Test Bank for Advertising and Promotion 11th Edition

Test Bank for Advertising and Promotion 11th Edition 1. Digital/online advertising account for the majority of companies' marketing communications expenditures. True False 2. Not all marketing transactions involve the exchange of money for a product or service. True False 3. The status gained from owning a particular brand is an example of a functional benefit. True False 4. As marketers embraced the concept of integrated marketing communications, they began to rely primarily on media advertising. True False 5. The integrated marketing communications approach calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. True False 6. The goal of integrated marketing communications (IMC) is to generate both short-term financial returns and build long-term brand and shareholder value. True False 7. One reason marketers are adopting the IMC approach is they understand the value of strategically integrating the various communications functions. True False 8. There has been an evolution to micromarketing as the mass audience assembled by network television and augmented by other mass media is fragmenting at an accelerating rate. True False 01-3 9. Traditional print advertising is expected to increase by 45 percent from 2016 to 2020. True False 10. Most consumers in the millennial generation age cohort are very receptive to traditional advertising. True False Chapter 01 Test Bank Key 1. Digital/online advertising account for the majority of companies' marketing communications expenditures. FALSE By 2016, $127 billion was being spent on traditional media advertising (television, radio, magazines, newspapers, outdoor, cinema), while only $68 billion was being spent on digital/online advertising. Total digital advertising is expected to reach $100 billion by 2020, at which point it will represent 45 percent of all media advertising spending. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Role of Advertising 2. Not all marketing transactions involve the exchange of money for a product or service. TRUE Not all marketing transactions involve the exchange of money for a product or service. Nonprofit organizations such as various causes, charities, religious groups, the arts, and colleges and universities receive millions of dollars in donations every year. Many nonprofit organizations use ads to solicit contributions from the public. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Strategic Marketing Planning 3. The status gained from owning a particular brand is an example of a functional benefit. FALSE Value is the customer's perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it. Benefits can be functional (the performance of the product), experiential (what it feels like to use the product), and/or psychological (feelings such as self-esteem or status that result from owning a particular brand). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Strategic Marketing Planning 01-27 4. As marketers embraced the concept of integrated marketing communications, they began to rely primarily on media advertising. FALSE As marketers embraced the concept of integrated marketing communications, they began asking their ad agencies to coordinate the use of a variety of promotional tools rather than relying primarily on media advertising. A number of companies also began to look beyond traditional advertising agencies and use other types of promotional specialists. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC 5. The integrated marketing communications approach calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. TRUE The integrated marketing communications approach seeks to have all of a company's marketing and promotional activities project a consistent, unified image to the marketplace. It recognizes that every customer interaction with a company or brand across a host of contact points represents an opportunity to deliver on the brand promise, strengthen customer relationships, and deepen loyalty. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC 6. The goal of integrated marketing communications (IMC) is to generate both short-term financial returns and build long-term brand and shareholder value. TRUE Integrated marketing communications is a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates, and other targeted relevant external and internal audiences. The goal is to generate both short-term financial returns and build long-term brand and shareholder value. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC 01-28 7. One reason marketers are adopting the IMC approach is they understand the value of strategically integrating the various communications functions. TRUE The IMC approach to marketing communications planning and strategy is being adopted by both large and small companies because they prefer to integrate communications functions instead of having them operate autonomously. By coordinating marketing communication efforts, companies can avoid duplication, take advantage of synergy among promotional tools, and develop more efficient and effective marketing communication programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC 8. There has been an evolution to micromarketing as the mass audience assembled by network television and augmented by other mass media is fragmenting at an accelerating rate. TRUE Viewing audiences are moving from the traditional broadcast networks to more narrowly targeted programs on cable networks and to other forms of entertainment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC 9. Traditional print advertising is expected to increase by 45 percent from 2016 to 2020. FALSE Traditional print advertising is expected to decline by 2 percent annually. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC 10. Most consumers in the millennial generation age cohort are very receptive to traditional advertising. FALSE Many consumers in in the millennial generation age cohort are very skeptical of traditional advertising. Having grown up in an even more media-saturated and brand-conscious world than their parents did, they respond to advertising differently and prefer to encounter marketing messages in different places and from different sources. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC