Advertising and Promotion Study Guide
Questions
Course Introduction
This course explores the principles and practices of advertising and promotion, providing students with a comprehensive understanding of how organizations communicate with target audiences. Topics include the development of advertising strategies, creative message design, media selection, budgeting, and the integration of advertising within broader marketing campaigns. Students will also examine the effectiveness of various promotional tools such as sales promotion, public relations, and digital marketing. Through case studies and real-world examples, the course emphasizes critical analysis and practical application of advertising and promotional techniques in today's dynamic business environment.
Recommended Textbook
Contemporary Marketing 16th Edition by Louis E. Boone
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Page 2
Chapter 1: Marketing: The Art and Science of Satisfying Customers
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Q1) What is the major difference between the sales era and marketing era?
Answer: The sales era was characterized by the belief that consumers would resist purchasing nonessential goods and services,and the attitude that only creative advertising and personal selling could overcome consumers' resistance and persuade them to buy.The sales era was typified by the trend of seller's markets. The marketing era was characterized by the business philosophy incorporating the marketing concept that emphasized first determining unmet consumer needs and then designing a system for satisfying them.There was a shift in the focus of companies away from products and sales to satisfying customer needs.Advertising not only communicated the benefits of products but also created needs and wants in the minds of consumers.The marketing era was influenced by the trend of buyer's markets.
Q2) Branches of the U.S.military sometimes show recruitment advertisements in cinemas featuring movies that are most likely to attract viewers of military age.This is an example of place marketing.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Strategic Planning in Contemporary Marketing
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Sample Questions
Q1) A statement such as "to hit the 300 employee mark by the end of the year" is typically a part of a mission statement.
A)True
B)False
Answer: False
Q2) A company's plans that focus largely on its current and near-future activities and are determined by its middle level management are referred to as _____ plans.
A) strategic
B) long-term
C) operational
D) tactical
Answer: D
Q3) According to the BCG matrix,cash cow businesses produce strong cash flows and invest heavily in the unit's own promotions and production capacity.
A)True
B)False
Answer: False
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Page 4
Chapter 3: The Marketing Environment, Ethics, and Social Responsibility
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Sample Questions
Q1) People develop standards of ethical behavior based on their own systems of values.
A)True
B)False Answer: True
Q2) Which of the following ethical issues is associated with firms' product strategies?
A) Exclusive territories
B) False and deceptive advertising
C) Planned obsolescence
D) Bait-and-switch advertising
Answer: C
Q3) The industry deregulation phase has focused on increasing the competition in industries such as utilities and financial services.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Social Media: Living in the Connected World
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Sample Questions
Q1) MacRumors.com,a website that aggregates Mac and Apple related news,rumors,and reports,can be regarded as a blogging site as it allows users to post all the news related to a specific group of products.
A)True
B)False
Q2) The content programmer of a social news site decides which news postings get the most prominent display on the site.
A)True
B)False
Q3) The target audience for a social media marketing campaign depends on the goal of the marketing effort.
A)True
B)False
Q4) The goals of a social media marketing plan have to be flexible for marketers to be able to adapt to the changing conditions in the marketing environment.
A)True
B)False
Q5) Outline some tips for landing a job in social media marketing.
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Chapter 5: E-Business: Managing the Customer Experience
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Sample Questions
Q1) Although developing a commercial website with interactive features can cost as little as $30,putting it online can cost tens of thousands of dollars a month for a spot on the server of a Web host.
A)True
B)False
Q2) The term "societal marketing" refers to buyer-seller communications in which the customer controls the amount and type of information received from a marketer through such channels as the Internet and virtual reality kiosks.
A)True
B)False
Q3) Newsgroups are commercial versions of Internet forums.
A)True
B)False
Q4) References to the Internet's global reach have to do with its:
A) ability to communicate with consumers located anywhere in the world.
B) capacity to overcome cultural barriers between nations.
C) power to insulate national economies from events occurring outside their borders.
D) ability to use a single language, English, to communicate with world markets.
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Chapter 6: Consumer Behavior
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Sample Questions
Q1) During the search step of the consumer decision process,the consumer:
A) realizes that it is time to make a change from the present situation.
B) develops a set of evaluative criteria to guide the purchase decision.
C) begins to notice favorable word-of-mouth communication about the product.
D) gathers information about the attainment of a desired state of affairs.
Q2) The Asch phenomenon states that individuals will:
A) follow their personal influences more closely than any other influence.
B) conform to majority rule, even if it contradicts their beliefs.
C) purchase products that the majority deems unfit.
D) avoid problem-solving behavior for all purchases.
Q3) The purchase of which of the following products will follow a syncratic pattern?
A) Health insurance
B) Shampoo
C) Lawnmower
D) Children's clothes
Q4) The baby boomer generation is most adept at learning and using rapidly changing communications technology.
A)True
B)False
Q5) Differentiate between a need and a motive.
Page 8
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Chapter 7: Business-to-Business (B2B)Marketing
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Sample Questions
Q1) Which of the following is true of expense items purchased by organizational buyers?
A) The cost of these products are charged against the income of the company in the year of purchase.
B) The net income of these products is determined by charging a portion of their cost against the company's annual revenue.
C) These items are long lived business assets that must be depreciated over time.
D) All major expenses such as setting up new plants, equipments and machinery are included in this category.
Q2) Adam,a purchasing agent for an automobile manufacturer,is making a list of payroll services suppliers available in the market.In which stage of the organizational buying process is Adam?
A) Recognizing a problem or opportunity
B) Determining the characteristics and quantity of the needed service
C) Describing the characteristics of the needed service
D) Searching for and qualifying potential sources
Q3) What is outsourcing? Why do firms outsource production of goods and services?
Q4) Describe the role of Internet in business-to-business markets.
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9
Chapter 8: Global Marketing
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Sample Questions
Q1) The Organization of Petroleum Exporting Countries (OPEC)is a marketing organization:
A) that seeks to control prices through collective action.
B) regulated by NAFTA and the EU.
C) that uses countertrade to obtain valuable foreign investments.
D) formed to address the growing competition from Venezuela and North Sea crude exploration.
Q2) Technology presents challenges for global marketers that extend beyond the Internet and other telecommunications innovations.A major technological issue involving food marketers is _____.
A) value engineering
B) reverse engineering
C) genetic reengineering
D) business process reengineering
Q3) Which of the following organizations was established as an outcome of GATT?
A) NAFTA
B) EU
C) WTO
D) FTAA
Q4) What is countertrade? Why would a country choose to countertrade?
Page 10
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Chapter 9: Market Segmentation, Targeting, and Positioning
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Sample Questions
Q1) Firms can reposition their already successful products in order to gain a greater market share.
A)True
B)False
Q2) Which of the psychographic consumer segments identified by Roper,emphasizes social issues and societal well-being?
A) Devouts
B) Altruists
C) Intimates
D) Creatives
Q3) Children exert considerable influence over household food purchases.
A)True
B)False
Q4) Concentrated marketing strategy ties a firm's growth to a specific market segment.
A)True
B)False
Q5) List out the different categories used by the U.S.government to classify urban data.Give examples.
Q6) What is cohort effect? What is the current cohort called?
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Chapter 10: Marketing Research and Sales Forecasting
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Sample Questions
Q1) Which of the following the earliest method used for gathering marketing information?
A) Written testimonials received from purchasers of a firm's products
B) Email surveys conducted by research professionals
C) Telephone surveys conducted to assess household preferences
D) Delphi technique
Q2) Buyer surveys gather useful information only when customers willingly reveal their buying intentions.
A)True
B)False
Q3) Researchers usually spend less time and money in gathering primary data compared to secondary data.
A)True
B)False
Q4) Which of the following is most likely to be a logical starting point in identifying the marketing problem?
A) Ascertaining the budget and logistical limits that the problem warrants
B) Determining the computational scope of the problem
C) Evaluating the firm's target market and marketing mix elements
D) Simulating a market research based on formulated hypotheses
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Chapter 11: Relationship Marketing and Customer Relationship Management (CRM)
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Sample Questions
Q1) A successful customer relationship management system reorganizes the business processes to deliver superior value to the customers by:
A) decentralizing the marketing data.
B) bringing down a firm's reliance on expensive word-of-mouth marketing.
C) expanding the response time for customer queries to increase their satisfaction.
D) empowering customers to find information they need to manage their own orders.
Q2) How do marketers measure customer satisfaction? How can they avoid unfavorable service gaps while marketing their products?
Q3) A video renting outlet offers free movies for customers,if they rent a certain number of movies within a specified time periods,in order to encourage them to spend more on renting movies from the outlet.This type of marketing strategy is an example of _____.
A) frequency marketing
B) viral marketing
C) internal marketing
D) buzz marketing
Q4) Discuss national account selling.List some of its advantages.
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Chapter 12: Product and Service Strategies
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Sample Questions
Q1) Discuss the problems posed by the application of the three-way classification system of convenience,shopping,and specialty goods and services.
Q2) When Sara developed a headache due to stress just before an important sales presentation,she quickly bought an aspirin from a nearby pharmacy.This is an example of buying a(n)_____.
A) shopping product
B) emergency good
C) staple
D) impulse good
Q3) When a manufacturer of vinegar,ordinarily used as a food ingredient,promotes its use as a metal cleaner,the manufacturer is attempting to extend the product's lifecycle by changing its package.
A)True
B)False
Q4) A product is a bundle of physical,service,and symbolic attributes designed to satisfy a customer's wants and needs.
A)True
B)False
Q5) Describe the three categories of supplies.
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Chapter 13: Developing and Managing Brand and Product Categories
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Sample Questions
Q1) At the _____ stage of brand loyalty,marketers use advertising as a means to increase consumer awareness of a brand.
A) brand recognition
B) brand preference
C) brand insistence
D) brand equity
Q2) At the _____ stage in the consumer adoption process,buyers consider the likely benefits of the product.
A) awareness
B) trial
C) interest
D) evaluation
Q3) Dawn,Joy,and Ivory are dish liquid brands manufactured by Procter & Gamble.All these brands can be regarded as _____ brands.
A) private
B) family
C) generic
D) individual
Q4) Describe the stages involved in the consumer adoption process.
Page 15
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Chapter 14: Marketing Channels and Supply Chain Management
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Q1) NikSnak,a popular potato wafers brand,is most likely to use an exclusive distribution strategy.
A)True
B)False
Q2) The dominant and controlling member of a marketing channel is called the channel captain.
A)True
B)False
Q3) The dominant and controlling member of a marketing channel is known as a:
A) vertical lead.
B) horizontal lead.
C) channel captain.
D) channel navigator.
Q4) A fast-food giant invests in potato farms in the Midwest in order to stabilize its raw material prices.This is an example of:
A) situational integration.
B) backward integration.
C) balanced integration.
D) horizontal integration.
Page 16
Q5) Define distribution intensity and explain its three levels.
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Chapter 15: Retailers, Wholesalers, and Direct Marketers
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Sample Questions
Q1) A supercenter is usually larger than a hypermarket.
A)True
B)False
Q2) The strategy of convincing a customer to buy a higher-priced item than he or she had originally intended is called:
A) cross-selling.
B) value-added selling.
C) selling up.
D) bait-and-switch selling.
Q3) After identifying a target market,a retailer must:
A) concentrate on determining the ideal levels of inventory to be maintained.
B) devise marketing plans to expand their target market.
C) develop marketing strategies to attract chosen customers to its stores or websites.
D) segment the market based on factors such as family income and customer lifetime value.
Q4) Explain the concept of retail convergence.Give an example.
Q5) Specialty stores typically carry convenience and shopping goods.
A)True
B)False
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Chapter 16: Integrated Marketing Communications,
Advertising, and Public Relations
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Sample Questions
Q1) Why do marketers sometimes use guerrilla marketing? What are some of the drawbacks of using a guerrilla marketing strategy?
Q2) Which of the following methods of promotion is most likely to be used for promoting a consumer product targeted at a geographically dispersed market if the audiences are likely to respond to the same promotional messages?
A) Trade promotion
B) Advertising
C) Trade shows
D) Personal selling
Q3) Define cross-promotion.Explain why is it used.Give examples of cross-promotion.
Q4) Maria sees an ad for a new service offered by the U.S.Postal Service to make shipping packages during the holidays easier.This ad is an example of institutional advertising.
A)True
B)False
Q5) What is puffery? How does the Uniform Commercial Code make a distinction between puffery and any specific or quantifiable statement about product quality or performance?
Q6) Discuss the major types of advertising media.
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Chapter 17: Personal Selling and Sales Promotion
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Q1) Personal selling is a less important component in the promotional mix when individual orders account for large amounts of revenue.
A)True
B)False
Q2) Bits Inc.,a manufacturer of server processors,sends out its trained salespeople to inform prospective and existing customers about its latest range of processors and provide demonstrations.The promotional effort adopted by this company is an example of:
A) push-cash selling.
B) field selling.
C) networking.
D) over-the-counter selling.
Q3) An important advantage of personal selling is that it gives the customer the opportunity to try a product before making a purchase.
A)True
B)False
Q4) Distinguish between inbound and outbound telemarketing.
Q5) Describe over-the-counter and field selling.
Q6) What do buyers expect from professional salespeople?
Page 19
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Chapter 18: Pricing Concepts
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Sample Questions
Q1) Customary prices are:
A) prices offered at the wholesale level as an incentive to increase product sales.
B) retail prices consumers expect as a result of tradition and social habit.
C) prices of products adjusted on the basis of the geographic locations of retail outlets.
D) prices designed to constrain the amount of products sold to a level desired by the government.
Q2) Marketers determine prices in two basic ways: by applying the theoretical concepts of supply and demand and by completing cost-oriented analyses.
A)True
B)False
Q3) Demand curves must be based on marketing research estimates that may be less exact than cost figures.
A)True
B)False
Q4) Discuss cost-plus pricing.
Q5) Describe the significance of tariffs in the global market place.
Q6) Discuss the benefits of modified breakeven analysis.
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Page 20
Chapter 19: Pricing Strategies
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Q1) Which of the following is true of promotional pricing?
A) It promotes goods and services at specific price ranges based on the belief that certain prices are more appealing to consumers.
B) It uses lower-than-normal price as a temporary component in the selling strategy.
C) It sets a high price for products that offer unique potential ability.
D) It uses extensive promotional allowances to get channel members to promote the product.
Q2) Rebates are usually granted to customers by retailers.
A)True
B)False
Q3) Maintaining an artificially low price for a period of time leads consumers to expect it as a customary feature of the product.
A)True
B)False
Q4) In the absence of other cues,price is an important indicator of a product's quality to prospective purchasers.
A)True
B)False
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21
Chapter 20: Your Career in Marketing
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Q1) A marketing communications manager serves as a liaison between the marketer and its outside advertising agencies.
A)True
B)False
Q2) For which of the following roles courses in computer science and information systems are considered a prerequisite?
A) Public relations specialist
B) Advertising specialist
C) Marketing research analyst
D) Merchandiser
Q3) Marketing expenses figure into the total cost of the product.
A)True
B)False
Q4) Who among the following oversees account services,creative services,and media services departments?
A) Sales manager
B) Advertising manager
C) Promotion manager
D) Category manager
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Chapter 21: Developing an Effective Marketing Plan
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Q1) The mission statement puts into words an organization's overall purpose and reason for being.
A)True
B)False
Q2) The need for a business plan is more acutely felt in a small company than in a large multinational company.
A)True
B)False
Q3) Why do marketers in most industries have difficulty making estimates and predictions beyond five years?
A) The elected members hold the office for five years which stabilizes political and legal environment only for five years.
B) There are many uncertainties in the marketplace.
C) The margin for error in long-term forecasting is very small.
D) The cost involved limits predictions beyond five years.
Q4) A firm's goals should be specific and measurable.
A)True
B)False
Q5) What are the reasons a company should develop a marketing plan?
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Chapter 22: Financial Analysis in Marketing
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Q1) A balance sheet contains more marketing-related information than an income statement.
A)True
B)False
Q2) Calculate the markdown if a retailer decides to reduce the price of an item from $45 to $38 and sells 500 units.
A) 7%
B) 18.42%
C) 15.56%
D) 9%
Q3) Depreciation is an unusual expense because it does not involve an actual cash expense.
A)True
B)False
Q4) The gross profit margin is the percentage of each sales dollar that a firm earns in profit after all expenses have been paid.
A)True
B)False
Q5) Explain the difference between an income statement and a balance sheet.
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