Question 1

The process by which a receiver interprets an advertising message is called:

Accepted Answer

A)  encoding. 
B)  decoding. 
C)  interpretation. 
D)  analysis. 
E)  feedback.

Question 2

Which promotional tool is most cost effective when a product is in the decline stage of its product life cycle?

Accepted Answer

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

Question 3

On average, advertisers pay more than __________ to produce a single television commercial.

Accepted Answer

A)  $25,000 
B)  $100,000 
C)  $75,000 
D)  $50,000 
E)  $120,000

Question 4

A firm focusing on sales force promotion and trade promotion is using a pull strategy.

Accepted Answer

A) True 
 B)False

Question 5

Under a pulsing approach to scheduling, ads are presented in a series of uneven "bursts" throughout the advertising period.

Accepted Answer

A) True 
 B)False

Question 6

Of the following budgeting methods, the one that would be most likely to be used by firms seeking to protect their market position without generating a promotion war is the method called:

Accepted Answer

A)  competitive- parity. 
B)  affordable. 
C)  objective- and- task. 
D)  percentage- of- sales. 
E)  none of the above

Question 7

An airline advertises at consistently low levels throughout the year to remind customers of the brand, but during holiday periods, the airline increases the number of advertisements to stimulate demand and counter competitive activity. This airline is using a pulsing.

Accepted Answer

A) True 
 B)False

Question 8

Myer Melbourne is a major sponsor of the Spring Racing Carnival. In particular, Myer stages the annual event known as Fashions on the Field in which Myer awards shopping vouchers to the woman judged to be wearing the most stylish outfit. This event generally receives widespread media coverage on national TV, newspapers and magazines. This event is most likely part of:

Accepted Answer

A)  lobbying. 
B)  public relations. 
C)  advertising. 
D)  product publicity. 
E)  sales promotion.

Question 9

Informative advertising is used heavily when introducing a new product category.

Accepted Answer

A) True 
 B)False

Question 10

Sales promotion tools are usually effective for building long- run brand preference.

Accepted Answer

A) True 
 B)False

Question 11

Geelong Cement has just completed developing a quick- drying, high strength cement and is preparing to introduce it to the market. The first goal of its initial marketing communications programme will be to develop:

Accepted Answer

A)  trial. 
B)  awareness. 
C)  liking. 
D)  conviction. 
E)  interest.

Question 12

As the firm seeks to build selective demand in the face of increasing competition, the type of advertising that becomes more important is:

Accepted Answer

A)  informative. 
B)  product category. 
C)  persuasive. 
D)  generic. 
E)  brand specific.

Question 13

An example of a personal communication channel outside the control of a company is:

Accepted Answer

A)  expert judgement. 
B)  gossip. 
C)  word- of- mouth influence. 
D)  structural content. 
E)  promotional influence.

Question 14

The traditional approach to promotional strategy where the seller promotes to and through the members of the channel of distribution is known as:

Accepted Answer

A)  marketing. 
B)  channelling. 
C)  distributing. 
D)  pulling. 
E)  pushing.

Question 15

Any paid form of non- personal presentation and promotion of ideas, goods, or services by an identified sponsor is known as:

Accepted Answer

A)  public relations and publicity. 
B)  advertising. 
C)  sales promotion. 
D)  direct marketing. 
E)  personal selling.

Question 16

Personal selling is especially effective in building up buyers' convictions and actions.

Accepted Answer

A) True 
 B)False

Question 17

A skincare manufacturer is planning a magazine advertising campaign and wants to identify the best possible women's magazine for this task. Some preliminary background on the top selling Australian magazines, their readership and advertising rates has been prepared and is summarised in the figure

Figure  Ad rates and readership figures for selected women's magazines
$\begin{array} { | l | l | l | } 
\hline \text { Magazine Title } & \begin{array} { l } 
\text { Advertising Rate } \
\text { (Full page, four colour) }
\end{array} & \begin{array} { l } 
\text { Readers } \
\text { hip } \
\text { (Number } \
\text { of } \
\text { people) }
\end{array} \
\hline \text { Harper's Bazaar } & \$ 10,500 & 213,000 \
\hline \text { Cleo } & \$ 16,180 & 378,000 \
\hline \text { Cosmopolitan } & \$ 18,950 & 529,000 \
\hline \text { Marie Claire } & \$ 20,600 & 420,000 \
\hline \text { Vogue Australia } & \$ 12,500 & 356,000 \
\hline
\end{array}$
-In terms of cost per thousand, which of the five magazines represents the most expensive purchase?

Accepted Answer

A)  Cleo 
B)  Cosmopolitan 
C)  Vogue Australia 
D)  Marie Claire 
E)  Harper's Bazaar

Question 18

An advertiser wants to buy space on a popular reality TV programme and cannot discriminate between Masterchef Final and The Voice Final. Details of estimated audience size and advertising cost are as follows: Masterchef =2 million viewers; cost $45,000 per 30 sec spot. The Voice= 1.2 million viewers; cost $30,000 per 30 second spot. Masterchef is the optimal selection because it delivers the highest reach at the lowest cost per thousand.

Accepted Answer

A) True 
 B)False

Question 19

In the case of print advertisements, less than 10 per cent of the exposed audience will read most of the body copy.

Accepted Answer

A) True 
 B)False

Question 20

The unplanned static or distortion that may cause the receiver to get a different message than the sender intended is called:

Accepted Answer

A)  displacement. 
B)  distortion. 
C)  chaos. 
D)  discordance. 
E)  noise.

Exam 15: Advertising and Public Relations

The process by which a receiver interprets an advertising message is called:

Which promotional tool is most cost effective when a product is in the decline stage of its product life cycle?

On average, advertisers pay more than __________ to produce a single television commercial.

A firm focusing on sales force promotion and trade promotion is using a pull strategy.

Under a pulsing approach to scheduling, ads are presented in a series of uneven "bursts" throughout the advertising period.

Of the following budgeting methods, the one that would be most likely to be used by firms seeking to protect their market position without generating a promotion war is the method called:

An airline advertises at consistently low levels throughout the year to remind customers of the brand, but during holiday periods, the airline increases the number of advertisements to stimulate demand and counter competitive activity. This airline is using a pulsing.

Informative advertising is used heavily when introducing a new product category.

Sales promotion tools are usually effective for building long- run brand preference.

Geelong Cement has just completed developing a quick- drying, high strength cement and is preparing to introduce it to the market. The first goal of its initial marketing communications programme will be to develop:

As the firm seeks to build selective demand in the face of increasing competition, the type of advertising that becomes more important is:

An example of a personal communication channel outside the control of a company is:

The traditional approach to promotional strategy where the seller promotes to and through the members of the channel of distribution is known as:

Any paid form of non- personal presentation and promotion of ideas, goods, or services by an identified sponsor is known as:

Personal selling is especially effective in building up buyers' convictions and actions.

In the case of print advertisements, less than 10 per cent of the exposed audience will read most of the body copy.

The unplanned static or distortion that may cause the receiver to get a different message than the sender intended is called: