, Chapter 01
Test Bank
1. Advertising is just one type of marketing communications tool.
TRUE
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Define advertising and distinguish it from other forms of marketing communications.
Topic: Define Advertising
Feedback: Today, advertising is considered one tool in the marketing communications toolbox.
2. Athletic shoes, crystal goblets, and manicures are all examples of goods.
FALSE
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 01-02 Define advertising and distinguish it from other forms of marketing communications.
Topic: Define Advertising
Feedback: In addition to promoting tangible goods such as oranges, iPods, and automobiles, advertising helps publicize the intangible services of
bankers, beauticians, bike repair shops, bill collectors, and Internet providers. A manicure is an example of an intangible service.
3. The billboard that displays an advertisement for a new Internet service provider is an example of a medium.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-02 Define advertising and distinguish it from other forms of marketing communications.
Topic: Define Advertising
Feedback: Advertising reaches us through a channel of communication referred to as a medium. An advertising medium is any nonpersonal means
used to present an ad to its target audience.
4. The term “mass media” includes print media only. The other media are part of general media.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-02 Define advertising and distinguish it from other forms of marketing communications.
Topic: Define Advertising
Feedback: Mass media are print or broadcast media that reach very large audiences. They include radio, television, newspapers, magazines, and
billboards.
5. The ultimate goal of the marketing process is to build a strong brand image.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-03 Explain the role advertising plays in business and marketing.
Topic: The Role of Advertising and Promotion in Business and Marketing
Feedback: The ultimate goal of marketing is to earn a profit for the firm by exchanging products or services with those customers who need or want
them.
6. A firm’s advertising strategy will help determine who the targets of advertising should be, in what markets the advertising should appear, and what
goals the advertising should accomplish.
FALSE
1-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-03 Explain the role advertising plays in business and marketing.
Topic: The Role of Advertising and Promotion in Business and Marketing
Feedback: A firm’s marketing strategy will help determine who the targets of advertising should be, in what markets the advertising should appear,
and what goals the advertising should accomplish. The advertising strategy, in turn, will refine the target audience and define what response the
advertiser is seeking—what that audience should notice, think, and feel.
7. Our economy is based on the concept of perfect competition.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-04 Illustrate the functions of advertising in a free-market economy.
Topic: Economic Role of Advertising
Feedback: Our capitalist economy is based on the notion of free-market competition. While there is no such thing as perfect competition, there are
four fundamental assumptions of free-market economics that a market-driven society strives to achieve: self-interest, complete information, many
buyers and sellers, and absence of externalities (social costs).
8. Integrated marketing communications involves the coordination of brand messages from multiple sources including PR activities, sponsorship
commitments, personal selling, advertising, and digital media.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define integrated marketing communications and explain its importance.
Topic: Key Concepts of Integrated Marketing Communications
Feedback: Integrated marketing communications (IMC) is the coordination and integration of brand messages from a variety of sources.
9. One of the functions of advertising as a marketing tool is to build value, brand preference, and loyalty.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Illustrate the functions of advertising in a free-market economy.
Topic: Economic Role of Advertising
Feedback: One of the seven functions and effects of advertising as a marketing tool is to build value, brand preference, and loyalty.
10. One of the basic functions of advertising is to communicate information about the product, its features, and its location of sale.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Illustrate the functions of advertising in a free-market economy.
Topic: Economic Role of Advertising
Feedback: Advertising has many functions including the communication of information about the product, its features, and its location of sale.
11. The preindustrial age extended from the beginning of recorded history to the first decades of the twentieth century.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
1-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, Feedback: The preindustrial age was the period of time between the beginning of written history and roughly the start of the nineteenth century.
12. Benjamin Franklin opposed the use of advertising.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
Feedback: In the American colonies, the Boston Newsletter began carrying ads in 1704. About 25 years later, Benjamin Franklin, the father of
advertising art, made ads more readable by using large headlines and considerable white space. In fact, Franklin was the first American known to use
illustrations in ads.
13. During the industrial age, manufacturers were primarily concerned with production rather than marketing.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
Feedback: During the industrial age, which lasted roughly until the end of World War II (1945), manufacturers were principally concerned with
production.
14. For Americans, the profession of advertising began when Francis Ayer formed an ad agency in Philadelphia in 1869.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
Feedback: For Americans, the profession of advertising began when Volney B. Palmer set up business in Philadelphia in 1841.
15. With the establishment of public schooling, the United States reached an unparalleled 90 percent literacy rate.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
Feedback: Public schooling helped the nation reach an unparalleled 90 percent literacy rate.
16. The golden age of advertising ended shortly after World War II.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
Feedback: The golden age of advertising began at the end of World War II and lasted until about 1979.
17. Wheaties breakfast cereal is using product differentiation when it calls itself the “breakfast of champions.”
TRUE
AACSB: Reflective Thinking
1-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Test Bank
1. Advertising is just one type of marketing communications tool.
TRUE
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Define advertising and distinguish it from other forms of marketing communications.
Topic: Define Advertising
Feedback: Today, advertising is considered one tool in the marketing communications toolbox.
2. Athletic shoes, crystal goblets, and manicures are all examples of goods.
FALSE
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 01-02 Define advertising and distinguish it from other forms of marketing communications.
Topic: Define Advertising
Feedback: In addition to promoting tangible goods such as oranges, iPods, and automobiles, advertising helps publicize the intangible services of
bankers, beauticians, bike repair shops, bill collectors, and Internet providers. A manicure is an example of an intangible service.
3. The billboard that displays an advertisement for a new Internet service provider is an example of a medium.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-02 Define advertising and distinguish it from other forms of marketing communications.
Topic: Define Advertising
Feedback: Advertising reaches us through a channel of communication referred to as a medium. An advertising medium is any nonpersonal means
used to present an ad to its target audience.
4. The term “mass media” includes print media only. The other media are part of general media.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-02 Define advertising and distinguish it from other forms of marketing communications.
Topic: Define Advertising
Feedback: Mass media are print or broadcast media that reach very large audiences. They include radio, television, newspapers, magazines, and
billboards.
5. The ultimate goal of the marketing process is to build a strong brand image.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-03 Explain the role advertising plays in business and marketing.
Topic: The Role of Advertising and Promotion in Business and Marketing
Feedback: The ultimate goal of marketing is to earn a profit for the firm by exchanging products or services with those customers who need or want
them.
6. A firm’s advertising strategy will help determine who the targets of advertising should be, in what markets the advertising should appear, and what
goals the advertising should accomplish.
FALSE
1-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-03 Explain the role advertising plays in business and marketing.
Topic: The Role of Advertising and Promotion in Business and Marketing
Feedback: A firm’s marketing strategy will help determine who the targets of advertising should be, in what markets the advertising should appear,
and what goals the advertising should accomplish. The advertising strategy, in turn, will refine the target audience and define what response the
advertiser is seeking—what that audience should notice, think, and feel.
7. Our economy is based on the concept of perfect competition.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-04 Illustrate the functions of advertising in a free-market economy.
Topic: Economic Role of Advertising
Feedback: Our capitalist economy is based on the notion of free-market competition. While there is no such thing as perfect competition, there are
four fundamental assumptions of free-market economics that a market-driven society strives to achieve: self-interest, complete information, many
buyers and sellers, and absence of externalities (social costs).
8. Integrated marketing communications involves the coordination of brand messages from multiple sources including PR activities, sponsorship
commitments, personal selling, advertising, and digital media.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define integrated marketing communications and explain its importance.
Topic: Key Concepts of Integrated Marketing Communications
Feedback: Integrated marketing communications (IMC) is the coordination and integration of brand messages from a variety of sources.
9. One of the functions of advertising as a marketing tool is to build value, brand preference, and loyalty.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Illustrate the functions of advertising in a free-market economy.
Topic: Economic Role of Advertising
Feedback: One of the seven functions and effects of advertising as a marketing tool is to build value, brand preference, and loyalty.
10. One of the basic functions of advertising is to communicate information about the product, its features, and its location of sale.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Illustrate the functions of advertising in a free-market economy.
Topic: Economic Role of Advertising
Feedback: Advertising has many functions including the communication of information about the product, its features, and its location of sale.
11. The preindustrial age extended from the beginning of recorded history to the first decades of the twentieth century.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
1-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, Feedback: The preindustrial age was the period of time between the beginning of written history and roughly the start of the nineteenth century.
12. Benjamin Franklin opposed the use of advertising.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
Feedback: In the American colonies, the Boston Newsletter began carrying ads in 1704. About 25 years later, Benjamin Franklin, the father of
advertising art, made ads more readable by using large headlines and considerable white space. In fact, Franklin was the first American known to use
illustrations in ads.
13. During the industrial age, manufacturers were primarily concerned with production rather than marketing.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
Feedback: During the industrial age, which lasted roughly until the end of World War II (1945), manufacturers were principally concerned with
production.
14. For Americans, the profession of advertising began when Francis Ayer formed an ad agency in Philadelphia in 1869.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
Feedback: For Americans, the profession of advertising began when Volney B. Palmer set up business in Philadelphia in 1841.
15. With the establishment of public schooling, the United States reached an unparalleled 90 percent literacy rate.
TRUE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
Feedback: Public schooling helped the nation reach an unparalleled 90 percent literacy rate.
16. The golden age of advertising ended shortly after World War II.
FALSE
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-05 Discuss how advertising evolved with the history of commerce.
Topic: History of Advertising
Feedback: The golden age of advertising began at the end of World War II and lasted until about 1979.
17. Wheaties breakfast cereal is using product differentiation when it calls itself the “breakfast of champions.”
TRUE
AACSB: Reflective Thinking
1-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
