Question 1

When The Home Depot introduced its Expo Design retailing concept,it spent several billion dollars on advertising and other promotions and successfully boosted its market share.As an advertising consultant,what would you advise The Home Depot to do?

Accepted Answer

CThe Home Depot has already successfully boosted its market share with significant advertising and promotional efforts. At this stage, maintaining market share becomes crucial, and because of diminishing returns on additional advertising expenditures, it's wise to spend proportionately less on advertising (choice B). Continuing to focus on brand awareness and market share gains is also important to keep the brand top-of-mind among consumers, hence maintaining the current advertising budget is advisable (choice C).

Question 2

About how much TV per week do Canadians watch,on average

Accepted Answer

Canadians, on average, watch about 21 hours of TV per week. This figure has been reported in various studies and reflects the average viewing habits.

Question 3

Why do companies with new brands that have a small market share tend to spend proportionately more for advertising and sales promotions compared to those with large market share for existing products?

Accepted Answer

Companies with new brands that have a small market share tend to spend proportionately more for advertising and sales promotions compared to those with large market share for existing products in order to achieve a certain minimum level of exposure to measurably affect purchase habits. With new brands, consumers are not yet familiar with the product, and advertising and sales promotions are crucial to increase brand awareness and persuade consumers to try the product. As the product gains market share and becomes more established, the need for advertising and sales promotions decreases, as brand awareness and loyalty have already been established.

Question 4

Fujitsu runs magazine advertisements that encourage purchase of its tablet-size PC.This is an example of what type of advertising?

Accepted Answer

The advertisement is focused on promoting the Fujitsu tablet-size PC product, hence it is an example of product advertising. Advocacy advertising is focused on promoting a cause, pioneering advertising introduces a new product or category, and comparative advertising compares products from different brands.

Question 5

What type of advertising is designed to enhance a company's image rather than promote a particular product?

Accepted Answer

Institutional advertising is designed to enhance a company's image rather than promote a particular product. Its main purpose is to create a favorable image of the company in the minds of its stakeholders, such as customers, employees, investors, and the general public. It often involves promoting the company's values, culture, achievements, and social responsibility.

Question 6

One of the problems with using aluminum foil to line casserole dishes is that it sticks to the food.Reynolds Wrap has developed Release nonstick aluminum foil.Its advertising campaign for the new product describes how the new foil is superior to existing foils.What type of advertising is Reynolds Wrap using to promote Release?

Accepted Answer

Pioneering advertising is used when introducing a new product or concept to the market, which is what Reynolds Wrap is doing with its Release nonstick aluminum foil.

Question 7

Procter & Gamble's marketing efforts for its Pert shampoo include television commercials,billboards,magazine inserts,and radio spots.These activities are all activities of which of the following?

Accepted Answer

The marketing efforts listed (television commercials, billboards, magazine inserts, and radio spots) are all examples of advertising, which is the dissemination of information about a product or service through paid media.

Question 8

A unique form of institutional advertising is a means for corporations to express their viewpoints on various controversial issues.What is it?

Accepted Answer

Advocacy advertising is a unique form of institutional advertising where corporations express their viewpoints on controversial issues, often taking a stance on social or political matters. It is meant to project the company's values and help connect with their target audience on a deeper level.

Question 9

What is Canada's top marketing communications service company,according to number of employees?

Accepted Answer

According to a report by Marketing Magazine, Cossette Communications is Canada's top marketing communications service company based on the number of employees.

Question 10

What is a form of impersonal,sponsor paid,one-way mass communication?

Accepted Answer

Advertising is a form of impersonal, sponsor-paid, one-way mass communication where a company or organization pays for space or time to promote a product or service to a large audience. This can be done through various mediums such as television, magazines, newspapers, billboards, and online platforms.

Question 11

What type of advertising is used to stimulate demand for a new product or product category and is heavily utilized during the introductory stage of the product life cycle?

Accepted Answer

Pioneering advertising is used to stimulate demand for a new product or product category and is heavily utilized during the introductory stage of the product life cycle. It aims to create awareness and educate consumers about the new product or category. Examples include advertisements for the first iPhone, introducing a new category of smartphones to the market.

Question 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 what type of advertising?

Accepted Answer

This is an example of institutional advertising, as it aims to promote the reputation and credibility of DuPont as the inventor of Kevlar, rather than promoting specific products.

Question 13

Amway runs advertisements that show how people who sell Amway products are involved in helping their communities through tutoring students and cleaning up the environment.These ads are examples of what type of advertising?

Accepted Answer

The advertisements are examples of institutional advertising, which is aimed at promoting a company's image or reputation, rather than selling a specific product. In this case, Amway is showcasing how their representatives are involved in contributing to their community, which helps create a positive image of the company.

Question 14

How does advertising affect consumers?

Accepted Answer

Advertising can influence consumer attitudes towards products or services by presenting them in a positive light and highlighting their benefits. However, it cannot force people to buy things they do not want or manipulate society against its will. While advertising can contribute to cultural trends and practices, it generally reflects existing cultural values rather than creating them.

Question 15

In advertising and sales promotion,beyond a certain level of spending,diminishing results set in.What is this phenomenon known as?

Accepted Answer

The answer of In advertising and sales promotion,beyond a certain...

Question 16

What does the advertising response function help marketers do?

Accepted Answer

The advertising response function helps marketers determine the effectiveness of their advertising campaigns by measuring the relationship between advertising spending and sales or other desired outcome. This allows marketers to make informed decisions about how to allocate their budget for maximum impact.

Question 17

Which of the following BEST describes advertising expenditures in Canada?

Accepted Answer

The statement "They are large, but the industry is small with fewer than 54,000 employees" accurately describes advertising expenditures in Canada. While the expenditures are significant, the industry itself is relatively small compared to other sectors and employs fewer than 54,000 people. Choices A, B, and C are not accurate descriptions of advertising expenditures in Canada.

Question 18

People who drink Cheerwine (a cherry-flavored cola)are extremely loyal to this product that is primarily found in the Maritimes.How would increased advertising of Cheerwine affect extremely brand loyal users of Cheerwine?

Accepted Answer

Increased advertising could reinforce the brand loyalty and encourage loyal users to purchase more, as they are already inclined towards the product.

Question 19

Unlike advertising that establishes or maintains a company's identity,what touts the benefits of a specific good or service?

Accepted Answer

Product advertising specifically promotes and highlights the features and benefits of a particular product or service, as opposed to advertising general company branding or image.

Question 20

Why do many brands with a large market share spend proportionally less on advertising compared to brands with small market share?

Accepted Answer

Beyond a certain point, increasing advertising spending may result in diminishing returns in terms of sales. Brands with a larger market share may have already achieved a significant level of brand recognition and customer loyalty, allowing them to spend proportionally less on advertising without sacrificing sales. Additionally, larger brands may benefit from economies of scale or other advantages that allow them to achieve greater efficiencies in their advertising spend.

Quiz 14: Advertising and Public Relations