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Social media is typically a very high-cost advertising medium.

A) True
B) False

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Which of the following is true about magazine advertising?


A) Spending on magazine advertising has been flat over the last few years.
B) With the rise in Internet advertising, spending on magazine advertising has been drastically reduced.
C) Over the last five years, magazine advertising has seen small incremental growth.
D) Due to the short life span of magazine advertising, magazine advertising has minimally decreased.
E) Spending on magazine advertising has been on a slow rise over the past decade.

F) C) and D)
G) A) and C)

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The Air Store, a retail outlet for fans and air conditioners, increased its advertising during the recent unusually hot summer days to encourage customers to make purchases quickly.This type of advertising is called ____ advertising.


A) primary-demand
B) Reminder
C) immediate-response
D) Institutional
E) media-oriented

F) A) and E)
G) B) and C)

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The least expensive of the sales promotion techniques is a premium.

A) True
B) False

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On iVillage.com's website geared toward women, Olay products are mentioned within editorial content that discusses slowing down the aging process.Internet advertising of this variety is called


A) a button ad.
B) sponsorship.
C) a banner ad.
D) a keyword ad.
E) an interstitial ad.

F) A) and E)
G) C) and D)

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A major problem with direct-mail advertising is


A) the lack of a personal message.
B) the unselective nature of the medium.
C) its inability to reach a specific market.
D) the difficulty of checking the effectiveness of the mailing.
E) inaccurate mailing addresses that send the advertisements to the wrong consumers.

F) A) and B)
G) B) and D)

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A firm with a limited budget for promotion will probably rely on advertising because personal selling is so expensive.

A) True
B) False

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Advertising may be broadly classified into three groups: selective demand, institutional, or primary demand.

A) True
B) False

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When the United Way sends out brochures discussing the charitable activities and organisations it supports, it is using


A) media relations.
B) promotion.
C) integrated marketing communications.
D) infomercials.
E) solicitation.

F) A) and E)
G) C) and D)

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A shelf dispenser in a supermarket provides pieces of paper that offer €1.00 off any Thermasilk hair care product.Customers can redeem their savings at the time of purchase.This sales promotion is a


A) point-of-purchase display.
B) rebate.
C) coupon.
D) premium.
E) refund.

F) A) and B)
G) A) and C)

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SME Ads Inc.(SME) Steven Monahan owns SME Ads Inc., an advertising agency.At present, the company focuses on advertising only.However, Steven plans to expand the company's focus to include all the major elements of an organisation's promotional mix.Steven feels that expanding the focus in such a way will allow the firm to meet customer needs in a more coordinated fashion.Currently, the firm organises its work according to the media being used.Steven believes this is the most effective way to subdivide advertising.Since television is the most widely used advertising medium, the company spends most of its time on television advertising.SME knows what it takes to get the job done, and it is committed to success. -Refer to SME Ads Inc.As Steven plans to expand the company's focus to other major elements of the promotion mix, which of the following should he focus on if he wants to help his clients create and maintain favourable relationships between them and their various internal and external groups?


A) Word-of-mouth
B) Sales promotion
C) Rebates
D) Public relations
E) Personal selling

F) A) and B)
G) A) and C)

Correct Answer

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The personal-selling process includes all of the following except


A) prospecting.
B) approaching the prospect.
C) answering objections.
D) providing a product sample.
E) making the presentation.

F) A) and E)
G) A) and B)

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Determining the location and demographics of people in the advertising target, the content of the message, and the characteristics of the audiences reached by various media is done when creating the advertising message.

A) True
B) False

Correct Answer

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Coca-Cola provides a children's centre with props, costumes, and decorations for use in a community play.This type of activity is known as


A) publicity.
B) notoriety.
C) advertising.
D) sponsorship.
E) public relations.

F) None of the above
G) A) and E)

Correct Answer

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SME Ads Inc.(SME) Steven Monahan owns SME Ads Inc., an advertising agency.At present, the company focuses on advertising only.However, Steven plans to expand the company's focus to include all the major elements of an organisation's promotional mix.Steven feels that expanding the focus in such a way will allow the firm to meet customer needs in a more coordinated fashion.Currently, the firm organises its work according to the media being used.Steven believes this is the most effective way to subdivide advertising.Since television is the most widely used advertising medium, the company spends most of its time on television advertising.SME knows what it takes to get the job done, and it is committed to success. -Refer to SME Ads Inc.SME recently created advertising for Maruti Automobiles for its new line of cars called Maruti Marvels.Such brand-oriented advertising is called


A) primary-demand advertising.
B) selective-demand advertising.
C) institutional advertising.
D) individualised advertising.
E) private advertising.

F) A) and B)
G) A) and C)

Correct Answer

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The most accessible medium in the UK is the radio.

A) True
B) False

Correct Answer

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When major oil companies advertise to build goodwill rather than to stimulate sales, they are using


A) institutional advertising.
B) primary-demand advertising.
C) public relations.
D) publicity.
E) selective-demand advertising.

F) A) and C)
G) A) and B)

Correct Answer

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Advertising and personal selling make up the entire field of marketing.

A) True
B) False

Correct Answer

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Advertising designed to enhance a firm's image or reputation is called


A) public information.
B) institutional advertising.
C) publicity.
D) selective-demand advertising.
E) primary-demand advertising.

F) B) and D)
G) A) and B)

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Margarita Smith, ad campaign manager for Coca-Cola, is making final changes to the content of an ad's message.She is talking with network distribution companies about when the ad will air, and she is discussing expected effects of the ad on consumers with commercial artists.Thus, she is in which stage of the ad campaign development process?


A) Development of the media plan
B) Creation of the advertising message
C) Evaluation of the advertising's effectiveness
D) Analysis of the advertising target audience
E) Execution of the campaign

F) A) and E)
G) D) and E)

Correct Answer

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