1) Advertising is best defined as
A) marketing
B) a paid form of marketing communication designed to influence thought patterns and purchase behavior
C) a subsection of business
D) a sales tool designed to elicit an immediate response from consumers
E) a media division within a marketing department
Answer: B
Diff: 1 Type: MC Page Ref: 4
Skill: Recall
2) Social media platforms such as Facebook and Twitter have changed the nature of communications between an organization and the public because
A) social media can only deliver brief and simple advertising messages
B) social media communications must be designed to resonate with millennials
C) social media communications are a two way affair where the goal is to engage consumers
D) Facebook and Twitter are declining in popularity
Answer: C
Diff: 1 Type MC Page Ref: 5
Skill: Recall
3) A story about a company product in a newscast or newspaper that is not paid for by the company is an example of which form of integrated marketing communications?
A) advertising
B) sales promotion
C) public relations
D) event marketing
E) sponsorship
Answer: C
Diff: 2 Type: MC Page Ref: 11
Skill: Applied
4) Changes in consumer behaviour related to media consumption dictate that a media plan must include
A) primetime television
B) a strong internet presence
C) direct response marketing
D) event marketing
E) sponsorship
Answer: B
Diff: 3 Type: MC Page Ref: 5
Skill: Applied
5) A main reason advertisers do not advertise more on social media is
A) too expensive
B) not sure which social media to use
C) return on investment is difficult to measure
D) traditional media work best
E) it is not interactive
Answer: C
Diff: 3 Type: MC Page Ref: 10
Skill: Recall
6) You would use sales promotion to
A) increase the product mix
B) encourage an immediate response from consumers
C) increase advertising dollars
D) improve distribution
E) increase the use of the media
Answer: B
Diff: 3 Type: MC Page Ref: 13
Skill: Recall
7) When Redbull sends out teams to hand out samples, the company is using which marketing communications tool?
A) advertising
B) trade promotion
C) experiential marketing
D) public relations
E) interactive communications
Answer: C
Diff: 3 Type: MC Page Ref: 12
Skill: Applied
8) Integrated Marketing Communications (IMC) involves:
A) the coordination of all forms of marketing into a unified program that maximizes the impact on customers
B) consolidation of marketing efforts between competitors
C) empowerment by the marketing agency to make all program decisions
D) exclusive use and focus on social media only as a marketing strategy
Answer: A
Diff: 2 Type: MC Page Ref: 6
Skill: Recall
9) The United Way's campaign about helping the homeless is an example of
A) consumer advertising
B) retail advertising
C) advocacy advertising
D) direct-response advertising
E) end-product advertising
Answer: C
Diff: 2 Type: MC Page Ref: 8
Skill: Applied
10) Bell Canada’s “Let’s Talk” program on Let’s Talk Day donates 5 cents for every text or long distance call made by Bell customers. This is an example of
A) consumer advertising
B) retail advertising
C) advocacy advertising
D) direct-response advertising
E) end-product advertising
Answer: C
Diff: 2 Type: MC Page Ref: 8
Skill: Applied
11) People are going online and discussing their experiences with products they have used. This activity takes place on
A) television
B) radio
C) magazines
D) billboards
E) social media
Answer: E
Diff: 1 Type: MC Page Ref: 9
Skill: Applied
12) The critical time for marketing communications in the product life cycle is during
A) the mature stage
B) the introduction and growth stages
C) the introduction stage
D) the growth stage
E) the mature and decline stages
Answer: B
Diff: 2 Type: MC Page Ref: 15
Skill: Recall
13) The internet is direct and interactive and consumers are spending more and more time with it. The next big area for advertising growth is
A) out of home media
B) product placement in mainstream movies
C) word of mouth promotions
D) mobile communications
Answer: D
Diff: 1 Type: MC Page Ref: 8
Skill: Recall
14) The most common way to show competitive advantage is to
A) sell more products
B) demonstrate product superiority
C) avoid innovation
D) keep prices low
E) match the competition
Answer: B
Diff: 1 Type: MC Page Ref: 18
Skill: Recall
15) A recent phenomenon is the progressive use of lifestyle association in advertising. This involves
A) scientific demonstrations
B) product comparisons
C) emotional appeals
D) price comparisons
E) logical appeals
Answer: C
Diff: 3 Type: MC Page Ref: 20
Skill: Applied
16) Often the Public Relations Department of an organization is responsible for building and maintaining a positive image of a company with its various publics. This is called
A) advocacy advertising
B) sponsorship advertising
C) corporate advertising
D) end-product advertising
E) direct-response advertising
Answer: C
Diff: 2 Type: MC Page Ref: 8
Skill: Applied
17) Public Relations involves
A) a variety of activities that an organization undertakes to influence the attitudes, opinions, and behavior of interest groups towards an organization
B) direct response campaigns targeting a broad spectrum of customers
C) ongoing communication with customers that demonstrate high loyalty
D) acquisition of new customers through advocacy advertising
Answer: A
Diff: 2 Type: MC Page Ref: 11
Skill: Applied
18) In reaching today's multi-tasking consumer who is active in several media at the same time, advertisers must consider
A) the impact of PVRs on television viewing
B) developing a stronger billboard presence
C) placing messages at a time and place where the consumer is engaged
D) embedding product messages into the scripts of TV shows
E) increasing the media placement budget
Answer: C
Diff: 2 Type: MC Page Ref: 22
Skill: Applied
19) Research shows that social media are effective in building market share when
A) advertising is a pop- up
B) long advertising videos are shown on YouTube
C) the audience can purchase immediately after seeing the advertising on the internet
D) celebrities endorse the social media advertising
E) customers share their positive opinions
Answer: E
Diff: 2 Type: MC Page Ref: 24
Skill: Applied
20) Social media’s high level of influence in Canada results from
A) use of social media by more than 80% of the population
B) strong connectivity to the internet by most Canadians
C) increased use of mobile devices
D) Canada’s high-tech economy
Answer: A
Diff: 2 Type: MC Page Ref: 24
Skill: Applied
21) Advertising's primary role is to
A) influence the behaviour of a target market
B) induce trial purchase
C) increase demographic sales
D) increase multicultural awareness
E) reduce media costs
Answer: A
Diff: 1 Type: MC Page Ref: 3
Skill: Recall
22) Assuming that consumers develop a favourable attitude toward a specific service or brand, advertising can be both
A) informative and multi-cultural
B) informative and segmented
C) persuasive and direct response
D) informative and persuasive
E) informative and negative
Answer: D
Diff: 2 Type: MC Page Ref: 5
Skill: Applied
23) Advertising is just one component of marketing communications, along with
A) personal selling
B) product and distribution
C) price
D) media planning
E) budgeting
Answer: A
Diff: 1 Type: MC Page Ref: 7
Skill: Recall
24) Advertising opportunities on the internet include
A) billboard advertising
B) television advertising
C) display advertising
D) public relations
E) radio advertising
Answer: C
Diff: 3 Type: MC Page Ref: 9
Skill: Applied
25) For news and commercial messages, today's consumers are more reliant on
A) television
B) internet and mobile digital technology
C) newspapers
D) satellite radio
E) magazines
Answer: B
Diff: 2 Type: MC Page Ref: 22
Skill: Recall
26) When East Side Mario’s used advertising to communicate their new menu, its primary aim was to
A) sell products to New Yorkers
B) rejuvenate a mature product
C) associate with New York
D) stress its hidden qualities
E) demonstrate its superiority
Answer: B
Diff: 3 Type: MC Page Ref: 18
Skill: Applied
27) Molson’s Beer Fridge Campaign created curiosity with their patriotic beer fridge placed in selected locations around the world. This campaign resulted in
A) significant increases in Molson beer purchases by affluent baby boomers
B) $50 million of free press coverage in Canada and abroad
C) higher Molson beer exports to developing countries
D) a net loss in return on investment
Answer: B
Diff: 3 Type: MC Page Ref: 18
Skill: Recall
28) Advocacy advertising by non-profit organizations like The United Way and Greenpeace is designed to
A) present a point of view on a public issue
B) communicate a special price
C) persuade all market segments
D) launch new products
E) communicate additions to the product mix
Answer: A
Diff: 3 Type: MC Page Ref: 8
Skill: Applied
29) Consumer advertising is designed to
A) reduce brand awareness of competitors
B) increase perceived value by target audiences
C) elicit a purchase response from consumers
D) support a cause related campaign
Answer: C
Diff: 3 Type: MC Page Ref: 8
Skill: Applied
30) The primary goal of sales promotion is to
A) improve a company’s image
B) communicate a company’s store locations
C) provide takeover information
D) communicate changes in personnel
E) encourage an immediate response by the customer
Answer: E
Diff: 1 Type: MC Page Ref: 13
Skill: Applied
31) When Green Giant Corn advertises in Canadian Grocer Magazine, they are involved in
A) direct response advertising
B) trade advertising
C) retail advertising
D) advocacy advertising
E) consumer advertising
Answer: B
Diff: 2 Type: MC Page Ref: 8
Skill: Applied
32) Free publicity is always generated through
A) retail advertising
B) public relations
C) direct response advertising
D) end-product advertising
E) sales promotions
Answer: B
Diff: 2 Type: MC Page Ref: 12
Skill: Applied
33) Red Bull’s “jump from space” event utilized
A) a corporate advertising strategy that maintained market share
B) an advocacy-based strategy in support of their environmental causes
C) a web-based strategy to launch a new product
D) a public relations strategy to produce significant publicity for the brand
Answer: D
Diff: 2 Type: MC Page Ref: 12
Skill: Applied
34) Experiential marketing communications includes
A) national brand ads
B) infomercials
C) flyers
D) events
E) out-of-home advertising
Answer: D
Diff: 1 Type: MC Page Ref: 13
Skill: Applied
35) An advertisement promoting fabricated parts in a specialized industry publication is an example of
A) industrial advertising
B) corporate advertising
C) trade advertising
D) professional advertising
E) national advertising
Answer: A
Diff: 1 Type: MC Page Ref: 8
Skill: Applied
36) Trade advertising is done by manufacturers and directed at
A) the legal profession
B) consumers
C) industrial buyers
D) channel members
E) advertising agencies
Answer: D
Diff: 2 Type: MC Page Ref: 8
Skill: Recall
37) The legal profession can be reached through advertising in magazines such as Canadian Lawyer. This is known as
A) consumer advertising
B) industrial advertising
C) trade advertising
D) business-to-business advertising
E) national advertising
Answer: D
Diff: 3 Type: MC Page Ref: 7
Skill: Applied
38) Corporate advertising may be used to
A) increase sales force
B) increase media budget
C) enhance a firm's image among its publics
D) reduce costs
E) improve product development
Answer: C
Diff: 2 Type: MC Page Ref: 8
Skill: Recall
39) Companies that approach communications as a complete package, embrace the concept of
A) marketing strategy
B) creative advertising
C) integrated marketing communications
D) product superiority
E) customer satisfaction
Answer: C
Diff: 3 Type: MC Page Ref: 6
Skill: Applied
40) Advertising designed to influence public opinion is referred to as
A) advocacy advertising
B) service industry advertising
C) product advertising
D) promotional advertising
E) public advertising
Answer: A
Diff: 2 Type: MC Page Ref: 8
Skill: Recall
41) Direct Response Communications is a form of marketing that
A) solicits feedback directly from consumers on product value issues
B) distributes messages directly to customers on an individual basis
C) offers consumers an interactive on line purchasing experience
D) is used in support of public relations campaigns
Answer: A
Diff: 2 Type: MC Page Ref: 10
Skill: Recall
42) At what stage in the product life cycle must the product focus on creating brand preference?
A) introduction
B) growth
C) maturity
D) decline
E) withdrawal
Answer: B
Diff: 3 Type: MC Page Ref: 16
Skill: Applied
43) An advertisement featuring refrigerated display units in Canadian Grocer is an example of
A) industrial advertising
B) merchandising advertising
C) trade advertising
D) professional advertising
E) service-industry advertising
Answer: A
Diff: 3 Type: MC Page Ref: 7
Skill: Applied
44) Wendy’s finds itself in a product category where competitors like McDonald’s invest heavily in advertising. Wendy’s should
A) adopt an online strategy
B) pursue new customer segments
C) evaluate less expensive alternatives such as sales promotion
D) reduce advertising spending
E) divert advertising dollars to broadcast media only
Answer: C
Diff: 3 Type: MC Page Ref: 20
Skill: Applied
45) Canadian programming is the cornerstone of the
A) Telecommunications Act
B) Canadian Code of Advertising Standards
C) Competition Act
D) Broadcasting Act
E) Food and Drug Act
Answer: D
Diff: 2 Type: MC Page Ref: 26
Skill: Applied
46) Which medium accounts for the largest portion of advertising revenue among the mass media in Canada?
A) radio
B) television
C) magazines
D) billboards
E) internet
Answer: E
Diff: 2 Type: MC Page Ref: 4
Skill: Recall
47) The largest advertising categories in Canada include
A) financial institutions
B) telecommunications companies
C) educational institutions
D) publishing companies
E) provincial governments
Answer: A
Diff: 2 Type: MC Page Ref: 3
Skill: Recall
48) Older consumers are more concerned than younger consumers about
A) use of personal information
B) social media
C) inappropriate messages
D) sex in advertising
E) extreme advertising
Answer: A
Diff: 3 Type: MC Page Ref: 24
Skill: Recall
49) Communications that allow consumers to order directly is referred to as
A) end-product advertising
B) experiential marketing
C) direct-response communications
D) sales promotions
E) service-industry advertising
Answer: C
Diff: 2 Type: MC Page Ref: 10
Skill: Applied
50) The channel that will be the hub for delivering content for all media is
A) newspapers
B) magazines
C) radio
D) television
E) the internet
Answer: E
Diff: 1 Type: MC Page Ref: 22
Skill: Applied
51) Advertising that focuses on improving the company’s image is known as
A) socially responsible advertising
B) multi-faceted advertising
C) corporate advertising
D) industrial advertising
E) advocacy advertising
Answer: C
Diff: 1 Type: MC Page Ref: 8
Skill: Recall
52) Newspapers and magazines are losing subscribers each year. Their strategy to survive involves
A) loyalty rewards for long term subscribers
B) free trial subscriptions for up to one year
C) bundle promotions with other marketing channels such as television
D) development of digital content
Answer: D
Diff: 1 Type: MC Page Ref: 22
Skill: Recall
53) Delivering a message directly to a potential customer is
A) promotional advertising
B) direct-response communications
C) advocacy advertising
D) corporate advertising
E) retail advertising
Answer: B
Diff: 1 Type: MC Page Ref: 12
Skill: Recall
54) Consumers are attracted to the internet because
A) it is an easier approach to understanding complex marketing messages
B) multiple family members can log on at the same time
C) it is direct and interactive
D) costs much less than cable television
Answer: D
Diff: 3 Type: MC Page Ref: 8
Skill: Recall
55) Labatt’s “smooth taste teams” is an example of
A) experiential marketing
B) lifestyle advertising
C) prestige promotions
D) value advertising
E) versatility display
Answer: A
Diff: 1 Type: MC Page Ref: 13
Skill: Recall
56) Popular promotions during the mature stage of the product life cycle are
A) coupons and price discounts
B) premium offers and contests
C) price discounts and bonus packs
D) seasonal packaging and coupons
E) sale prices
Answer: B
Diff: 3 Type: MC Page Ref: 18
Skill: Applied
57) When Kashi communicated that its cereal was tasty and lowers cholesterol, the company’s goal was to
A) rejuvenate a mature product
B) communicate a hidden quality
C) target lifestyle aspirations
D) communicate a sales promotion
E) demonstrate its superiority
Answer: E
Diff: 2 Type: MC Page Ref: 19
Skill: Applied
58) A grocery store using coupons, cash refunds and contests is using
A) public relations
B) pricing strategy
C) sales promotion
D) advertising
E) personal selling
Answer: C
Diff: 1 Type: MC Page Ref: 12
Skill: Applied
59) When Samsung launched the Galaxy S6 and communicated the product’s features that were better than the competition, the company established a competitive advantage by
A) offering a unique sales proposition
B) communicating a product innovation
C) re-positioning its product line
D) targeting a niche audience
E) stressing hidden qualities
Answer: B
Diff: 3 Type: MC Page Ref: 19
Skill: Applied
60) Major networks are streaming shows and sporting events for viewing online. This has led to
A) on-demand viewing
B) total commercial-free viewing
C) more tech-savvy consumers
D) consumers becoming more isolated in society
E) consumers losing control of their TV
Answer: A
Diff: 2 Type: MC Page Ref: 22
Skill: Applied
61) The primary job of personal selling is to
A) make a sale
B) support an event
C) encourage volume or seasonal buying
D) generate free publicity
E) stimulate awareness of a product
Answer: A
Diff: 2 Type: MC Page Ref: 13
Skill: Recall
62) The Canadian Code of Advertising Standards is administered by
A) Canadian Radio-television and Telecommunications Commission
B) AOL and Time Warner
C) The Competition Act
D) Advertising Standards Canada
E) Canadian Institute of Advertising
Answer: D
Diff: 3 Type: MC Page Ref: 27
Skill: Recall
63) A television commercial showing "twenty-somethings" drinking Red Bull while active in extreme sports is an example of
A) pop advertising
B) lifestyle advertising
C) sex-role stereotyping
D) hidden qualities
E) information-driven communication
Answer: B
Diff: 3 Type: MC Page Ref: 20
Skill: Applied
64) The Canadian Code of Advertising Standards addresses
A) Canadian programming content
B) broadcast licence applications
C) cable television licences
D) Canadian ownership of broadcast licences
E) appropriate and accurate messages
Answer: E
Diff: 2 Type: MC Page Ref: 27
Skill: Applied
65) A common complaint about advertising is
A) the rising costs
B) attention deficit in audiences
C) lack of scientific evidence in messages
D) use of sex to sell something
E) people don’t read ads
Answer: D
Diff: 2 Type: MC Page Ref: 24
Skill: Applied
66) Canadian Tire’s association with the 2014 Canadian Olympic Team is an example of
A) database marketing
B) sales promotion activities
C) sponsorship
D) national advertising
E) public relations
Answer: C
Diff: 2 Type: MC Page Ref: 14
Skill: Applied
67) Which type of communications provides a distinct reason to buy now rather than later?
A) corporate advertising
B) national advertising
C) service-industry advertising
D) advocacy advertising
E) sales promotion
Answer: E
Diff: 2 Type: MC Page Ref: 13
Skill: Applied
68) The iced tea segment is growing based on consumers' perceptions that tea is a healthy beverage. This is an example of
A) selective perception
B) brand preference
C) primary demand
D) a product innovation
E) a lifestyle consideration
Answer: E
Diff: 3 Type: MC Page Ref: 20
Skill: Applied
69) In a competitive environment, brand leaders build market share by
A) investing in sales promotion
B) implementing price discounting
C) maintaining significant advertising budgets
D) making a short-term commitment to advertising
E) relying more on personal selling
Answer: C
Diff: 3 Type: MC Page Ref: 20
Skill: Recall
70) In terms of integrated marketing communications, all elements should
A) say the same thing and complement each other
B) work to communicate several different messages
C) take a secondary importance to advertising
D) be invested in equally
E) be handled by one outside supplier
Answer: A
Diff: 2 Type: MC Page Ref: 6
Skill: Applied
71) Traditionally, mass advertising helped to
A) create clutter in media
B) drive store traffic and sales
C) create widespread awareness of a new product
D) build customer databases
E) create word-of-mouth advertising
Answer: C
Diff: 3 Type: MC Page Ref: 5
Skill: Recall
72) For management that perceives advertising as an expense, advertising goals will not be met when
A) advertising is expensive
B) measures of advertising effectiveness are unavailable
C) there is a profit-squeeze situation
D) social media is not being used
E) public relations is a priority
Answer: C
Diff: 3 Type: MC Page Ref: 21
Skill: Applied
73) Advertising in Canada is big business! In 2014, the amount spent was $114.0 billion.
A) True
B) False
Answer: True
Diff: 2 Type: TF Page Ref: 3
Skill: Recall
74) Social media sites are a wonderful place for consumers to deliver word-of-mouth messages about companies.
A) True
B) False
Answer: True
Diff: 2 Type: TF Page Ref: 10
Skill: Applied
75) Advocacy advertising encourages consumers to look for a particular component or ingredient when buying a final product.
A) True
B) False
Answer: False
Diff: 2 Type: TF Page Ref: 8
Skill: Recall
76) Apple’s launch of the new iPhone 5 with its new and better features is an example of showing a competitive advantage through product innovation.
A) True
B) False
Answer: True
Diff: 1 Type: TF Page Ref: 20
Skill: Applied
77) Advertising messages focus on the unique selling features of the product and the benefits that the customer will derive from them.
A) True
B) False
Answer: True
Diff: 1 Type TF Ref Page: 20
Skill: Recall
78) New media alternatives are solely the domain of younger generations.
A) True
B) False
Answer: False
Diff: 2 Type: TF Page Ref: 23
Skill: Recall
79) Consumers prefer to view their favorite shows on line and at a time that suits them. This is known as on-demand viewing.
A) True
B) False
Answer: True
Diff: 2 Type: TF Page Ref: 22
Skill: Recall
80) A Corvette television advertisement showing an enraged driver racing wildly is an example of extreme advertising used to encourage young audiences to get involved in street car racing.
A) True
B) False
Answer: True
Diff: 3 Type: TF Page Ref: 25
Skill: Applied
81) Direct mail is the most common means of delivering direct-response messages to potential consumers.
A) True
B) False
Answer: True
Diff: 1 Type: TF Page Ref: 12
Skill: Recall
82) The Canadian Code of Advertising Standards addresses concerns about superstitions and fears in commercial messages.
A) True
B) False
Answer: True
Diff: 2 Type: TF Page Ref: 27
Skill: Recall
83) Business-to-business advertising refers to advertising aimed only at professional associations such as medical associations.
A) True
B) False
Answer: False
Diff: 1 Type: TF Page Ref: 7
Skill: Applied
84) A press release issued by Greenpeace would be used to influence the attitudes, opinions, and behaviours of interest groups towards its organization.
A) True
B) False
Answer: True
Diff: 2 Type: TF Page Ref: 12
Skill: Applied
85) Rather than plan a unique event, a company may choose to sponsor an existing event in order to save money and reduce risk.
A) True
B) False
Answer: True
Diff: 3 Type: TF Page Ref: 14
Skill: Applied
86) Sales promotion is long term in scope.
A) True
B) False
Answer: False
Diff: 3 Type: TF Page Ref: 13
Skill: Applied
87) Companies use coupons, contests and other incentives to encourage immediate sales.
A) True
B) False
Answer: True
Diff: 1 Type: TF Page Ref: 13
Skill: Applied
88) SUV car ads showing people enjoying themselves outdoors is an example of an advertiser demonstrating product superiority.
A) True
B) False
Answer: False
Diff: 2 Type: TF Page Ref: 19
Skill: Applied
89) Kellogg’s Special K Cereal print campaign offered a free personal slim plan with purchase. This advertising tactic encourages brand loyalty in the mature phase of the product life cycle.
A) True
B) False
Answer: True
Diff: 3 Type: TF Page Ref: 18
Skill: Applied
90) Bell Canada sponsored the 2010 Vancouver Olympic Games. This is a great example of direct-response communications.
A) True
B) False
Answer: False
Diff: 2 Type: TF Page Ref: 12
Skill: Applied
91) In the growth stage of a product, advertising performs a dual role, creating awareness while establishing brand preference.
A) True
B) False
Answer: True
Diff: 3 Type: TF Page Ref: 16
Skill: Recall
92) Advertising is critical at the decline stage of the product life cycle.
A) True
B) False
Answer: False
Diff: 2 Type: TF Page Ref: 19
Skill: Applied
93) The internet has the potential to become the biggest single-source generator of revenues among all communications alternatives.
A) True
B) False
Answer: True
Diff: 3 Type: TF Page Ref: 9
Skill: Applied
94) Canadians 18 and over spend more time watching television than listening to radio.
A) True
B) False
Answer: True
Diff: 2 Type: TF Page Ref: 3
Skill: Recall
95) A big challenge for advertisers is to convince people to use traditional rather than new media.
A) True
B) False
Answer: False
Diff: 1 Type: TF Page Ref: 5
Skill: Recall
96) Advertising makes products appear better than they actually are.
A) True
B) False
Answer: False
Diff: 3 Type: TF Page Ref: 20
Skill: Applied
97) The biggest problem with experiential marketing is that it is impersonal.
A) True
B) False
Answer: False
Diff: 2 Type: TF Page Ref: 13
Skill: Recall
98) Mobile communications are not interactive.
A) True
B) False
Answer: False
Diff: 3 Type: TF Page Ref: 10
Skill: Applied
99) A food manufacturer falsely claiming its products are organic comes under the scrutiny of Advertising Standards Canada.
A) True
B) False
Answer: True
Diff: 3 Type: TF Page Ref: 25
Skill: Applied
100) Event Marketing and Sponsorship is considered a growth area of marketing communications. Discuss the benefits of these IMC activities.
Answer:
Similar to public relations, event marketing and sponsorship often yield favourable news coverage and publicity. Customers may feel better about the sponsor knowing that it is participating in something that is meaningful to that customer, and it may ultimately influence product purchases.
Diff: 3 Type: ES Page Ref: 12
Skill: Applied
101) Discuss how an advertisement featuring a contest for Bell Mobility would impact product sales.
Answer:
Sales promotion activities like contests encourage immediate sales and may encourage volume buying or seasonal buying. Sales promotion activities may also encourage merchandising activity in retail stores which can provide the opportunity for increased sales at the point of purchase.
Diff: 3 Type: ES Page Ref: 12
Skill: Applied
102) If IKEA were to develop an advertising campaign featuring affordable furniture solutions for the challenges of student life, what technique would IKEA be using to differentiate its products? Discuss the effectiveness of this technique.
Answer:
A recent phenomenon in advertising is the progressive use of lifestyle associations to differentiate among products. Advertisers target lifestyle aspirations by appealing to the emotional side of the purchase decision. The advertising makes an emotional connection with potential consumers and shows how the product plays a role in one's life.
Diff: 3 Type: ES Page Ref: 20
Skill: Applied
103) Why is it so important for a product to live up to the promise advertising makes?
Answer:
Advertising messages focus on the unique selling points of the product and the benefits the customer will derive from them. Getting the customer to try a product once, at great expense, only to be disappointed in the quality or whatever the primary benefit was to be is a waste of money. It is imperative that the brand meet consumer expectations so that repeat purchases occur in the longer term.
Diff: 3 Type: ES Page Ref: 20
Skill: Recall
104) How do product demand and the product life cycle influence the decision to invest in advertising?
Answer:
In the introductory and growth stages, a company should encourage demand through advertising. As demand declines, investment in advertising should be reduced or even withdrawn.
Diff: 2 Type: ES Page Ref: 15
Skill: Recall
105) What are the critical stages for marketing communications in the product life cycle?
Answer:
The critical stages for marketing communications are the product's introduction and growth stages. Advertising objectives focus on creating awareness for a new brand and on repositioning for a mature brand. Trial purchase through promotional incentives are also popular during the introductory stage
Diff: 2 Type: ES Page Ref: 16
Skill: Recall
106) Why are members of contemporary Canadian society complaining about the use of sex in advertising to sell products?
Answer:
Critics charge that advertisers are using more and more sex with each passing year. Using sex appeals in an appropriate manner and for appropriate products seems natural, but gratuitous sex is something consumers shouldn't have to tolerate.
Diff: 2 Type: ES Page Ref: 24
Skill: Recall
107) Discuss the challenges that new technologies are posing for television advertisers today.
Answer:
The increasing penetration of satellite dishes, cable television, and the availability of so many stations have changed the way that people view television. Audiences will continue to be chopped into increasingly smaller sizes, a phenomenon referred to as audience fragmentation. In addition, consumers are increasingly taking control of their television viewing by using their remote controls or PVRs. Online delivery of many television shows and sporting events has led to on-demand viewing.
Diff: 2 Type: ES Page Ref: 22
Skill: Applied
108) The goal of integrated marketing communications is to coordinate the various components of communications to achieve common objectives. What are the seven major elements of this mix?
Answer:
The marketing communications mix comprises seven major elements: advertising, public relations, sales promotion, personal selling, experiential marketing (event marketing and sponsorships), direct response, and interactive communications.
Diff: 1 Type: ES Page Ref: 7
Skill: Recall
109) Advertising has always played a major role in achieving brand and company objectives. Discuss how opportunities for contemporary advertising are changing.
Answer:
Advertising plays a major role by helping attract new customers and retain current customers. Contemporary advertising is now more targeted based on database and interactive marketing techniques. Social media are proving to be more cost effective at engaging customers and interacting with them.
Diff: 3 Type: ES Page Ref: 5
Skill: Recall
110) Should the success of an advertising campaign be measured strictly in terms of product sales? Why or why not?
Answer:
Such measurement is misleading, as there is no direct relationship between advertising and sales. Other variables beyond advertising influence the consumer's decision-making process. Marketing decisions regarding product, price, distribution, sales promotion, personal selling, and event marketing, for example, all combine to have an effect on sales. It is not reasonable to hold one variable, such as advertising, responsible when sales decline or increase.
Diff: 3 Type: ES Page Ref: 5
Skill: Applied
111) Should companies capitalize on social media? Explain your answer.
Yes! More audiences are using social media in Canada, especially the Baby Boomers. Many companies see social media as an effective advertising channel in building market share, especially when their customers are sharing positive feelings about the company on social media. Effective, two-way conversations between customers and a company produce positive word of mouth.
Diff: 3 Type: ES Page Ref: 23
Skill: Applied
112) Explain the difference between advertising and public relations.
Answer:
Both advertising and public relations are forms of marketing communications. Advertising is a paid form of communications where the company pays for space in a channel of communications. Examples would be a television spot, a radio spot, a print advertisement in a magazine or newspaper, or an advertising banner on the internet. In contrast, public relations is an unpaid form of communications. Publication of a message is not directly funded by the company. Instead, companies rely on the media to see their message as newsworthy so that it will be published or broadcasted. Partnering with causes for the public good usually results in newsworthy messages.
Diff: 1 Type: ES Page Ref: 11
Skill: Applied
113) Alpine Gum offered consumers a significant benefit over its competitor Hall's lozenges: its medicinal properties last 20 minutes compared to only seven or eight minutes for a lozenge. Discuss Alpine's advantage and how it contributed to its advertising campaign.
Answer:
The most common way to show advantage is to demonstrate the superiority of a product compared to a similar product or stating what the product can do. Alpine's campaign had impact because the message was meaningful to the target audience.
Diff: 3 Type: ES Page Ref: 19
Skill: Applied
114) Define personal selling and explain its relationship to advertising.
Answer:
Personal selling is a personalized form of communication that involves a seller presenting the features and benefits of a product or service to a buyer for the purpose of making a sale. A sales representative presents the merits of a brand to the buyer at the head office of a retailer. To illustrate the importance of personal selling, consider how a new product such as Tide to Go or Minute Maid Simply Orange arrives on the shelf at your local supermarket. Advertising can be used in conjunction with personal selling by creating mass awareness of a product and supporting what the seller is communicating to an individual customer.
Diff: 1 Type: ES Page Ref: 13
Skill: Applied
115) Identify and briefly explain the differences between trade and industrial advertising.
Answer:
Trade advertising is conducted by manufacturers and directed towards distribution channel members. Messages usually stress the product's acceptance by other intermediaries, the promotions that the manufacturer will offer to help re-sell the product and its profit margins. Industrial advertising is conducted by suppliers targeting industrial buyers of capital equipment, accessories, fabricated parts or raw materials. The advertising message is supportive of personal selling activities. Industrial advertising tends to stimulate awareness and generate sales leads.
Diff: 1 Type: ES Page Ref: 8
Skill: Recall
116) The United Way's campaign about helping the homeless dramatically depicts the nature of the problem while encouraging the public to find a solution. What form of advertising is this and what is its primary objective?
Answer:
This is an example of advocacy advertising, defined as any public communication paid for by an identified sponsor that presents information or a point of view on a publicly recognized, controversial issue. The purpose of advocacy advertising is to influence public opinion.
Diff: 2 Type: ES Page Ref: 8
Skill: Applied
117) The most common way to show a competitive advantage is to demonstrate product superiority. Provide an example from a recent advertisement you've seen.
Answer:
Advertisers demonstrate the superiority of a given product by comparing it to a similar product or by making significant claims about what the product will do. Examples could include any product that is more affordable (KIA), faster (Bell Sympatico), superior performance (Samsung), etc.
Diff: 2 Type: ES Page Ref: 19
Skill: Applied
118) Why is it imperative that a brand meets consumer expectations?
Answer:
It is imperative that the brand meet consumer expectations (delivered as promised) so that repeat purchases occur in the longer term. Poor or inconsistent quality is inconsistent with customer relationship management programs that companies are now implementing. Advertising dollars are wasted because when a product does not deliver the promise, the advertiser loses credibility and advertising is considered unreliable and unbelievable.
Diff: 2 Type: ES Page Ref: 21
Skill: Recall
119) Explain how advertising has changed.
Contemporary advertising is now more targeted and based on database management and interactive marketing techniques. Media of choice today include more micro-based channels (direct response and interactive internet/mobile) than macro-based (television, radio, magazines). The biggest challenge for advertisers now is how to combine the right media to effectively reach the target audience. In the past, the challenge was how to create the best message. Today it is essential that creative and media planners work closely together.
Diff: 3 Type: ES Page Ref: 5
Skill: Recall
120) What is the challenge faced by companies in using social media to advertise?
Answer:
Nearly 86% of respondents of an Advertising Age survey said they used Facebook as a marketing tactic but only 55% say they advertise on Facebook. The main reason for this is the difficulty in measuring the effectiveness return on investment of social media advertising. In contrast, techniques for measuring return on investment for traditional media like television and radio are well established.
Diff: 2 Type: ES Page Ref: 10
Skill: Recall
121) Describe how Molson Coors Canada increased the impact of its advertising campaign by combining it with social media.
Answer:
Before the advertising campaign for Molson Canadian 67 was launched, Molson created buzz through Twitter, its Molson insider database, and its Molson Canadian Facebook fan page. The database and fan page identified advocates of their brand. Molson invited advocates and a friend to sample the beer and learn about the new brand at a Molson-hosted party. Guests were encouraged to submit written reports of their experience on a dedicated Molson 67 site.
Diff: 2 Type: ES Page Ref: 5
Skill: Applied
122) What marketing communication strategies should a company consider if it opts to rejuvenate a brand when it reaches the mature stage of its product life cycle?
Answer:
Repositioning of a brand requires a large investment in marketing communications to let consumers know how the new and improved brand can meet current consumer expectations. Mass media and online media can be used to get the message across to the target audience. Creating buzz with social media is also important. Promotions that include trial can also be effective.
Diff: 3 Type: ES Page Ref: 18
Skill: Recall
123) Extreme advertising is a good way to advertise. Discuss this statement.
Answer:
Advertisers have only a few seconds to catch the attention of today's viewers before they're gone! To many people in the advertising industry, this style of ad fits with a young, contemporary lifestyle. We have extreme sports, extreme music, extreme food and drink; ad agencies are simply trying to keep up. On the other hand, advertisers have come under criticism for using extreme advertising. In the automotive industry, for instance, car manufacturers are being criticized for encouraging dangerous driving.
Diff: 2 Type: ES Page Ref: 25
Skill: Applied
124) Define direct-response communications. Provide a recent example.
Answer:
Direct-response communications is a form of advertising in which messages are delivered directly to potential customers on an individual basis. Direct mail is the most common means of delivering these messages, but other forms of communication such as direct-response television, print and telemarketing play a significant role. Database management is used to target the audience personally. Shoppers Drug Mart’s Optimum card is an example of how database information is used for developing effective direct-response communications. The company uses the database information to send unique offers tailored specifically to cardholders’ shopping behaviour.
Diff: 1 Type: ES Page Ref: 12
Skill: Recall
125) What changes in consumer behavior will make delivery of advertising messages more challenging in the future?
Answer:
Although consumers still watch conventional television, they prefer to engage in a variety of media on various devices from laptops to smartphones to tablets. Many consumers now stay connected through four or more screen formats. Marketers will need to effectively deliver their messages through an array of screen sizes and devices. Also, consumers will chat on Facebook, read emails and view videos all at the same time. This type of multitasking behavior will present greater challenges for advertising messages to break through and rise above all the noise.
Diff: 1 Type: ES Page Ref: 22
Skill: Recall
126) What is a competitive advantage? Give an example of a product that demonstrates this characteristic.
Answer:
A competitive advantage involves one or more product or service features that are superior to the competition, and that are meaningful to the target customer. Colgate toothpaste has ingredients that repair sensitive teeth, a perceived benefit of the consumer.
Diff: 1 Type: ES Page Ref: 17
Skill: Recall
127) The introduction stage in a product’s life cycle can be very challenging. What are the overall objectives and give an example on how to meet these challenges.
Answer:
Building awareness and credibility in the introduction stage is often difficult, risky, and expensive. Promotions such as coupons or small-sized samples are a common way to induce consumers to consider a trial purchase of the product.
Diff: 2 Type: ES Page Ref: 16
Skill: Applied
128) Product placement is a growing advertising strategy. How does product placement work and give an example of this concept.
Answer:
Product placement involves the placement of a company’s product for maximum exposure within television shows or movies. An example would be a movie star engaged in a conversation holding a can of Coca-Cola, thus promoting the product. Product placement is effective for smaller, simple products such as beverages or for big-tickets items such as cars and trucks as well.
Diff: 3 Type: ES Page Ref: 21
Skill: Applied
129) What are the advantages of direct response advertising?
Answer:
Direct response advertising can be database driven and highly customized based on past consumer behavior. Database management as part of a Customer Relationship Management program enables companies to create customized offers for individual customers that can be more effective and less costly than mass market advertising.
Diff: 3 Type: ES Page Ref: 10
Skill: Applied
