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Unformatted text preview: focus on brand awareness and
market share gains
slowly increase the amount spent on
advertising and promotion to offset
shift the budget dollars from advertising to
sales promotion and personal selling due to a
change in the product life cycle stage
focus on maintaining market share and spend
proportionately less on advertising because
additional expenditures would reap
The advertising response function shows that beyond a certain level of spending for advertising
and sales promotion, diminishing returns set in. As a mature, successful company, Gillette can
choose to spend only as much as needed to maintain market share.
KEY: CB&E Model Promotion
9. How can advertising affect consumers?
a. OBJ: 17-1 TOP: AACSB Reflective MSC: BLOOMS Application
It can change cultural practices and
d. It can change strongly held values
It can manipulate society against its will
It can change negative attitudes to positive
It can make people buy things they do not
want e. ANS: D
Advertising can affect attitudes but cannot alter values or force people to do things they do not
want to do or believe are wrong.
KEY: CB&E Model Promotion OBJ: 17-1 TOP: AACSB Reflective MSC: BLOOMS Analysis 10. _____ advertising is designed to enhance a company’s image rather than promote a particular
This is the definition of institutional advertising.
KEY: CB&E Model Promotion OBJ: 17-2 TOP: AACSB Reflective MSC: BLOOMS Knowledge 11. Procter & Gamble has run ads that promote its Children’s Safe Drinking Water program in which
it shows its employees teaching people around the world how to purify their water. The program
was instituted because 5,000 children die every day from diseases caused by unsafe water. These
ads are examples of _____ advertising.
Institutional advertising is a form of advertising designed to enhance a company’s image rather
than promote a particular product.
KEY: CB&E Model Promotion OBJ: 17-2 TOP: AACSB Reflective MSC: BLOOMS Application 12. DuPont has an advertisement that shows police officers describing how they were shot at close
range in the line of duty. The advertisement explains that the lives of these public servants were saved by Kevlar bullet-proof vests and that Kevlar was invented by DuPont. This is an example
of _____ advertising.
Institutional advertising is designed to enhance the image of the company and asks for no action
except maintaining a favorable attitude toward the advertiser and its goods and services.
KEY: CB&E Model Promotion OBJ: 17-2 TOP: AACSB Reflective MSC: BLOOMS App...
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- Fall '13