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Chapter 8:  Marketing Communications: The Role of Advertising



True/False
Indicate whether the sentence or statement is true or false.
 

 1. 

Advertising is generally more effective than sales promotion in getting a customer to make a purchase.
 

 2. 

Marketing budgets should be based primarily on the cost of various kinds of marketing communication activities.
 

 3. 

A full-service advertising agency provides all four major functions of account management, creative services, media planning and buying, and research.  A specialized advertising agency will only focus on one or two of these four major functions.
 

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

 1. 

“Promotion” is generally a short-term activity
a.
however, at a strategic level, it is a longer-term investment in building up a consistent corporate or destination identity.
b.
and, as a result, does not include public relations.
c.
that must be budgeted separately from advertising and personal selling.
d.
that companies use strictly to combat negative publicity.
 

 2. 

The most commonly adopted model explaining the communication process involves sender, message, medium and receiver.  In this model, noise could occur as, for example,
a.
too many advertisements being seen at one time.
b.
a negative news item that is in some way related to the advertisement.
c.
ambiguous wording in a print media advertisement.
d.
All of the above.
 

 3. 

The term “hierarchies of effects model” of communication
a.
refers to models that assume a progression through stages characterized by awareness, conviction, and purchase.
b.
describes a communication model that falls under the heading of AIDA modeling (Attention, Interest, Desire, Action).
c.
refers to one type of DAGMAR model (Defining Advertising Goals for Measured Advertising Results).
d.
refers to a model that is used to measure the effectiveness of various advertising messages.
 

 4. 

Integrated Marketing Communications (IMC)
a.
is an approach that recognizes that advertising must stand alone and be budgeted separately due to its singular importance.
b.
unites marketing communication tools along with corporate and brand messages.
c.
is an industry buzz-word that refers to combining print, television, radio, and Internet advertising in order to optimize market penetration.
d.
uses a SWOT analysis to develop a marketing campaign budget.
 

 5. 

Media mix refers to the collective media outlets such as TV, radio, brochures, newspapers, and billboards.  In deciding how much of each media to use for product promotion, a media planner needs to decide if their objective is
a.
a mass media or targeted media campaign.
b.
an intensive, exclusive, or selective campaign.
c.
a high-reach or high frequency campaign.
d.
a recall, recognition, or persuasion campaign.
 

 6. 

The push and pull promotional strategies
a.
tend to be mutually exclusive.
b.
tend to rely on, respectively, promotion and advertising.
c.
are often used for resorts, but rarely for conference hotels.
d.
work well for durable goods, but not for tourism products.
 

 7. 

Advertising is a key marketing tool in the tourism and hospitality industry because
a.
advertising is mass-media, mass-communication, and non-personal.
b.
advertising effectively informs, persuades, reminds, and sells vacation packages.
c.
advertising is highly affordable to large and small operators.
d.
these industries require potential customers to base buying decisions upon mental images of product offerings since they are not able to physically sample the alternatives.
 

 8. 

The “competitive parity method”
a.
refers to setting one’s advertising budget at a level needed to achieve an equal share-of-voice with competitors.
b.
describes a marketing communications strategy that relies primarily on the use of premiums, coupons, and free samples.
c.
is a means to help ensure that customers will stay loyal to a product over the long term.
d.
is a promotional strategy that works best in combination with a push and pull strategy.
 

 9. 

Seven different execution styles of message strategy were presented in this chapter.  Which execution strategy best describes the Tim Hortons “Canadian students in Glasgow” ad campaign?
a.
lifestyle
b.
slice of life
c.
testimonial evidence
d.
mood or image
 

 10. 

The CPM for a $16,000.00 advertisement in a national magazine with a circulation of 1.8 million readers would be
a.
$16.73.
b.
$8.89.
c.
$5.42.
d.
$5.41.
 

 11. 

An example of the relatively new “ambient advertising” approach would be
a.
an advertisement on grocery store floors.
b.
an advertisement on an airline boarding pass.
c.
an advertisement cut into a crop field.
d.
All of the above.
 

 12. 

The use of “premiums” in advertising
a.
has been shown to actually encourage brand switching, rather than band loyalty, to the product offering the premium.
b.
has worked very successfully in the Canadian brewing industry.
c.
includes the “buy one get one free” approach to marketing.
d.
is no longer legal in Canada.
 

 13. 

Major advantages of advertising through commercial radio, and national press, respectively, are:
a.
longevity and good life span.
b.
strong audience attention and, strong audience attention!
c.
well-segmented audience and national coverage.
d.
can be repeated often and high trust and believability factor
 

Matching
 
 
a.
advertising
i.
push strategy
b.
affordable method
j.
pull strategy
c.
AIDA model
k.
promotional mix
d.
ambient advertising
l.
recall test
e.
competitive parity method
m.
return-on-investment goals
f.
cost per thousand (CPM)
n.
situation analysis
g.
full-service agency
o.
specialized agencies
h.
integrated marketing communication (IMC)
p.
zero-based planning
 

 1. 

a company’s total marketing communications program
 

 2. 

a memorable and useful checklist of the aims of advertising, standing for attention, interest, desire, and action
 

 3. 

the unification of all marketing communications tools, as well as corporate and brand messages, so they send a consistent, persuasive message to target audiences
 

 4. 

a business review that summarizes all the relevant information available about the product, the company, the competitive environment, the industry, and the consumers
 

 5. 

the practice of analyzing the strengths and weaknesses of the various marketing communications tools and then matching them to the problem identified in the situation analysis
 

 6. 

working out the expected profit returns based on the costs of reaching a customer or group of customers. This calculation is also called break-even analysis or payout planning
 

 7. 

a test that evaluates the memorability of an advertisement by contacting members of the audience and asking what they remember about the advertisement
 

 8. 

a promotion strategy that calls for using the sales force and trade promotion to push the product through channels; the producer promotes the product to wholesalers, the wholesalers promote to retailers, and the retailers to consumers
 

 9. 

a promotion strategy that calls for spending a large amount on advertising and consumer promotion to build up consumer demand; if successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers
 

 10. 

any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor, using mass media to persuade or influence an audience
 

 11. 

setting the promotion budget to match competitors’ outlay
 

 12. 

an advertising agency that provides the four major staff functions: account management, creative services, media planning and buying, and account planning
 

 13. 

an advertising agency that specializes in certain functions (e.g., writing copy, producing art, media buying), audiences (e.g., minority, youth), or industries (e.g., health care, computers, leisure)
 

 14. 

the process of selecting the media that will expose the  product to the largest target audience for the lowest possible cost. (“M” is the Roman numeral for 1000)
 

 15. 

setting the promotion budget at what management thinks the company can afford
 

 16. 

advertising that uses new, unexpected ways of getting messages across

Answers:
 



 
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