Marketing Final Exam

Spend proportionately less on advertising because

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Unformatted text preview: focus on brand awareness and market share gains c. slowly increase the amount spent on advertising and promotion to offset competitive advertisements d. shift the budget dollars from advertising to sales promotion and personal selling due to a change in the product life cycle stage e. focus on maintaining market share and spend proportionately less on advertising because additional expenditures would reap diminishing benefits ANS: E 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. PTS: 1 REF: 266 Thinking 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 conventions b. c. d. It can change strongly held values It can manipulate society against its will It can change negative attitudes to positive ones 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. PTS: 1 REF: 266 Thinking 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 product. a. Publicity b. Institutional c. Pioneering d. Selective e. Image ANS: B This is the definition of institutional advertising. PTS: 1 REF: 267 Thinking 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. a. product b. institutional c. pioneering d. environmental e. comparative ANS: B Institutional advertising is a form of advertising designed to enhance a company’s image rather than promote a particular product. PTS: 1 REF: 267 Thinking 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. a. publicity b. attribute c. image d. pioneering e. institutional ANS: E 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. PTS: 1 REF: 267 Thinking KEY: CB&E Model Promotion OBJ: 17-2 TOP: AACSB Reflective MSC: BLOOMS App...
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