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Terms in this set (16)
The difference between advertising and publicity is that advertising is
A. more effective in reaching consumers.
B. almost always used in conjunction with consumer satisfaction surveys.
C. a paid form of marketing communication.
D. designed to remind consumers, while publicity is used to persuade consumers.
E. designed for very targeted audiences, while publicity reaches mass audiences.
C.
a paid form of marketing communication.
Advertising is a paid form of communication, which distinguishes it from publicity, which is unpaid.
In very simple words, advertising is really about
A. improving brand image.
B. personal selling.
C. linking emotions with products.
D. getting consumers' attention.
E. being creative.
D. getting consumers' attention.
To get you to remember their ad and the brand, advertisers must first get your attention.
To get us to remember their ad and the product or brand in the ad, advertisers must first
A.
use persuasion.
B.
offer incentives.
C.
create effective PSAs.
D.
get our attention.
E.
vary
between flighting and pulsing scheduling.
D.
get our attention.
Unless an advertiser gets the consumer's attention, the ad has no impact.
Brent is working on an advertising campaign to promote downtown businesses. He knows the increasing number of advertising communication channels available and changes in consumers' media usage
A.
will force him to use PSAs.
B.
increases
consumers' preference for high-pressure persuasive advertising.
C.
makes his job more difficult.
D.
makes it easier to select media.
E.
makes budget more important, and creativity less important.
C.
makes his job more difficult.
The increasing number of communications media has made it more complex to choose appropriate media for a campaign.
Whenever the major beverage companies develop a new product, they advertise it heavily using television and print media. These efforts are designed to
A.
generate goodwill for the company.
B.
pull the product into retail stores through consumer demand.
C.
signal strategy changes to market competitors.
D.
make it easier to do posttesting.
E.
push the product into retail stores so customers can purchase it.
B.
pull the product into
retail stores through consumer demand.
Consumer advertising is usually part of a pull strategy, in which the goal is to have consumers demand the product of retailers. In contrast, a push strategy promotes a product to members of the supply chain.
Anne's Pita Bread Chips offers free POP (point-of-purchase) displays to retailers ordering its product. Anne's is using a __________ strategy.
A.
pull
B.
puffery
C.
publicity
D.
push
E.
posttesting
D.
push
A push strategy promotes a product to members of the supply chain. Consumer advertising, in contrast, is usually part of a pull strategy, in which the goal is to have consumers demand the product of retailers.
P&G's Tide laundry detergent has been around since 1948 and is still a market leader. P&G has used __________ advertising to reposition Tide several times over the product's life, trying to motivate new consumer segments to use the product.
A.
informative
B.
persuasive
C.
social marketing
D.
emotional
E.
institutional
B.
persuasive
In later stages of the product life cycle, persuasive advertising may be used to reposition an established brand by persuading consumers to change their existing perceptions of the advertised product.
Each year in December, Anheuser-Busch runs television ads featuring the Clydesdale horses pulling a stagecoach with an Anheuser-Busch logo. The message is low-key, wishing everyone well during the holiday season. This is an example of _________ advertising.
A.
informative
B.
persuasive
C.
reminder
D.
discussive
E.
institutional
C.
reminder
This is reminder advertising. It does not seek to specifically motivate any particular action, but simply reminds consumers that Anheuser-Busch is out there, using the familiar Clydesdales that have long been associated with the brand.
The California Raisin Advisory Board used to run ads featuring "The California Raisins," a fictitious R&B musical group composed of dancing raisins that boogied to the song "I Heard It Through the Grapevine." The ads, which were hugely popular and which gave rise to a line of raisin-themed merchandise, were designed to encourage raisin consumption. This campaign was an example of
A.
product-focused advertising.
B.
consumer-generated advertising.
C.
public service announcements.
D.
institutional advertising.
E.
push strategies.
D.
institutional advertising.
This is an example of institutional advertising, which promotes an entire industry (raisin production in California) rather than any particular brand.
Steve is working on the message to convey in his firm's advertising campaign. As a starting point, Steve should first consider
A.
the due date for his contribution to the campaign.
B.
touting the key benefits of his firm's services.
C.
what competitors are doing.
D.
which media he wants to
use.
E.
whether or not he uses the product being advertised.
B.
touting the key benefits of his firm's services.
A starting point for an ad message is often to tout the product's key benefits as perceived by the target market.
The advertising message "People are not looking for quarter-inch drill bits; they are looking for quarter-inch holes" suggests that advertising messages need to
A.
emphasize technology.
B.
focus on quality.
C.
inform consumers about opportunities.
D.
focus on solving problems.
E.
engage in mild puffery.
D.
focus on solving problems.
Advertising messages should focus on how the product can solve a consumer's problems.
The __________ is the combination of media used and the frequency of advertising in each medium.
A.
media plan
B.
media buy
C.
media mix
D.
communications tactical plan
E.
communications operational plan
C.
media mix
This is the definition of media mix.
The effectiveness of an advertising campaign is assessed during the campaign by
A.
pull strategies.
B.
push strategies.
C.
tracking.
D.
flighting.
E.
pretesting.
C.
tracking.
Tracking includes monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium.
In the early stages of an ad campaign, the objectives are established. To determine if those objectives have been met, the marketer will
A.
posttest.
B.
conduct feedback
analysis.
C.
initiate content analysis.
D.
pretest.
E.
arrange for peer analysis.
A.
posttest.
Posttesting is the evaluation of the campaign's impact after it has been implemented.
The __________ is the primary enforcement agency for mass media advertising.
A.
FDA
B.
FCC
C.
FTC
D.
BATF
E.
USPS
C.
FTC
The Federal Trade Commission (FTC) is the primary enforcement agency for most mass media advertising.
"Buy one, get one free" is a __________ sales promotion.
A.
deal
B.
coupon
C.
sample
D.
sweepstake
E.
rebate
A.
deal
A deal refers to a short-term price reduction that takes the form of a price lower than the regular price or a larger amount for the same price.
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A project has the following cash flows: $$ \begin{matrix} \text{0} & \text{1} & \text{2} & \text{3} & \text{4} & \text{5}\\ \text{- \$ 500} & \text{\$ 202} & \text{- \$ X} & \text{\$ 196} & \text{\$ 350} & \text{\$ 451}\\ \end{matrix} $$ This project requires two outflows at Years 0 and 2, but the remaining cash flows are positive. Its WACC is 10%, and its MIRR is 14.14%. What is the Year 2 cash outflow?
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QUESTION
An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross-product between the real rate and inflation. If the real risk-free rate is 5% and inflation is expected to be 18% each of the next 4 years, what is the yield on a 4-year security with no maturity, default, or liquidity risk?
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QUESTION
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QUESTION
Olsen Outfitters Inc. believes that its optimal capital structure consists of 55% common equity and 45% debt, and its tax rate is 40%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $4 million of retained earnings with a cost of [math]\mathrm{r}_{\mathrm{s}}=11 \%[/math]. New common stock in an amount up to$8 million would have a cost of $\mathrm{r}_{\mathrm{e}}=12.5 \%$. Furthermore, Olsen can raise up to $4 million of debt at an interest rate of [math]\mathrm{r}_{\mathrm{d}}=9 \%[/math] and an additional$5 million of debt at $r_{d}=13 \%$. The CFO estimates that a proposed expansion would require an investment of $8.2 million. What is the WACC for the last dollar raised to complete the expansion?
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