Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Scenario 18.2
Use the following to answer the questions.
The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves over 1.9 million bank accounts.
-Refer to Scenario 18.2. If State Farm Bank decided that it wanted to increase its number of bank customers by 10% in the coming year, it would most likely use the ____ approach to advertising allocation.

Accepted Answer

A) arbitrary 
B) competition-matching 
C) objective-and-task 
D) percent-of-sales 
E) percent-of-customer 
A) arbitrary 
B) competition-matching 
C) objective-and-task 
D) percent-of-sales 
E) percent-of-customer

Question 4

An advertising platform is the

Accepted Answer

A) basic issue or selling point that an advertiser wishes to include in an advertising campaign. 
B) objective of the advertising campaign, stated in precise and measurable terms. 
C) form in which the basic issues of the campaign should be presented. 
D) broad objectives of the advertising campaign. 
E) consumer advertising research conducted. 
A) basic issue or selling point that an advertiser wishes to include in an advertising campaign. 
B) objective of the advertising campaign, stated in precise and measurable terms. 
C) form in which the basic issues of the campaign should be presented. 
D) broad objectives of the advertising campaign. 
E) consumer advertising research conducted.

Question 5

When a copywriter and an artist combine the copy with the visual material for a television commercial, it usually is done through use of a

Accepted Answer

A) parallel format. 
B) commercial layout. 
C) layout procedure. 
D) storyboard. 
E) visual-impact process. 
A) parallel format. 
B) commercial layout. 
C) layout procedure. 
D) storyboard. 
E) visual-impact process.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Toyota's sponsorship of a major Professional Golf Association tournament would be an example of a(n) ____ tool.

Accepted Answer

A) advertising 
B) public relations 
C) sales promotion 
D) publicity 
E) personal selling 
A) advertising 
B) public relations 
C) sales promotion 
D) publicity 
E) personal selling

Question 8

The effectiveness of a public relations program is usually measured in terms of sales.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) illustration and the signature. 
B) illustration and the layout. 
C) illustration and type of print used in the headlines. 
D) layout and the signature. 
E) method by which all the components are put together. 
A) illustration and the signature. 
B) illustration and the layout. 
C) illustration and type of print used in the headlines. 
D) layout and the signature. 
E) method by which all the components are put together.

Question 10

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

Accepted Answer

The answer of What is an advertising platform? What is...

Question 11

Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n)

Accepted Answer

A) target audience goal. 
B) advertising platform. 
C) percent-of-sales approach. 
D) advertising objective. 
E) media plan goal. 
A) target audience goal. 
B) advertising platform. 
C) percent-of-sales approach. 
D) advertising objective. 
E) media plan goal.

Question 12

Comparative advertisements mention the actual names of competing brands.

Accepted Answer

A) True 
 B)False

Question 13

Business organizations are the only major users of advertising.

Accepted Answer

A) True 
 B)False

Question 14

Monroe works for NASCAR where his responsibilities include maintaining favorable relationships between the organization and its stakeholders. Monroe is most likely employed in ________.

Accepted Answer

A) sales. 
B) advertising. 
C) human resources. 
D) public relations. 
E) digital media marketing. 
A) sales. 
B) advertising. 
C) human resources. 
D) public relations. 
E) digital media marketing.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Scenario 18.2
Use the following to answer the questions.
The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves over 1.9 million bank accounts.
-Refer to Scenario 18.2. If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one problem with this method is that

Accepted Answer

A) it makes the bookkeeping too difficult. 
B) it is tied too closely to sales forecasts. 
C) a sales decline leads to an increase in the advertising appropriation. 
D) a drop in sales would cause a drop in the advertising budget. 
E) competitors may have different advertising objectives. 
A) it makes the bookkeeping too difficult. 
B) it is tied too closely to sales forecasts. 
C) a sales decline leads to an increase in the advertising appropriation. 
D) a drop in sales would cause a drop in the advertising budget. 
E) competitors may have different advertising objectives.

Question 17

The first stage in the development of any advertising campaign is

Accepted Answer

A) creating the message. 
B) setting the budget. 
C) identifying the advertising target audience. 
D) defining the advertising objectives. 
E) creating the advertising platform. 
A) creating the message. 
B) setting the budget. 
C) identifying the advertising target audience. 
D) defining the advertising objectives. 
E) creating the advertising platform.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Public relations is communication in news story form about an organization, its products, or both that is transmitted through a mass medium at no charge.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not an advantage of using publicity-based public relations tools?

Accepted Answer

A) Control by media personnel of the content and timing of messages 
B) Credibility 
C) Strong news value 
D) Follow-up word-of-mouth communications 
E) A favorable perception of being endorsed by the media 
A) Control by media personnel of the content and timing of messages 
B) Credibility 
C) Strong news value 
D) Follow-up word-of-mouth communications 
E) A favorable perception of being endorsed by the media

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

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

An advertising platform is the

When a copywriter and an artist combine the copy with the visual material for a television commercial, it usually is done through use of a

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

Toyota's sponsorship of a major Professional Golf Association tournament would be an example of a(n) ____ tool.

The effectiveness of a public relations program is usually measured in terms of sales.

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

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

Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n)

Comparative advertisements mention the actual names of competing brands.

Business organizations are the only major users of advertising.

Monroe works for NASCAR where his responsibilities include maintaining favorable relationships between the organization and its stakeholders. Monroe is most likely employed in ________.

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

The first stage in the development of any advertising campaign is

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

Public relations is communication in news story form about an organization, its products, or both that is transmitted through a mass medium at no charge.

Which of the following is not an advantage of using publicity-based public relations tools?

An Overview of Strategic Marketing

Planning Implementing and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets: Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts

Developing and Managing Products

Services Marketing

Branding and Packaging

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters

Exam 18: Advertising and Public Relations

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

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

An advertising platform is the

When a copywriter and an artist combine the copy with the visual material for a television commercial, it usually is done through use of a

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

Toyota's sponsorship of a major Professional Golf Association tournament would be an example of a(n) ____ tool.

The effectiveness of a public relations program is usually measured in terms of sales.

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

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

Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n)

Comparative advertisements mention the actual names of competing brands.

Business organizations are the only major users of advertising.

Monroe works for NASCAR where his responsibilities include maintaining favorable relationships between the organization and its stakeholders. Monroe is most likely employed in ________.

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

The first stage in the development of any advertising campaign is

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

Public relations is communication in news story form about an organization, its products, or both that is transmitted through a mass medium at no charge.

Which of the following is not an advantage of using publicity-based public relations tools?

An Overview of Strategic Marketing

Planning Implementing and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets: Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts

Developing and Managing Products

Services Marketing

Branding and Packaging

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters