Chapter 17

Chapter 17—Advertising and Public Relations
ESSAY
1. Describe the major types of advertising, and discuss how they differ.
ANS:
Answer not provided.
PTS: 1 DIF: Easy OBJ: 17-01 Describe the nature and type of advertising.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Marketing Plan
MSC: Knowledge
2. What are the important issues to consider when developing advertising objectives?
ANS:
PTS: 1 DIF: Moderate

OBJ: 17-02 Explore the major steps in developing an advertising campaign.
MSC: Knowledge
3. What are the major differences between sales-based and communications-based advertising
objectives?
ANS:

MSC: Knowledge
4. What is an advertising platform? What is the best way to develop a platform?
ANS:

MSC: Knowledge
5. Compare the competition-matching approach with the arbitrary approach in determining an advertising
appropriation. Which method might more easily lead to overspending or underspending on the
appropriation?
ANS:

MSC: Knowledge
6. What are the major components of a media plan? What limitations must be considered as the media
plan is implemented?
ANS:
PTS: 1 DIF: Difficult

NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge
7. Why are headlines important?
ANS:
PTS: 1 DIF: Easy

8. What are the major components of artwork?
ANS:
PTS: 1 DIF: Easy

9. Why would a marketer conduct a posttest when the advertising campaign has already run and the
dollars have already been spent?
ANS:

NAT: AACSB: Analytic | MKTG: Research MSC: Knowledge
10. What are the advantages of using an advertising agency to develop an advertising campaign?
ANS:

OBJ: 17-03 Identify who is responsible for developing advertising campaigns.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge
11. What is public relations and for what purposes is it used?
ANS:
PTS: 1 DIF: Moderate OBJ: 17-04 Examine the tools used in public relations.
12. Discuss how event sponsorship can be used as a public relations tool.
ANS:
PTS: 1 DIF: Difficult OBJ: 17-04 Examine the tools used in public relations.
13. Identify and describe four publicity-based public relations tools.
ANS:
PTS: 1 DIF: Moderate OBJ: 17-04 Examine the tools used in public relations.
14. What approaches can be used to evaluate the effectiveness of public relations programs?
ANS:
PTS: 1 DIF: Difficult

OBJ: 17-05 Analyze how public relations is used and evaluated.
15. What steps should an organization take to be able to deal effectively with negative public relations?
ANS:

MSC: Knowledge
SHORT ANSWER
16. Advertising is a promotion mix ingredient that is a(n) ____________________ communication.
ANS:
paid form of nonpersonal
PTS: 1 DIF: Easy OBJ: 17-01 Describe the nature and type of advertising.
MULTIPLE CHOICE
17. Advertising that aims to create a more favorable view of a company as a whole in the eyes of various
stakeholders is called ____ advertising.
a. institutional
b. product
c. organizational
d. pioneer
e. advocacy
ANS: A PTS: 1 DIF: Easy
OBJ: 17-01 Describe the nature and type of advertising.
18. First Union Bank airs a series of radio ads that claim, "We are the friendly bank." This campaign
would best be described as ____ advertising.
a. pioneer
b. target
c. product
d. institutional
e. comparative
ANS: D PTS: 1 DIF: Difficult
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application
19. The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its
faculty, staff, and students are as well as how outstanding its academic programs are. This type of
promotion would best be characterized as
a. public relations.
b. product advertising.
c. advocacy advertising.
d. institutional advertising.
e. comparative advertising.
ANS: D PTS: 1 DIF: Moderate
20. When a company promotes its position on a public issue, this is specifically referred to as ____
advertising.
a. institutional
b. product
c. advocacy
d. issue
e. competitive
ANS: C PTS: 1 DIF: Moderate
21. When Anheuser-Busch ran an advertising campaign featuring the slogan, "Know when to say when," it
was using
a. competitive advertising.
b. public relations.
c. product advertising.
d. public service awareness.
e. advocacy advertising.
ANS: E PTS: 1 DIF: Moderate
22. A television advertisement showing the safety features of the Volvo "Cross Country" Wagon would be
best classified as which of the following?
a. Product advertising
b. Pioneer advertising
c. Defensive advertising
d. Societal marketing
e. Publicity
ANS: A PTS: 1 DIF: Moderate
23. The two major types of product advertising are

a. institutional and advocacy.
b. pioneer and competitive.
c. competitive and comparative.
d. advocacy and competitive.
e. informative and comparative.
ANS: B PTS: 1 DIF: Easy
24. Advertising that focuses on stimulating demand for a product category is called ____ advertising.
a. pioneer
b. competitive
c. institutional
d. categorical
e. product
25. Which of the following lists forms of competitive advertising?

a. Pioneer, comparative, reminder
b. Reminder, repetitive, reinforcement
c. Comparative, reminder, reinforcement
d. Institutional, product, comparative
e. Product, pioneer, reminder
26. What type of advertising points out a brand's features and advantages that fit consumers but may not
be available in other brands?
a. Reminder
b. Reinforcement
c. Competitive
d. Defensive
e. Institutional
ANS: C PTS: 1 DIF: Easy
NAT: AACSB: Communication | MKTG: Promotion MSC: Comprehension
27. Coors advertises that its beer is the only one that is kept cold from the brewery to the store. This type
of advertising is called
a. pioneer.
b. competitive.
c. comparative.
d. defensive.
e. institutional.
ANS: B PTS: 1 DIF: Difficult
28. Troy Products Company advertises a specific product heavily, and Carbone Products Company wants
to offset the effects of that advertising. In this case, Carbone would most likely employ ____
advertising.
a. competitive
b. pioneer
c. institutional
d. primary
e. target
ANS: A PTS: 1 DIF: Difficult
29. Soft drink companies advertise that their products beat the competition in national "taste tests," and
they refer to the rival brands by name. This type of advertising is best described as
a. pioneer.
b. competitive.
c. comparative.
d. defensive.
e. selective.
30. Brands that are promoted through comparative advertising are most likely to be
a. market leaders.
b. brands that are attempting to compete with market leaders.
c. primarily services rather than tangible goods.
d. attempting to compete on a nonprice basis.
e. competing in a less competitive market.
31. Advertising that lets consumers know that an established brand still offers certain uses, characteristics,
and advantages is ____ advertising.
a. repetitive
b. reminder
c. pioneer
d. competitive
e. reinforcement
32. An ad for a multivitamin that claims, "We still bring you everything you need to get through your day
in one vitamin," would most likely be considered ____ advertising.
a. reinforcement
b. competitive
c. comparative
d. reminder
e. institutional
33. Reinforcement advertising is primarily targeted at

a. new potential target markets.
b. users of competitors' brands and products.
c. anyone who uses that type of product.
d. all the stakeholders of an organization.
e. the current users of a particular product.
ANS: E PTS: 1 DIF: Easy
34. Dial Soap's advertising slogan "Aren't you glad you use Dial? Don't you wish everybody did?"
exemplifies the use of ____ advertising.
a. reinforcement
b. offensive
c. comparative
d. institutional
e. defensive
35. The target audience for an advertising campaign is the

a. information base on which to develop the campaign.
b. geographic distribution of persons.
c. people toward whom the advertisements are directed.
d. overall goal of the advertising campaign.
e. sales objective to be achieved by the campaign.
ANS: C PTS: 1 DIF: Difficult
36. The first stage in the development of any advertising campaign is

a. creating the message.
b. setting the budget.
c. identifying the advertising target audience.
d. defining the advertising objectives.
e. creating the advertising platform.
37. The last stage in the development of any advertising campaign is

a. creating the advertising platform.
b. developing the media plan.
c. creating the advertising message.
d. evaluating the effectiveness of advertising.
e. defining the advertising objectives.
ANS: D PTS: 1 DIF: Easy
38. After the target audience for an advertising campaign has been identified and analyzed, marketers
should then proceed by
a. creating the advertising platform.
b. determining the financial resources available.
c. defining the advertising objectives.
d. developing a media plan.
e. creating an advertising message.
39. After the advertising budget is determined, the next step in creating an advertising campaign is
a. creating the advertising message.
b. creating the advertising platform.
c. evaluating the advertising objectives.
d. executing the campaign.
e. developing the media plan.
40. The step in developing an advertising campaign that directly precedes campaign execution is
a. defining advertising objectives.
b. creating the advertising platform.
c. evaluating advertising effectiveness.
d. developing a media plan.
e. creating the advertising message.
41. Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for
home and automobile insurance 10 percent by the end of the fiscal year." This would be considered
a(n)
a. target audience goal.
b. advertising platform.
c. percent-of-sales approach.
d. advertising objective.
e. media plan goal.
42. When developing an advertising campaign, benchmarks need to be included in the

a. campaign platform.
b. evaluation of the advertising effectiveness.
c. statement of advertising objectives.
d. media plan.
e. budget.
43. Why should a benchmark statement be included in advertising objectives?

a. Shareholders want to see where a company is in relation to competition.
b. It is useful in determining whether retailers have increased their sales over the year.
c. It gives an indication of how the advertising message is best presented.
d. Without a reference point, it is difficult to determine to what degree objectives have been
accomplished.
e. Objectives become more easily attainable when such a statement is included.
44. The owner of a professional baseball team asks the account representative of an advertising agency to
develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account
representative logically begins to discuss establishing ____ for the campaign.
a. the target audience
b. a budget
c. a media plan
d. objectives
e. advertising directives
45. Advertising campaign objectives that are aimed at making customers' attitudes more favorable are
stated in ____ terms.
a. communication
b. sales
c. demand
d. market
e. survey
46. If an advertising campaign is aimed at increasing brand awareness and consumers' knowledge of a
product's features, the advertising objective should be stated in terms of
a. market share.
b. dollar sales.
c. unit sales.
d. communication.
e. long-run goals.
47. An advertising platform is the

a. basic issue or selling point that an advertiser wishes to include in an advertising
campaign.
b. objective of the advertising campaign, stated in precise and measurable terms.
c. form in which the basic issues of the campaign should be presented.
d. broad objectives of the advertising campaign.
e. consumer advertising research conducted.
48. The basic issues or selling points that an advertiser wants to include in an advertising campaign is (are)
the
a. advertising objectives.
b. target audience objectives.
c. media plan.
d. advertising message.
e. advertising platform.
49. Before launching a new advertising campaign, marketers for Healthy Choice frozen dinners must
determine the selling points that they want to include in the advertisements. The identification and
organization of these selling points is called the
a. advertising appropriation.
b. objective-and-task approach.
c. advertising platform.
d. advertising objective.
e. advertising budget.
50. 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 hanging our hats on," he states. This statement is most appropriate
for use in which of the following stages of campaign development?
a. Determining the appropriations
b. Creating the platform
c. Identifying the target
d. Defining objectives
e. Developing the media plan
ANS: B PTS: 1 DIF: Moderate
51. An advertising platform should consist of issues that are important to consumers. Selling features
should be important to consumers and should be features that
a. competitive products lack.
b. can be seen easily in a photograph.
c. are familiar concepts to those in the target market.
d. competitive products have as well.
e. are reasonably inexpensive to develop.
52. The most effective method of determining platform issues is to use a survey of
a. personnel within the firm.
b. individuals at the advertising agency.
c. customers.
d. marketers in the industry.
e. advertising experts.
53. What is an advertising platform most commonly based upon?

a. The opinions of employees within the firm or the advertising agency
b. Data collected from past marketing research about the brand
c. Customer surveys about what they consider the most important issues
d. Retailer information about potential consumers of the product
e. The advertising appropriation for that particular ad campaign
54. The total amount of money a marketer allocates for advertising for a specific time period is the
a. marketing budget.
b. advertising appropriation.
c. objective-and-task approach.
d. promotion grant.
e. finances for advertising.
55. Advertising appropriations are largest for which type of product?

a. Business products
b. Convenience goods
c. High-priced products
d. Specialty goods
e. Infrequently purchased goods
56. Sony Corporation has a particular approach for determining its advertising appropriation. A problem
with this technique, however, is that the people in the marketing department have difficulty estimating
the level of effort needed to achieve certain goals. This problem is characteristic of the ____ approach.
a. reliable-appropriation
b. match-competition
c. arbitrary
d. objective-and-task
e. percent-of-sales
57. The main problem with using the objective-and-task approach to setting an advertising budget is that
a. sales create advertising rather than advertising creates sales.
b. it often results in overspending or underspending of the firm's resources.
c. it does not achieve full potential in terms of stimulating demand.
d. the marketer may experience difficulty when trying to estimate accurately the level of
effort needed to achieve goals.
e. it is difficult to determine the objectives of the campaign.
58. Danielle Robinson, account representative for EXpert Advertising, tells D'Orazio Tile Products that
she is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an
increase in consumer and builder inquiries of 15 percent. This approach is an example of which of the
following methods of determining advertising expenditure levels?
a. Competitive parity
b. Percent of sales
c. Arbitrary
d. Affordability
e. Objective-and-task
ANS: E PTS: 1 DIF: Difficult
59. To determine how much money to spend on advertising, marketers for a new brand of caffeinated
energy drink decided that they wanted the advertising to create awareness of the new flavor in 80
percent of the energy drink market within one month of introduction. The marketers then determined
how much it would cost to reach this goal. This is an example of which one of the following
approaches to determining advertising budgets?
a. Objective-and-task
b. Percent of sales
c. Competition matching
d. Arbitrary allocation
e. Past-year comparison
60. When using the percentage-of-sales approach for determining the advertising appropriation, marketers
a. base their funding on a percentage of the competitors' sales.
b. multiply the firm's past sales by a set percentage they want to spend.
c. set sales objectives for the upcoming period and base appropriations on these goals.
d. multiply the firm's past sales plus a factor for expected changes in sales times a standard
percentage.
e. use an industry standard to determine what percentage of their profits they want to
allocate to advertising.
61. If Target were to base its advertising appropriation on the amount that WalMart spends, it would be
using the ____ approach.
a. objective-and-task
b. percent-of-sales
c. industry-standard
d. arbitrary
e. competition-matching
62. Colin McKinney, director of marketing for Greenwald Industrial Products, complains to his
advertising director that the continuing slump in orders has apparently been perpetuated by the firm's
failure to have the necessary advertising expenditures. Based on this information, Greenwald is most
likely using the ____ approach to determine its advertising expenditures.
a. percent-of-sales
b. objective-and-task
c. competition-matching
d. arbitrary
e. judgmental
63. When the CEO or chief financial officer of a company states how much the company should spend on
advertising for the coming period, the company is using the
a. arbitrary approach.
b. executive decision process.
c. objective-and-task approach.
d. percentage-of-sales approach.
e. competition-matching approach.
64. An advantage of the arbitrary approach for determining the advertising appropriation is that it is
a. objective.
b. unique.
c. profitable.
d. effective.
e. expedient.
65. After developing the budget for advertising GEO automobiles, marketing managers at General Motors
then determined what proportion of that budget would be spent on magazine, television, and radio
advertisements based on the cost effectiveness of each. This subsequent allocation of the budget is
known as a(n) ____ plan.
a. advertisement-allocation
b. media
c. arbitrary allocation
d. objective-and-task
e. percent-of-sales
66. A list of the exact magazines, newspapers, and television stations in which an advertisement will
appear, along with the dates and times, is a(n)
a. advertising plan.
b. media plan.
c. advertising message.
d. advertising appropriation.
e. media platform.
67. The primary goal of a media planner is to

a. choose the best commercial spots available.
b. develop a message that works well with the firm's target market.
c. achieve the appropriate message reach and frequency.
d. use a wide variety of media to ensure the entire target audience is exposed.
e. reach the largest number of people in the target market within the budget constraints.
68. The percentage of consumers in the target audience actually exposed to a particular advertisement in a
stated period of time is the definition of
a. frequency.
b. exposure.
c. reach.
d. targeting.
e. push.
69. The maker of Huggies diapers is developing a media plan that involves trying to expose its target
audience to its new advertisement about ten times. This is advertising
a. reach.
b. repetition.
c. frequency.
d. targeting.
e. exposure.
70. Which of the following statements applies to media planning?

a. Characteristics of the product are the most important consideration in selecting the media
for a campaign.
b. The message content affects the types of media used for an advertising campaign.
c. The location of the advertising target is irrelevant in media planning.
d. Total media dollars spent on advertising have decreased over the last 30 years.
e. Regardless of the message to be conveyed, newspapers are one medium that is
appropriate for almost any circumstances.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Comprehension
71. A tool that allows an advertiser to compare the costs of several media vehicles within a specific
medium relative to the number of persons reached by each vehicle is called a(n)
a. cost comparison indicator.
b. media comparison selector.
c. unit-price selector.
d. cost/person index.
e. vehicle/price indicator.
72. Domino's is looking into magazine advertising for its pizza. The company wants to reach as many
people as possible, but due to budget constraints Domino's must reach consumers as efficiently as
possible. What can Domino's use to evaluate various magazines?
a. A cost comparison indicator
b. The total circulation of the magazines
c. A list of the costs of a one-page ad in various magazines
d. The advertising appropriations for each magazine
e. An index of advertisement exposure
73. The cost per thousand (CPM) indicator shows

a. the cost to expose 1,000 people to a television commercial.
b. the cost to expose 1,000 people to a one-page magazine advertisement.
c. the return on investment marketers get for their advertising dollar.
d. the cost to expose a million people to any type of advertisement.
e. how one media source compares to a different source for reaching target markets.
74. The three general types of media schedules are

a. pulsing, beating, and continuous.
b. short, medium, and long-term.
c. morning, afternoon, and evening.
d. pulsing, continuous, and flighting.
e. light, heavy, and alternating.
75. A schedule in which advertisements run for set periods of time, alternating with periods in which no
ads run is known as
a. continuous.
b. skipping.
c. pulsing.
d. flighting.
e. intervals.
76. Subway decided to run its new commercials several times a day for three weeks and then not at all for
two weeks. It will then run the commercials again for three more weeks. Subway is using a ____
schedule for its advertising.
a. flighting
b. varying
c. continuous
d. pulsing
e. beating
77. If during an advertising campaign a certain portion of advertising runs continuously, and then during
specific periods additional advertising is used to intensify the level of communication, a(n) ____ media
schedule is being used.
a. beating
b. alternating
c. flighting
d. continuous with emphasis
e. pulsing
78. During the duration of an advertising campaign, Verizon Wireless ran television advertisements at a
steady rate throughout the week and intensified its message with newspaper advertising in many major
newspapers in the Sunday paper. Verizon Wireless used a(n)____ media schedule.
a. flighting
b. continuous
c. pulsing
d. alternating
e. multimedia
79. Brian and Tiffany are discussing the media plan for the opening of their new bar/laundromat called
Soap and Suds. He tells her that while he agrees that ____ has tremendous impact, he does not feel that
the upfront costs for such a campaign are in the modest budget that presently exists.
a. radio
b. outdoor
c. television
d. direct mail
e. newspaper
80. As Oscar Meyer puts together its advertising campaign for the summer, it will need to keep in mind
that its desire to use outdoor advertising will have strong effects on its selection of the advertising
a. message.
b. budget.
c. platform.
d. audience analysis.
e. objectives.
81. A marketer that wanted to include detailed information in advertisements would most likely use
a. radio.
b. television.
c. outdoor displays.
d. magazines.
e. mass transit.
82. The verbal portion of an advertisement, including headlines, body, and signature, is called the
a. artwork.
b. copy.
c. storyboard.
d. layout.
e. script.
83. An ad's ____ is designed to attract readers' attention and develop interest so that they will read the
entire advertisement.
a. signature
b. layout
c. headline
d. artwork
e. subheadline
84. Why is the headline of a print advertisement such a critical component of the copy?
a. It determines the final layout design.
b. It is often the only part of the advertisement that is read.
c. It takes up the most space.
d. It links the copy to the signature.
e. It links the artwork to the signature.
85. As Will Marcum reads the copy for South Beach Hotel's upcoming magazine ad in Southern Living, he
worries that no one will spend the time to read all the details of the facilities his resort has to offer.
Wanting to have the greatest impact, Will focuses his creative efforts on the
a. copy.
b. body.
c. text.
d. signature.
e. headline.
86. The identification of an advertisement's sponsor is the

a. copy.
b. signature.
c. trademark.
d. layout.
e. subheadline.
87. The advertising department for the Pennzoil Corporation is working on a print advertisement for a new
product. At this point, the layout contains a phrase to attract attention, an additional phrase to provide
an explanation, an illustration to show the product, and a paragraph to explain the advantages and
benefits of the product. What other important element should be included?
a. Headline
b. Subheadline
c. Signature
d. Artwork
e. Body copy
88. Rachel is considering advertising her new restaurant on the radio to attract more customers. She knows
that in order to attract listeners' attention on the radio it will be important for her to
a. use a high level of repetition.
b. buy a really long time slot to get all the information in.
c. be both informal and conversational in tone.
d. use a quick speaker to attract attention to the commercial.
e. say the restaurant's name and location three separate times.
89. Chelsea Collins walks her client, Kaptain Korn president Steve Gonski, through her agency's proposed
television campaign for the product's introduction. In doing so, she moves from square to square on the
a. copy.
b. storyboard.
c. illustrations chart.
d. artwork.
e. media plan.
90. When a copywriter and an artist combine the copy with the visual material for a television commercial,
it usually is done through use of a
a. parallel format.
b. commercial layout.
c. layout procedure.
d. storyboard.
e. visual-impact process.
91. Artwork, a major part of most advertisements, consists of the

a. illustration and the signature.
b. illustration and the layout.
c. illustration and type of print used in the headlines.
d. layout and the signature.
e. method by which all the components are put together.
92. What design element is used to attract attention, communicate an idea quickly, or communicate ideas
that are difficult to put into words?
a. Illustrations
b. Headlines
c. Copy
d. Layout
e. Signature
93. The physical arrangement of the illustration, headline, subheadline, body copy, and the signature is
called the
a. artwork.
b. copy.
c. art design.
d. layout.
e. storyboard.
94. Julie Reese is working on developing a magazine advertisement for Curves For Women, the ladies'
fitness chain. She knows what she wants the advertisement to say and the illustrations she wants to
use, but she is having a tough time putting it all together. Julie is having trouble determining the
a. storyboard.
b. artwork.
c. copy.
d. presentation.
e. layout.
95. The effectiveness of an advertising campaign can be measured

a. only after the campaign has been carried out completely and results have been tabulated.
b. only before the campaign begins, to prevent unnecessary expenditures.
c. during the campaign to determine whether more or less funds should be allocated, but not
after the campaign.
d. several weeks after the beginning of the campaign to determine whether the campaign is
headed in the right direction.
e. before, during, and after the campaign through the use of pretests, inquiries, and posttests.
NAT: AACSB: Analytic | MKTG: Research MSC: Comprehension
96. An evaluation performed before an advertising campaign begins is a

a. consumer exam.
b. posttest.
c. recognition test.
d. pretest.
e. recall test.
NAT: AACSB: Communication | MKTG: Research MSC: Knowledge
97. Mike Stevens wonders whether the creative idea of using the character "Tom T. Turtle" as an image for
marketing a new line of running shoes will be successful. He should suggest to his account
representative that a(n) ____ be used to pretest the campaign.
a. storyboard
b. survey
c. experiment
d. GSR test
e. consumer jury
NAT: AACSB: Analytic | MKTG: Research MSC: Application
98. A consumer jury is a

a. group of consumers who have purchased the product before that evaluate its effectiveness.
b. panel of potential buyers of the advertised product brought together to pretest an
advertising message.
c. panel of buyers who review and evaluate an advertising message after it has been
circulated in certain regions.
d. group of consumers who determine whether or not other consumers have been treated
fairly by companies.
e. panel of consumer experts who rank the effectiveness of advertisements.
99. General Mills used a panel of consumers to evaluate its Cheerios campaign featuring children who
read the cereal box and try to persuade their parents to watch their cholesterol. These consumers
judged the advertisements prior to the execution of the advertising campaign. This is an example of
a(n)
a. pretest.
b. inquiry.
d. recall test.
e. posttest.
100. Matt was in a group considered to be actual or potential purchasers of a new mountain bike produced
by Specialized. He and the other consumers were shown three different advertisements and asked to
judge several dimensions of each one. Matt participated in a(n)
a. posttest consumer group.
b. panel of advertising experts.
c. consumer jury.
d. customer ad panel.
e. ad preview group.
101. Measuring effectiveness during a campaign is usually accomplished by using

a. pretests.
b. posttests.
c. consumer juries.
d. inquiries.
e. sales force surveys.
102. Recognition and recall tests are posttest methods based on

a. mail surveys.
b. memory.
c. inquiries.
d. preferences.
e. in-depth interviews.
103. Some of the posttest methods for measuring advertising effectiveness are based on how well
consumers remember advertising and include (1) recognition tests and (2) recall tests. What is the
basic difference between these two approaches?
a. The actual ads are shown in the former but not in the latter.
b. The former method relies on memory alone, and the latter shows the actual ads.
c. One uses a consumer jury; the other uses random individuals.
d. The respondents are given class clues in the latter but not in the former.
e. One is used primarily by the government, and the other is used by private businesses.
NAT: AACSB: Communication | MKTG: Research MSC: Comprehension
104. If a consumer is shown a particular advertisement and asked if she has seen it before, a(n) ____ is
being performed.
a. pretest
b. consumer jury test
c. recognition test
d. unaided recall test
e. aided recall test
105. Carla is stopped by a researcher at a shopping mall and asked what was last television commercial she
remembers seeing was. This is an example of a(n)
a. unaided recall test.
b. pretest.
d. aided recall test.
e. memory test.
106. When respondents are shown a list of various products, brands, and company names and then asked
about advertisements they have seen lately, researchers are conducting a(n)
a. unaided recall test.
b. pretest.
d. aided recognition test.
e. aided recall test.
107. What is the primary justification marketers use for conducting recognition and recall tests?
a. Researchers find that recalling an advertisement has a strong link to purchasing a product.
b. People have unfavorable views of advertising and are unlikely to purchase advertised
products.
c. Consumers tend to enjoy participating in these tests and are likely to purchase the
products as a result.
d. People are more likely to buy a product they have seen advertised than one they have not
seen advertised.
e. There is a strong link between advertisement recall/recognition and word-of-mouth
communication.
NAT: AACSB: Communication | MKTG: Customer MSC: Knowledge
108. When individuals' behaviors are tracked from television sets to checkout counters using equipment
provided by the marketer, this is known as
a. family behavior recording.
b. single-source data.
c. individual consumer jury.
d. advertisement exposure data.
e. detailed market research.
109. Darcy presents an identification card at the supermarket checkout and has a microcomputer attached to
her TV. Information from both of these is sent to a research facility. Darcy is providing
a. family behavior recording.
b. individual consumer jury.
c. single-source data.
d. advertisement exposure data.
e. detailed market research.
110. An advertising campaign is typically developed by an individual or a few persons within the firm, an
advertising department within the organization, or
a. an advertising agency.
b. a group of media specialists.
c. a group of multiskilled managers.
d. a "special projects" group.
e. freelance advertising consultants.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Marketing Strategy
MSC: Knowledge
111. Generally, in small firms, ____ create(s) and implement(s) advertising campaigns.
a. an advertising agency
b. a group of multiskilled managers
c. an advertising department
d. freelance specialists
e. one or two individuals
MSC: Knowledge
112. When an organization uses an advertising agency, who usually develops the advertising campaign?
a. The agency's specialists
b. The firm and the agency working jointly
c. The agency suggests ideas and the firm chooses among them
d. The advertising department within an organization
e. An individual or a few persons within the firm
MSC: Knowledge
113. ____ provide businesses with copywriters, artists, production coordinators, media experts, researchers,
and other highly skilled specialists.
a. Public relation firms
b. Media companies
c. Advertising agencies
d. Production companies
e. Promotion experts
MSC: Knowledge
114. Advertising agencies typically receive

a. large fees from the companies whose ads they develop and place.
b. a 15 percent commission from the company whose product they are helping advertise.
c. a 10 percent commission from the advertising company and 10 percent from the media
they use.
d. a 25 percent commission paid by the media from which it makes purchases.
e. a 15 percent commission paid by the media from which it makes purchases.
MSC: Knowledge
115. The Bentley Agency places $2,500 in radio spots and $17,500 in television spots for Darnell Insurance
in June. For its efforts this month, the agency "traditionally" would receive ____ in compensation.
a. $2,500
b. $10,000
c. $1,000
d. $5,500
e. $3,000
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Marketing Strategy
MSC: Application
116. ____ is a broad set of communication activities used to create and maintain favorable relations
between the organization and its stakeholders.
a. Advertising
b. Selling
c. A press strategy
d. Public relations
e. Publicity
OBJ: 17-04 Examine the tools used in public relations.
117. Belinda works for Burger King and her responsibilities include maintaining favorable relationships
between the organization and its stakeholders. Belinda works in
a. sales.
b. advertising.
c. human resources.
d. public relations.
e. imaging.
118. Which of the following is not a public relations tool?

a. Feature article
b. Company magazine
c. News release
d. Annual report
e. Product sample
119. Toyota's sponsorship of a major Professional Golf Association tournament would be an example of
a(n) ____ tool.
a. advertising
b. public relations
c. sales promotion
d. publicity
e. personal selling
120. A major benefit of using event sponsorship is that it

a. enhances personal selling efforts.
b. provides excellent support for advertisements.
c. can provide large amounts of free media coverage.
d. is cost-free.
e. neutralizes the effects of unfavorable public relations.
121. Which of the following is the most important consideration when choosing an event to sponsor?
a. Reasonable association between the event and the company's product
b. The length of the event
c. When the event occurs
d. Whether or not the event is a national event
e. The specific name of the event
122. ____ is communication in news story form about an organization or its products that is transmitted
through a mass medium at no charge.
a. Advertising
b. Publicity
c. Public relations
d. Sales promotion
e. Personal selling
123. Kohl's, a department store featuring clothing and housewares, communicates in news story form about
its organization and its efforts to support local children's hospitals. This information is transmitted
through mass media at no charge and is therefore called
a. news reporting.
c. mass communications.
d. free advertising.
e. publicity.
124. Which of the following is the most commonly used type of publicity-based public relations tool?
a. News release
b. Captioned photograph
c. Feature article
d. Press conference
e. Letter to the editor
125. A single page of typewritten copy that has 300 words or less and describes a company event or product
is called a
a. press story.
b. feature article.
c. captioned paragraph.
d. news release.
e. publicity bulletin.
126. The public relations department at Lowe's Home Improvement submits one page of typewritten copy
to national newspapers and news web sites to announce its one-day, nationwide clean-up-local-parks
event. This is an example of a
a. feature article.
b. public update.
c. news release.
d. media bulletin.
e. publicity stunt.
127. If a company calls a meeting to announce a major news event, this is known as a
a. media call.
b. press conference.
c. news release.
d. press release.
e. public service announcement.
128. To announce its development of a solid fuel titanium rocket for the U.S. missile defense system, Unijet
management feels it needs to get wide media coverage. Under these circumstances, which of the
following would be its best alternative?
a. Captioned photograph
b. Feature article
c. Editorial letters
d. Television advertisement
e. Press conference
MSC: Application
129. If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce
this to the public and get wide media coverage would be through a
a. captioned paragraph.
b. press release.
c. feature article.
d. sponsorship.
e. press conference.
MSC: Application
130. 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.
131. The limitations in using publicity-based public relations tools stem primarily from the fact that
a. marketers alter the length of publicity releases.
b. publicity is never properly managed by media personnel.
c. media personnel consider only unfavorable messages as newsworthy.
d. it is time-consuming to convince media personnel that the information is newsworthy.
e. media personnel control the content of the communication.
MSC: Knowledge
132. Which of the following is not an advantage of using publicity-based public relations tools?
a. Control by media personnel of the content and timing of messages
b. Credibility
c. Strong news value
d. Follow-up word-of-mouth communications
e. A favorable perception of being endorsed by the media
133. A firm can identify changes in public opinion that affect it by conducting
a. environmental monitoring.
b. consumer polling.
c. a consumer jury.
d. a communications audit.
e. press conferences.
134. A content analysis of an organization's messages, readability studies, and readership surveys are all
tools used to conduct a(n)
a. consumer survey.
b. public relations audit.
c. environmental audit.
d. communications audit.
e. social audit.
135. Home Depot is interested in knowing how its efforts to act in a socially responsible manner through its
Habitat for Humanity and disaster relief efforts have affected stakeholders' views of the company.
Home Depot should conduct a(n)
a. social audit.
b. publicity audit.
c. environmental audit.
d. communications audit.
e. environmental impact study.
136. One way for a company to measure the effectiveness of its publicity-based public relations efforts is to
a. tabulate the equivalent in advertising dollars if the time and space were purchased.
b. ask for return of reply cards.
c. calculate market share increase.
d. count the number of exposures in the media.
e. conduct an environmental audit of media alternatives.
137. In many instances the most appropriate way for a firm to cope with an event that leads to negative
public relations is to
a. discourage news coverage of the event.
b. deny that the event occurred.
c. facilitate news coverage of the event.
d. hire a public relations firm.
e. refrain from publicity that reports the event.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge
Scenario 17.1
Use the following to answer the questions.
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 national 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 its SUVs.
138. Refer to Scenario 17.1. Toyota's television advertisements for the new Venza are examples of
a. publicity.
b. institutional advertising.
d. comparative advertising.
e. pioneer advertising.
139. Refer to Scenario 17.1. If the ads include both the Venza and the Ford Edge, they would be examples
of
a. institutional advertising.
d. comparative advertising.
e. competitive advertising.
140. Refer to Scenario 17.1. Advertisements such as the one proposed above for the Camry and hybrid
SUVs, are most likely an example of
a. product advertising.
b. comparative advertising.
c. competitive advertising.
d. institutional advertising.
e. reminder advertising.
141. Refer to Scenario 17.1. The advertising mentioned above in which Toyota features all brands of the
company would be an example of
a. competitive advertising.
b. institutional advertising.
c. comparative advertising.
d. pioneer advertising.
e. product advertising.
Scenario 17.2
Use the following to answer the questions.
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. Refer to Scenario 17.2. 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 of ____.
a. public relations; publicity
b. public relations; a news release
c. publicity; advocacy advertising
d. a news release; publicity
e. publicity; a news release
143. Refer to Scenario 17.2. When 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.
a. competition-matching
b. arbitrary
c. objective-and-task
d. goals
e. percent-of-sales
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Application
144. Refer to Scenario 17.2. 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.
e. competitors may have different advertising objectives.
MSC: Application
145. Refer to Scenario 17.2. 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 advertising
allocation.
a. arbitrary
b. competition-matching
c. objective-and-task
d. percent-of-sales
e. percent-of-customer
MSC: Application
TRUE/FALSE
146. Advertising is paid nonpersonal communication transmitted through mass media.
ANS: T PTS: 1 DIF: Easy

147. Business organizations are the only major users of advertising.
ANS: F PTS: 1 DIF: Moderate

148. Institutional advertising and promotional advertising are the two basic categories of advertising.

149. Advertisements that promote goods and services are called advocacy advertisements.
ANS: F PTS: 1 DIF: Easy

150. Product advertising is often used to stimulate demand directly.

151. If a commercial advertisement compares one brand of laundry detergent to another brand, this is a type
of competitive advertising.

152. Pioneer advertising involves describing the features and benefits of a product in contrast to a direct
competitor.

153. If a restaurant, known for its delicious food and fun entertainment, does not serve alcohol, it is
displaying advocacy advertising.

154. 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. Comparative advertisements mention the actual names of competing brands.

156. Reinforcement advertising tells current users how to get the most satisfaction from the brand they have
chosen.

157. Reminder advertising is not applicable to new products.

158. Almost all advertising campaigns are aimed at producing immediate sales.

159. Advertising objectives should be stated in clear, precise, and measurable terms.

160. The statement of advertising objectives should include a benchmark¾such as the current sales
level¾and indicate how much improvement is sought.

161. A marketer's advertising platform should consist of issues that are important to consumers.
ANS: T PTS: 1 DIF: Moderate

162. The advertising platform consists of the basic issues and selling points that an advertiser wishes to
include in the campaign.

163. The advertising platform is the foundation on which campaign messages are built.

164. Most often, the opinions of a firm's personnel are used to develop the advertising platform.

165. The advertising budgets for industrial products are usually large relative to the sales of the products.

166. When sales go up, advertising should be increased; when sales decline, advertising should be
decreased.

MSC: Knowledge
167. To assume that sales create advertising is incorrect.

168. The arbitrary approach to setting an advertising budget often results in inappropriate spending of the
firm's resources.

MSC: Knowledge
169. The choice of media influences the content and form of the message.

170. 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 newspaper advertisement.

NAT: AACSB: Communication | MKTG: Promotion | MKTG: Research
MSC: Knowledge
171. The signature is not part of the verbal portion of an advertisement.

172. Radio copy should consist of short, familiar terms.

MSC: Knowledge
173. A layout includes only the illustrations used in an advertisement.
ANS: F PTS: 1 DIF: Easy

174. To be unbiased, a member of a consumer jury should not be a present user of the advertised product.

175. The effectiveness of an advertising campaign can be measured only after the completion of the
campaign, when results are tabulated.

176. The type of posttest an advertiser uses is affected by the type of advertising objectives set by the
advertiser.

177. In recall posttesting, respondents are shown the actual advertisement and are asked whether they
recognize it.

178. Small firms generally depend on local newspapers and radio stations for assistance with advertising
efforts.

179. Advertising departments may use independent research organizations or freelance specialists for some
of their projects.

MSC: Knowledge
180. Ad agencies work jointly with their client firms to develop the ad campaigns.

181. Because ad agency personnel are outsiders to their client firms, they may not judge the firm's product
objectively.

MSC: Knowledge
182. Ad agencies and firms usually work together when creating an ad campaign because the agencies
would act too subjectively on their own.

MSC: Knowledge
183. Because ad agencies often get commissions on media purchases, firms can obtain some agency
services at moderate prices.

MSC: Knowledge
184. Jobs such as specialists, copywriters, artists, media buyers, and technical production coordinators are
included in the public relations department of a large organization.

185. 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 the campaign.
186. Advertising agencies often have more highly skilled people than the advertising departments of firms.

187. Small and medium-sized firms never use advertising agencies to produce campaigns for them.

MSC: Knowledge
188. Public relations, unlike advertising, is not particularly useful for promoting an organization's image.

189. If a company is perceived positively by the public, employee morale is often higher.

MSC: Knowledge
190. 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. Event sponsorship can provide companies with a considerable amount of advertising.

192. Publicity is a subset or part of public relations.

193. To announce a major news event, an organization should use a news release.

MSC: Knowledge
194. A feature article is longer than a news release and is written for a particular publication.

195. Lack of control over the content and timing of public relations is a limitation in using publicity-based
public relations tools.

MSC: Knowledge
196. 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. The effectiveness of a public relations program is usually measured in terms of sales.

198. A major way to reduce unfavorable public relations is to reduce the number of negative events.

MSC: Knowledge
199. An effective approach for dealing with potential unfavorable public relations resulting from a negative
event is to discourage news coverage.

MSC: Knowledge

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Chapter 17—Advertising and Public Relations

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

4. What is an advertising platform? What is the best way to develop a platform?

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

PTS: 1 DIF: Difficult

7. Why are headlines important?

PTS: 1 DIF: Easy

8. What are the major components of artwork?

PTS: 1 DIF: Easy

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

11. What is public relations and for what purposes is it used?

13. Identify and describe four publicity-based public relations tools.

PTS: 1 DIF: Difficult

PTS: 1 DIF: Moderate

16. Advertising is a promotion mix ingredient that is a(n) ____________________ communication.

23. The two major types of product advertising are

25. Which of the following lists forms of competitive advertising?

33. Reinforcement advertising is primarily targeted at

35. The target audience for an advertising campaign is the

36. The first stage in the development of any advertising campaign is

37. The last stage in the development of any advertising campaign is

42. When developing an advertising campaign, benchmarks need to be included in the

43. Why should a benchmark statement be included in advertising objectives?

47. An advertising platform is the

53. What is an advertising platform most commonly based upon?

55. Advertising appropriations are largest for which type of product?

67. The primary goal of a media planner is to

70. Which of the following statements applies to media planning?

73. The cost per thousand (CPM) indicator shows

74. The three general types of media schedules are

86. The identification of an advertisement's sponsor is the

91. Artwork, a major part of most advertisements, consists of the

95. The effectiveness of an advertising campaign can be measured

96. An evaluation performed before an advertising campaign begins is a

98. A consumer jury is a

101. Measuring effectiveness during a campaign is usually accomplished by using

102. Recognition and recall tests are posttest methods based on

114. Advertising agencies typically receive

118. Which of the following is not a public relations tool?

120. A major benefit of using event sponsorship is that it

146. Advertising is paid nonpersonal communication transmitted through mass media.

ANS: T PTS: 1 DIF: Easy

147. Business organizations are the only major users of advertising.

ANS: F PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Easy

150. Product advertising is often used to stimulate demand directly.

ANS: T PTS: 1 DIF: Easy

ANS: T PTS: 1 DIF: Easy

ANS: F PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Moderate

155. Comparative advertisements mention the actual names of competing brands.

ANS: T PTS: 1 DIF: Easy

ANS: T PTS: 1 DIF: Easy

157. Reminder advertising is not applicable to new products.

ANS: T PTS: 1 DIF: Easy

ANS: F PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Easy

ANS: T PTS: 1 DIF: Easy