CHAPTER 15 PROMOTION STRATEGIES: ADVERTISING. a) China b) Russia c) India d) all of them permit advertising (X)

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1 CHAPTER 15 PROMOTION STRATEGIES: ADVERTISING MULTIPLE CHOICE 1. This country does not allow advertising. a) China b) Russia c) India d) all of them permit advertising (X) 2. The relationship between advertising expenditures and a country's GNP is a) positive (X) b) negative c) neutral 3. The relationship between advertising expenditures and a country s economic development is a) positive (X) b) negative c) neutral d) unpredictable 4. This country is highest in per capita advertising spending. a) the United States (X) b) Japan c) Germany d) France 5. In the United States, most TV commercials in terms of length are a) 60 seconds b) 45 seconds c) 30 seconds (X) d) 15 seconds 6. TV spots shorter than 30 seconds are an overwhelming majority in the following countries, except a) the United States (X) b) Japan c) Spain d) France 7. Compared to the other countries, the number of newspaper in a large U.S. city is a) greater b) smaller (X) c) about the same 8. This term is used to describe the total number of unduplicated individuals exposed to a particular media vehicle at least once during a specified time period. a) reach (X) b) frequency c) effectiveness d) duplication 9. This is an advertising medium. a) direct marketing b) direct mail (X) c) mail order d) telephone 1

2 10. This country is the most developed market as far as direct mail is concerned. a) Switzerland b) Germany c) the United Kingdom d) the United States (X) 11. This country is the leader user of direct mail. a) the United States (X) b) Canada c) Germany d) Japan 12. The United States lags behind other countries in terms of per-capita advertising expenditures for this advertising medium. a) newspaper b) magazine c) direct mail d) outdoor (X) 13. Inexpensive items (e.g., pens, calendars) carrying the advertiser s name are a) ordering methods b) rural media c) international media d) advertising specialties (X) 14. This is the most expensive strategy. a) product extension-communications adaptation b) product adaptation-communications extension c) product invention (X) d) dual adaptation 15. When consumer need is similar across countries but use conditions for a product vary, this strategy should be used. a) product extension-communications adaptation b) product adaptation-communications extension (X) c) product invention d) dual adaptation 16. This criterion offers no empirical evidence to support the standardization school of thought. a) feasibility b) cost savings c) consumer homogeneity (X) 17. Standardized advertising should not be used if this criterion is not satisfied. a) identification b) selectivity c) response d) size e) all of the above must be satisfied (X) 18. This school of thought claims that, regardless of countries, people have a common denominator (i.e., same need, common taste, etc.). a) standardization (X) b) individualization c) compromise d) heterogeneity 19. This component of the marketing mix is least likely to be standardized. 2

3 a) branding b) product c) advertising (X) 20. This advertising strategy aims to maximize both the efficiency and effectiveness of an advertising campaign. a) standardization b) localization c) global advertising (x) 21. A global ad should not be a) adaptation ready b) visual c) both global and local d) verbal (X) TRUE OR FALSE 1. Advertising, once considered politically inappropriate, is now allowed in China. 2. A correlation exists between advertising expenditures and a country's GNP. 3. There is no relationship between countries' economic development and their advertising expenditures. (F) 4. Advertising-to-sales ratios are remarkably constant across countries. (F) 5. There is no variation in the various kinds of marketing expenses (when expressed as a percentage of sales) across countries and product categories. (F) 6. The 15-second spot is the norm in Japan but not in the United States. 7. Foreign radio stations, just like U.S. stations, adopt the "magazine" format of programming. (F) 8. When compared to other big cities around the world, big U.S. cities have more daily newspapers. (F) 9. Unlike buying TV time abroad, advertisers do not have any difficulty obtaining newspaper space for advertising overseas. (F) 10. No newspaper is distributed internationally. (F) 11. Newspapers in the United States, Europe, and Asia are local in nature and scope. (F) 12. It is logical to avoid using unaudited magazines overseas. (F) 13. The United States is more advanced than European countries in utilizing the direct mail advertising medium. 14. European marketers are far behind the United States in exploiting the direct mail medium. 3

4 15. It is a common practice to make a direct transposure of a U.S. mailing piece without change into a European mailing kit. (F) 16. In Europe, it is a common practice to use multiple selection criteria (e.g., frequency, recency) to create and rent direct-mail lists. (F) 17. R ing is illegal. (F) 18. A rule of thumb in using outdoor advertising is to say "what can be said" and not "what must be said." (F) 19. The Internet, although a global medium, is becoming more geographically selective because a company can use a software to make users' location dictate a particular Web site that users will be exposed to. 20. An international marketer should standardize its Internet strategies on a worldwide basis. (F) 21. There is no one single advertising medium that is suitable for all countries and products. 22. In spite of their contrasting viewpoints, proponents and critics of standardized advertising largely agree on the definition of standardization. (F) 23. Standardized advertising is both effective and efficient. (F) 24. When consumer need varies across countries but use conditions are similar, the promotion can be kept constant while modifying only the product. (F) 25. The degree of standardization feasibility varies from country to country. 26. Studies have consistently shown that, contrary to the claim made by proponents of standardized advertising, consumer characteristics vary significantly from country to country. 27. There is a great deal of empirical evidence that consumers across countries are still significantly heterogeneous. 28. There is considerable empirical evidence that consumers across countries are becoming more homogeneous. (F) 29. There is no circumstance which advertising standardization is applicable. (F) 30. If the world market can be and is segmented, standardized advertising should not be used. 31. For decision-making purposes, market segmentation can provide a practical framework for standardized advertising. 32. If all segmentation criteria are satisfied, advertising standardization is not applicable. 33. Standardization and segmentation are two incompatible concepts. 34. A standardized advertisement and a global advertisement are essentially the same thing. (F) 4

5 35. A global advertisement should be more verbal than visual. (F) 5