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Chapter 17 - Public Relations, Publicity, and Corporate Advertising

Chapter 17

Public Relations, Publicity, and Corporate Advertising

True / False Questions

1. Publicity, public relations, and corporate advertising all are integral parts of the overall promotional effort. True False

2. Public relations is limited to business management. True False

3. The new role of public relations (PR) is more marketing - oriented when compared to its traditional role. True False

4. Ads themselves can be the focus of publicity. True False

5. One main advantage of marketing public relations is that media time and space are guaranteed. True False

6. One of the main reasons why firms are so concerned about public attitudes is that these attitudes may affect the sales of the firm's products. True False

7. Public relations process is an ongoing process. True False

8. People who live and work in the community where a firm is located are often the target of public relations efforts. True False

9. Public relations efforts are often targeted to more than one group of individuals. True False

10. To be used by the press, information must be of interest to the medium as well as to its audience. True False

11. The fact that the media are not being compensated for providing the information makes it a credible source amongst the public. True False

12. The relative costs of public relations is very high. True False

13. Public relations messages are not subject to the clutter of ads. True False

14. One major disadvantage of public relations is the potential for not completing the communications process. True False

15. Public relations is a part of publicity efforts. True False

16. Publicity is a short-term strategy. True False

17. Public relations is usually controlled by the firm or its agent. True False

18. Public relations is designed to provide only positive information about the firm. True False

19. Public relations is always positive while publicity is always negative. True False

20. In most organizations, publicity forms a part of the public relations department. True False

21. Publicity is usually perceived as being sponsored by the company. True False

22. Publicity information may be perceived as endorsed by the medium in which it appears. True False

23. Corporate advertising does not promote any one specific product or service. True False

24. Corporate advertising is designed to promote the main product or service of a company. True False

25. Consumers, generally, do not seem very interested in corporate advertising. True False

26. Corporate ads are not as easy to write when compared to the other general product ads. True False

27. Corporate ads are often intangible. True False

28. This thing called ‘image' is unidimensional. True False

Multiple Choice Questions

29. Which of the following statements is true about public relations? A. Public relations is same as publicity. B. Public relations is a short term strategy of enhancing the image of the company. C. Public relations is not concerned with the evaluation of public attitudes. D. An effective public relations program continues over months or even years. E. Public relations deals only with the activities designed to sell a product or service.

30. In the traditional perspective, public relations is viewed as a(n) _____ function whose primary responsibility is to maintain mutually beneficial relationships between the organization and its publics. A. advertising B. direct response C. marketing D. nonmarketing E. sales

31. _____ is the management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and acceptance. A. Public relations B. Image advertising C. Corporate advertising D. Dyadic communications E. Integrated marketing communications

32. The new role of public relations is one characterized by: A. less of a communication role. B. less of a marketing orientation. C. a tighter, more tightly defined role. D. a broader, less marketing-oriented role. E. a broader, more marketing-oriented role.

33. Public relations activities that are designed to support marketing objectives are known as: A. publicity. B. vertically integrated activities. C. marketing public relations functions. D. image-oriented advertising. E. branding.

34. Marketing objectives that may be aided by _____ activities include raising awareness, informing and educating, gaining understanding, building trust, giving consumers a reason to buy, and motivating consumer acceptance. A. sales promotional B. public relations C. advertising D. direct-response E. outdoor marketing

35. Which of the following statements describes an advantage derived from the use of marketing public relations (MPR)? A. The effectiveness of MPR can be easily measured. B. It is easy to tie slogans in with MPR activities. C. MPR breaks through the clutter. D. The use of MPR guarantees a specific media time and place. E. It helps in increasing control over media.

36. Miller & Sons Inc. has revived the dying art of stone masonry. Roy Miller and his two sons are all European trained artisans who would like to work on repairing of old stonework on churches and buildings constructed before 1940. The business is not thriving even though the company has been featured in news articles in several regional magazines and newspapers for its help in restoring old cemeteries and as a potentially important new business. What should the company do? A. Use the objective-task method for setting its budget B. Change its name C. Conduct research to determine the public attitude toward the company D. Lower its prices E. Add product line extensions

37. In public relations targeting, external audiences include: A. customers. B. the public at large. C. suppliers. D. stockholders. E. employees.

38. Which of the following is considered an internal audience for a public relations activity? A. Customer B. Media C. Government D. Financial community E. Civic groups

39. Which of the following is considered an external audience for a public relations activity? A. Customers B. Suppliers C. Members of the local community D. Stockholders E. Press

40. Organizational newsletters, notices on bulletin boards, awards ceremonies and events, direct mail, and annual reports are some of the methods used to communicate with: A. current customers of the organization. B. employees of the firm. C. the press. D. government officials. E. community members.

41. One of the most critical external publics is the ____, which determine what you will read in your newspapers or see on TV, and how this news will be presented. A. supplier B. customer C. government D. media E. investor

42. Which of the following groups would most likely be the target of public relations efforts designed to increase communications with external audiences? A. Potential investors and the media B. Current customers and employees of the firm C. The media and current customers D. Suppliers and employees of the firm E. The public at large and stockholders

43. Companies that support lobbying efforts: A. are trying to reach internal audiences. B. are engaged in flighting. C. have targeted government bodies. D. have determined the importance of homogeneity. E. are targeting educators.

44. When the Financial Times published an article about The Mills Corporation building, a multi-leisure complex in Madrid, Spain, the company supplied the written information. The author of the articles needed to write knowledgeably about a complex that will offer a blend of entertainment, retailing, lodging and offices. In fact, this information was made available to several different European and U.S. newspapers. Which public relations tool was employed? A. Community involvement B. Integrated public relations activities (IPRA) C. Exclusives D. Marketing public relations (MPR) E. Press release

45. Unilever is the world's largest manufacturer of ice cream. When the Anglo-Dutch company decided to invest in retailing ice cream, it gathered news representatives from the major newspapers to a meeting in which the company unveiled its prototype ice-cream van and showed pictures of ice-cream kiosks that it was setting up on the world's beaches. Which public relations tool was employed? A. Community involvement B. Integrated public relations activities (IPRA) C. Exclusives D. Press conference E. Press release

46. When a right to a public relations effort (such as a particular story) is offered to one particular medium since the medium reaches a substantial number of people in the target audience, it is known as a(n) ____. A. needledrop. B. mnemonic. C. interview. D. exclusive. E. press conference.

47. For areas of the United States that have experienced lengthy periods of time without utilities due to some act of nature, Budweiser packages water in black and white cans and gives it to people who are without water. Which public relations tool was employed? A. Community involvement B. Integrated public relations activities (IPRA) C. Exclusives D. Press conference E. Press release

48. Organizations can use the Internet as a means of disseminating their public relations information. How does the way the Internet is used differ from how other traditional media is used? A. The Internet offers longer exposure times than other media. B. The Internet is confined by time and space limitations that do not inhibit other media. C. The Internet offers the ability to build internal links to provide instant access to as much information as needed. D. The Internet cannot be used by organizations to defend themselves against negative publicity. E. The Internet is not used as a public relations source.

49. Because public relations communications are typically perceived as ____, they are not subject to the problems with clutter that are common to other forms of promotional communication. A. corporate-sponsored advertisements B. altruistic C. image builders D. news items E. exclusives

50. Which of the following statements is true about public relations? A. This medium of promotion lacks credibility. B. The relative costs of public relations is very low. C. The absolute costs of public relations is very high when its possible effects are considered. D. Public relation messages are subject to a lot of clutter. E. Public relations is ineffective in generating sales leads.

51. Which of the following is an advantage associated with public relations? A. Effectiveness at completing the communications product. B. High absolute cost but low relative cost. C. Ease with which PR activities are coordinated with other promotional activities even when the activities are performed in different departments. D. Use as an effective lead generator. E. Strong connection of the receiver to the source.

52. Criteria for measuring the effectiveness of public relations activities include: A. number of press releases developed. B. number of personal interviews given by company representatives. C. dollar value of community involvement. D. percentage of positive and negative articles over time. E. percentage of people who have come across the press release.

53. Measuring the effectiveness of PR activities provides which of the following advantages? A. It helps deal with the problem of clutter. B. It reduces the high absolute costs connected with PR activities. C. It helps in reaching specific audience groups. D. It helps in completing the communication process. E. It gives management a way to judge the quality of public relations achievements and activities.

54. Which of the following is a method for measuring the effectiveness of public relations activities? A. Number of customer complaints B. Public opinion and surveys C. Sales D. Computer simulations E. Trend analyses

55. _____ refers to the generation of news about a person, product, or service that appears in broadcast or print media. A. Advertising B. Direct response advertising C. Sales promotions D. Publicity E. Advertainment

56. Which of the following statements about publicity and public relations is true? A. Publicity always originates within the firm. B. Public relations is typically a short term strategy. C. Publicity is always positive. D. Publicity is typically a short-term strategy. E. Publicity is synonymous to public relation.

57. An article in the Financial Times about Iressa, a new lung cancer drug made by AstraZeneca, said the drug was not the miracle drug it was supposed to be. The article described how the drug had been linked with 174 deaths in eight months and 300 cases of serious side effects. This is an example of: A. an advertorial. B. negative publicity. C. controlled public relations. D. image advertising. E. negative lobbying.

58. Unlike other forms of promotions, _____ is not usually perceived as being sponsored by the company, especially in negative instances. A. direct marketing B. outdoor advertising C. publicity D. transit advertising E. trade promotion

59. Which of the following is one of the important reasons for the high power of publicity as a form of promotion? A. Lack of clutter B. Leads to increase in sales C. Its news value and the frequency of exposure it generates D. Its lack of ability to generate word of mouth information E. Its low relative costs

60. Why is publicity considered by many marketers to be the strongest form of marketing communications? A. Its effectiveness at completing the communications process. B. Its ability to make or destroy a brand. C. The fact that consumers perceive the communication as biased. D. The ease with which it is coordinated with other communications activities. E. The positive image it always attaches to products and organizations.

61. Which of the following communications methods is potentially the most powerful? A. Sales promotions B. Advertorials C. Specialty advertising D. Publicity E. Advocacy advertising

62. Why is publicity viewed as being so much more important than advertising, sales promotion, or other forms of public relations? A. Control of the message B. Timing of the message C. Credibility of the message D. Accuracy of the message E. Lack of clutter

63. There are some who believe Beanie Babies, Ninja Turtles, and other high-selling products were the beneficiaries of staged events in which buyers were paid to stand in line in attempts to purchase the products. If this is true, what strategy were these companies employing? A. Press conferences B. The management of publicity C. Press releases D. Video news releases E. Sponsorships

64. _____ is a publicity piece produced by publicists so that stations can air it as a news story. A. Video news releases B. Public relations C. Spilt-run tests D. Mnemonics E. Dramatization ads

65. Star News ran a two-minute story on "phishing" scams. The news report featured testimony from Jessica, a phishing victim, and a computer security expert from Trend Micro Software. In no uncertain terms, the report recommended PC-Cilin, a $50 Internet security program from Trend Micro, as "a first line of defense" against phishing scams. However, it was later known that the report was funded by Trend Micro. This news report is an example of: A. image advertising. B. advocacy advertising. C. cause-related advertising. D. video news release. E. direct response advertising.

66. Cartoon Network ran a holiday feature on the best and worst high-tech gifts for children. In it, technology expert and "Internet Mom" recommended the Oxyride battery, the Pac-Man and a few more games that came from either Panasonic, Namco or Techno Source. If this holiday feature were jointly funded by Panasonic, Namco and Techno Source, it would be called a(n): A. cause related ad. B. mnemonic. C. image ad. D. video news release. E. event sponsorship.

67. Marketers use _____ when they want to have as much control as possible over publicity. A. press conferences B. advertorials C. press releases D. video news releases E. sponsorships

68. One of the main disadvantages of publicity is: A. lack of control. B. low credibility. C. perception of being endorsed by the media. D. the ability of the marketer to control the timing. E. non-identification of the sponsor.

69. Communications activities designed to promote a firm's overall image, without reference to a specific product, are called: A. corporate advertising. B. advocacy advertising. C. advertorials. D. lobbying. E. continuity advertising.

70. The illustration in the ad for Accenture showed an elephant walking a narrow log suspended between two cliffs. The headline read, "Who says you can't be big and nimble?" Since the ad made no reference to the specific products offered by Accenture, it is an example of: A. corporate advertising. B. advocacy advertising. C. an advertorial. D. lobbying. E. continuity advertising.

71. ACE Guaranty RE changed its name to Ace Guaranty Corp to better reflect the scope of its products. Headline "Sometimes a name change can make a big difference." The ad showed photographs of stars who had changed their names and made no mention of what services the corporation offers. This ad is an example of: A. corporate advertising. B. advocacy advertising. C. an advertorial. D. lobbying. E. continuity advertising.

72. Which of the following best reflects an example of corporate advertising? A. Revlon's use of the actress that plays Buffy, the vampire slayer, as a spokesperson. B. Toyota promoting its concern for the environment. C. Titleist golf equipment signing of golfer Tiger Woods as a spokesperson. D. M&M conducting a contest to determine the new color for M&M candies. E. Haven Funeral Home giving out free calendars to all of its regular customers.

73. Which of the following statements about corporate advertising is true? A. It is cheap form of advertising. B. It attracts the interest of consumers. C. Consumers prefer watching such advertising that provide a lot of meaning to them. D. Corporate ads are not easy to write. E. It concentrates on the promotion of one specific product or service.

74. The term _____ tends to be used as a catchall for any type of advertising run for the direct benefit of the corporation rather than its products or services. A. direct marketing B. sales promotion C. aerial advertising D. corporate advertising E. trade promotion

75. The two main goals of corporate advertising are creating a positive image for the firm and: A. developing interest in the product and services. B. creating awareness about the new products of the firm. C. inducing trial. D. inviting feedback. E. communicating the organization's views on social, business, and environmental issues.

76. _____ is the form of corporate advertising devoted to promoting the organization's overall image. A. Transit advertising B. Cause - related advertising C. Image advertising D. Advocacy advertising E. Symbolic advertising

77. An advertisement for dishes pictured a bride and groom sitting down to a table setting, with a line of copy indicating that the Queen of England had used similar dishes at her wedding dinner. This is an example of which of the following types of image advertising? A. Cause-related advertising B. Advocacy advertising C. General positioning ad D. Direct response ad E. Financial support ad

78. The Grand Thornton's print ad states that, "If you have a passion for accounting and want to work with others who share that passion, you might be interested in the Grant Thornton accounting firm". This is an example of which of the following types of advertising? A. Direct-response advertising B. Image advertising C. Cause-related advertising D. Advocacy advertising E. Event sponsorship

79. An American Airlines ad shows a golf ball laying at a green. The copy reads, "It's hard to believe that people can be so passionate about an inanimate object that merely flies through the air and lands on the ground. We, however, understand completely." This ad shows American Airlines creating an image of safety for itself. It is an example of which type of image advertising? A. Direct response ads B. Sponsorships C. Cause related ads D. General positioning ads E. Financial support ads

80. In an ad, Toyota explained its Global Earth Charter, which has led to the recycling of 376 million pounds of steel annually and an aggressive recycling program keeps 18 million pounds of other scrap metals from landfill. It is an example of which type of image advertising? A. Recruitment ads B. Sponsorships C. Paid positive publicity D. General positioning ads E. Financial support ads

81. When Allstate refers to itself as "The good hands people," this is an example of: A. positioning advertising. B. recruitment advertising. C. advocacy advertising. D. public relations. E. publicity.

82. If you follow college football you may have noticed over the years that bowl games are using large corporation names such as the Nokia Sugar Bowl. What type of advertising is being used when a large corporation like Nokia sponsors a college bowl game? A. Advocacy advertising B. Image advertising C. Issue advertising D. Cause-related advertising E. Advertorial marketing

83. Why would World Wrestling Entertainment (WWE) sponsor a car on the NASCAR racing circuit? A. To build equity and gain affinity with its target market B. To show its position on sports marketing C. To create a generic positioning strategy D. To further segment its target market E. To reduce its overall promotional expenses

84. Many companies are attracted to event sponsorships because: A. they help build equity and gain affinity with target audiences. B. they are unidimensional. C. they are less expensive forms of advertising. D. they help in propagating ideas and elucidating controversial social issues of public importance. E. they explain management's position on a particular environmental or social issue.

85. _____ is a major form of corporate advertising that addresses social, business, or environmental issues. A. Image advertising B. Aerial advertising C. Advocacy advertising D. Event sponsorship E. Trade promotion

86. While still seeking the objective of portraying an image for the company or organization, _____ does so indirectly by adopting a position on a particular issue rather than by promoting the organization itself. A. advocacy advertising B. publicity C. a sponsorship D. public relations advertising E. image advertising

87. _____ advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of the sponsor. A. Advocacy B. Image C. Aerial D. Event E. Interactive

88. An oil company in United States developed an advertisement promoting off shore oil drilling in the United States. Such ads might tout the availability of oil resources, the reduction of dependence on foreign oil, and other benefits, with the goal of getting members of the public to support offshore drilling. This is an example of: A. image advertising. B. trade promotion. C. direct-response advertising. D. event sponsorship. E. advocacy advertising.

89. Budweiser's effort to promote "responsible drinking and driving" is an example of: A. advocacy advertising. B. image advertising. C. direct-response advertising. D. event marketing. E. aerial advertising.

90. When Mobil Oil runs an advertisement urging citizens to support and to donate to a law enforcement memorial fund, this is an example of: A. advocacy advertising. B. publicity. C. specialty advertising. D. a paid public relations activity. E. event sponsorship.

91. Mobil Oil ran an ad in which it addressed the potential problem of global warming. The ad encouraged others to take time to truly understand the problem and to not act hastily. This ad is an example of: A. advocacy advertising. B. publicity. C. a sponsorship. D. public relations advertising. E. image advertising.

92. Which of the following statements is true about advocacy advertising? A. Only small firms employ this form of advertising. B. Advocacy ads may be sponsored by a firm or by a trade association. C. Advocacy ads are always used in conjunction with cause-related marketing. D. Advocacy ads reflect a company's position on some upcoming legislative or judicial ruling. E. Advocacy ads are not a controversial form of advertising.

93. While considered a form of advocacy advertising, _____ ads may have no affiliation with a corporate or trade sponsor but may be sponsored by an organization to bring attention to what they consider to be an important issue. A. direct-response ads B. image C. general positioning D. issue E. transit

94. A departmental store ad about a consumer tax issue would constitute _____ advertising. A. image B. event C. direct-response D. trade E. issue

95. An increasingly popular method of image building is _____ marketing, in which companies link with charities or nonprofit organizations as contributing sponsors. A. cause-related B. event C. image D. transit E. cooperative

96. Cause-related marketing refers to: A. all advertising designed to cause sales. B. all advertising designed to cause attitude change. C. the linking of companies with charities with the former being a contributing sponsor to the latter. D. corporate advertising designed to change the image of an organization. E. advertising developed in response to any negative publicity faced by the firm.

97. Making outright donations to a nonprofit cause, having companies volunteer for the cause, donating materials or supplies, running public service announcements, or even providing event refreshments are some of the ways of _____ marketing. A. cause-related B. event C. image D. transit E. cooperative

98. McDonald's sponsorship of the Ronald McDonald House, where families of hospitalized children can stay free of charge, is an example of: A. advocacy advertising. B. cause-related marketing. C. publicity. D. advertorial marketing. E. transactional marketing.

99. Liberty Mutual Insurance paid for an ad supporting the efforts of Students Against Drunk Driving (SADD) and safe teen driving. This ad was an example of: A. advocacy advertising. B. cause-related marketing. C. publicity. D. advertorial marketing. E. transactional marketing.

100. Which of the following is a criticism commonly applied to corporate advertising? A. Poor vehicle for repositioning a company or a brand B. Does not take advantage of any benefits derived from public relations C. Not effective at reaching the target market D. Questionable effectiveness E. Lack of control over public opinion

101. The attempt to measure the effectiveness of PR activities is often difficult to achieve. Which of the following measures would be most useful in this effort? A. Tying PR activities directly to sales B. Timing the amount of time a sponsored logo appears on television C. Conducting studies to determine the relationship between corporate advertising and stock prices D. Computer simulations E. Measuring effectiveness of the sales promotional tools instead

Chapter 17 Public Relations, Publicity, and Corporate Advertising Answer Key

True / False Questions

1. (p. 572) Publicity, public relations, and corporate advertising all are integral parts of the overall promotional effort. TRUE

Publicity, public relations, and corporate advertising all have promotional program elements that may be of great benefit to marketers. They are integral parts of the overall promotional effort that must be managed and coordinated with the other elements of the promotional mix.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-01 To recognize the roles of public relations; publicity; and corporate advertising in the promotional mix. Topic: Introduction

2. (p. 573) Public relations is limited to business management. FALSE

Public relations is not limited to business management but extends to other types of organizations, including nonprofit institutions.

3. (p. 573) The new role of public relations (PR) is more marketing - oriented when compared to its traditional role. TRUE

An increasing number of marketing-oriented companies have established new responsibilities for public relations. PR takes on a much broader (and more marketing oriented) perspective, designed to promote the organization as well as its products and/or services.

4. (p. 574) Ads themselves can be the focus of publicity. TRUE

Ads themselves can be the focus of publicity. There seems to be as much hype about the ads on the Super Bowl as there is for the game itself.

5. (p. 576) One main advantage of marketing public relations is that media time and space are guaranteed. FALSE

One main disadvantage of marketing public relations is that media time and space are not guaranteed.

6. (p. 576) One of the main reasons why firms are so concerned about public attitudes is that these attitudes may affect the sales of the firm's products. TRUE

Why is the firm so concerned with the public's attitudes? One reason is that these attitudes may affect sales of the firm's products.

7. (p. 577) Public relations process is an ongoing process. TRUE

The public relations process is an ongoing one, requiring formalized policies and procedures for dealing with problems and opportunities.

8. (p. 579) People who live and work in the community where a firm is located are often the target of public relations efforts. TRUE

People who live and work in the community where a firm is located or doing business are often the target of public relations efforts.

9. (p. 579) Public relations efforts are often targeted to more than one group of individuals. TRUE

Public relations efforts are often targeted to more than one group, and are a direct result of concerns initiated in the marketplace.

10. (p. 580) To be used by the press, information must be of interest to the medium as well as to its audience. TRUE

To be used by the press, information must be factual, true, and of interest to the medium as well as to its audience.

11. (p. 582) The fact that the media are not being compensated for providing the information makes it a credible source amongst the public. TRUE

The fact that the media are not being compensated for providing the information may lead receivers to consider the news more truthful and credible.

12. (p. 582) The relative costs of public relations is very high. FALSE

In both absolute and relative terms, the cost of public relations is very low, especially when the possible effects are considered.

13. (p. 582) Public relations messages are not subject to the clutter of ads. TRUE

Because they are typically perceived as news items, public relations messages are not subject to the clutter of ads.

14. (p. 583) One major disadvantage of public relations is the potential for not completing the communications process. TRUE

Perhaps the major disadvantage of public relations is the potential for not completing the communications process. While public relations messages can break through the clutter of commercials, the receiver may not make the connection to the source.

15. (p. 586) Public relations is a part of publicity efforts. FALSE

Publicity is really a subset of the public relations effort.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-04 To know the methods for measuring the effects of public relations; publicity; and corporate advertising. Topic: Publicity

16. (p. 586) Publicity is a short-term strategy. TRUE

Publicity is typically a short-term strategy.

17. (p. 586) Public relations is usually controlled by the firm or its agent. TRUE

Public relations is designed to provide positive information about the firm and is usually controlled by the firm or its agent.

18. (p. 586) Public relations is designed to provide only positive information about the firm. TRUE

Public relations is designed to provide positive information about the firm and is usually controlled by the firm or its agent.

19. (p. 586) Public relations is always positive while publicity is always negative. FALSE

Publicity is not always positive and is not always under the control of, or paid for by, the organization. Both positive and negative publicity often originates from sources other than the firm.

20. (p. 586) In most organizations, publicity forms a part of the public relations department. TRUE

In most organizations, publicity is controlled and disseminated by the public relations department.

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 17-04 To know the methods for measuring the effects of public relations; publicity; and corporate advertising. Topic: Publicity

21. (p. 586) Publicity is usually perceived as being sponsored by the company. FALSE

Unlike advertising and sales promotions, publicity is not usually perceived as being sponsored by the company.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-02 To know the difference between public relations and publicity and demonstrate the advantages and disadvantages of each. Topic: The Power of Publicity

22. (p. 586) Publicity information may be perceived as endorsed by the medium in which it appears. TRUE

Publicity information may be perceived as endorsed by the medium in which it appears. For example, publicity regarding a breakthrough in the durability of golf balls will go far to promote them if it is reported by Golf magazine.

23. (p. 589) Corporate advertising does not promote any one specific product or service. TRUE

Actually an extension of the public relations function, corporate advertising does not promote any one specific product or service.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-03 To understand the reasons for corporate advertising and its advantages and disadvantages. Topic: Corporate Advertising

24. (p. 589) Corporate advertising is designed to promote the main product or service of a company. FALSE

Actually an extension of the public relations function, corporate advertising does not promote any one specific product or service. Rather, it is designed to promote the firm overall, by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement in something.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-03 To understand the reasons for corporate advertising and its advantages and disadvantages. Topic: Corporate Advertising

25. (p. 589) Consumers, generally, do not seem very interested in corporate advertising. TRUE

Studies have shown that many consumers are not interested in corporate ads.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-03 To understand the reasons for corporate advertising and its advantages and disadvantages. Topic: Corporate Advertising

26. (p. 589) Corporate ads are not as easy to write when compared to the other general product ads. TRUE

Corporate ads are not easy to write. The message to be communicated is not as precise and specific as one designed to position a product.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-03 To understand the reasons for corporate advertising and its advantages and disadvantages. Topic: Corporate Advertising

27. (p. 590) Corporate ads are often intangible. TRUE

Corporate image ads are often intangible. They typically do not ask directly for a purchase; they do not ask for investors. Rather, they present a position or try to create an image.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-03 To understand the reasons for corporate advertising and its advantages and disadvantages. Topic: Corporate Advertising

28. (p. 590) This thing called ‘image' is unidimensional. FALSE

This thing called image is not unidimensional. Many factors such as quality of products and services, innovation, sound financial practices, and good corporate citizenship affect it.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-03 To understand the reasons for corporate advertising and its advantages and disadvantages. Topic: Corporate Advertising

Multiple Choice Questions

29. (p. 573) Which of the following statements is true about public relations? A. Public relations is same as publicity. B. Public relations is a short term strategy of enhancing the image of the company. C. Public relations is not concerned with the evaluation of public attitudes. D. An effective public relations program continues over months or even years. E. Public relations deals only with the activities designed to sell a product or service.

The public relations process does not occur all at once. An effective public relations program continues over months or even years.

30. (p. 573) In the traditional perspective, public relations is viewed as a(n) _____ function whose primary responsibility is to maintain mutually beneficial relationships between the organization and its publics. A. advertising B. direct response C. marketing D. nonmarketing E. sales

In the traditional perspective, public relations is viewed as a nonmarketing function whose primary responsibility is to maintain mutually beneficial relationships between the organization and its publics.

31. (p. 573) _____ is the management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and acceptance. A. Public relations B. Image advertising C. Corporate advertising D. Dyadic communications E. Integrated marketing communications

Public relations has been defined as the management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance.

32. (p. 573) The new role of public relations is one characterized by: A. less of a communication role. B. less of a marketing orientation. C. a tighter, more tightly defined role. D. a broader, less marketing-oriented role. E. a broader, more marketing-oriented role.

PR takes on a much broader (and more marketing oriented) perspective, designed to promote the organization as well as its products and/or services.

33. (p. 574) Public relations activities that are designed to support marketing objectives are known as: A. publicity. B. vertically integrated activities. C. marketing public relations functions. D. image-oriented advertising. E. branding.

Thomas L. Harris has referred to public relations activities designed to support marketing objectives as marketing public relations (MPR) functions.

34. (p. 574) Marketing objectives that may be aided by _____ activities include raising awareness, informing and educating, gaining understanding, building trust, giving consumers a reason to buy, and motivating consumer acceptance. A. sales promotional B. public relations C. advertising D. direct-response E. outdoor marketing

Marketing objectives that may be aided by public relations activities include raising awareness, informing and educating, gaining understanding, building trust, giving consumers a reason to buy, and motivating consumer acceptance.

35. (p. 576) Which of the following statements describes an advantage derived from the use of marketing public relations (MPR)? A. The effectiveness of MPR can be easily measured. B. It is easy to tie slogans in with MPR activities. C. MPR breaks through the clutter. D. The use of MPR guarantees a specific media time and place. E. It helps in increasing control over media.

MPR helps breaks through the clutter (Refer to Figure 17-2).

36. (p. 576) Miller & Sons Inc. has revived the dying art of stone masonry. Roy Miller and his two sons are all European trained artisans who would like to work on repairing of old stonework on churches and buildings constructed before 1940. The business is not thriving even though the company has been featured in news articles in several regional magazines and newspapers for its help in restoring old cemeteries and as a potentially important new business. What should the company do? A. Use the objective-task method for setting its budget B. Change its name C. Conduct research to determine the public attitude toward the company D. Lower its prices E. Add product line extensions

Due to their concerns about public perceptions, many privately held corporations, publicly held companies, utilities, and media survey public attitudes.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-01 To recognize the roles of public relations; publicity; and corporate advertising in the promotional mix. Topic: Determining and Evaluating Public Attitudes

37. (p. 578) In public relations targeting, external audiences include: A. customers. B. the public at large. C. suppliers. D. stockholders. E. employees.

External audiences are those people who are not closely connected with the organization (e.g. the public at large).

38. (p. 578) Which of the following is considered an internal audience for a public relations activity? A. Customer B. Media C. Government D. Financial community E. Civic groups

Internal audiences may include the employees, stockholders, and investors of the firm as well as members of the local community, suppliers, and current customers.

39. (p. 578) Which of the following is considered an external audience for a public relations activity? A. Customers B. Suppliers C. Members of the local community D. Stockholders E. Press

The press, educators, civic and business groups, governments, and the financial community can be external audiences.

40. (p. 579) Organizational newsletters, notices on bulletin boards, awards ceremonies and events, direct mail, and annual reports are some of the methods used to communicate with: A. current customers of the organization. B. employees of the firm. C. the press. D. government officials. E. community members.

Organizational newsletters, notices on bulletin boards, awards ceremonies and events, direct mail, and annual reports are some of the methods used to communicate with the employees of the firm.

41. (p. 579) One of the most critical external publics is the ____, which determine what you will read in your newspapers or see on TV, and how this news will be presented. A. supplier B. customer C. government D. media E. investor

Perhaps one of the most critical external publics is the media, which determine what you will read in your newspapers or see on TV, and how this news will be presented.

42. (p. 579) Which of the following groups would most likely be the target of public relations efforts designed to increase communications with external audiences? A. Potential investors and the media B. Current customers and employees of the firm C. The media and current customers D. Suppliers and employees of the firm E. The public at large and stockholders

The press, educators, civic and business groups, governments, and the financial community can be external audiences.

43. (p. 580) Companies that support lobbying efforts: A. are trying to reach internal audiences. B. are engaged in flighting. C. have targeted government bodies. D. have determined the importance of homogeneity. E. are targeting educators.

Public relations often attempts to influence government bodies directly at both local and national levels. Successful lobbying may mean immediate success for a product, while regulations detrimental to the firm may cost it millions.

44. (p. 580) When the Financial Times published an article about The Mills Corporation building, a multi-leisure complex in Madrid, Spain, the company supplied the written information. The author of the articles needed to write knowledgeably about a complex that will offer a blend of entertainment, retailing, lodging and offices. In fact, this information was made available to several different European and U.S. newspapers. Which public relations tool was employed? A. Community involvement B. Integrated public relations activities (IPRA) C. Exclusives D. Marketing public relations (MPR) E. Press release

The source of the press release can do certain things to improve the likelihood that the "news" will be disseminated, such as ensuring that it reaches the right target audience, making it interesting, and making it easy to pass along.

AACSB: Reflective Thinking Bloom's: Analyze Difficulty: Hard Learning Objective: 17-01 To recognize the roles of public relations; publicity; and corporate advertising in the promotional mix. Topic: Developing and Executing the PR Program

45. (p. 581) Unilever is the world's largest manufacturer of ice cream. When the Anglo-Dutch company decided to invest in retailing ice cream, it gathered news representatives from the major newspapers to a meeting in which the company unveiled its prototype ice-cream van and showed pictures of ice-cream kiosks that it was setting up on the world's beaches. Which public relations tool was employed? A. Community involvement B. Integrated public relations activities (IPRA) C. Exclusives D. Press conference E. Press release

Companies often call press conferences when they have significant news to announce, such as the introduction of a new product or advertising campaign.

46. (p. 581) When a right to a public relations effort (such as a particular story) is offered to one particular medium since the medium reaches a substantial number of people in the target audience, it is known as a(n) ____. A. needledrop. B. mnemonic. C. interview. D. exclusive. E. press conference.

Although most public relations efforts seek a variety of channels for distribution, an alternative strategy is to offer one particular medium exclusive rights to the story if that medium reaches a substantial number of people in the target audience. Offering an exclusive may enhance the likelihood of acceptance.

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 17-01 To recognize the roles of public relations; publicity; and corporate advertising in the promotional mix. Topic: Developing and Executing the PR Program

47. (p. 581) For areas of the United States that have experienced lengthy periods of time without utilities due to some act of nature, Budweiser packages water in black and white cans and gives it to people who are without water. Which public relations tool was employed? A. Community involvement B. Integrated public relations activities (IPRA) C. Exclusives D. Press conference E. Press release

Many corporations enhance their public image through involvement in the local community. This involvement may take many forms, including membership in local organizations like the Kiwanis or Jaycees and contributions to or participation in community events.

48. (p. 581) Organizations can use the Internet as a means of disseminating their public relations information. How does the way the Internet is used differ from how other traditional media is used? A. The Internet offers longer exposure times than other media. B. The Internet is confined by time and space limitations that do not inhibit other media. C. The Internet offers the ability to build internal links to provide instant access to as much information as needed. D. The Internet cannot be used by organizations to defend themselves against negative publicity. E. The Internet is not used as a public relations source.

Companies have used their websites to address issues, as well as to provide information about products and services, archive press releases, link to other articles and sites, and provide lists of activities and events.

49. (p. 582) Because public relations communications are typically perceived as ____, they are not subject to the problems with clutter that are common to other forms of promotional communication. A. corporate-sponsored advertisements B. altruistic C. image builders D. news items E. exclusives

Because they are typically perceived as news items, public relations messages are not subject to the clutter of ads.

50. (p. 583) Which of the following statements is true about public relations? A. This medium of promotion lacks credibility. B. The relative costs of public relations is very low. C. The absolute costs of public relations is very high when its possible effects are considered. D. Public relation messages are subject to a lot of clutter. E. Public relations is ineffective in generating sales leads.

In both absolute and relative terms, the cost of public relations is very low, especially when the possible effects are considered.

51. (p. 583) Which of the following is an advantage associated with public relations? A. Effectiveness at completing the communications product. B. High absolute cost but low relative cost. C. Ease with which PR activities are coordinated with other promotional activities even when the activities are performed in different departments. D. Use as an effective lead generator. E. Strong connection of the receiver to the source.

Information about technological innovations, medical breakthroughs, and the like results almost immediately in a multitude of inquiries. These inquiries may give the firm some quality sales leads.

52. (p. 584) Criteria for measuring the effectiveness of public relations activities include: A. number of press releases developed. B. number of personal interviews given by company representatives. C. dollar value of community involvement. D. percentage of positive and negative articles over time. E. percentage of people who have come across the press release.

Criteria for measuring the effectiveness of public relations activities include percentage of positive and negative articles over time (Refer to Figure 17-4).

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-04 To know the methods for measuring the effects of public relations; publicity; and corporate advertising. Topic: Measuring the Effectiveness of PR

53. (p. 584) Measuring the effectiveness of PR activities provides which of the following advantages? A. It helps deal with the problem of clutter. B. It reduces the high absolute costs connected with PR activities. C. It helps in reaching specific audience groups. D. It helps in completing the communication process. E. It gives management a way to judge the quality of public relations achievements and activities.

One advantage that evaluation of PR activity offers is that it gives management a way to judge the quality of public relations achievements and activities.

54. (p. 584) Which of the following is a method for measuring the effectiveness of public relations activities? A. Number of customer complaints B. Public opinion and surveys C. Sales D. Computer simulations E. Trend analyses

One of the methods for measuring the effectiveness of PR (as suggested by Mark Weiner) is survey research that deals with quantitatively assessing consumers' attitudes toward the product or brand.

55. (p. 584) _____ refers to the generation of news about a person, product, or service that appears in broadcast or print media. A. Advertising B. Direct response advertising C. Sales promotions D. Publicity E. Advertainment

Publicity refers to the generation of news about a person, product, or service that appears in broadcast or print media.

56. (p. 586) Which of the following statements about publicity and public relations is true? A. Publicity always originates within the firm. B. Public relations is typically a short term strategy. C. Publicity is always positive. D. Publicity is typically a short-term strategy. E. Publicity is synonymous to public relation.

Publicity is typically a short-term strategy.

57. (p. 586) An article in the Financial Times about Iressa, a new lung cancer drug made by AstraZeneca, said the drug was not the miracle drug it was supposed to be. The article described how the drug had been linked with 174 deaths in eight months and 300 cases of serious side effects. This is an example of: A. an advertorial. B. negative publicity. C. controlled public relations. D. image advertising. E. negative lobbying.

Publicity refers to the generation of news about a person, product, or service that appears in broadcast or print media. Publicity is not always positive and is not always under the control of, or paid for by, the organization.

AACSB: Reflective Thinking Bloom's: Analyze Difficulty: Hard Learning Objective: 17-04 To know the methods for measuring the effects of public relations; publicity; and corporate advertising. Topic: Publicity

58. (p. 586) Unlike other forms of promotions, _____ is not usually perceived as being sponsored by the company, especially in negative instances. A. direct marketing B. outdoor advertising C. publicity D. transit advertising E. trade promotion

Unlike advertising and sales promotions, publicity is not usually perceived as being sponsored by the company (in negative instances, it never is).

59. (p. 586) Which of the following is one of the important reasons for the high power of publicity as a form of promotion? A. Lack of clutter B. Leads to increase in sales C. Its news value and the frequency of exposure it generates D. Its lack of ability to generate word of mouth information E. Its low relative costs

One reason for publicity's power is its news value and the frequency of exposure it generates.

60. (p. 586) Why is publicity considered by many marketers to be the strongest form of marketing communications? A. Its effectiveness at completing the communications process. B. Its ability to make or destroy a brand. C. The fact that consumers perceive the communication as biased. D. The ease with which it is coordinated with other communications activities. E. The positive image it always attaches to products and organizations.

One of the factors that most sets off publicity from the other program elements is the sheer power this form of communication can generate. Unfortunately for marketers, this power is not always realized in the way they would like it to be. Publicity can make or break a product or even a company.

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 17-02 To know the difference between public relations and publicity and demonstrate the advantages and disadvantages of each. Topic: The Power of Publicity

61. (p. 586) Which of the following communications methods is potentially the most powerful? A. Sales promotions B. Advertorials C. Specialty advertising D. Publicity E. Advocacy advertising

62. (p. 586) Why is publicity viewed as being so much more important than advertising, sales promotion, or other forms of public relations? A. Control of the message B. Timing of the message C. Credibility of the message D. Accuracy of the message E. Lack of clutter

Publicity is highly credible. Unlike advertising and sales promotions, publicity is not usually perceived as being sponsored by the company (in negative instances, it never is). So consumers perceive this information as more objective and place more confidence in it.

63. (p. 587) There are some who believe Beanie Babies, Ninja Turtles, and other high-selling products were the beneficiaries of staged events in which buyers were paid to stand in line in attempts to purchase the products. If this is true, what strategy were these companies employing? A. Press conferences B. The management of publicity C. Press releases D. Video news releases E. Sponsorships

Publicity can be managed like any other promotional tool.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-02 To know the difference between public relations and publicity and demonstrate the advantages and disadvantages of each. Topic: The Control and Dissemination of Publicity

64. (p. 587) _____ is a publicity piece produced by publicists so that stations can air it as a news story. A. Video news releases B. Public relations C. Spilt-run tests D. Mnemonics E. Dramatization ads

Marketers like to have as much control as possible over the time and place where information is released. One way to do this is with the video news release (VNR), a publicity piece produced by publicists so that stations can air it as a news story.

65. (p. 587) Star News ran a two-minute story on "phishing" scams. The news report featured testimony from Jessica, a phishing victim, and a computer security expert from Trend Micro Software. In no uncertain terms, the report recommended PC-Cilin, a $50 Internet security program from Trend Micro, as "a first line of defense" against phishing scams. However, it was later known that the report was funded by Trend Micro. This news report is an example of: A. image advertising. B. advocacy advertising. C. cause-related advertising. D. video news release. E. direct response advertising.

66. (p. 587) Cartoon Network ran a holiday feature on the best and worst high-tech gifts for children. In it, technology expert and "Internet Mom" recommended the Oxyride battery, the Pac-Man and a few more games that came from either Panasonic, Namco or Techno Source. If this holiday feature were jointly funded by Panasonic, Namco and Techno Source, it would be called a(n): A. cause related ad. B. mnemonic. C. image ad. D. video news release. E. event sponsorship.

67. (p. 587) Marketers use _____ when they want to have as much control as possible over publicity. A. press conferences B. advertorials C. press releases D. video news releases E. sponsorships

68. (p. 588) One of the main disadvantages of publicity is: A. lack of control. B. low credibility. C. perception of being endorsed by the media. D. the ability of the marketer to control the timing. E. non-identification of the sponsor.

The major problems that arise from the use of publicity are lack of control, timing and accuracy.

69. (p. 589) Communications activities designed to promote a firm's overall image, without reference to a specific product, are called: A. corporate advertising. B. advocacy advertising. C. advertorials. D. lobbying. E. continuity advertising.

One of the more controversial forms of advertising is corporate advertising. Actually an extension of the public relations function, corporate advertising does not promote any one specific product or service. Rather, it is designed to promote the firm overall, by enhancing its image.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-03 To understand the reasons for corporate advertising and its advantages and disadvantages. Topic: Corporate Advertising

70. (p. 589) The illustration in the ad for Accenture showed an elephant walking a narrow log suspended between two cliffs. The headline read, "Who says you can't be big and nimble?" Since the ad made no reference to the specific products offered by Accenture, it is an example of: A. corporate advertising. B. advocacy advertising. C. an advertorial. D. lobbying. E. continuity advertising.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-03 To understand the reasons for corporate advertising and its advantages and disadvantages. Topic: Corporate Advertising

71. (p. 589) ACE Guaranty RE changed its name to Ace Guaranty Corp to better reflect the scope of its products. Headline "Sometimes a name change can make a big difference." The ad showed photographs of stars who had changed their names and made no mention of what services the corporation offers. This ad is an example of: A. corporate advertising. B. advocacy advertising. C. an advertorial. D. lobbying. E. continuity advertising.

72. (p. 589) Which of the following best reflects an example of corporate advertising? A. Revlon's use of the actress that plays Buffy, the vampire slayer, as a spokesperson. B. Toyota promoting its concern for the environment. C. Titleist golf equipment signing of golfer Tiger Woods as a spokesperson. D. M&M conducting a contest to determine the new color for M&M candies. E. Haven Funeral Home giving out free calendars to all of its regular customers.

Corporate advertising does not promote any one specific product or service. Rather, it is designed to promote the firm overall, by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement in something.

73. (p. 589) Which of the following statements about corporate advertising is true? A. It is cheap form of advertising. B. It attracts the interest of consumers. C. Consumers prefer watching such advertising that provide a lot of meaning to them. D. Corporate ads are not easy to write. E. It concentrates on the promotion of one specific product or service.

Firms have been accused of engaging in corporate image advertising only to satisfy the egos of top management. This argument stems from the fact that corporate ads are not easy to write.

AACSB: Reflective Thinking Bloom's: Remember Difficulty: Easy Learning Objective: 17-03 To understand the reasons for corporate advertising and its advantages and disadvantages. Topic: Corporate Advertising

74. (p. 590) The term _____ tends to be used as a catchall for any type of advertising run for the direct benefit of the corporation rather than its products or services. A. direct marketing B. sales promotion C. aerial advertising D. corporate advertising E. trade promotion

The term corporate advertising tends to be used as a catchall for any type of advertising run for the direct benefit of the corporation rather than its products or services.

75. (p. 590) The two main goals of corporate advertising are creating a positive image for the firm and: A. developing interest in the product and services. B. creating awareness about the new products of the firm. C. inducing trial. D. inviting feedback. E. communicating the organization's views on social, business, and environmental issues.

Corporate advertising may be designed with two goals in mind: (1) creating a positive image for the firm and (2) communicating the organization's views on social, business, and environmental issues.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-03 To understand the reasons for corporate advertising and its advantages and disadvantages. Topic: Objectives of Corporate Advertising

76. (p. 590) _____ is the form of corporate advertising devoted to promoting the organization's overall image. A. Transit advertising B. Cause - related advertising C. Image advertising D. Advocacy advertising E. Symbolic advertising

Image advertising is one form of corporate advertising devoted to promoting the organization's overall image.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

77. (p. 590) An advertisement for dishes pictured a bride and groom sitting down to a table setting, with a line of copy indicating that the Queen of England had used similar dishes at her wedding dinner. This is an example of which of the following types of image advertising? A. Cause-related advertising B. Advocacy advertising C. General positioning ad D. Direct response ad E. Financial support ad

General image or positioning ads are often designed to create an image of the firm in the public mind.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

78. (p. 590) The Grand Thornton's print ad states that, "If you have a passion for accounting and want to work with others who share that passion, you might be interested in the Grant Thornton accounting firm". This is an example of which of the following types of advertising? A. Direct-response advertising B. Image advertising C. Cause-related advertising D. Advocacy advertising E. Event sponsorship

The Sunday employment section of most major metropolitan newspapers is an excellent place to see this form of corporate image advertising at work. The Grant Thornton ad is a good example of corporate image advertising designed to attract new employees.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

79. (p. 590) An American Airlines ad shows a golf ball laying at a green. The copy reads, "It's hard to believe that people can be so passionate about an inanimate object that merely flies through the air and lands on the ground. We, however, understand completely." This ad shows American Airlines creating an image of safety for itself. It is an example of which type of image advertising? A. Direct response ads B. Sponsorships C. Cause related ads D. General positioning ads E. Financial support ads

General image or positioning ads are often designed to create an image of the firm in the public mind.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

80. (p. 590) In an ad, Toyota explained its Global Earth Charter, which has led to the recycling of 376 million pounds of steel annually and an aggressive recycling program keeps 18 million pounds of other scrap metals from landfill. It is an example of which type of image advertising? A. Recruitment ads B. Sponsorships C. Paid positive publicity D. General positioning ads E. Financial support ads

General image or positioning ads are often designed to create an image of the firm in the public mind.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

81. (p. 590) When Allstate refers to itself as "The good hands people," this is an example of: A. positioning advertising. B. recruitment advertising. C. advocacy advertising. D. public relations. E. publicity.

General image or positioning ads are often designed to create an image of the firm in the public mind.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

82. (p. 591) If you follow college football you may have noticed over the years that bowl games are using large corporation names such as the Nokia Sugar Bowl. What type of advertising is being used when a large corporation like Nokia sponsors a college bowl game? A. Advocacy advertising B. Image advertising C. Issue advertising D. Cause-related advertising E. Advertorial marketing

Firms often run corporate image advertising on TV programs or specials. For example, on the National Geographic Channel, a number of companies including Nikon, American Airlines, and others provide sponsorships to associate themselves with the quality programming shown.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

83. (p. 592) Why would World Wrestling Entertainment (WWE) sponsor a car on the NASCAR racing circuit? A. To build equity and gain affinity with its target market B. To show its position on sports marketing C. To create a generic positioning strategy D. To further segment its target market E. To reduce its overall promotional expenses

Companies are finding event sponsorships an excellent platform from which to build equity and gain affinity with target audiences as well as a good public relations tool.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

84. (p. 592) Many companies are attracted to event sponsorships because: A. they help build equity and gain affinity with target audiences. B. they are unidimensional. C. they are less expensive forms of advertising. D. they help in propagating ideas and elucidating controversial social issues of public importance. E. they explain management's position on a particular environmental or social issue.

Companies are finding event sponsorships an excellent platform from which to build equity and gain affinity with target audiences as well as a good public relations tool.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

85. (p. 593) _____ is a major form of corporate advertising that addresses social, business, or environmental issues. A. Image advertising B. Aerial advertising C. Advocacy advertising D. Event sponsorship E. Trade promotion

Advocacy advertising is a major form of corporate advertising that addresses social, business, or environmental issues.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

86. (p. 593) While still seeking the objective of portraying an image for the company or organization, _____ does so indirectly by adopting a position on a particular issue rather than by promoting the organization itself. A. advocacy advertising B. publicity C. a sponsorship D. public relations advertising E. image advertising

While still portraying an image for the company or organization, advocacy advertising does so indirectly, by adopting a position on a particular issue rather than promoting the organization itself.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

87. (p. 593) _____ advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of the sponsor. A. Advocacy B. Image C. Aerial D. Event E. Interactive

Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of the sponsor.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

88. (p. 593) An oil company in United States developed an advertisement promoting off shore oil drilling in the United States. Such ads might tout the availability of oil resources, the reduction of dependence on foreign oil, and other benefits, with the goal of getting members of the public to support offshore drilling. This is an example of: A. image advertising. B. trade promotion. C. direct-response advertising. D. event sponsorship. E. advocacy advertising.

Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of the sponsor.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

89. (p. 593) Budweiser's effort to promote "responsible drinking and driving" is an example of: A. advocacy advertising. B. image advertising. C. direct-response advertising. D. event marketing. E. aerial advertising.

Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of the sponsor.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

90. (p. 593) When Mobil Oil runs an advertisement urging citizens to support and to donate to a law enforcement memorial fund, this is an example of: A. advocacy advertising. B. publicity. C. specialty advertising. D. a paid public relations activity. E. event sponsorship.

Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of the sponsor.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

91. (p. 593) Mobil Oil ran an ad in which it addressed the potential problem of global warming. The ad encouraged others to take time to truly understand the problem and to not act hastily. This ad is an example of: A. advocacy advertising. B. publicity. C. a sponsorship. D. public relations advertising. E. image advertising.

Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of the sponsor.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

92. (p. 593) Which of the following statements is true about advocacy advertising? A. Only small firms employ this form of advertising. B. Advocacy ads may be sponsored by a firm or by a trade association. C. Advocacy ads are always used in conjunction with cause-related marketing. D. Advocacy ads reflect a company's position on some upcoming legislative or judicial ruling. E. Advocacy ads are not a controversial form of advertising.

Advocacy ads may be sponsored by a firm or by a trade association and are designed to tell readers how the firm operates or explain management's position on a particular issue.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

93. (p. 593) While considered a form of advocacy advertising, _____ ads may have no affiliation with a corporate or trade sponsor but may be sponsored by an organization to bring attention to what they consider to be an important issue. A. direct-response ads B. image C. general positioning D. issue E. transit

While considered a form of advocacy advertising, issue ads may have no affiliation with a corporate or trade sponsor but may be sponsored by an organization to bring attention to what they consider to be an important issue.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

94. (p. 593) A departmental store ad about a consumer tax issue would constitute _____ advertising. A. image B. event C. direct-response D. trade E. issue

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

95. (p. 595) An increasingly popular method of image building is _____ marketing, in which companies link with charities or nonprofit organizations as contributing sponsors. A. cause-related B. event C. image D. transit E. cooperative

An increasingly popular method of image building is cause-related marketing, in which companies link with charities or nonprofit organizations as contributing sponsors.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

96. (p. 595) Cause-related marketing refers to: A. all advertising designed to cause sales. B. all advertising designed to cause attitude change. C. the linking of companies with charities with the former being a contributing sponsor to the latter. D. corporate advertising designed to change the image of an organization. E. advertising developed in response to any negative publicity faced by the firm.

An increasingly popular method of image building is cause-related marketing, in which companies link with charities or nonprofit organizations as contributing sponsors.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

97. (p. 595) Making outright donations to a nonprofit cause, having companies volunteer for the cause, donating materials or supplies, running public service announcements, or even providing event refreshments are some of the ways of _____ marketing. A. cause-related B. event C. image D. transit E. cooperative

Cause-marketing relationships can take a variety of forms. Making outright donations to a nonprofit cause, having companies volunteer for the cause, donating materials or supplies, running public service announcements, or even providing event refreshments are some of the ways companies get involved.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

98. (p. 595) McDonald's sponsorship of the Ronald McDonald House, where families of hospitalized children can stay free of charge, is an example of: A. advocacy advertising. B. cause-related marketing. C. publicity. D. advertorial marketing. E. transactional marketing.

An increasingly popular method of image building is cause-related marketing, in which companies link with charities or nonprofit organizations as contributing sponsors.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

99. (p. 595) Liberty Mutual Insurance paid for an ad supporting the efforts of Students Against Drunk Driving (SADD) and safe teen driving. This ad was an example of: A. advocacy advertising. B. cause-related marketing. C. publicity. D. advertorial marketing. E. transactional marketing.

An increasingly popular method of image building is cause-related marketing, in which companies link with charities or nonprofit organizations as contributing sponsors.

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Types of Corporate Advertising

100. (p. 597) Which of the following is a criticism commonly applied to corporate advertising? A. Poor vehicle for repositioning a company or a brand B. Does not take advantage of any benefits derived from public relations C. Not effective at reaching the target market D. Questionable effectiveness E. Lack of control over public opinion

There is no strong evidence to support the belief that corporate advertising works.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Advantages and Disadvantages of Corporate Advertising

101. (p. 597) The attempt to measure the effectiveness of PR activities is often difficult to achieve. Which of the following measures would be most useful in this effort? A. Tying PR activities directly to sales B. Timing the amount of time a sponsored logo appears on television C. Conducting studies to determine the relationship between corporate advertising and stock prices D. Computer simulations E. Measuring effectiveness of the sales promotional tools instead

A number of studies have examined the effect of various elements of corporate advertising (position in the magazine, source effects, etc.) on stock prices.

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 17-05 To understand the different forms of corporate advertising. Topic: Measuring the Effectiveness of Corporate Advertising

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