2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Chapter 1 - The World of Advertising and Integrated Brand Promotion

TRUE/FALSE

1.In the new world of advertising, mass media are just about dead and gone.ANS: F DIF: Easy REF: p. 7 OBJ: 1-Intro NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension 2.One ongoing change in today’s promotions can be seen in the way that the lines between information, entertainment, networking, and commercial messages are blurring.ANS: T DIF: Easy REF: p. 7 OBJ: 1-Intro NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension 3.Today, unlike years past, if a company produces and disseminates enough digital, mobile, online, and even traditional advertising for its offering, even a brand that does not meet consumers needs can succeed.ANS: F DIF: Moderate REF: p. 8 OBJ: 1-Intro NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension 4.The company or organization that pays for an advertisement is referred to as the client or sponsor.ANS: T DIF: Easy REF: p. 11 OBJ: 1-1 NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge 5.Brad Pitt is interviewed on the red carpet walk to the Academy Awards about his latest movie, for which he has been nominated for an Oscar. TV cameras and reporters zoom in to catch his comments.This is a form of advertising.ANS: F DIF: Moderate REF: p. 11 OBJ: 1-1 NAT: AACSB Communication | CB&C Model Promotion TYP: Application 6.A commercial created by the Partnership for a Drug-Free America shows eggs dropping into a frying pan, with the caption, “This is your brain on drugs.” It is aired on three major television networks for free. Though this sounds like a public service message, it is actually an advertisement.ANS: F DIF: Moderate REF: p. 11 OBJ: 1-1 NAT: AACSB Communication | CB&C Model Promotion TYP: Application 7.A firm that manufactures a device that alleviates sleep apnea produces a print ad and a television commercial that have the stated purpose of simply delivering straight information about the product.Therefore, it is not an attempt to persuade.ANS: F DIF: Moderate REF: p. 12 OBJ: 1-1 NAT: AACSB Ethics | CB&C Model Strategy TYP: Application 8.The marketers at Apple use a number of communication methods—including advertising in many forms of media, personal selling, public relations, event sponsorship, corporate advertising, social networking, and point-of-purchase, among others—in a coordinated process to build and maintain brand exposure. The Apple promoters are demonstrating a form of integrated brand promotion (IBP).Advertising and Integrated Brand Promotion, 6e Tho mas O'Guinn Chris Allen Richard Semenik ( Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.ANS: T DIF: Moderate REF: p. 13 OBJ: 1-1 NAT: AACSB Communication | CB&C Model Promotion TYP: Application 9.Essentially, the idea behind integrated brand promotion (IBP) is to pay for the use of many tools, including advertising, and coordinate them to launch products and boost sales.ANS: F DIF: Moderate REF: p. 13 OBJ: 1-1 NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge 10.A single ad—or a series of coordinated ads with a similar look, feel, and message—that revolves around one consistent theme is called a promotion.ANS: F DIF: Moderate REF: p. 14 OBJ: 1-1 NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge 11.Mass-mediated communication has three major components: production, reception and distribution.ANS: F DIF: Easy REF: p. 16 OBJ: 1-2 NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge 12.All the consumers who ultimately see an advertisement or an advertising campaign are considered its target audience.ANS: F DIF: Easy REF: p. 18 OBJ: 1-3 NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge 13.Government buyers are the most conspicuous audience today, in that most mass media advertising is directed at them.ANS: F DIF: Moderate REF: p. 18 OBJ: 1-3 NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension 14.A producer of educational materials wants to deliver an advertising message to a professional audience of teachers, principals, and school administrators. In this case, a trade journal would not be an appropriate medium to use.ANS: F DIF: Difficult REF: p. 19 OBJ: 1-3 NAT: AACSB Communication | CB&C Model Promotion TYP: Application 15.A well-known computer manufacturer runs a worldwide advertising campaign for its desktops, laptops, notebooks, and other computer equipment in an attempt to provide a common theme and presentation in all markets including consumers in North America, Europe, Asia, Africa, Australia and South America. This is an example of an international advertising campaign.ANS: F DIF: Moderate REF: p. 20-21 OBJ: 1-3

NAT: AACSB Communication | CB&C Model International Perspective

TYP: Application

16.A large retail chain sells groceries through its stores in 31 Western, Northwestern, Midwestern, and Southern states. However, it would not use national advertising to reach its target market.ANS: T DIF: Easy REF: p. 21 OBJ: 1-3 NAT: AACSB Communication | CB&C Model Promotion TYP: Application 2 / 4

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

• The marketing mix involves four areas of responsibility—conceiving, pricing, promoting, and

distributing—involved in the promotion of goods, services, or even ideas.

ANS: T DIF: Moderate REF: p. 22-23 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge

• Advertising is only one area of the marketing mix, and it represents only one of many different IBP

tools used in the marketing mix.

ANS: T DIF: Moderate REF: p. 23 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

• A brand variant is created when a company adapts and expands its current brand into a totally new

product area.

ANS: T DIF: Easy REF: p. 25-26 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge

• The set of assets linked to a brand that is built over time—such as its name, symbol, logo, etc.—is

considered its brand equity.

ANS: T DIF: Moderate REF: p. 26 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge

• Consumers’ perceptions can be based on tangible differences or on image and style factors with brand

differentiation.

ANS: T DIF: Moderate REF: p. 28 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension

• A kitchen appliance manufacturer attempts to create a distinctive competitive position based on design

features, pricing, distribution, and promotion or advertising strategy. In this way, the company is making an external-positioning decision.

ANS: T DIF: Moderate REF: p. 29 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Application

• Emphasizing performance features of a product through advertising is rarely enough to create a

difference in the mind of the consumer between an organization’s brands and its competitors.

ANS: F DIF: Moderate REF: p. 29 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Application

• The fundamental purpose of marketing (and the advertising that is used in marketing) is to generate

revenue.

ANS: T DIF: Easy REF: p. 30 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge

• When an organization creates large-scale demand for its brand, the quantity of product produced is

increased, and unit production costs increase.

ANS: F DIF: Easy REF: p. 31 OBJ: 1-4 3 / 4

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge

• Organizations that have tried to stimulate primary demand in mature product categories have had

considerable success.

ANS: F DIF: Easy REF: p. 32 OBJ: 1-4

NAT: AACSB Communication | CB&C Model Promotion

• A late-night television commercial for kitchen knives urges viewers to “call this toll-free number in the

next 30 minutes to receive a free cutting board” and assures them that “operators are on duty.” This is an example of a direct response ad.

ANS: T DIF: Moderate REF: p. 33 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Application

• Delayed response advertising attempts to develop recognition and approval of a brand over time,

relying on imagery and message themes that emphasize the benefits and satisfying characteristics of a brand.

ANS: T DIF: Moderate REF: p. 33 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension

• Gross domestic product, or GDP, is the measure of the total value of goods and services produced by a

given company.

ANS: F DIF: Moderate REF: p. 34 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Product TYP: Knowledge

• In some indirect ways, advertising can affect gross domestic product. It acts to increase product

demand when it helps to introduce new products, thereby increasing sales, which in turn affects GDP.

ANS: T DIF: Difficult REF: p. 34 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Product TYP: Knowledge

• When a brand is perceived by consumers as providing some form of satisfaction that is beyond the cost

to purchase the brand, it is said to have brand equity.

ANS: F DIF: Moderate REF: p. 35 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge

• Essentially, the difference between value and symbolic value is that the first term refers to ads aimed at

consumers, and the second term refers to ads aimed at businesses.

ANS: F DIF: Moderate REF: p. 35-36 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge

• In the advertising industry, the term social meaning refers to the perception by consumers that a brand

provides satisfaction that is greater than the cost incurred to acquire the product or service.

ANS: F DIF: Moderate REF: p. 36 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge

• Nowadays, advertising is virtually the only promotional tool that is used to attract, impress, and

persuade consumers.

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