the domestic athletic shoe market. Reebok, at 17
percent of the market, decides to increase its share to 23 percent by increasing its promotional activity. Reebok estimates
that Nike spends $150 million dollars for each 10 percent increment in market share. Reebok increases its current budget
by $75 million to capture the extra 5 percent of the market. Budgeting in this manner is called the meeting-competition
method.
a. True
b. Fals
e
ANSWER: True
245. The statement “Promotional expenses average 6 percent of sales in our industry” would be relevant if using the
fixed-sum-per-unit method.
a. True
b. Fals
e
ANSWER: Fals
e
246. The most realistic budgeting method is the task-objective method since it allocates promotional dollars based on
realistic communication objectives and the selection of the appropriate promotional activity required to meet those
objectives.
a. True
b. Fals
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e
ANSWER: True
247. Setting specific sales objectives and determining how much to spend to achieve those objectives is the sales-
objective method of promotional budgeting.
a. True
b. Fals
e
ANSWER: Fals
e
248. The effectiveness of promotional spending is best determined by the methods of direct sales results tests and indirect
evaluations.
a. True
b. Fals
e
ANSWER: True
249. Although marketers consistently measure the sales results against the promotional expenditures, this does not
necessarily give the full picture because extraneous variables are not incorporated into the equation.
a. True
b. Fals
e
ANSWER: True
250. Cost-per-impression and click-through rates are measures of the number of people who have seen the product name
and possibly the whole advertisement. However, neither measurement can determine to what extent the advertisement
motivated consumers to actually buy the product.
a. True
b. Fals
e
ANSWER: True
251. Conversion rate is the measure of how many consumers view an advertisement and actually make an effort to find
out more information about the product.
a. True
b. Fals
e
ANSWER: Fals
e
252. As long as companies vary the media used for promotional messages, measuring the effectiveness of promotion is
usually not worth the expense.
a. True
b. Fals
e
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ANSWER: Fals
e
253. Assessing promotional effectiveness starts with an evaluation of the different promotional options in an attempt to
prevent mistakes before large monetary outlays are made.
a. True
b. Fals
e
ANSWER: True
254. Message research assesses how well a particular medium delivers messages.

a. True
b. Fals
e
ANSWER: Fals
e
255. Pretesting evaluates the likely effectiveness of an advertisement before it appears in the selected medium.
a. True
b. Fals
e
ANSWER: True
256. Post-testing is more desirable than pretesting because it can avoid the cost of placing ineffective ads.
a. True
b. Fals
e
ANSWER: Fals
e
257. Post-testing can be helpful in adjusting current advertising programs.

a. True
b. Fals
e
ANSWER: True
258. Unaided recall tests are used to see which advertisements audience members or readers can remember when shown
portions of the advertisements later.
a. True
b. Fals
e
ANSWER: Fals
e
259. Split runs allow advertisers to test two or more ads at the same time by placing different versions in newspapers and
magazines.
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a. True
b. Fals
e
ANSWER: True
260. Unlike other forms of marketing communications, organizations cannot measure public relations results.
a. True
b. Fals
e
ANSWER: Fals
e
261. Click-throughs measure the number of times a viewer sees an ad.

a. True
b. Fals
e
ANSWER: Fals
e
262. The use of cookies or small text files that are automatically downloaded to a user’s computer whenever a site is
visited is an ethical issue that surrounds online advertising.
a. True
b. Fals
e
ANSWER: True
263. Discuss the role that integrated marketing communications (IMC) plays in the development of a promotional mix.
ANSWER IMC is a new approach to developing an optimal promotional mix. It requires that all
: promotional activities—media advertising, direct mail, personal selling, sales
promotion, and public relations—are coordinated to produce a unified promotional
message that is customer focused. Such cooperation frequently results in a competitive
advantage for its users in their efforts to reach and serve their target market.
Successful implementation of IMC depends on the people involved in the various

elements of the promotional mix functioning as a team. They must present a consistent,
coordinated promotional effort at every point of customer contact with the
organization.
Finally, IMC uses database technology to more fully understand the wants and needs of
the target audience. Using this level of detail can help a company find new
opportunities to increase sales and profits by analyzing the characteristics of each
prospective buyer.
264. Explain the communication process. What are the three tasks that an effective message should accomplish?
ANSWER In the communication process, the sender acts as the source in the communication
: system as he or she seeks to convey a message (a communication of information,
advice, or a request) to a receiver.
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The communication process begins with encoding the message—that is, translating it
into understandable terms and transmitting it through a communications channel.
Decoding is the receiver’s interpretation of the message. The receiver’s response,
known as feedback, completes the system. Throughout the process, noise can interfere
with the transmission of the message and reduce its effectiveness. An effective
message accomplishes three tasks:
1. It gains the receiver’s attention.

2. It achieves understanding by both receiver and sender.
265. It stimulates the receiver’s needs and suggests an appropriate method of satisfying them.
PTS: 1 DIF: 3 REF: 399 OBJ: 14-1

NOT: AACSB Analytic | TB&E Model Promotion
3. Explain the AIDA concept.

ANSWER a. The prospect’s attention must be gained.
: b. The promotional message seeks to arouse interest in the product or service.
c. Desire is stimulated by convincing the prospect of the product’s utility.
d. The sales presentation, advertisement, or sales promotion technique attempts to
produce action in the form of a purchase or a more favourable attitude that may lead to
future purchases.
Attention, Interest, Desire, Action = AIDA
266. Discuss the transmission process for marketing messages. How can noise interfere with the transmission?
ANSWER Messages must be encoded, or translated into understandable terms, and transmitted
: through a communications channel. Decoding is the receiver’s interpretation of the
message. The challenge for the marketer is to encode a message in a way that matches
the frame of reference of the target audience. The receiver’s response, known as
feedback, completes the system. Throughout the process, noise (in such forms as
ineffective promotional appeals, inappropriate advertising media, or poor radio or
television reception) can interfere with the transmission of the message and reduce its
effectiveness.
267. Discuss the importance of feedback in the communication process in the context of promotional messages.
ANSWER The receiver’s response to a promotional message is known as feedback. It completes
: the communication process. Feedback lets marketers evaluate the effectiveness of the
message and tailor their responses accordingly. It may take the form of attitude change,
a purchase, or a nonpurchase. Even a nonpurchase is a feedback because failure to
purchase may result from ineffective communication.
268. What are the components of the promotional mix? Provide a description for each.
ANSWER The components of the promotional mix are personal selling and nonpersonal selling.
: Personal selling, which is conducted on a person-to-person basis with the buyer, may
be accomplished face to face, by telephone, through videoconferencing, or by means of
interactive computer links. Nonpersonal selling includes advertising, sales promotion,
trade promotion, direct marketing, public relations, and publicity. There is no direct
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interaction between buyer and seller in nonpersonal selling.
269. Define nonpersonal selling. Discuss advertising as a type of nonpersonal selling.

ANSWER Nonpersonal selling is defined as promotion that includes advertising, product
: placement, sales promotion, direct marketing, public relations, and guerilla marketing
—all conducted without being face-to-face with the buyer.
Advertising is any paid, nonpersonal communication through various media about a

business firm, not-for-profit organization, product, or idea by a sponsor identified in a
message intended to inform, persuade, or remind members of a particular audience.
Mass consumption and geographically dispersed markets make advertising particularly
appropriate for marketing goods and services aimed at large audiences likely to
respond to the same promotional messages. Advertising primarily involves the mass
media, such as newspapers, television, radio, magazines, movie screens, and billboards,
but it also includes electronic and computerized forms of promotion such as Web
commercials, streaming videos, and TV monitors at supermarkets.
270. Why do marketers sometimes use guerrilla marketing? What are some of the drawbacks of using a guerrilla
marketing strategy?
ANSWER Guerrilla marketing is used by firms that lack the necessary funds for a traditional
: promotional campaign. Often, these firms cannot afford the huge costs of print and
broadcasting, so they try to find an innovative, low-cost way of reaching their market.
Guerrilla marketing may not reach as many people as other forms of promotion, such
as direct marketing or advertising. Further, if the tactics used are too outrageous, some
potential customers may be offended.
271. Discuss sponsorship and why it is an attractive alternative to traditional advertising.

ANSWER Sponsorship involves providing cash or other resources to support an event in exchange
: for a direct association with the event or activity. Examples include sponsorship of
sports, cultural, and cause- related programs. Sponsorship creates exposure and builds
goodwill between the sponsoring organization and those who enjoy such events, in the
expectation that those who enjoy the event will then view the sponsoring organization
more favourably and purchase the sponsor’s products and services. Sponsorship is an
attractive alternative to traditional advertising because
a. Higher costs in traditional advertising make sponsorships a cost-effective choice.

b. Greater media coverage of events provides more exposure for the sponsor.
c. An increasingly global media provides opportunities for international exposure.
d. Sponsorship represents an effective way to generate goodwill and strengthen sales.
e. Consumers react differently, often more favourably, to sponsorships than to
traditional advertising.
f. Sponsorships of stadiums, theatres, and other fixed assets can create a form of
permanent advertising for a company.
g. Companies can support events or teams that have the same image as their brand.
272. Discuss product advertising, institutional advertising, and corporate advertising.

ANSWER 1. Product advertising is nonpersonal selling of a particular good or service. This is the
: type of advertising the average person usually thinks of when talking about most
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promotional activities.
2. Institutional advertising promotes a concept, idea, philosophy, or goodwill of an
industry, company, organization, person, geographic location, or government agency.
This definition is much broader than that of product advertising.
3. Corporate advertising is narrower than institutional advertising, referring to non-
product advertising by a profit-seeking firm. Thus, it may include many of the concepts
promoted by institutional advertising, but the source must be profit-seeking.
273. Discuss the three primary objectives of advertising.

ANSWER Marketers use advertising messages to accomplish three primary objectives: to inform,
: to persuade, and to remind. These objectives may be used individually or, more
typically, in conjunction with each other.
Informative advertising is promotion that seeks to develop initial demand for a good,
service, organization, person, place, idea, or cause. The success of a new market entry
often depends simply on announcing its availability or explaining its benefits.
Persuasive advertising is promotion that attempts to increase demand for an existing
good, service, organization, person, place, idea, or cause. Reminder advertising is
advertising that reinforces previous promotional activity by keeping the name of a
good, service, organization, person, place, idea, or cause before the public.
Informative advertising tends to work best during the early stages, while reminder
advertising is effective later on. Persuasive advertising, if done well, can be effective
through the entire lifecycle.
274. What is comparative advertising and who are its users?

ANSWER Comparative advertising is an advertising strategy that emphasizes messages with
: direct or indirect promotional comparisons between competing brands. Comparative
advertising is generally used by companies not selling the dominant brand in the
industry or firms whose products are not the leaders in their markets. By contrast,
advertising by market leaders seldom acknowledges that competing products even
exist, and when they do, they do not point out any benefits of the competing brands.
275. Define retail advertising. Discuss how cooperative advertising benefits the parties involved in it?
ANSWER Advertising by stores that sell goods or services directly to the consuming public is
: called retail advertising. Cooperative advertising is a retail advertising strategy where
the manufacturer shares the advertisement cost with the retailer in return for product
displays over and above the stocked shelf, or more importantly, for joint promotion of
the manufacturer’s product in the retailer’s circular, newspaper ad, or TV commercials.
It benefits both the retailer and the manufacturer. Retailers who might not otherwise
afford frequent print media or TV advertising now have an opportunity when expenses
are pooled with that of the manufacturers’. Through this interaction between
manufacturers and intermediaries, vertical relationships are strengthened.
276. What is an advertising campaign? How do you think current technology might help a marketer with the success of an
advertising campaign?
ANSWER An advertising campaign is a series of different but related ads that use a single theme
: and appear in different media within a specific time period. The ads can include TV,
radio, magazine, newspaper, and electronic media. Current Internet technology allows
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consumers to capture and transmit catchy advertisements informally. The advantage of
this is no cost to the marketer for the extra exposure that the commercial is receiving.
YouTube alone can provide tens of thousands of additional exposures.
277. Discuss fear and humour as types of advertising appeals. Give examples of advertisements that make use of either or
both types of appeals.
ANSWER Selecting the tone of an advertisement is a critical decision in the creation of
: memorable ads that possess the strengths needed to accomplish promotional objectives.
In recent years, marketers have relied increasingly on fear appeals. Ads for insurance,
autos, and even batteries imply that the wrong buying decision could lead to property
loss, injury, or other bad outcomes. Fear appeals can backfire, however.
Viewers are likely to practice selective perception and tune out statements they
perceive as too strong or not credible. A humourous ad seeks to create a positive mood
related to a firm’s goods or services, but advertising professionals differ in their
opinions of the ads’ effectiveness. Some believe humour distracts attention from brand
and product features; consumers remember the humour but not the product.
Humourous ads, because they are so memorable, may lose their effectiveness sooner
than ads with other kinds of appeals. In addition, humour can be tricky because what
one group of consumers finds funny may not be funny at all to another group.
Students’ examples will vary.
278. Discuss the major types of advertising media.

ANSWER The major types of advertising media are:
: 1. Television: It offers mass coverage and flexibility, but at a high cost for a temporary
message.
2. Radio: It gives immediacy at a low cost, but for a temporary message.
3. Newspapers: They are flexible, offer community prestige and intensive coverage, but
have a short life span and relatively poor reproduction quality.
4. Magazines: They are selective, target well-defined segments, have a long life, and
offer many extra services to their advertisers, but at the expense of flexibility.
5. Outdoor advertising: It conveys quick and simple ideas through brevity of message
and repetition.
6. Direct mail: It offers selectivity, intensive coverage, speed, flexibility, and
personalization.
7. Interactive: It is the new medium offering audience involvement, creativity, and the
ability to deliver lengthy messages.
TS: 1
279. Compare and contrast marketing public relations with nonmarketing public relations.
ANSWER Nonmarketing public relations refers to a company’s messages about general
: management issues. When a company makes a decision that affects any of its publics,
input from PR specialists can help smooth its dealings with those publics. Companies
that have a plan of action and can effectively handle a crisis by generating positive
public relations generally can survive these types of crises. In contrast, marketing
public relations (MPR) refers to focused PR activities that directly support marketing
goals. MPR involves an organization’s relationships with consumers or other groups
about marketing concerns and can be either proactive or reactive.

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TS: 1
280. How does publicity differ from public relations? List the advantages and disadvantages of both.
ANSWER Public relations is a firm’s communications and relationships with its various publics.
: Publicity is the marketing-oriented aspect of public relations.
The advantages of public relations and publicity include creating a positive attitude
toward a product or company and enhancing credibility. One drawback includes not
being able to accurately measure the effect on sales.
281. Define cross-promotion. Explain why it is used. Give examples of cross-promotion.

ANSWER Cross-promotion is a promotional technique in which marketing partners share the cost
: of a promotional campaign that meets their mutual needs. It helps build relationships
and is also a response to the rising cost of media campaigns. Marketers realize these
joint efforts between established brands provide greater benefits in return for both
organizations; investments of time and money on such promotions will become
increasingly important to many partners’ growth prospects. Two types of cross
promotion are co-branding and co-marketing.
Students’ examples will vary.
282. Identify the five variables that impact a company’s decision about which elements (personal selling and nonpersonal
selling) will be used in the promotional mix.
ANSWER Nature of the market: A large, geographically dispersed consumer audience is best
: reached through advertising. A small number of consumers, industrial and business
customers, professionals, institutions, and organizations are best reached through
personal selling.
Nature of the product: A standardized, low-tech, low-cost product with broad appeal
and minimal servicing requirements is best promoted through advertising. Business
products, high-ticket products, technically complex, custom-made, or products
requiring servicing, trade-ins and installation are promoted best through personal
selling. In general, a convenience product requires advertising, shopping products
require personal selling, and specialty products require both personal selling and
advertising.
Stage of the product life cycle: With consumer products, as the product moves through
its life cycle, advertising starts out high and general and begins to peak in the growth
and maturity stage in which differentiation through advertising is most important.
Advertising begins to taper off in the decline stage unless the company can breathe new
life into the product with modifications or repositioning in the marketplace.
Price: In general, the lower the product’s per-unit-cost, the more advertising is required
because it is too costly to staff sales personnel for low-cost items. As the price of the
product increases, personal selling becomes more important.
Funds available for promotion: A barrier to any promotional mix choice is the amount
of money that a company can budget to promotion. Large budgets can use advertising
in addition to endorsements and sponsorships. Low-budget marketers might employ
more guerrilla marketing.

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283. What are the four most common methods of developing a promotional budget?
ANSWER The percentage-of-sales method, perhaps the most common method, allocates a
: a. percentage of either actual past sales or forecast future sales to the current year’s
promotional effort.
The fixed-sum-per-unit method dedicates a certain sum of money to be spent on
b. promotion for each unit sold in the past period or each unit forecast to be sold in
the present period.
The approach of meeting competition either matches competitors’ expenditures
c.
for promotion dollar for dollar or on a market share basis.
The task-objective method develops a promotional budget based on an evaluation
d. of the firm’s promotional objectives by defining realistic communications goals
and determining the amount and type of activity needed to meet those goals.
None of these methods meets the ideal of marginal analysis, which would spend money
effectively on promotion until each dollar spent is realized as a dollar in profits.
284. List and describe the major types of post-tests used to evaluate advertising effectiveness.
ANSWER The major types of post-tests used to evaluate advertising effectiveness are:
:
1. Readership tests: Readership tests interview people who have read selected
magazines to determine whether or not they have observed various printed ads. The
magazine is actually used in the interview process. The assumption is that recognition
will lead to future sales.
2. Unaided recall tests: With unaided recall tests, respondents do not see the magazine
after the initial read-through. They are asked questions to determine ad recall.
3. Inquiry tests: Inquiry tests are based on actual responses to an ad's offer of a gift.
The number of responses is used as a measure of the effectiveness of the
advertisement.
4. Split run tests: Split run tests run different versions of ads in the same newspaper or
cable program aired or distributed in different markets. The other three methods listed
above are then used to evaluate the effectiveness of the different ads.
Match each item to the statement or sentence listed below.

a. noise
b. advertising
c. promotion
d. publicity
e. sales promotion
f. guerrilla marketing
g. posttesting
h. split runs
i. cooperative advertising
j. marketing public
relations
k. media scheduling
l. pretesting
m. informative advertising
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n. persuasive advertising
o. retail advertising
p. missiles
q. cross-promotion
r. interactive advertising
s. sponsorship
t. institutional marketing
285. The function of informing, persuading, and influencing the consumer’s purchase decision is known as _____.
ANSWER: c
286. Ineffective promotional appeals, inappropriate advertising media, or poor radio or television reception that interferes
with the transmission of the message and reduce its effectiveness are examples of _____ in a communication channel.
ANSWER: a
287. Paid, nonpersonal communication through various media about a business firm, not-for-profit organization, product,
or idea by a sponsor identified in a message intended to inform or persuade members of a particular audience is called
_____.
ANSWER: b
288. Marketing activity other than personal selling, advertising, guerrilla marketing, and public relations that stimulates
consumer purchasing and dealer effectiveness is called _____.
ANSWER: e
289. Nonpersonal stimulation of demand for a good, service, person, cause, or organization through unpaid placement of
significant news about it in a published or broadcast medium is called _____.
ANSWER: d
290. is an unconventional, innovative, and low-cost marketing techniques designed to get consumers’ attention in unusual
ways.
ANSWER: f
291. Relationship in which an organization provides funds or in-kind resources to an event or activity in exchange for a
direct association with that event or activity is called a(n) _____.
ANSWER: s
292. Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person,
geographic location, or government agency is called _____.
ANSWER: t
293. Promotion that seeks to develop initial demand for a good, service, organization, person, place, idea, or cause is
called _____.
ANSWER: m
294. Promotion that attempts to increase demand for an existing good, service, organization, person, place, idea, or cause
is called _____.

Name Clas Dat
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ANSWER: n
295. Advertising by stores that sell goods or services directly to the consuming public is called _____.
ANSWER: o
296. A strategy in which a retailer shares advertising costs with a manufacturer or wholesaler is known as _____.
ANSWER: i
297. involves two-way promotional messages transmitted through communication channels that induce message recipients
to participate actively in the promotional effort.
ANSWER: r
298. Banners have evolved into a more target-specific technique for Internet advertising with the advent of _____ which
are messages that appear on the screen at exactly the right moment.
ANSWER: p
299. Setting the timing and sequence for a series of advertisements is called _____.
ANSWER: k
300. Focused public relations activities that directly support marketing goals are called _____.
ANSWER: j
301. Promotional technique in which marketing partners share the cost of a promotional campaign that meets their mutual
needs is known as _____.
ANSWER: q
302. Research that evaluates an ad during its development stage is called _____.

ANSWER: l
303. Research that assesses advertising effectiveness after it has appeared in a print or broadcast medium is called _____.
ANSWER: g
304. are methods of testing alternate ads by dividing a cable TV audience using two different ads, and then evaluating the
relative effectiveness of each.
ANSWER: h

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Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

2. What would be a goal of any integrated marketing communication system?

3. What does an integrated marketing communications strategy begin with?

Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

7. What is said to be at the heart of integrated marketing communications?

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Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

13. What do the AIDA concepts refer to?

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Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

18. What can noise take the form of in international communications?

19. In communicating a promotional message, what does decoding refer to?

20. Which of the following is NOT a means of conducting a personal-selling effort?

23. What is the oldest form of promotion?

Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

24. Which factor would NOT support the use of personal selling?

27. Which of the following is an example of personal selling?

28. Which of the following is NOT an advertising format?

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Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

31. What dominates the promotional mixes for low-unit value products?

32. How does product placement work as a form of nonpersonal selling?

33. What is sales promotion subdivided into?

34. Which group of activities is NOT considered to be a form of sales promotion?

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Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

35. Which of the following is considered to be part of the direct marketing category?

37. Which statement best describes guerrilla marketing?

38. Which of the following is generally NOT an advantage of guerrilla marketing?

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Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

42. What is an outcome of the interactive characteristic of direct marketing?

43. What do direct marketing and integrated marketing communications have in common?

45. What is one of the advantages of the direct mail medium?

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Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

47. By definition, what is the communication objective of advertising?

48. What is product advertising designed for?

49. What is the name for non-product advertising used by a profit-seeking firm?

50. What type of advertising is most closely related to public relations?

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Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

56. What is the goal of persuasive advertising?

Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

60. Which statement is NOT considered to be an advantage of celebrity testimonials?

61. According to studies, what kind of advertisements do consumers respond to with suspicion?

Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

63. Which of the following is NOT an example of an interactive advertising method?

64. What is an advantage of interactive marketing?

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Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

68. Which task is NOT necessary for successful advertisement?

70. What part of an ad serves to inform, persuade, and stimulate buying action?

72. What is the most common style of Internet advertising?

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Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications

76. Which of the following is NOT an advantage of television as an advertising medium?

Chapter 14 - Integrated Marketing Communications, Advertising, and Digital Communications