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Chap 01_8e Indicate whether the statement is true or false. 1. The receivers of the communication must accommodate their perceived multiple meanings and personal agendas and then negotiate a meaning or interpretation of the ad according to their individual life experiences and value systems. a. True b. False 2. An example of a campaign that uses integrated brand promotion is Taco Bell; they have simultaneously put out a commercial during the Super Bowl, print advertising, in-store promotions, and a hashtag that was all focused on a new product. a. True b. False 3. An advertisement refers to a series of coordinated messages that communicates a reasonably cohesive and integrated theme about a brand. a. True b. False 4. Although companies believe in and rely heavily on advertising, some people have significant misperceptions about advertising and what it’s supposed to do. a. True b. False 5. The model of mass-mediated communication can be interpreted to see that communication is an inherently social process. a. True b. False 6. In going through an IBP tool checklist, a brand must focus on either digital or traditional advertising, but not both. a. True b. False 7. With unpaid media, a public relations-oriented team puts out a pro-social message about the importance of not texting while driving. This is an example of a public service announcement. a. True b. False 8. Angelina Jolie, an actress, is interviewed by news reporters about what she thinks her fans should know about her new movie. This would be considered as an advertisement, based on the definition of advertising. a. True b. False

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Chap 01_8e 9. As consumers, we do not know what we like and want, so advertising does not help expose us to brands that meet our needs. a. True b. False 10. Advertising is NOT a part of the communication process. a. True b. False 11. The organization that pays for an advertisement is referred to as the agency. a. True b. False 12. Advertising means different things to different people. a. True b. False 13. It is possible to grow your business with content marketing, which is about providing prospects with relevant content and engaging consumers to have a relationship with your brand. a. True b. False 14. The model of mass-mediated communications is unidirectional, and not fluid. a. True b. False 15. Integrated brand promotion is the process of using one promotional tool that works to create widespread brand exposure. a. True b. False 16. Integrated brand promotion is a great way to think about advertising and branding related topics. a. True b. False 17. Promotion refers to a specific message that an organization has created to persuade an audience. a. True b. False 18. Advertising is a paid, mass-mediated attempt to persuade, and it is a key component to integrated brand promotion. a. True b. False

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Chap 01_8e 19. When consumers are reached by various forms of inconsistent messages, they will have an easier time understanding the brand and deciding whether to use it regularly. a. True b. False 20. Established brands such as Cadillac, the car brand, often face the challenge of maintaining an updated market-driven image and communicating the brand’s contemporary image. a. True b. False 21. Communication is inherently a social process. a. True b. False 22. The definition of IBP highlights that the IBP tools need to work together to create a consistent and compelling impression of the brand. a. True b. False 23. The marketer who does not use advertising and IBP as a way to build brand identity will, frankly, likely be ignored. a. True b. False 24. A way to achieve success in marketing is with integrated brand promotion. a. True b. False 25. Advertising is a business, an art form, an institution, and a cultural phenomenon. a. True b. False 26. In a model of mass communication, there is a production source, accommodation and negotiation of the message and its intent, clutter, reception, encoding, and decoding. a. True b. False 27. IBP is the use of many promotional tools, including advertising, in a coordinated manner to build and then maintain brand awareness, identity, and preference. a. True b. False 28. An advertising campaign refers to a specific message that an organization has created to persuade an audience. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 01_8e 29. Sponsorship, event marketing, sales promotions, public relations, and sponsored content are all examples of advertising. a. True b. False 30. An ad contains a single meaning or even the same meaning for each audience member, according to the model of mass-mediated communication. a. True b. False 31. Integrated brand promotion in action is a way to showcase how certain brands are integrating various forms of advertising and marketing communication. a. True b. False 32. Meeting client needs is an important aspect of advertising and integrated brand promotions. a. True b. False 33. A reference group is a particular group of consumers singled out by an organization for an advertising or IBP campaign. a. True b. False 34. Advertising today is more diverse and more dynamic as a part of integrated brand promotion. a. True b. False Indicate the answer choice that best completes the statement or answers the question. 35. A paint store has launched an advertisement on a social media site. The ad promotes a new set of Acrylic paints and informs customers that the first fifty people to click on the ad will receive a free sample. This is an example of ___________. a. direct response advertising b. personal selling c. delayed response advertising d. internal positioning 36. The promotional tool used most often to communicate with members of a trade channel is personal selling. Which of the following is a reason behind this? a. Personal selling is the most inexpensive form of communication. b. Members of trade channels are the most conspicuous audience. c. Members of trade channels are the target audience for producers of only household products. d. The target audience represents a relatively small, easily identifiable group.

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Chap 01_8e 37. Integrated brand promotion (IBP) is: a. the collaboration of two or more brands within a single advertisement with the intent of sharing costs. b. the coordination of a number of promotional tools to create widespread brand exposure. c. a company's decision to focus on a wide range of traditional advertising forms to replace nontraditional forms. d. a unique concept seen mainly in local advertising campaigns. 38. (Scenario 1-2) The company launched the third product for senior citizens in the market, and their efforts were highly successful. Chug Enterprises now plans to introduce it worldwide. However, the way senior citizens perceive products vary from culture to culture. Thus, Chug Enterprises should engage in: a. cooperative advertising. b. international advertising. c. national advertising. d. regional advertising. Scenario 1-1 In 1996, a graduate from the University of Maryland, Kevin Plank, founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes. "Along with the new product line, the company must have a new brand image," said Plank. “I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away.” The company also removed all advertisements carrying the word “apparel,” and began exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall “performance” company, which will ultimately enable it to compete with footwear powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share. 39. (Scenario 1-1) One of Under Armour’s new retail outlets in the U.S. sends a direct mail to 500 households within a one-mile radius of the new store. In the email, the store announces the introduction of its new line of basketball shoes and offers incentives to any customer who walks into the store to purchase a pair of shoes from the new line. This direct mail: a. is paid for, mass mediated, and an attempt to persuade; therefore, it can be considered advertising. b. is paid for and is an attempt to persuade; however, it is only distributed locally and therefore cannot be considered advertising. c. is not received by a large enough number of people to be considered advertising. d. is not a part of an advertising campaign, and thus cannot be considered advertising. 40. (Scenario 1-2) For its second product to be successful, Chug Enterprises believes that it must effectively target youth. To do this, the company uses influencer marketing. In such a scenario, which of the following is the company most likely using? a. Personal selling b. Free sampling c. Peer-to-peer persuasion d. Coupons and rebates Copyright Cengage Learning. Powered by Cognero.

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Chap 01_8e 41. (Scenario 1-2) Chug Enterprises created the three products in a way that it appeals to separate target markets. This was done to prevent its products from competing with one another for market share. This shows that Chug Enterprises understands the importance of: a. internal positioning. b. external positioning. c. inelasticity of demand. d. selective demand stimulation. 42. (Scenario 1-3) Which of the following activities, if performed, would be considered part of Sony's marketing mix? a. Forecasting a five-year financial plan to expand the firm b. Restructuring the organization to increase employee efficiency c. Hiring more workers into the firm d. Launching an advertisement campaign in schools 43. __________ attempts to develop brand awareness and preference over time, as well as emphasize the benefits of using that brand. a. Co-op advertising b. Direct response advertising c. Sales promotion d. Delayed response advertising 44. (Scenario 1-3) If Sony uses advertisements that focus on the niche characteristics of Move that Wii does not have, the company is using: a. external positioning. b. institutional advertising. c. brand extension. d. internal positioning. 45. (Scenario 1-1) Under Armour hopes that changing the company’s image from an apparel company to a “performance” brand will help increase its footwear sales. To make consumers aware of the change, Under Armour designs a number of commercials, print ads, and Internet advertisements all focusing on the company’s new motto, and immediately begins to apply them. All these elements make up a(n) __________. a. international advertising campaign b. cooperative advertising campaign c. advertising campaign d. promotional mix 46. Amaze, an online grocery store chain, has decided to run a series of advertisements. For this to be considered an advertising campaign, their ads must: a. focus on store products rather than store services. b. reinforce each other and attempt to create synergy for the brand. c. appear in print media. d. be unpaid communication.

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Chap 01_8e 47. A broad, unpaid message reminding consumers to wear their seat belt is an example of: a. a mobile advertisement. b. influencer marketing. c. personal selling. d. a public service announcement. 48. A politician makes a Facebook post about why voters should vote for her. In order for this message to be considered as an advertisement, which of the following conditions should be met? a. The message must be noncommercial. b. There must be a public service announcement included. c. The airtime must be paid for. d. The message must involve the promotion of a product. 49. There is a production source, a message, encoding, and decoding in a model of _______: a. mass-mediated communication. b. cooperative advertising. c. a focus group d. a sponsorship. 50. Milos, a men's deodorant brand, displays its product in advertisements as being worn by men who are attractive and popular. This is an example of _______________. a. symbolic value b. direct response advertising c. selective demand stimulation d. internal positioning 51. (Scenario 1-2) Chug's three different sports drinks are very popular in markets across the world. Now the company plans to launch a similar range of carbonated drinks by building on the popularity of the previous products. This is an example of ________. a. market segmentation b. national advertising c. a brand extension d. a differentiation strategy 52. KidsCause, a metropolitan outreach organization that collects and donates toys for needy children, buys airtime on WXXY (a local TV station) to promote its annual toy collection. Amazing Ads is hired to take the account; they shoot the video and produce a commercial and then help with media placement. In this promotional effort, who is the agency? a. Amazing Ads b. A local TV station c. WXXY d. KidsCause

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Chap 01_8e 53. ________ is the process of creating a perceived distinction between an organization's brand and a competitor's brand. a. Differentiation b. Market analysis c. Co-op advertising d. Market segmentation 54. Effective internal positioning is accomplished by: a. distributing products to a market that is wider than those of one's competitors. b. using advertising to compare a product's distinctions from those of one's rival firms. c. developing brand features and values that are distinctive from the competition. d. developing vastly different products within the firm's product line. Scenario 1-4 Target, a global discount retailer, generates around 65 billion dollars in sales annually. Additionally, the company employs more than 360,000 people worldwide. Target stores carry just about every major brand imaginable. Target also carries a number of its own brands including Market Pantry, Archer Farms, and Up and Up. Each of the brand labels appears on different products throughout the store—for example, the Archer Farms label appears on the retailer’s highest quality foods. The Market Pantry label appears on food items as well; however, these items are often sold at a significantly lower price. The Up and Up label is on a large range of products ranging from paper products to household cleaning supplies. 55. (Scenario 1-4) The company's goal is for a product with any one of Target’s in-house brand labels on it to be known by consumers for the values of the brand—both tangible and intangible. Thus, in this scenario, Target's goal is to _____________. a. create elasticity of demand b. conduct market segmentation c. establish brand loyalty d. stimulate latent promotion 56. Kofax Inc., a pet store, has established stores in more than 40 states in America. Additionally, it has advertised in all states of the country. This is an example of _______ advertising. a. local b. national c. regional d. global

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Chap 01_8e 57. Which of the following is an example of a brand extension? a. The manufacturers of Cocoa Flakes, a popular cereal, launches a cookie called "Cocoa Crunch" in a new product category. b. Tracker, a company selling security systems, advertises its product on a local television network. c. Dog Handler, a manufacturer of leashes for dogs, collaborates with a competitor to expand its market base. d. Blossoms, a women’s perfume line, advertises its new line through sales promotions and point-of-purchase advertising at department stores. 58. Mineral Inc., a manufacturer of mineral water, has recently launched its product in the market. It starts a rigorous advertising campaign to highlight the benefits of its product. This is an example of ________. a. primary demand stimulation b. economies of scale c. market segmentation d. selective demand stimulation 59. Benjie and his wife, Ella, are watching a television commercial that they’ve never seen before. Benjie thinks that the ad is funny and witty. However, Ella finds the ad to be misleading based on what she knows from using the product in the ad. This example illustrates that: a. ads are interpreted differently based on a person's experiences and beliefs. b. what a message means to any given consumer is a function of an isolated solitary thinker. c. the ad is communicated effectively to its target audience. d. the ad contains the same meaning for all audience members. 60. (Scenario 1-4) In one city, Walmart, a competing retail outlet, opens a store across the street from Target and a battle for business follows. To distinguish their stores from one another, both retailers create a series of new commercials to help promote their brand. Target’s commercials emphasize the fast, fun and friendly service that it provides for its guests, and uses several celebrity endorsements. Meanwhile, Walmart runs three different commercials that focus on the low prices of its products. This is an example of: a. corporate advertising. b. internal positioning. c. external positioning. d. product placement. 61. (Scenario 1-1) To promote Under Armour’s new brand image, the firm has launched large scale advertising in three different countries, making a minor change in the physical appearance of the ad by using a different actor from each country. This is an example of _________ advertising. a. international b. global c. cooperative d. national

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Chap 01_8e 62. The purchase of certain products, such as cars, shoes, and sunglasses, signify class membership. This indicates that these brands have ________. a. economies of scale b. social meaning c. internal positioning d. low brand equity 63. (Scenario 1-3) Individuals who have been using the Wii do not want to switch to the Move because they relate Wii to a superior gaming experience and also because it has been in the market for a long time. The Wii is an example of a product that has _________. a. brand equity b. brand variance c. brand extension d. elasticity of demand 64. Which of the following is a difference between IBP and IMC? a. IBP ignores the importance of communication whereas IMC does not. b. IBP focuses more on the need for coordinated and synergistic messages. c. IMC emphasizes the brand, whereas IBP does not. d. IBP goes beyond the parameters of IMC. 65. Public service announcements (PSAs): a. are a type of advertising that are run by nonprofit organizations. b. are commercial the way that ads are. c. attempt only to persuade and not to inform. d. are not necessarily “paid media” like advertisements are. 66. Which of the following is an example of international advertising? a. Crispy Cracks promoting their new line of cracker at the Olympics b. Flextronic advertising its flat-screen TVs in different states of a country c. DetergentPro creating different versions of its new detergent ad for various countries d. Tennis Fashion Inc. featuring its “unicorn” logo on gear worn by tennis players 67. Market segmentation is the process of: a. creating advertising strategies to reach out to a wide consumer base. b. creating a new product line that is relatively different from the firm's existing product line. c. identifying competitors in the market that could be possible threats to the success of the company. d. breaking down a large, widely varied market into more similar sub-markets.

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Chap 01_8e Scenario 1-2 Chug Enterprises is planning to create a new line of products and enter into the sports drink market. They plan to advertise the first product to teenagers as being the best-tasting sports drink on the market. The second product will be advertised to adults as being the lowest calorie sports drink one can buy. The third product will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each product will have separate, distinctive packaging. 68. (Scenario 1-2) To help build brand awareness, customer preference, and loyalty, Chug Enterprises plans a coordinated campaign using a variety of tools such as advertising in mass media, direct marketing, and Internet advertising. This process of combining coordinated communication to help customers identify and evaluate the relevance of Chug Enterprise’s products to their lives and value systems is known as ________. a. brand extension b. integrated brand promotion c. advocacy advertising d. institutional advertising 69. A family-owned meat shop has expanded to four locations within the Preston area and suburbs, running regular promotions to one zip code, where the shop is located. These social media ads are a form of advertising that will only go to this very small geographic area. What kind of advertising is this? a. local b. trade c. branding d. advocay Scenario 1-3 A videogame company, Nintendo, launched an innovative motion-sensing gaming console called the Wii. The Wii quickly took over as the leading gaming console because of its unique activity-enabling qualities, and for nearly four years, it dominated hardware sales in the gaming industry as any true competition for the product was yet to be introduced. However, this changed when Sony introduced its own motion-detecting gaming system to the market, the PlayStation Move. Sony has marketed the product as a superior product to Nintendo’s, claiming that it is more precise and flaunts the PlayStation’s high quality graphics. Sony’s Move has been a topic of great debate, but the reception of the product over the long haul is yet to be seen. To dethrone the Wii, Sony will need to find a way to appeal to those who have not yet bought into “motion gaming.” And of course, it wouldn’t hurt if Sony somehow finds a way to entice Nintendo followers to switch over to its newest addition to the gaming industry. 70. (Scenario 1-3) Sony created advertisements for its new motion-detecting gaming system to attract the attention of school-going children. The school-going children are Sony's __________. a. trade channel b. target audience c. sponsors d. clients

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Chap 01_8e 71. The mixing of various promotional tools with a branding perspective is known as __________. a. integrated brand promotion b. a marketing mix c. cooperative advertising d. market segmentation 72. Two components of the mass-mediated communication model are: a. primary demand and selective demand. b. advertiser and consumer. c. internal position and external position. d. production and reception. 73. Which of the following is true regarding advertising? a. Advertising is external to the social interaction process. b. Advertising is solely responsible for the increase of product sales. c. Advertising must consider audience categories, such as household consumers or members of business organizations, for its IBP communications. d. Advertising is a simple communication process. 74. Which of the following is true of integrated brand promotion (IBP)? a. It is a simple process. b. It uses promotional tools that do not need to be evaluated. c. It prevents the exposure of a brand. d. It creates synergy by having a consistent image or message. 75. (Scenario 1-1) The marketing team of Under Armour has come up with a strategy to advertise their shoes as a product that makes walking and running pleasurable. Marketing the shoes in this manner creates a perceived difference in the minds of customers. This is an example of _______. a. internal positioning b. brand extension c. differentiation d. market segmentation 76. eBUYERS, an online broker, pays for a 30-second television commercial to be telecast during the Football World Cup. The commercial promotes the reliability of eBUYERS advice, expertise, and personal attention in assisting online customers with stock portfolio creation and management. The spot created by eBUYERs is: a. a public service announcement. b. a point-of-purchase advertisement. c. representative of personal selling. d. an advertisement promoting a service.

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Chap 01_8e 77. Texas and surrounding states have specific trees that many people are allergic to, and as such, an allergy medicine company advertises a special product custom to this area of the country, and the ads go to consumers in that region of the country. This is an example of ________ advertising. a. global b. local c. cooperative d. regional 78. A brand of cereal is perceived by consumers to be a “good deal,” one that provides a certain level of comfort and satisfaction that goes well beyond the money it takes to purchase a few boxes. In this example, the cereal is considered to have: a. low brand loyalty. b. elasticity of demand. c. economies of scale. d. value. 79. When national companies and local merchants share advertising expenses, they are taking part in _________. a. brand extensions b. international advertising c. cooperative advertising d. trade channeling 80. Orange, a cell phone manufacturer, displays in its advertisement that its products are better than others in the market because they are waterproof and scratch proof. This is an example of _________________. a. selective demand stimulation b. economies of scale c. inelasticity of demand d. direct response advertising 81. Members of trade channels include: a. not-for-profit businesses. b. retailers. c. household consumers. d. government officials. 82. Which of the following is one of the four areas of responsibility in the marketing mix? a. Privacy b. Permissions c. People d. Promotions

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Chap 01_8e 83. Which of the following is considered as a member of a trade channel? a. Wholesalers b. Household consumers c. Government employees d. Philanthropic groups 84. (Scenario 1-4) In a majority of Target’s promotions, the store is marketed as “upscale,” and this is demonstrated through its prices, which are generally higher than its biggest competitor, Walmart. Still, even in times of recession, Target continues to increase its annual revenues and retain many of its customers. This can be attributed to: a. Target’s low brand equity. b. the inelasticity of demand shown by many of the company’s customers. c. Target’s increase in gross domestic product (GDP). d. the elasticity of demand shown by many of the company’s customers. 85. Which of the following is true of inelasticity of demand? a. The supply of the product is greater than its demand. b. Consumers are less sensitive to price increases. c. Customers have low brand loyalty. d. It leads firms to decrease profit margins. 86. In the model of mass-mediated communication, the: a. producers of the message control the reception of the content. b. producers of the message control the interpretation of the content. c. consumers interpret ads in a way that makes sense to them individually and serves their needs. d. eceiver's interpretations are invariably compatible with what the producer intended to convey. 87. Which of the following is an essential criterion for communication to be considered an advertisement? a. The communication must be noncommercial. b. It must be paid communication. c. The message conveyed must have a headline. d. It must involve face-to-face communication. 88. In today's world, what three elements do marketers want to build and maintain through their promotional and advertising efforts? a. Awareness, identity, and preference b. Attention, curiosity, and response c. Demand, value, and interaction d. Information, message, and communication

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Chap 01_8e 89. Samsonic is the leading manufacturer of televisions in the world. It has created a new advertisement that it wants to be aired all over the world, changing only the language for each country. This is an example of: a. national advertising. b. international advertising. c. regional advertising. d. global advertising. 90. Bella’s, a department store, has launched a series of advertisements inviting people to do their holiday shopping at their store. This is an example of ___________. a. institutional advertising b. delayed response advertising c. corporate advertising d. advocacy advertising 91. (Scenario 1-4) In a Facebook ad, Target purchases and runs a message that does not refer to any of the products it carries. Instead, it mentions that employees from each of its national stores contribute to community projects such as The United Way. This is an example of: a. corporate advertising. b. a public service announcement. c. direct response advertising. d. advocacy advertising. 92. Firms are developing opportunities in _____ through communication via devices like smart phones, tablets, and wearables. a. broadcast media b. mobile marketing, digital marketing, and social media marketing c. personal selling d. print media 93. ________ is a type of advertising that communicates the specific features, values, and benefits of a product offered by a particular company. a. Advocacy advertising b. Corporate advertising c. Brand advertising d. Institutional advertising 94. (Scenario 1-1) John receives a direct mail from Under Armour that offers a free poster of basketball star Brandon Jennings wearing a pair of the company’s new shoes. John likes the company's promotional offer. Chang, who also receives the same direct mail, is not impressed by the offer and puts it aside after glancing through it. The differing reactions to the promotional effort are most likely the result of: a. varying content. b. different interpretations of the ad. c. similar characteristics of the target market. d. the rules and regulations of the direct mail medium. Copyright Cengage Learning. Powered by Cognero.

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Chap 01_8e 95. Based on the criteria that define advertising, which of the following examples would be considered advertising? a. A candidate for city council going door-to-door urging people to vote for her. b. A car manufacturer stating the efficiency of its product to motivate customers to make a purchase. c. A public service announcement about the dangers of talking on the phone while driving. d. An actor being interviewed on television about his campaign to aid people with physical disabilities. 96. Describe briefly what a target audience means. Discuss any two audience categories.

97. What is advertising? Define. What are the three criteria that must be met for communication to be considered an advertisement? How does a public service announcement differ from advertising in the ways that it meets, or fails to meet, each of these criteria?

98. A brand is greatly shaped and impacted by advertising. List five ways in which advertising influences brand management and explain each of them briefly.

99. What is integrated marketing communication (IMC)? Discuss the differences between integrated marketing communication and integrated brand promotion (IBP).

100. Briefly explain the concepts of market segmentation, differentiation, and positioning.

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Chap 01_8e 101. Define marketing. Describe the marketing mix and the role of advertising in it.

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Chap 01_8e Answer Key 1. True 2. True 3. False 4. True 5. True 6. False 7. True 8. False 9. False 10. False 11. False 12. True 13. True 14. False 15. False 16. True 17. False 18. True 19. False 20. True 21. True 22. True 23. True 24. True 25. True 26. True

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Chap 01_8e 27. True 28. False 29. False 30. False 31. True 32. True 33. False 34. True 35. a 36. d 37. b 38. b 39. a 40. c 41. a 42. d 43. d 44. a 45. c 46. b 47. d 48. c 49. a 50. a 51. c 52. a 53. a 54. d Copyright Cengage Learning. Powered by Cognero.

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Chap 01_8e 55. c 56. b 57. a 58. a 59. a 60. c 61. b 62. b 63. a 64. d 65. d 66. c 67. c 68. b 69. a 70. b 71. a 72. d 73. c 74. d 75. c 76. d 77. d 78. d 79. c 80. a 81. b 82. d Copyright Cengage Learning. Powered by Cognero.

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Chap 01_8e 83. a 84. b 85. b 86. c 87. b 88. a 89. d 90. a 91. a 92. b 93. c 94. b 95. b 96. A target audience is a particular group of consumers singled out by an organization for an advertising or IBP campaign. These target audiences are singled out because the firm has discovered that these specific audience members like the product category and might prefer their particular brand within that product category. Target audiences are always potential audiences because a company can never be sure that the message will actually get through to them as intended. Audience Categories: Household consumers: They are the most conspicuous audience because most mass media advertising is directed at them. Members of business organizations: They are the target of advertising for firms that produce business or industrial goods and services. Not-for-profit businesses such as universities, some research laboratories, philanthropic groups, and cultural organizations also represent an important and separate business audience for advertising. 97. Advertising is a paid, mass-mediated attempt to persuade. The three criteria that must be met for a communication to be considered an advertisement are that it must be paid for, it must be mass mediated, and it must be an attempt to persuade. A public service advertisement is mass mediated and involves an attempt to persuade. However, by definition, a public service announcement is not paid for and cannot be considered advertising.

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Chap 01_8e 98. Advertising can affect a brand in five broad ways: By informing and persuading: Target audiences can learn about a brand’s features and benefits through advertising. No other variable in the marketing mix is designed to accomplish this communication. By introducing new brands or brand extensions: Advertising is absolutely critical when organizations introduce a new brand or extensions of existing brands to the market. When brand extensions are brought to market, advertising and IBP play a key role in attracting attention to the brand—so much so that researchers now suggest that “managers should favor the brand extension with a greater allocation of the ad budget. This is often accomplished with advertising working in conjunction with other promotional activities such as sales promotions and point-of purchase displays. By building and maintaining loyalty among consumers: Loyalty to a brand is one of the most important assets a firm can have. Brand loyalty occurs when a consumer repeatedly purchases the same brand to the exclusion of competitors’ brands. Even though brand features are the most important influence on building and maintaining brand loyalty, advertising plays a key role in the process as well. Advertising reminds consumers of those brand features—tangible and intangible. By creating an image and meaning for a brand: Advertising can communicate how a brand fulfills needs and desires and therefore plays an important role in attracting customers to brands that appear to be useful and satisfying. It can also help link a brand’s image and meaning to a consumer’s social environment and to the larger culture, and in this way, advertising can actually deliver a sense of personal connection for the consumer. By building and maintaining brand loyalty within the trade: Wholesalers, retailers, distributors, and brokers can favor one brand over others given the proper support from a manufacturer. Advertising and particularly advertising integrated with other brand promotions is an area where support can be given. 99. Beginning in about 1990, the concept of mixing various promotional tools was referred to as integrated marketing communications (IMC). However, the reality of promotional strategies in the 21st century demands that the emphasis on communication give way to an emphasis on the brand. IMC emphasizes the communication effort per se and the need for coordinated and synergistic messages. IBP retains the emphasis on coordination and synergy of communication but goes beyond the parameters of IMC. In IBP, the emphasis is on the brand and not just communication. With a focus on building brand awareness, identity, and ultimately preference, the IBP perspective recognizes that coordinated promotional messages need to have brand-building effects in addition to the communication effects.

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Chap 01_8e 100. Advertising helps a firm implement the important market strategies of market segmentation, differentiation, and positioning. Market segmentation is the process of breaking down a large and widely varied market (a heterogeneous market) into many smaller sub-markets or segments (homogeneous markets) based on certain consumer characteristics. Underlying the strategy of market segmentation are the facts that consumers differ in their wants and that the wants of one person can differ under various circumstances. Differentiation is the process of creating a perceived difference, in the mind of the consumer, between a brand and its competition. The perceived differences can be tangible differences, or they may be based on image or style factors. The critical issue in differentiation is that consumers perceive a difference between brands. Positioning is the process of designing a brand so that it can occupy a distinct and valued place in the target consumer’s mind relative to other brands. This distinctiveness can be communicated through advertising. The importance of positioning can be understood by recognizing that consumers create a perceptual space in their minds for all the brands they might consider purchasing. A perceptual space is how one brand is seen on any number of dimensions—such as quality, taste, price, or social display value—in relation to those same dimensions in other brands. 101. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. These four areas of responsibility and decision making in marketing are referred to as the "marketing mix." The word mix is used to describe the blend of strategic emphasis on the product versus its price versus its promotion (including advertising) versus its distribution when a brand is marketed to consumers. This blend, or mix, results in the overall marketing program for a brand. Advertising is important, but it is only one of the major areas of marketing responsibility and it is only one of many different IBP tools such as social media relied on in the marketing mix.

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Chap 02_8e Indicate whether the statement is true or false. 1. Firms that maintain and manage large databases of mailing lists are known as digital/interactive agencies. a. True b. False 2. It is common for social organizations to advertise at the national, state, and local levels. a. True b. False 3. Digital/interactive agencies are those that have expertise in preparing communications for new media, such as the Internet, mobile marketing, and interactive television. a. True b. False 4. Due to the backlash against advertising that clutter can cause, advertisers are integrating more tools within the overall promotional effort to reach more consumers in different ways, such as through mobile or social media or digital content. a. True b. False 5. The goal of creating persuasive communication is to attract attention and develop preference for a brand. This can be done well with integrated brand promotion via both digital and traditional marketing communications tools. a. True b. False 6. The old-style power struggles in the advertising industry were mild compared to the 21st-century power struggle going on in the industry now; consumers are tired of ads on every screen, so industry needs to adapt successfully to the new technologies that consumers are willing or even eager to use. a. True b. False 7. Advertisers do not like to handle their own public relations tasks because it requires highly specialized skills and talent not normally found within the company ranks. a. True b. False 8. A creative boutique’s greatest advantage is its niche expertise. a. True b. False 9. No matter what changes, the brand and its differentiation still need to be highlighted with persuasive communications. a. True b. False

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Chap 02_8e 10. A typical markup charge for outside services is five to ten percent. a. True b. False 11. Database consultants are particularly useful in planning coupon or direct mail campaigns. a. True b. False 12. Trade resellers of consumer products and services are the most prominent users of advertising and promotion. a. True b. False 13. Retailers that sell in national or global markets are the most visible reseller advertisers and promotion users. a. True b. False 14. The advertising used by social organizations has a fundamentally different purpose compared to the advertising carried out by major multinational corporations. a. True b. False 15. A creative boutique’s niche expertise can be its greatest liability if the creative boutique is an extra expense that advertisers cannot afford. a. True b. False 16. Radio and satellite are examples of broadcast media. a. True b. False 17. Proctor & Gamble, a major company, can reach 70-80 million Facebook users through careful targeting. a. True b. False 18. It is mandatory for designers and graphic specialists to be involved in strategy planning. a. True b. False 19. Advertisers include business organizations, but exclude not-for-profit organizations. a. True b. False 20. A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on an hourly rate for different services provided. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 02_8e 21. A disadvantage of using media specialists is that they buy media in small quantities. a. True b. False 22. The idea behind crowdsourcing, which happens to be very synergistic with social media, is to prevent ideas about a new brand from becoming public to consumers. a. True b. False 23. Blogs have emerged as sophisticated sources of brand and product information and can synergize with social media. a. True b. False 24. Media conglomeration broadly concerns how there used to be a few main players in the media business but now many more channels and other forms of media are emerging. a. True b. False 25. The task of strategic coordination of media and promotional efforts has become simpler because of the proliferation of media options and extensive use of promotional tools beyond advertising. a. True b. False 26. At the local level, small retail shops deal only with household customers. a. True b. False 27. From Facebook to Twitter to Snapchat, consumers are seeking out information environments where they control their exposure to information rather than an advertiser or media company being back in control. a. True b. False 28. Social media is an example of the explosion of new media in recent years. a. True b. False 29. The four most prevalent agency compensation methods are commission, consultant, external facilitator, and production facilitator plans. a. True b. False 30. Under the commission system, the rate of commission is raised to 25 percent for outdoor media. a. True b. False

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Chap 02_8e Indicate the answer choice that best completes the statement or answers the question. 31. (Scenario 2-1) To generate interest in its new line of computers, Dell hires a company to design a number of contests and incentive programs that will help build excitement for the new line. This company is an example of a(n): a. fulfillment center. b. database agency. c. sales promotion agency. d. market research firm. 32. Which of the following best describes digital agencies? a. They focus on ways to use digital solutions for direct marketing and target market communications and social media b. They implement direct response campaigns using all forms of media. c. They design direct marketing campaigns that mainly use emails and telemarketing. d. They specialize in buying media time and space and offer media strategies to advertisement agencies. 33. ______ is used by organizations to get consumers committed to brands in a way that passive advertising cannot. a. Co-op advertising b. Phishing c. Crowdsourcing d. Broadcasting 34. (Scenario 2-3) Axel Corp. plans to reach out to local fashion stores and wholesale distributors. Axel Corp. can achieve this by employing an advertising agency specialized in _______. a. consumer sales promotions b. trade-market sales promotions c. infomercials d. a commission system

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Chap 02_8e Scenario 2-5 In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago-based consumers various “deals of the day.” At the time, Groupon had a unique business model—each day, one “Groupon” would be offered in a particular city. If a certain number of people signed up for the offer, then the deal became available to all. Now, years later, the business continues to grow, and the service is being offered in many U.S. cities. Google made a multi-billion dollar offer for the company that Mason turned down in December of 2010. Continuing the company’s rapid rise to success will be a challenging task, because the company will be the first to attempt to advertise the unique services. Groupon needs to find ways to attract new users, and looking into new forms of advertising will be essential to the company’s success. 35. (Scenario 2-5) As Groupon’s services differ depending on the city in which it is offered, its CEO decides that each variation needs to have a catchy slogan that relates to that particular market. Which of the following types of advertising agencies would likely be the bestchoice to create these slogans? a. A digital/interactive agency b. A media specialist c. A creative boutique d. A production facilitator Scenario 2-4 Caltech Corp. has a 19 minute advertisement that is aired on a local news channel explaining to the public the benefits of its product. Sparkles Inc. has provided Caltech Corp. airtime on its television network, and has offered to advertise its product on its website as an act of goodwill. 36. (Scenario 2-4) Caltech Corp. has a 19-minute-long advertisement that explains to the public about its product. This is an example of a(n) _______. a. podcast b. electronic directory c. blog d. infomercial 37. Which of the following services occur within an ad agency? a. Administrative services b. Creative services c. Account services d. Production services

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Chap 02_8e Scenario 2-6 Pink Inc. has approached Ripple Effects with the layout of an advertisement for its new product that it plans to advertise. Ripple Effects has agreed to provide Pink Inc. with the cast and crew required to create the advertisement, choosing the location and the set up. Pink Inc. has employed Glamour, an advertising agency, to make the message theme of the advertisement more innovative. Glamour has charged the firm $50,000 per hour for its services. 38. (Scenario 2-6) Ripple Effects is an example of a ______________. a. media specialist b. creative boutique c. database consultant d. production house 39. Carmel Inc. has come up with the idea of creating a television ad for its new range of assorted cookies. The marketing executives approached RT Designs who will be filming the ad, preparing a set to record the ad, and employing an actress to play the role of a little girl enjoying her cookies. RT Designs is an example of a ________. a. creative boutique b. production house c. fulfillment center d. media specialist 40. (Scenario 2-3) Which of the following is most likely to provide Axel Corp. with a reasonable amount of media time at a rate lower than that provided by an advertiser? a. Production houses b. Sales promotion agencies c. Database consultants d. Media specialists 41. Which of the following best describes a media conglomerate? a. It is a firm that operates multiple media combinations. b. It is a firm that is a specialist in one particular form of media. c. It is a firm that specializes solely in buying media time and space. d. It is a firm that uses print media instead of broadcast media 42. A regional fast food chain called Platters is interested in opening a restaurant in a new market. The company plans to hire the services of a firm to collect the data needed to expand into the new market. In such a scenario, which of the following firm's services would it hire? a. A marketing research firm to conduct surveys to understand the potential market b. An advertising agency to create innovative ads c. A consultant to create message strategies and message themes d. Media organizations for placing ads in broadcast and print media to create awareness for the restaurant

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Chap 02_8e 43. CloudNine, an advertisement agency, charged Sparkles Inc. $50,000 at the rate of $5,000 an hour for the ten hours it spent designing an advertisement for the firm's new product launch ad. Which of the following systems of compensation did CloudNine utilize? a. A fee system b. A commission system c. A markup charge system d. A pay-for-results system 44. PinBall Inc. sought the help of Blazer Corp. to help them reach a niche group of vendors that they have been trying to do business with. Blazer offers the solution of publishing an advertisement in a trade journal which would help create awareness about the firm's product. In this scenario, Blazer Corp. specializes in ___________. a. the management of databases b. creative services c. consumer sales promotions d. trade-market sales promotions 45. ______ are experts in finding locations, securing dates, and putting together a team of people to pull off a promotional activity. a. Event-planning agencies b. Creative boutiques c. Fulfillment centers d. Direct marketing agencies 46. The _______ services department of an advertising agency typically includes the company's art directors, illustrators, and copywriters. a. creative b. media buying c. marketing d. administrative 47. Which of the following is an example of outdoor support media? a. Podcasts b. Billboards c. Catalogs d. Public relations 48. Which of the following acts as a support to direct marketing agencies and follow-up on the delivery of their direct mail? a. Creative boutiques b. In-house agencies c. Media specialists d. Fulfillment centers

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Chap 02_8e 49. A compensation system that is based on the achievement of specific objectives of the client is known as a _______ . a. pay-for-results compensation b. a markup charge c. commission system d. fee-based system 50. A(n) _______ coordinates the research effort of an advertisement agency. a. graphic designer b. media specialist c. account planner d. fulfillment center 51. (Scenario 2-2) Brush Strokes is looking for a way to increase sales. The advertising agency helps create an innovative message that will be conveyed through promotions and mobile marketing. Which of the following agency services is the company using? a. Billing services b. Creative services c. Administrative services d. Media buying services 52. _______ are specialists that design and then operate contests, sweepstakes, special displays, or coupon campaigns for advertisers. a. Creative boutiques b. Sales promotion agencies c. Database agencies d. Fulfillment centers 53. In which of the following areas is the federal government’s spending on advertising and promotion concentrated? a. The internal revenue service b. Political campaigns c. Armed forces recruitment d. Trade and commerce 54. (Scenario 2-5) Groupon decides to find a firm that can help them in planning, preparing, and executing promotional campaigns. The company whose services Groupon is seeking is referred to as a(n): a. client. b. database consultant. c. sponsor. d. external facilitator.

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Chap 02_8e 55. A(n) ______ is often known as the advertising department in a firm. a. creative boutique b. full-service agency c. interactive agency d. in-house agency 56. Advertisers and their agencies rely primarily on external facilitators for: a. consumer research. b. media buying. c. assessing the effectiveness of promotional programs. d. production processes. 57. (Scenario 2-4) Sparkles Inc. is an example of a ________________. a. production facilitator b. full-service agency c. media conglomerate d. fulfillment center 58. (Scenario 2-5) Groupon decides to hire a full-service advertising agency to create a new campaign for the company. The ad agency agrees to be compensated if Groupon notices any positive change in sales and the number of customers on its site. This is an example of a(n) system of compensation. a. fixed fee b. commission c. incentive-based d. markup charge 59. A ______ is a general description for all organizations in the marketing channel of distribution that buy products to make them available to customers. a. sponsor b. media buyer c. media specialist d. trade reseller 60. A compensation system that adds a percentage amount to a variety of services the agency purchases from outside suppliers is known as a ______. a. markup charge b. fee system c. pay-for-results compensation d. commission system

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Chap 02_8e Scenario 2-2 Brush Strokes is an art supply store located in a town with a population of about 100,000 people. The town is also home to a major State University. Brush Strokes gets a majority of its business from the student population. It uses the services of a local full-service advertising agency to promote themselves. A large part of its marketing budget has been used in running small advertisements in the local and school newspapers at the beginning of each term. The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the University’s football and basketball games. While the owners of Brush Strokes agree that they could be doing a better job of reaching a larger portion of the student population, they have not come to any conclusions about the best way to accomplish this. 61. (Scenario 2-2) Which one of the following would Brush Strokes’ full service agency be least qualified to handle? a. Researching about the buying trends of the company's customers b. Creating a television commercial c. Forecasting dividend earnings of stockholders d. Generating awareness about the brand 62. Which of the following is an example of interactive media? a. Banners b. Electronic directories c. Catalogs d. social media 63. Advertisers are also known as ______ by their advertising and promotion agency partners. a. consultants b. facilitators c. sponsors d. clients 64. _______ provide the physical facilities, including sets, stage equipment, and crews needed for broadcasting. a. Production houses b. Creative boutiques c. Fulfillment centers d. Interactive agencies 65. Design Solutions has two television network channels and its monthly magazine, Bling, is the most popular fashion magazine in the country. It also has a number of websites for its television channels and online sports news. Design Solutions is an example of a ________. a. creative boutique b. media conglomerate c. media specialist d. digital/interactive agency

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Chap 02_8e 66. (Scenario 2-6) Glamour follows a a. commission b. cost-plus c. markup charge d. fee

system of compensation.

67. _______ entail identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan. a. Administrative services b. Creative services c. Account services d. Media planning and buying services 68. (Scenario 2-6) Glamour is an example of a __________. a. media specialist b. direct marketing agency c. creative boutique d. digital/interactive agency 69. (Scenario 2-2) The owners of Brush Strokes are concerned that their agency may be recommending television advertising because it would be profitable for the agency. Brush Strokes can avoid paying for ineffective advertising campaigns by changing to a _________ system of compensation. a. commission b. fee c. pay-for-results d. markup charge 70. The graphic mark that identifies a company is known as a(n) a. patent b. blog c. logo d. slogan

71. (Scenario 2-5) Groupon’s management has budgeted $20,000 for social media advertising this year. How much can their advertising agency expect to earn if they are using a traditional commission system? a. $2,000 b. $3,000 c. $5,000 d. $8,000

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Chap 02_8e 72. (Scenario 2-6) Pink Inc. has chosen to advertise using key chains and complementary pens with the firm's logos on them. The type of media chosen by Pink Inc. is referred to as ___________. a. infomercials b. print media c. interactive media d. support media 73. Barlow and Baley Inc., an advertisement agency, handles the clients’ needs from account planning to creative to media to production in both digital and traditional areas. Barlow and Baley Inc. is an example of a(n) _______. a. full-service agency b. in-house agency c. interactive agency d. database consultant 74. (Scenario 2-1) Dell plans to strengthen its relationships with the media, industry associations, and its various competitors. In such a scenario, Dell would hire ________ to help strengthen their relationships. a. a public relations firm b. a market research firm c. a creative boutique d. a database agency 75. Grand Resorts has acquired the services of Elegant Inc. to develop advertisements for their organization. Elegant Inc. has advised them to add a panoramic view to billboard ads and to portray tourists lounging by the sea. Elegant Inc. is an example of a(n) ________. a. media specialist b. creative boutique c. digital/interactive agency d. in-house agency 76. (Scenario 2-3) A(n) ________ can help Axel Corp. in designing and executing direct response advertising campaigns using traditional media. a. database consultant b. public relations firm c. fulfillment center d. interactive agency 77. Which of the following services of an advertising agency involves expressing the benefits of a company's brand in interesting and memorable ways? a. Creative services b. Billing services c. Administrative services d. Media buying services

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Chap 02_8e 78.

are experts in designing incentive programs, point-of-purchase materials, and in-store merchandising. a. Database agencies b. Sales promotion agencies c. Fulfillment centers d. Event-planning agencies

Scenario 2-3 Axel Corp., a new clothing line manufacturer, plans to reach out to the local fashion stores and wholesale distributors around the country. It also plans to offer a discount on its products for the first 100 customers and establish a coupon system for the first six months of sales. The marketing team is looking to create a television advertisement and is looking for ways to improve on the ideas that they have come up with for the ad. 79. (Scenario 2-3) Which of the following agencies would help improve the ideas that Axel Corp. has for its advertisement? a. A direct marketing agency b. A creative boutique c. A database agency d. A fulfillment center Scenario 2-1 As one of the world’s largest computer and technology developers, Dell, Inc. has never been a stranger to advertising. However, due to a consistent decline in market share, the Texas-based company is looking to overhaul its advertising efforts for the first time in years. In the past, Dell found success promoting its products as some of the most inexpensive computer products in the market. However, the company’s new ad campaign, which will be targeted toward more high-end users, will make no mention of product price. The company is looking to reinvent its image and believes that the first step in doing so is to revamp its outdated advertising campaign. 80. (Scenario 2-1) Dell decides not to use a full-service advertising agency because it would like its own employees to take responsibility for the new ad campaign. However, full-service agencies do provide a number of advantages— one of these advantages is that they: a. are always large, employing thousands of people. b. can provide the physical facilities for broadcast production. c. have an array of talented professionals to meet all the needs of a client. d. are the only way to create an ad campaign. 81. _______ has emerged as the most significant form of consumer control over information creation and communication. a. Web advertising b. Social media c. Interactive television d. Direct marketing

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Chap 02_8e 82. ______ is a high-speed technology that allows consumers to customize their programming and target very specific audiences. a. Transit b. Crowdsourcing c. Broadband d. Cable 83. (Scenario 2-1) In order to reinvent the company’s image, Dell puts together a team comprised of members from its marketing department who will be responsible for every aspect of the advertising campaign. The company decides that involving employees in the campaign will allow it to maximize the profits generated from the new campaign. This team will be an example of a(n): a. creative boutique. b. full-service advertising agency. c. fulfillment center. d. in-house agency. 84. (Scenario 2-2) The owners of Brush Strokes have called a meeting with their agency to determine ways in which it can benefit most from advertising. The agency has agreed to help in identifying the benefits of the brand, its target audience, the best competitive positioning, and developing a complete plan. In such a scenario, which of the following services is the agency offering? a. Media buying services b. Billing services c. Account services d. Marketing services 85. Which of the following is true of crowdsourcing? a. It refers to managing the supply chain system in a way that will most effectively reach the target markets. b. It aims at getting consumers more involved with and committed to a brand. c. It indicates the process of describing the firm’s objectives for the brand in the near term and long term. d. It refers to passive, intrusive advertising. 86. Harper & Kane advertising agency sets an hourly rate for the services it provides to its clients. This rate is based on the average salary of all the members in the creative department. Harper & Kane uses the __________ system. a. commission b. cost-plus c. markup charge d. fee

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Chap 02_8e 87. Websites frequented by individuals with common interests where they can post facts, opinions, and personal experiences are known as _______. a. paywalls b. blogs c. infomercials d. creative boutiques 88. ___________ help firms in creating the visual impression of its advertising material. a. Sales promotion agencies b. Fulfillment centers c. Designers d. Bloggers 89. With media clutter and fragmentation: a. integrated brand is all the more important. b. the probability of any one advertisement making a real difference has increased manifold. c. there are very few media choices available to advertisers. d. promotion options are no longer attractive to advertisers. 90. What is crowdsourcing? Explain.

91. Describe the role that advertisers play for trade resellers.

92. List and describe the four methods of agency compensation.

93. Describe any three types of services commonly offered by advertising and promotion agencies.

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Chap 02_8e Answer Key 1. False 2. True 3. True 4. True 5. True 6. True 7. True 8. True 9. False 10. False 11. True 12. False 13. True 14. False 15. True 16. True 17. True 18. False 19. False 20. True 21. False 22. False 23. True 24. False 25. False 26. False

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Chap 02_8e 27. False 28. True 29. False 30. False 31. c 32. a 33. c 34. b 35. c 36. d 37. d 38. d 39. b 40. d 41. a 42. a 43. a 44. d 45. a 46. a 47. b 48. d 49. a 50. c 51. b 52. b 53. c 54. d Copyright Cengage Learning. Powered by Cognero.

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Chap 02_8e 55. d 56. d 57. c 58. c 59. d 60. a 61. c 62. d 63. d 64. a 65. b 66. d 67. c 68. c 69. c 70. c 71. b 72. d 73. a 74. a 75. b 76. a 77. a 78. b 79. b 80. c 81. b 82. c Copyright Cengage Learning. Powered by Cognero.

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Chap 02_8e 83. d 84. c 85. b 86. d 87. b 88. c 89. a 90. Crowdsourcing involves the online distribution of certain tasks to groups (crowds) of experts, enthusiasts, or even consumers. The idea behind crowdsourcing is to get consumers more involved with and committed to a brand in a way that passive, intrusive advertising simply cannot. Consumers help “build the brand” with recommendations for features or even advertising campaign images. They also can communicate about the brand to audiences in ways that seem natural and credible— something corporate-launched advertising struggles with. 91. A trade reseller is a general description for all organizations in the marketing channel of distribution that buy products to resell to customers. Resellers can be retailers, wholesalers, or distributors. These resellers deal with both household consumers and business buyers at all geographic market levels. Retailers that sell in national or global markets are the most visible reseller advertisers and promotion users. Regional retail chains, typically grocery chains or department stores serve multistate markets and use advertising suited to their regional customers. At the local level, small retail shops of all sorts rely on social and digital media, newspaper, radio, television, and are a completely different breed of reseller. Technically, these types of companies deal only with business customers, since their position in the distribution channel dictates that they sell products either to producers (who buy goods to produce other goods) or to retailers (who resell goods to household consumers). Wholesalers and distributors have little need for mass media advertising over media such as television and radio. Rather, they use trade publications, directory advertising such as the Yellow Pages and trade directories, direct mail, personal selling, and their Internet websites as their main advertising media. This has been revolutionized by digital media, which has in some cases largely replaced much printed material.

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Chap 02_8e 92. Commission system: The traditional method of agency compensation is the commission system, which is based on the amount of money the advertiser spends on media. Under this method, 19 percent of the total amount billed by a media organization is retained by the advertising or promotion agency as compensation for all costs in creating advertising/promotion for the advertiser. The only variation is that the rate typically changes to 16 percent for outdoor media. This is a traditional system, and not all agencies use it. Markup charges: This method of agency compensation adds a percentage markup charge (sometimes referred to as cost-plus) to a variety of services the agency purchases from outside suppliers. In many cases, an agency will turn to outside contractors for art, illustration, photography, printing, research, and production. The agency then, in agreement with the client, adds a markup charge to these services. F ee system: A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on an hourly rate for different services provided. The hourly rate can be based on average salaries within departments or on some agreed-on hourly rate across all services. This is the most common basis for promotion agency compensation. Pay-for-results: Many advertisers and agencies alike have been working on compensation programs called pay -forresults or incentive-based compensation that base the agency’s fee on the achievement of agreed on results. 93. The types of services commonly offered by advertising and promotion agencies are as follows: Account Services: These services are offered by managers who have titles such as account executive, account supervisor, or account manager and who work with clients to determine how the brand can benefit most from advertising and IBP. Account services entail identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan. Marketing Research Services: Research conducted by an agency for a client usually consists of the agency locating studies (conducted by commercial research organizations) that have bearing on a client’s market or advertising and IBP objectives. The research group will help the client interpret the research and communicate these interpretations to the creative and media people. Creative Services: The creative services group in an agency comes up with the concepts that express the value of a company’s brand in interesting and memorable ways. In simple terms, the creative services group develops the message that will be delivered through advertising, sales promotion, direct marketing, social networks, mobile marketing, event sponsorship, or public relations.

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Chap 03_8e Indicate whether the statement is true or false. 1. In the late 1880s, a few companies began putting names and labels on previously unmarked products, and branding began. a. True b. False 2. By 1900, an increase in the supply of mass-produced goods, and the increasing demand for these goods by a growing urban population, led to the growth of advertising. a. True b. False 3. Advertisers responded to the Depression by adopting a soft, feminine style in their ads. a. True b. False 4. Advertising changed commerce, but not society. a. True b. False 5. The media revolution was a period during which advertising started to take on the themes, language, and look of the revolutionary 1960s. a. True b. False 6. Mass media is not supported by advertising. a. True b. False 7. Hershey’s and Pepsi were some of the first branded goods found on store shelves. a. True b. False 8. The first regulatory initiative by the federal authorities was the Pure Food and Drug Act, which required manufacturers to use the healthiest ingredients possible. a. True b. False 9. Advertisements during the 1980s reflected “traditional” American values. a. True b. False

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Chap 03_8e 10. Advertising in the early 1800s was widely considered a luxury or something only for wealthy businesses and businesspeople. a. True b. False 11. The mid-1990s presented insecure moments for advertisers heavily invested in traditional advertising. a. True b. False 12. In the 1970s, there was a growing concern over what effect $200 million a year in advertising had on children. a. True b. False 13. In the 1980s, the Saatchi and Saatchi ads were primarily politically neutral. a. True b. False 14. The rise of capitalism was one of the four major factors that gave rise to advertising. a. True b. False 15. E-business is a form of e-advertising in which companies sell to household consumers. a. True b. False 16. In the 1700s, a middle class, spawned by the rise of regular wages from factory jobs, was beginning to emerge. a. True b. False 17. Men became the major target of advertisers in the 1920s because they were the head of households and made most purchase decisions. a. True b. False 18. In the late 1800s, consumers were willing to pay more for brands than for unmarked commodities, even if they were identical. a. True b. False 19. After WWII and into the 1950s, ads began to take on an air of self-awareness, conveying the sentiment that “you know it’s an ad and so do we.” a. True b. False

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Chap 03_8e 20. The prewar movement to reform and regulate advertising was dissipated in the 1920s by the distractions of war and advertising’s role in the war effort. a. True b. False 21. With the invention of the telegraph in 1844, a communication revolution was set in motion. a. True b. False 22. Branded entertainment gets lesser First Amendment protection than ordinary advertising does. a. True b. False 23. In the 1970s, cable programming grew in quality with several viewing options, and advertisers learned how to reach more specific audiences. a. True b. False 24. During the 1920s, "fantasy" advertisements dominated the ad industry. a. True b. False 25. Manufacturers were required to list the active ingredients in their products after the creation of the Pure Food and Drug Act in the early 1900s. a. True b. False 26. In the 17th century, printed advertisements were published in newsbooks. a. True b. False 27. When the Western world turned to capitalism as the foundation of its economic system, the foundation was NOT suited for advertising. a. True b. False 28. Advertising was highly regulated during the industrial era, which limited the scope for advertisers to come up with creative ads. a. True b. False 29. During the 1950s, a renewed consumer culture resumed, and advertising once again found the respectability and fame it had in its heyday of the 1920s. a. True b. False

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Chap 03_8e 30. The Great Depression was an economic force that yielded the need for advertising. a. True b. False 31. During the widespread poverty of the Great Depression, most segments of the population believed in the power of advertising. a. True b. False 32. In the mid-1800s, mass-circulation magazines began to make national advertising possible, and national advertising began to make national brands possible. a. True b. False Indicate the answer choice that best completes the statement or answers the question. 33. By the late 1960s, advertisers had realized that advertisements had become: a. uncreative. b. ineffective to increase the sale of products. c. a symbol of consumption. d. purely informational in nature. 34. (Scenario 3-5) During which period did product show blends for products such as the Strawberry Shortcake toy make regulation more difficult and enrage regulators? a. World War II and the 1950s b. The Designer Era c. The 1970s d. Peace, Love, and Creative Revolution 35. Which of the following is true of branded entertainment? a. It blends advertising and integrated brand promotion with entertainment. b. It is a subset of product placement. c. It uses solely television programming to create entertainment. d. It is also known as consumer-generated content. 36. How were women depicted by advertisers in the 1950s? a. As free spirits with new-found equality and respect b. As prominent members of the business community c. As leading men in large multinational companies d. As following strict gender roles and sexual norms

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Chap 03_8e 37. (Scenario 3-1) If an advertisement for Ivory soap was reflective of the style of ads during the period known as the “P.T. Barnum Era,” it would: a. consist of exaggerated claims. b. have extensive photography. c. reflect conservative values. d. use very limited copy. 38. (Scenario 3-4) A recent advancement makes the use of various forms of advertising more desirable because it allows the amount of ad exposure and impact to be directly measured, and allows companies such as P&G and Walmart to measure the success of their experimental methods. This advancement is in: a. print media. b. subliminal advertising. c. broadcast media d. interactive media. 39. The expansion of newspaper circulation in America was fostered by: a. traveling circuses, carnivals, and theatrical performances. b. increased interest among readers for television program listings. c. extended railroads and growing urban centers. d. highly differentiated but unbranded products. 40. During the 1950s, Americans began to fear: a. that they were being seduced by subliminal advertising. b. that ads were not based on modern science. c. purchasing unbranded goods. d. that the consumer culture was disappearing. 41. (Scenario 3-2) During the creative revolution, advertising: a. was dominated by subliminal advertising. b. reverted back to focusing on the product instead of the brand. c. became aware of its own role in consumer culture. d. reaffirmed gender roles and sexual norms. 42. (Scenario 3-1) To which of the following eras does Ivory soaps belong? a. The preindustrialization era b. The industrialization era c. The P.T. Barnum era d. The Great Depression

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Chap 03_8e 43. Which of the following was a result of the principle of limited liability gaining acceptance in the 1840s? a. Lower number of businessmen investing money in ventures b. Higher risk for investors in business ventures c. Lower risk of losing shares in a corporation for businessmen d. Accumulation of large amounts of capital to finance the Industrial Revolution 44. (Scenario 3-5) Ads that first showed the “male” domain as the office and the “feminine” space as the home were a part of the _____ era. a. World War II and the 1950s b. Great Depression c. 1920s d. peace, love, and the creative revolution 45. For advertisers, one main difference between the period immediately after World War I and the period immediately following World War II was that, after World War I, . a. advertising was distrusted by people b. rigid government regulations were established for ads c. ads were classy and sophisticated d. ads were subtle and clutter-free Scenario 3-1 In the early and mid-1800s, soaps were made from animal fats. The perishable quality of the soap, however, meant that manufacturers could only sell a product with regional appeal. This changed when soap makers began to use vegetable fats and perfume in the soap-making process. According to Procter & Gamble, one batch of this vegetable-based soap was left to mix too long. The result was a product that floated in water due to an excess amount of air. The company turned this into a selling point and, in 1882, launched one of the first soaps with the potential for national sales—Ivory soap—with the slogans “It floats” and “99-44/100 percent pure.” 46. (Scenario 3-1) Jump to modern times: If the Ivory soap was doing product placement in a television show, what is that an example of in today’s world? a. Magazines b. Newsbooks c. Branded entertainment d. Radio broadcasts 47. (Scenario 3-5) Which of the following is true of advertising during the 1980s? a. It was dominated by Internet adverting and other e-brand promotions. b. Television advertising was influenced by rapid cuts with a very self-conscious character. c. New interactive media allowed direct measurement of ad exposure and impact. d. E-commerce and m-commerce changed the way people shop.

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Chap 03_8e 48. By the early 1900s, the “power of advertising” was based on the reality that consumers: a. believe that branding was no longer the norm. b. like durable, reliable products with a no-frills advertising style. c. are willing to pay more money for brands. d. see advertising suspiciously that tempt them into excessive consumption. 49. Which of the following is true about advertising in the industrialization era? a. Banks considered advertising to be a sign of financial weakness. b. Strict laws on advertising prevented advertisers from lying about their products. c. Advertising was considered as prestigious by most segments in a society. d. Advertisements appeared solely in the form of newsbooks. 50. In the mid-1800s, advertising was done primarily through ______. a. radio broadcasts b. dailies c. infomercials d. magazines 51. During which of the following eras did consumer culture become the new normal, a permanent central feature of society? a. The Depression (1929 to 1941) b. World War II and the 1950s (1942 to 1960) c. The Preindustrialization Era (Pre-1800) d. The Era of Industrialization (1800 to 1875) 52. The 1970s was America’s age of a. self-doubt b. class consciousness c. adopting traditional values d. serious, meaningful ads

, and the advertising of the time reflected this.

53. In today’s age of Web 2.0: a. companies find consumers primarily through mass exposure. b. firms have replaced all pull strategies with push strategies. c. consumers have much lesser access to information. d. consumers can communicate with each other. 54. Which of the following is true about advertisements in the preindustrialization era? a. The advertisements were published in magazines. b. The advertisements in dailies were the most popular. c. The advertisements ushered in a dominant consumer culture. d. The messages were informational in nature.

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Chap 03_8e 55. By the late 1800s, manufacturers were developing brand names. This helped them: a. steer clear from advertising their products. b. lower their economies of scale. c. gain power. d. lower their prices of products. 56. Which of the following is true about advertising during the period between 2000 to the present? a. Traditional advertising gained a stronger foothold than ever before. b. Interactive media hindered the direct measurement of ad exposure and impact. c. Consumer-generated content, e-business, and ad blockers became key aspects of the IBP industry. d. The Internet was able to yield precise measurements of ROI in advertisement. 57. During the 1970s, the demanded a higher standard of honesty and disclosure from the advertising industry. a. NationalSecurityCouncil b. Federal Reserve Board c. Action for Children’s Television d. Federal Trade Commission 58. (Scenario 3-5) Ads in the designer era . a. were about public consumption status a. were about public consumption status b. were free from the influence of the rapid-cut editing style of MTV c. focused on modern, contemporary values d. rebelled against traditional American values 59. Who added to the fear and hysteria over advertising in the 1950s? a. Bruce Barton and his book called The Man Nobody Knows b. Helen Resor and James Webb Young from the J. Walter Thompson advertising agency c. James Vicary’s false claim about the effect of subliminal messages d. Heads of advertising agencies, Leo Burnett and David Ogilvy Scenario 3-5 Jerome Brown is a student of marketing and advertising at a small college in the Midwest. He has been given the task of researching the history of modern advertising as a part of a group presentation. Jerome is sitting in the school’s library, carefully looking at a wide variety of magazine ads of different time periods of the 20th century to try to understand how advertising has evolved. Here are some descriptions of the ads that he finds: 60. (Scenario 3-5) Ads of a particular era focused on the product itself, using lots of copy while lacking the real-world context of accurate information. This is a dominant characteristic of the era. a. designer b. peace, love, and the creative revolution c. World War II and the 1950s d. P.T. Barnum Era

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Chap 03_8e 61. (Scenario 3-2) The “Lemon” ad is characteristic of the style of advertising for which the creative revolution is known. The ad can be described as having a: a. well-researched, hard-sell approach. b. simple style and self-effacing humor. c. complex, intelligent execution. d. dense copy with incredible claims. 62. Which of the following is true about advertising during the Great Depression? a. Advertising found respectability, fame, and glamour during this era. b. Consumers believed that ads helped them choose the right product. c. Advertisers adopted a tough, no-frills advertising style. d. Consumers believed blindly in advertisements and brands. 63. How did early marketers establish a degree of power with their brands? a. By getting consumers to identify them and pay higher prices for them b. By creating normal and ordinary products so that consumers would easily accept them c. By motivating general stores and grocers to replace branded products with unmarked products d. By reducing their prices of products 64. Beginning in 1938, the U.S Congress began to pass real advertising reform, including a law banning “deceptive acts of commerce.” This meant that advertisers were now: a. expected to promote family values. b. banned from advertising cigarettes and alcohol. c. held liable for making false claims. d. banned from using inappropriate sexual content. 65. During which era were big businesses and advertising viewed with suspicion? a. The Depression (1929 to 1941) b. 1920s (1918 to 1929) c. The P.T. Barnum Era (1875 to 1918) d. The Designer Era (1980 to 1992) 66. Which of the following is a major factor that gave rise to advertising? a. The industrial revolution b. The rise of socialism c. The reduced importance of branding d. The rise of social media

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Chap 03_8e 67. Which of the following were among the four agencies most noted for their role in the creative revolution of the 1960s? a. Doyle Dane Bernbach and Wells Rich and Green b. J. Walter Thompson and N. W. Ayer c. BBDO d. Ted Bates agency and Lord and Thomas 68. Which of the following advertising agencies dominated the 1920’s ad industry? a. Doyle Dane Bernbach b. J. Walter Thompson c. Leo Burnett d. Wells Rich and Green 69. During the 1840s, the _______ emerged as a way for individuals to reduce the risk of the loss of personal wealth when investing in business ventures a. creation of business insurance b. principle of limited liability c. concept of dividend distribution d. process of double taxation 70. During the , advertising messages were primarily informational in nature. a. preindustrialization era (pre-1800) b. designer era (1980 to 1992) c. P.T. Barnum era (1875 to 1918) d. 1920s (1918 to 1929) 71. In the mid-1990s, William T. Esrey, chairman and CEO of Sprint, announced that clients were going to hold ad agencies more closely accountable than ever before. He said this because: a. billing scandals had undermined the confidence of advertisers in their agencies. b. interactive media was being replaced by the wide range of traditional media. c. the technology to measure advertising’s impact had improved. d. the fundamental reasons to advertise had changed. 72. (Scenario 3-1) One effect of the passage of the Pure Food and Drug Act of 1906 was that: a. Ivory soap had to become hundred percent pure. b. advertising claims for products like Ivory soap became strictly regulated. c. the manufacturer of Ivory soap had to list its ingredients on the label. d. branded products like Ivory had to trademark their brand names.

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Chap 03_8e 73. (Scenario 3-2) One notable characteristic of the creative revolution was that: a. it immediately started responding to the massive social revolution. b. advertising played a role in discouraging consumption. c. art directors and copywriters began to have more say over how agencies were run. d. advertising as an institution was unaware of its own role in consumer culture. 74. The foundation was laid for advertising to become a prominent part of the business environment when the Western world turned to as the foundation of economics. a. socialism b. communism c. capitalism d. syndicalism 75. Why did women become the primary target for advertisers in the 1920s? a. They enjoyed a significantly higher standard of living than men. b. They made most of the purchasing decisions for the household. c. Public pleasure was considered more of a sin than in the Victorian era. d. The chain of needs existed mainly more women, and not men. 76. (Scenario 3-3) With reference to the era in which Zooppa was formed, Zooppa's advertisements would most likely be: a. deceiving and filled with false facts. b. patriotic and centered on consumption. c. bold and carnival-esque. d. creative and revolutionary. 77. _______ became the biggest word of the 1970s, a word that was integrated into the promotional themes of the decade. a. “We” b. “Society” c. “Me” d. “Modern” 78. Ads in the 1920s showed slices of life in a way that depicted: a. garish designs illustrating unrealistic situations. b. ads that were purely informational in nature. c. how consumers should have a good time. d. less visual ads than in the past.

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Chap 03_8e 79. One of the changes seen in advertising during the 1980s was the: a. growth and impact of British agencies. b. fear of subliminal advertising. c. advent of documentary advertising. d. separation of business and politics. 80. (Scenario 3-4) Branded entertainment has become popular in recent years because of its many advantages. One of its main advantages is that: a. it can avoid consumers’ well-trained avoidance mechanisms to advertisements. b. it is looked at as commercial speech rather than artistic speech and is protected by the first amendment. c. it is required to go through all the ad regulations. d. it enables the traditional advertising industry to become clutter-free. Scenario 3-3 Zooppa, a pharmaceutical company, started its business in 1850. Its advertisements helped their drugs to grow in popularity and were well-known for a brief period. The company had developed a logo and had made itself known by this symbol on all of its product wrappers. 81. (Scenario 3-3) Which of the following eras would Zooppa belong to? a. The industrialization era b. The P.T. Barnum era c. The preindustrialization era d. The era of Great Depression 82. During which era of advertising did consumers first begin to surround themselves with devices related to communication? a. The 1970s (1973 to 1980) b. Peace, Love, and the Creative Revolution (1960 to 1972) c. World War II and the 1950s (1942 to 1960) d. The Depression (1929 to 1941) 83. One of the elements that characterizes present day advertising is that consumers: a. rely more on advertisers and agencies for information. b. are empowered. c. are no longer brand-conscious. d. can no longer co-create brand messages like before. 84. Which of the following is true about the designer era of advertising? a. It was marked by the advent of the Internet. b. Ads no longer reflected traditional values. c. Consumers preferred unbranded products over branded products. d. Ads openly promoted consumption, but in a conservative way.

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Chap 03_8e 85. (Scenario 3-3) With reference to the era in which Zooppa was formed, which of the following mediums of advertisement would most likely be utilized? a. Radio b. Cable television c. Magazines d. Dailies 86. National firms started putting names on their products because: a. it would increase the economies of scale of their product. b. their incomes were protected by the principle of unlimited liability. c. brands commanded a higher price than commodities. d. strict government regulations required them to do so. 87. Which of the following is true about advertisements in the 1960s? a. The emphasis in advertising turned from creative products to ancillary services. b. Advertising discouraged consumption and was no longer a symbol of consumption. c. The advertisements were bold, garish, and carnival-esque. d. There was an emphasis on art, inspiration, and intuition. 88. A certain form of a commercial message is seen by courts as artistic speech, not as the less protected “commercial speech.” , therefore, gets more First Amendment protection than ordinary advertising does. a. Print ads b. Radio slots c. The information on a product label d. Branded entertainment 89. In the 1990s, the measurement of ROI in advertising was a. elusive b. accurate c. irrelevant d. precise

90. Although technology has brought in some game-changers,: a. advertising is no longer a paid attempt to persuade. b. firms reject traditional advertising. c. advertising is no longer a primary marketing mix tool that contribute to revenues. d. not everything about advertising has fundamentally changed. 91. During the preindustrialization era, advertisements appeared in a. magazines b. dailies c. newsbooks d. periodicals Copyright Cengage Learning. Powered by Cognero.

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Chap 03_8e Scenario 3-4 Procter & Gamble, one of the world’s largest spenders in advertising and branding, teamed up with Walmart and NBC to create a number of prime-time family movies produced by P&G Productions. The films were designed to lure consumers to buy P&G products at Walmart using original family movies and exclusive ad buys. This was not the first time the two major brands teamed up to push family oriented entertainment—in the late 1990s, both companies were launch members of the Association of National Advertisers' Alliance for Family Entertainment—the organization responsible for getting the WB’s Gilmore Girlson air. The two have each found great success as a result of the movies, with each seeing an increase both in sales and brand favorability scores. Both companies have expressed strong interest in continuing their working partnership down the road, and as long as they continue to encounter favorable results, the relationship will likely remain a positive one. 92. (Scenario 3-4) During the P.T. Barnum era, life in the United States began to change rapidly. Consumers began taking pride in their ability to purchase material goods, and advertising efforts became far more important. This new purchase-oriented attitude is commonly referred to as: a. the progressive movement. b. differentiation. c. consumer culture. d. brand entertainment. 93. (Scenario 3-4) The partnership between P&G and Walmart to create family-oriented movies is an example of: a. e-business. b. consumer empowerment. c. interactive media. d. branded entertainment. 94. Ads in the designer era were marked by . a. social-class consciousness b. values that limited consumption and considered it irreligious c. rebellion, youth, and revolution d. values that conflicted with traditional American values 95. Which of the following types of advertisements evolved during the 1920s? a. Demonstration b. Research-based c. Endorsement d. Slice-of-life 96. (Scenario 3-1) By 1900, shortly after Ivory soaps were originally branded, . a. advertising was generally distrusted and looked at with suspicion b. the consumer culture was replaced by minimalist lifestyles c. the branding of products became the norm d. the period was marked by the advent of dailies

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Chap 03_8e 97. Ads for products during the “P.T. Barnum Era” (1875 to 1918) were characterized by: a. a bold and garish style filled with incredible claims. b. a no-frills advertising style. c. simple ads with information and truthful claims. d. informational messages in the dailies. Scenario 3-2 When referring to the period of advertising known as the creative revolution, advertising pundit and practitioner Jerry Della Femina wrote, “Volkswagen was being handled in the United States by Fuller & Smith & Ross. Doyle Dane took over the account around 1959. One of the first ads that came out for Volkswagen was the first ad that anyone can remember when the new agency style came through with an entirely different look. The ad simply said, ‘Lemon.’ The copy for ‘Lemon’ said that once in a while we turn out a car that’s a lemon, in which case we get rid of it. We don’t sell them. And we are careful as hell with our cars, we test them before we sell them, so the chances are you’ll never get one of our lemons. “For the first time in history an advertiser said that he was capable, on rare occasions, of turning out an inferior product . . . By today’s standards, of course, this is pretty tame stuff.” (Jerry Della Femina, From Those Wonderful Folks Who Gave You Pearl Harbor, [New York: Simon and Schuster, 1970], 26-27.) 98. (Scenario 3-2) Which one of the following is an accurate description of the era in which Bill Bernbach created the Volkswagen campaign? a. The ads were filled with wild and unsubstantiated claims. b. The focus was on clean and minimalist advertising. c. Advertising was motivated by the need to sell the vastly increased supply of goods. d. Radio was the only advertising medium available to advertisers. 99. What medium of advertising expanded and evolved during the Great Depression? Describe its role during the 1930s.

100. What is consumer-generated content and branded entertainment, and why are they key parts of the most recent era (2000-present) of advertising and IBP?

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Chap 03_8e 101. Describe how the Industrial Revolution was a major factor that gave rise to advertising.

102. Outline the characteristics of the era of industrialization.

103. Explain how advertising in the late 1960s had changed in meaningful ways.

104. How did Americans view advertising after WWII? What overall emotions arose after WWII and how did ad agencies play on these sentiments?

105. How did the advertising industry of the 1920s undergo major changes as it evolved into the very different industry of the 1930s? Describe the change in consumer perception that occurred and the reasons for these social shifts.

106. What is an ad blocker, and how can this be considered a big part of advertising history?

107. What is e-business, and how is this a part of our history in the ad and IBP industry?

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Chap 03_8e Answer Key 1. True 2. True 3. False 4. False 5. False 6. True 7. False 8. False 9. True 10. False 11. True 12. True 13. False 14. True 15. False 16. False 17. False 18. True 19. False 20. True 21. True 22. False 23. True 24. False 25. True 26. True

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Chap 03_8e 27. False 28. False 29. False 30. False 31. False 32. True 33. c 34. c 35. a 36. d 37. a 38. d 39. c 40. a 41. c 42. c 43. d 44. c 45. a 46. c 47. b 48. c 49. a 50. b 51. b 52. a 53. d 54. d Copyright Cengage Learning. Powered by Cognero.

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Chap 03_8e 55. c 56. c 57. d 58. a 59. c 60. d 61. b 62. c 63. a 64. c 65. a 66. a 67. a 68. b 69. b 70. a 71. c 72. c 73. c 74. c 75. b 76. a 77. c 78. c 79. a 80. a 81. a 82. a Copyright Cengage Learning. Powered by Cognero.

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Chap 03_8e 83. b 84. d 85. d 86. c 87. d 88. d 89. a 90. d 91. c 92. c 93. d 94. a 95. d 96. c 97. a 98. b 99. A notable event during ion years was the emergence of radio as a significant advertising medium. During the 1930s, the number of radio stations rose from a handful to 814 by the end of the decade, and the number of radio sets in use more than quadrupled to 51 million. Radio was in its heyday as a news and entertainment medium. An important aspect of radio was its ability to create a sense of community in which people thousands of miles apart listened to and became involved with their favorite radio soap opera, so named in reference to the soap sponsors of these shows. Radio’s contribution to advertising history should not be underestimated, it not only ushered in the idea of broadcasting, but it also socialized consumers to depend on a connection to distant characters, programs, brands, and the idea that there were other people “out there” who shared this connection—a mass audience. Voices of radio friends from afar made good company particularly during hard times. 100. Consumer-generated content is a big part of industry change; it is when consumers, or non advertising nor related industry professionals create content such as videos, art, or even ads. Often this content relates to brands, as it showcases them or can have fun with brands, such as with memes. Consumers now cocreate brands and messages in a meaningful way, and can share such via social media and digital channels more easily with newer technologies. Meanwhile, branded entertainment is the blending of advertising and IBP with entertainment- namely film, music, and TV or video programming. A subset of it is product placement. It is of value to note these historic changes, as there is a deep value in understanding fundamentals in the field, which may not fundamentally change as much as technology has.

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Chap 03_8e 101. The Industrial Revolution was an economic force that yielded the need for advertising. It took Western societies away from household self-sufficiency as a method of fulfilling material needs to dependency on a marketplace as a way of life. It was a basic force behind the rapid increase in mass-produced goods that required stimulation of demand— something that advertising can sometimes be good at. By providing a need for advertising, the Industrial Revolution was a basic influence in its emergence and growth in Western economies. Part of the Industrial Revolution was a revolution in transportation, dramatically symbolized by the east–west connection of the United States in 1869 by the railroad. This connection represented the beginnings of the distribution network needed to move the mass quantities of goods for which advertising would help stimulate demand. In the 1840s, the principle of limited liability gained acceptance and resulted in the accumulation of large amounts of capital to finance the Industrial Revolution. Rapid population growth and urbanization began taking place in the 1800s. Modernity gave rise to both urbanism and advertising. Overall, the growth and concentration of population provided the marketplaces that were essential to the widespread use of advertising. As the potential grew for goods to be produced, delivered, and introduced to large numbers of people residing in concentrated areas, the stage was set for advertising to emerge and flourish. 102. Users of advertising in the mid-to late 1800s were trying to cultivate markets for growing production in the context of an increasing urban population. A middle class, spawned by the rise of regular wages from factory jobs, was beginning to emerge. This newly developing population with the economic means to consume was concentrated geographically in cities. By 1850, circulation of the dailies, as newspapers were then called, was estimated at 1 million copies per day. With the expansion of newspaper circulation fostered by the railroads and growing urban centers, a new era of opportunity emerged for advertising. Further, there were virtually no laws or regulations to restrict advertisers from saying or doing anything they cared to. Advertisers could outright lie, deceive, and otherwise cheat with little or no threat of being punished by government. Many advertisers took advantage of the situation and advertising was commonly considered an embarrassment (or worse) by many segments of society. At one point, firms even risked their credit ratings if they used advertising— banks considered the practice a sign of financial weakness. 103. In the late 1960s, advertising had finally changed in meaningful ways. For one, it became fairly self-aware. Advertising admitted being advertising. Ads during the late 1960s and into the early 1970s conveyed the sentiment, “ok, here’s an ad, you know it’s an ad—and so do we.” Advertising began to trade on insider status (we’re all in on it)—making fun of the straight and now silly ads of the 1950s and by playing to a sense of irony.

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