Use the following to answer questions 138-141:
The Toyota Corporation is developing its promotional plan
for the coming year and is considering several types of advertising to
communicate its messages. Toyota will
likely advertise its new vehicle, the Venza, on TV and in major natinonal
magazines. It is possible that the ads
could focus on the features of the Venza and its most likely competitor, the
Ford Edge. Other forms of advertising
that can be considered are ads that feature all of the Toyota brands in a single
ad, while mentioning only the Toyota brand and its company’s strengths. Finally, Toyota will probably continue to
advertise updates of its cash cow brands, the Camry and the hybrid versions of
television advertisements for the new Venza are examples of
139. If the ads
include both the Venza and the Ford Edge, they would be examples of
such as the one proposed above for the Camry and hybrid SUVs, are most likely
an example of
advertising mentioned above in which Toyota features all brands of the company
would be an example of
Use the following to answer questions 142-145:
The State Farm Group includes several companies. Probably the most well-known company in the
group is the State Farm Insurance company, the largest auto and home insurer in
the United States. State Farm Insurance
provides protection for approximately 78 million policies on auto, fire, life,
and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is
the State Farm Bank, which was opened in 2000, beginning State Farm’s entry
into the financial services field.
However, the State Farm Bank is not a traditional bank, in that it has
no branch offices and its services are provided through State Farm agents, a
call center, the mail, and on the internet.
It currently serves over 1.9 million bank accounts.
142. In 2008,
Cal Ripken, Jr. and State Farm teamed up to promote State Farm’s national teen
driver safety program. The marketing
division at State Farm produced a one-page document that described the
partnership, which was then published in several national newspapers and on the
internet. The document from State Farm
is an example of ______, while the publication in the newspapers is an example
relations; a news release
d) a news
a news release
deciding on its advertising allocation for the coming year, State Farm
Insurance could choose to spend the same amount as Safe Auto, another auto
insurance company. This method of
advertising appropriation is known as the _________________ approach.
144. If State Farm
were to decide that its previous method of appropriating the advertising budget
was ineffective, it could decide to allocate 2 percent of its total annual
sales to advertising. However, one problem with this method is that
a) it makes
the bookkeeping too difficult.
b) it is
tied too closely to sales forecasts.
c) a sales
decline leads to an increase in the advertising appropriation.
d) a drop in
sales would cause a drop in the advertising budget.
may have different advertising objectives.
145. If State
Farm Bank decided that it wanted to increase its number of bank customers by
10% in the coming year, it would most likely use the ______________ approach to
146. T F
Advertising is paid nonpersonal communication transmitted through mass
147. T F
Business organizations are the only major users of advertising.
148. T F
Institutional advertising and promotional advertising are the two basic
categories of advertising.
149. T F
Advertisements that promote goods and services are called advocacy
150. T F
Product advertising is often used to stimulate demand directly.
151. T F
If a commercial advertisement compares one brand of laundry detergent to
another brand, this is a type of competitive advertising.
152. T F
Pioneer advertising involves describing the features and benefits of a
product in contrast to a direct competitor.
153. T F
If a restaurant, known for its delicious food and fun entertainment,
does not serve alcohol, it is displaying advocacy advertising.
154. T F
In a comparative advertisement, advertisers point out that their brand
has characteristics that are superior to those of competing brands, but they do
not actually mention the brand names of competitors.
155. T F
Comparative advertisements mention the actual names of competing brands.
156. T F
Reinforcement advertising tells current users how to get the most
satisfaction from the brand they have chosen.
157. T F
Reminder advertising is not applicable to new products.
158. T F
Almost all advertising campaigns are aimed at producing immediate sales.
159. T F
Advertising objectives should be stated in clear, precise, and
160. T F
The statement of advertising objectives should include a benchmark—such
as the current sales level—and indicate how much improvement is sought.
161. T F
A marketer’s advertising platform should consist of issues that are
important to consumers.
162. T F
The advertising platform consists of the basic issues and selling points
that an advertiser wishes to include in the campaign.
163. T F
The advertising platform is the foundation on which campaign messages
164. T F
Most often, the opinions of a firm’s personnel are used to develop the
165. T F
The advertising budgets for industrial products are usually large
relative to the sales of the products.
166. T F
When sales go up, advertising should be increased; when sales decline,
advertising should be decreased.
167. T F
To assume that sales create advertising is incorrect.
168. T F
The arbitrary approach to setting an advertising budget often results in
inappropriate spending of the firm’s resources.169. T F
The choice of media influences the content and form of the message.
170. T F
A cost comparison indicator (such as CPM) should not be used to compare
the cost and impact of a television commercial with the cost and impact of a
171. T F
The signature is not part of the verbal portion of an advertisement.
172. T F
Radio copy should consist of short, familiar terms.
173. T F
A layout includes only the illustrations used in an advertisement.
174. T F
To be unbiased, a member of a consumer jury should not be a present user
of the advertised product.
175. T F
The effectiveness of an advertising campaign can be measured only after
the completion of the campaign, when results are tabulated.
176. T F
The type of posttest an advertiser uses is affected by the type of
advertising objectives set by the advertiser.
177. T F
In recall posttesting, respondents are shown the actual advertisement
and are asked whether they recognize it.
178. T F
Small firms generally depend on local newspapers and radio stations for
assistance with advertising efforts.
179. T F
Advertising departments may use independent research organizations or
freelance specialists for some of their projects.
180. T F
Ad agencies work jointly with their client firms to develop the ad
181. T F
Because ad agency personnel are outsiders to their client firms, they
may not judge the firm’s product objectively.
182. T F
Ad agencies and firms usually work together when creating an ad campaign
because the agencies would act too subjectively on their own.
183. T F
Because ad agencies often get commissions on media purchases, firms can
obtain some agency services at moderate prices.
184. T F
Jobs such as specialists, copywriters, artists, media buyers, and
technical production coordinators are included in the public relations
department of a large organization.
185. T F
One way an advertising agency assists a firm is that it takes care of
all the grunt work in order to give its clients time to do the creative work on
186. T F
Advertising agencies often have more highly skilled people than the
advertising departments of firms.
187. T F
Small and medium-sized firms never use advertising agencies to produce
campaigns for them.
188. T F
Public relations, unlike advertising, is not particularly useful for
promoting an organization’s image.
189. T F
If a company is perceived positively by the public, employee morale is
190. T F
Public relations is communication in news story form about an
organization, its products, or both that is transmitted through a mass medium
at no charge.
191. T F
Event sponsorship can provide companies with a considerable amount of
192. T F
Publicity is a subset or part of public relations.
193. T F
To announce a major news event, an organization should use a news
194. T F A
feature article is longer than a news release and is written for a particular
195. T F
Lack of control over the content and timing of public relations is a
limitation in using publicity-based public relations tools.
196. T F A
public relations audit is used to assess an organization’s image among its
publics or to evaluate the effect of a specific public relations program.
197. T F
The effectiveness of a public relations program is usually measured in
terms of sales.
198. T F
A major way to reduce unfavorable public relations is to reduce the
number of negative events.
199. T F
An effective approach for dealing with potential unfavorable public
relations resulting from a negative event is to discourage news coverage.