MKT 340-Midterm Testbank-F03-Revised

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					                                  MKT 340 / Principles of Advertising
                                     Midterm Exam/Fall 2003
                                            Pr. Bill White

Last Name                                          First                                 SID

The next 5 questions refer to the following situation:

        The persistent threat of hostile takeovers during the 1980s caused many corporation managers to
look for less expensive ways to introduce new products. At a time when introducing a new product can cost
$50 million, many companies decided to offer line or brand extensions, which are less formally known as
spinoff products.
        Planters LifeSavers Company introduced Holes, tiny candies that look like the centers of LifeSavers.
The manufacturers of Snickers created peanut butter version. The makers of Arm & Hammer baking soda
developed carpet deodorizers, an oven cleaner, and tooth powder. In 1989, of the 5,779 packaged goods
introduced in the marketplace, two-thirds were modified forms of existing products.

1. Kendall-Futuro, the makers of Curad bandages, has introduced Happy Strips, which are kid-sized
   bandages with McDonald’s characters on them. As part of the product’s introduction, Happy Strips were
   given out with every purchase of McDonald’s Happy Meal. This is an example of which promotion
       a. Publicity
       b. Advertising
       c. Sales promotion
       d. Public relations
       e. Personal selling

2. During the summer of 1990, there was an article in Newsweek magazine about Curad’s spinoff product.
   This is an example of which promotional method?
       a. Publicity
       b. Advertising
       c. Sales promotion
       d. Public relations
       e. Personal selling

3. Nabisco developed Fruit Newtons and donated thousands of samples to various charities around the
   country as a part of the introductory campaign. The ads announcing this activity are of what
       a. Product building
       b. Cooperative
       c. Public service
       d. Corporate/institutional
       e. Retail

4. The manufacturer of Curad bandages is mailing a special announcement about Happy Strips to
   stockholders with the hope that they will be excited about the new product and buy more of the
   company’s stock. This is an example of                        .
       a. Primary demand advertising
       b. Cooperative advertising

        c. A push strategy
        d. Attacking a niche
        e. An attempt to reduce cognitive dissonance

5. Planters LifeSavers Company has coordinated a series of research efforts designed to position the new
   Holes product. Which of the following types of advertising research techniques is NOT appropriate for
   positioning strategy development?
       a. Concept testing
       b. Segmentation analysis
       c. Self-assessment
       d. Competitive analysis
       e. None of the above is appropriate

6. Frosty Paws is a new frozen dog treat. Given that there is nothing like it on the market, what kind of
   promotional strategy will its manufacturer most likely use?
       a. Focus its promotional efforts on informing and educating customer about Frosty Paws
       b. Emphasize the price advantage of Frosty Paws
       c. Little or no advertising
       d. Save money by relying on publicity for this novel product
       e. Stimulate secondary demand for Frosty Paws

7. In the sales-decline stage of the product life cycle, the promotion strategy is most often used to:
        a. Use advertising to replace other promotional activities
        b. Dramatically increase the intensity of personal selling
        c. Cut back all promotional efforts except when attempting to revitalize the product
        d. Concentrate on publicity because it’s free
        e. Stimulate primary demand

The next 5 questions refer to the following situation:

        Gooseneck Farms is located near Hawkinsville in Middle Georgia. Gooseneck Farms produces fine
pecans and mouth-watering pecan candies. The farm is owned and operated by Frank and Vickie Austin.
        Most of its sales are made through the mail. It appeals to customers all over the nation. Its products
are popular items for Georgians who are traveling overseas and who want to showcase their state’s fine
products. Among the farm’s specialties are Amaretto Liquored Pecans, Chocolate Dipped Pecans, Pecan
Clusters, and Pecan Brittle.

8. The advertisement the Austin family uses in regional magazines gives customer a toll-free number to call
   in their orders. This is an example of                      advertising.
        a. Institutional
        b. Indirect-action
        c. Primary demand
        d. Direct-action
        e. Pioneering

9. The Austins create all their ads in-house. However, for their media buys, they use an advertising agency
   that only purchases media. This agency is probably referred to as a(n)                 .
        a. “a la carte” agency
        b. Boutique
        c. Media buying service
        d. Media rep agency

        e. None of the above are correct.

10. The Austins considered hiring a full-service ad agency. These agencies are noted for their ability to:
       a. Deal expertly with the marketing mix
       b. Provide financial counseling to the advertiser
       c. Provide careful direction in employee management issues
       d. Solve manufacturing problems of the advertiser
       e. Do all of the above

11. If the Austins had hired a full-service ad agency, with whom at the agency would they have the most
    day-to-day contact?
         a. The media buyer
         b. The research director
         c. The media planner
         d. The creatives
         e. The account executive

12. If an agency hired a photographer to take pictures to be used in a Gooseneck Farms catalog and she
    charged $1,000, how much would the agency bill the Austins for this service given the standard mark-
         a. $1,176.50
         b. $1,500.00
         c. $1,000.00
         d. $850.00
         e. $1,000.00 plus 12.5%

13. Ads designed to be seen and understood everywhere are called:
       a. Global advertising
       b. International marketing
       c. International advertising
       d. Transcontinental advertising
       e. World advertising

14. Veteran advertisers realize that people’s aspirations usually take on the flavor of the social class:
       a. Of their parents
       b. Immediately below their own
       c. Immediately above their own
       d. Many levels higher than their own
       e. The same as their own

15. The typical focus group interviews last about:
       a. 30 minutes to one hour
       b. One-and-a-half to two hours
       c. Three to four hours
       d. Six to eight hours

16. Which is not an example of a concept test?
       a. Card concept test
       b. Poster test
       c. Layout test
       d. Finished print test

        e. None of the above is an example

17. People purchase products and services because of:
       a. The price they have to pay
       b. The advertising they witness
       c. The benefits they expect from them
       d. The marketing plan
       e. The advertising plan

18. The characteristic which is not true about effective headline:
       a. Most important part of an ad
       b. Have responsibility of making the sale
       c. First thing read
       d. Should arouse interest of consumer
       e. Likely to include the key benefit

19. Not a way in which proof is generally offered to prospective customers:
        a. Seals of approval
        b. Warranties
        c. 800-phone numbers
        d. Trial offers
        e. Testimonials

20. Most advertisements end the same way:
       a. By asking for the sale
       b. With humor
       c. By repeating main idea
       d. With a demonstration
       e. With amplification

21. The one which is not a main approach in describing the creative execution of an advertisement:
       a. Factual
       b. Imaginative
       c. Active
       d. Emotional
       e. All of the above are a main approach

22. The creative team in an advertising agency consists of:
       a. A writer and an art director
       b. A writer and a photographer
       c. An illustrator and a photographer
       d. A creative director and an account executive
       e. Two account planners

23. Visual continuity in a campaign does not include:
       a. Same typeface
       b. Same layout format
       c. Same medium
       d. Same spokesperson
       e. Same logo

24. A target market
        a. Involves a large number of consumers
        b. Is a group of persons for whom a firm creates and maintains marketing mix
        c. Already has several competitors vying for consumers’ business
        d. Is the same thing as a salesperson’s prospective clients list
        e. Is a consumer group that includes persons with similar demographic characteristics

25. Advertising is a major promotion mix ingredient that is a
       a. Paid form of personal communication
       b. Paid form of nonpersonal communication
       c. Nonpaid form of personal communication
       d. Nonpaid form of nonpersonal communication
       e. Waste of resources

26. Which one of the following questions is least considered by a marketer when assessing the potential
    value of advertising as an ingredient in the promotional mix?
        a. Does the product possess unique, important features?
        b. Are the benefits important to buyers?
        c. Have competitors introduced strong advertising campaigns?
        d. Is the market potential for the product adequate?
        e. Is the general demand trend for the product favorable?

27. A marketer’s advertising U.S.P. should consist of issues that are important to consumers. Selling points
    not only should be important to consumers but should, if possible, be those that:
        a. Competitive products lack
        b. Can be seen easily in a photograph
        c. Are new concepts to those in the target market
        d. Competitive products also have
        e. Are reasonably inexpensive to develop

28. Before launching a new advertising campaign, marketers for Le Menu frozen dinners determined the
    features (such as a microwave-safe, reusable, divided plate) that they wanted to include in the
    advertisements. This identification and organization of these selling points is called the
        a. Advertising appropriation
        b. Objective-task approach to advertising
        c. Advertising proof / support
        d. Design continuity
        e. Visualization

29. Frederick Griffith of Griffith’s Department Stores tells his marketing director that he is tired of the
    constant price-centered advertising by the firm’s agency. “We have the best customer service in town,
    and I feel that is what we should be handing out hats on,” he stated. This statement is most appropriate
    for use in which one of the following stages of campaign development?
        a. Determining the appropriation
        b. Creating the positioning strategy
        c. Identifying the proper promotional mix
        d. Defining objectives
        e. Developing the media plan

30. The advertising department for Tram Company is working on a print advertisement for a new product.
    At this point the layout contains a headline, an additional phrase to provide explanation, an illustration to

    show the product, and a paragraph to explain the advantages and benefits of the product. What other
    important elements should be included to make the advertisement more complete?
       a. Amplification
       b. Closing idea
       c. Logo
       d. Body copy
       e. Both B and C

31. As Linda Farewell walks her client, Kaptain Cola president Steve Welch, through the proposed television
    commercial for the product’s introduction, she moves from square to square on the
       a. Copy
       b. Storyboard
       c. Illustrations chart
       d. Artwork
       e. Media plan

32. Recognition, awareness, playback, feedback and recall are posttest terms measuring
       a. Dissonance
       b. Retention
       c. Inquiries
       d. Customer preferences
       e. In-depth interviews

33. The Bentley Agency places $2,500 of radio spots and $22,000 in television spots for Darnell Insurance in
    June. For its efforts this month, the agency traditionally would receive
        a. $2,450
        b. $12,250
        c. $4,900
        d. $5,525
        e. $3,675

34. A major reason why a substantial amount of publicity material is rejected by media personnel is that the
    material is
       a. Too long
       b. Written at too high a reading level
       c. Submitted by organizations that the media do not like
       d. Not persuasive enough
       e. Not newsworthy

35. The limitations in using publicity primarily stem from the fact that
       a. Marketers alter the length and content of publicity releases
       b. Publicity is never properly managed by media personnel
       c. Media personnel consider only unfavorable publicity as newsworthy
       d. It is timely and costly to convince media personnel that publicity should be free
       e. Media personnel control the content and the timing of the communication

36. Generally, promotion mixes for business-to-business products concentrate on
       a. Advertising
       b. Publicity
       c. Sales promotion

        d. Personal selling
        e. Public relations

37. When Kewanee Health Club developed separate marketing programs for body builders, people who
    wanted to lose weight, and people who wanted to improve their stamina, the organization was using a
       a. Market segmentation
       b. Market aggregation
       c. Product differentiation
       d. Marketing research
       e. Market analysis

38. FTD, a service that makes it possible for a person to send flowers to someone far away, advertises in the
    trade publication Floral Management. The ads, which encourage retail florists to join FTD system, are an
    example of                   advertising.
        a. Institutional / corporate
        b. Business-to-business
        c. Retail
        d. Service
        e. Primary demand

39. The Coors “Literacy. Pass It On.” program donated $25,000 to a women’s literacy organization. The
    press releases to announce the donation can be viewed as a                 effort to build a more
    favorable image for the brewing company.
        a. Sales promotion
        b. Public relations
        c. Advertising
        d. Publicity
        e. Personal selling

40. Which of the following is an example of how a jewelry store could use nonprice competition?
       a. It could hire salespeople to work on commission and reduce prices by ten percent.
       b. It could give a quantity discounts to customers who purchased more than two gold necklaces.
       c. It could provide free cleaning for all rings it sells.
       d. It could advertise that its price on Mexican silver jewelry is the lowest in town.
       e. It could offer a 50-percent off sale on all costume jewelry.

41. If the manufacturer of Charlee’s Gourmet Beef Jerky is trying to decide whether to market the product
    by mail order, in convenience stores, through local caterers, and/or at independent supermarkets, it is
    involved in:
         a. Choosing specific channel members
         b. Examining how its competition markets snack products
         c. Selecting the type of distribution channel it wants to use.
         d. Assessing its competition
         e. Delineating the role of distribution in its marketing program

42. The number of different focus groups most ad clients conduct around the country is:
       a. Three or four
       b. Five or six
       c. One or two
       d. Seven or eight

43. Which of the following is a basic consideration in any market research undertaking?
       a. Who will conduct the research?
       b. Who is the client we represent and what does he/she want to do with the data?
       c. What is our budget?
       d. Do we have a consumer-behavior perspective?

44. A good copy-testing system:
       a. Uses measurements relevant to the advertising objectives.
       b. Specifies action standards.
       c. Anticipates that results will vary with the degree of finish on the copy.
       d. Does all of the above.

45. The                     is the term for the changing purchasing behavior of a family as it matures and ages.
          a.   Cohort cycle
          b.   Consumer purchase behavior cycle
          c.   Family life cycle
          d.   Personal drive pattern

46. When interviewers speak with consumers in one-on-one interviews in the field, and ask them if they can
    remember particular outdoor campaigns, and then show the consumer different recent campaigns and ask
    follow up questions, the interviewers are conducting:
        a. Cars research.
        b. Starch Viewership research.
        c. Traffic Bureau for Media Measurement research.
        d. BBDO emotional testing.

47. Testing that attempts to separate good and bad ideas and provide insight into factors motivating
    acceptance or rejection is called:
        a. Copy testing
        b. Strategy testing
        c. Cohort testing
        d. Concept testing

48. An anthropological focus in advertising research would focus on:
       a. Issues related to lifestyle.
       b. The stage in life the target market is in.
       c. Understanding subcultures within American culture.
       d. Why people buy what they buy.

49. The research technique used by marketers to discover consumer lifelong values and preferences and to
    help plan strategies for products consumers will use later in life is:
        a. Analytical analysis.
        b. Secondary research.
        c. Trend watching or trend analysis.
        d. Cohort analysis.

50. Developed by BBDO, the                          is used to uncover a consumer's individual psychological
        a. Individual reward matrix
        b. Cohort analysis

        c. Personal drive analysis
        d. Lifestyle drive analysis

51. When developing a creative vision, advertisers need to remember that:
      a. What has worked will continue to work and they should build on it.
      b. A creative vision must be both compelling and competitive.
      c. Emotional appeals are central to the effectiveness of a creative vision.
      d. It takes a substantial amount of substantive words to communicate a creative vision.

52. An effective headline:
       a. Should present a broad appeal.
       b. Has 15 – 20 simple words.
       c. Includes an invitation to the prospect.
       d. Uses a passive verb.

53. An emotion-based copy approach works best with what kind of goods?
       a. High-involvement
       b. Package goods
       c. Professional services
       d. Low-involvement

54. It is in the                of the advertisement that the case for the product is made, and an
    explanation of how the promise will be fulfilled is offered.
         a. Body copy
         b. Copy platform
         c. Subhead
         d. Proof

55. What type of headline is: "The most reliable copier ever to play the game just got better"?
      a. Presenting a new benefit
      b. Curiosity-invoking
      c. Promising existing benefit
      d. Selective.
      e. Provocative

56. The subheadline has a number of tasks which include:
       a. Spelling out the promise of the headline.
       b. Inviting further reading.
       c. Serving as a transition to body copy.
       d. All of the above.

57. A curiosity-provoking headline might read like which of the following?
       a. How do you feed 100,000 hungry hairs each day?
       b. Urinary discomfort shouldn't be a burning issue.
       c. Now there's more fruit in Quaker Instant Oatmeal.
       d. Adults who eat cereal consume less fat each day.

58. What is the purpose of the body copy of the advertisement?
      a. To attract the reader's attention.
      b. To explain how the promise in the headline will be fulfilled.
      c. To promise a benefit.

        d. To amuse the reader and draw him/her into the advertisement.

59. What is true about the use of humor in great advertising?
      a. Few advertisers use it because it is difficult to use well.
      b. Wry, subtle humor is what is working today.
      c. Most consumers like the stimulation of bathroom humor.
      d. It tends to shock and thereby grab attention.

60. Which of the following is true about the use of sound in a radio commercial?
       a. It sometimes needs to be explained.
       b. It can underscore a point; evoke emotion, etc.
       c. It should be used sparingly as copy is more important.
       d. None of the above

61. Copy development research is conducted to help advertisers:
       a. Evaluate the creativity of the copy.
       b. To understand who their consumer is.
       c. Decide how to execute approaches and elements.
       d. Inspire their creative team.

62. When the advertiser shoots a series of commercials, each builds on the previous and continues to tell the
    advertiser's story, the advertiser is using a                visual technique.
       a. Slice-of-life
       b. Serial
       c. Vignettes
       d. Story line

63. The ultimate guide to predicting successful advertising and marketing is called:
       a. Test marketing.
       b. Psychographic research.
       c. Lifestyles.
       d. Demographic research.

64. When using population figures to design a target market, marketers should remember:
      a. Most people's consumer behavior is consistent with their age.
      b. Population is the least accurate criteria for market segmentation.
      c. Age is the most complete census data in terms of categorizing people into consumer behavior
      d. Population includes more than numbers of people.

65. Which of the following are key qualifiers in defining the consumer target audience?
       a. Lifestyle, education and location.
       b. Census data, income, and household data.
       c. Ethnicity, lifestyle, and demographics.
       d. Demographics, lifestyle, and geography.

66. A description of a market based on factors such as attitudes, opinions, interests, perceptions, and
    lifestyles of consumers, comprising that market is called:
         a. Demographics.
         b. Generation or population segmentation.
         c. Geodemographics.

        d. Psychographics.

67. The pioneering stage of the advertising spiral is characterized by:
       a. An emphasis on personal selling and public relations.
       b. Declining advertising and promotional expenses.
       c. Very low advertising and high promotional expenses.
       d. Heavy advertising and promotional expenses.

68. The primary goal of advertisers in the retentive stage of the advertising spiral is to:
       a. Show a need for the product.
       b. Introduce the product.
       c. Ward off trial or other products.
       d. Communicate product differences.

69. That portion of the analysis that leads to a strategic plan for a brand that includes an analysis of the
    integrated marketing communication and a clear summary of the product's and its competitors' current
    communication strategies and tactics is the:
        a. Consumer attitude descriptions.
        b. Strategic options and recommendations section.
        c. Competitive strategic and tactics.
        d. Brand equity audit analysis.

70. Products are usually most profitable in the                      stage of the advertising spiral.
       a. Retentive
       b. Competitive
       c. Decline
       d. Pioneering

71. When creating a strategic plan for a brand, you would begin by:
      a. Evaluating your strategic options and making recommendations.
      b. Conducting a brand equity audit analysis.
      c. Pursuing brand equity research.
      d. Creating the ads and copy platform.

72. What is the advertising focus in the newer pioneering stage of the advertising spiral?
      a. Getting consumers to understand what the product is about.
      b. Relying on existing product prestige to keep customers.
      c. Creating new market potential for the product.
      d. Blocking trial of competitive products.

73. A market research study by the Roper organization discovered that:
       a. A brand name will overcome a poor quality product.
       b. Manufacturers cannot change a premium price based on the brand name.
       c. People buy familiar brands regardless of the actual advantage of the product.
       d. All of the above are true

74. The person in an agency who is primarily responsible for research services is:
       a. The director of marketing services
       b. The account planner
       c. The director-in-charge
       d. The account executive

75. The first question asked, from a client's perspective, when agencies consider merging is:
       a. Who will lead the merged company?
       b. How much of our staff do we need to layoff?
       c. Does this make financial sense?
       d. Will any of our accounts conflict?

76. While an agency may desire to use the same brand concept or advertising concept in other countries, to
    be successful in global advertising it needs to:
        a. Use direct translation of the English campaign into the host country's language.
        b. Have a local or host country agency also working on the account.
        c. Avoid conflicts of interest between different international clients.
        d. Customize the execution to the local markets.

77. Copy writing, layout, and storyboarding are all part of which function of the agency?
       a. Creating the communication.
       b. Diagnose the marketing problem.
       c. Setting objectives and developing strategy.
       d. Select the advertising strategy.

78. A serious flaw in traditional compensation based on the price of media is that:
        a. There is no consistent relationship between income generated and the costs of services required.
        b. There is no way to consider the affects of inflation on the agency.
        c. It generally favors larger clients, giving them a competitive edge over smaller companies.
        d. Includes all of the above.

79. The Collegial Advertising Agency is placing ads on the part of non-profit human rights groups that
    promote tolerance of ethnic diversity. These types of ads are an example of:
       a. Cause advertising.
       b. Professional advertising.
       c. Idea advertising.
       d. Service advertising.

80. Young & Rubicam's Brand Asset Valuator explains the strengths and weaknesses of a brand on the basis
    of two factors, which are:
        a. Life cycle stage and market share.
        b. Stature and vitality.
        c. Tangibility and intangibility.
        d. Rationality and emotionality.

81. Under both the old and new marketing concepts the essential requirements for effective strategic
    planning are:
        a. Market segmentation, market targeting, and positioning.
        b. Primary targeting, growth marketing, and retention.
        c. Market research, competitive marketing, and retention.
        d. Strategic marketing, pioneering marketing, and retention.

True or False Question (Answer “A” for True and “B” for False)

82. T   F       Testimonials can be delivered by known or unknown individuals.

83. T   F   Advertising is a primary means of setting or reinforcing the social and cultural agenda for
            a society.

84. T   F   Advertising should add value to a product in a similar way that manufacturing enhances
            the value of raw materials.

85. T   F   Another term for retail advertising is local advertising.

86. T   F   Industrial advertising can be directed to consumers.

87. T   F   A product should be aimed at, and acceptable to, a majority of all consumers.

88. T   F   The top method of market segmentation is product use.

89. T   F   Lifestyle segmentation is a strategy based on the amount and/or consumption patterns of
            a brand or product category.

90. T   F   Generally, campaigns are designed to run over a longer period of time than an individual ad.

91. T   F   Advertising motivates people by appealing to their goals, problems, and desires.

92. T   F   A post-testing problem is separating results of the ad campaign from consumer behavior that
            would have occurred in any case.

93. T   F   Research has proven that a single variable, such as age, income, or sex, can accurately
            predict purchases.

94. T   F   The leader in a product field almost never starts a comparative ad campaign.

95. T   F   The key for getting an ad to stand out is usually the copy.


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