If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one problem with this method is that
a) it makes the bookkeeping too difficult.
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Write My Essay For Meb) it is tied too closely to sales forecasts.
c) a sales decline leads to an increase in the advertising appropriation.
d) a drop in sales would cause a drop in the advertising budget.
e) competitors may have different advertising objectives.
145. If State Farm Bank decided that it wanted to increase its number of bank customers by 10% in the coming year, it would most likely use the ______________ approach to advertising allocation.
a) arbitrary
b) competition-matching
c) objective-and-task
d) percent-of-sales
e) percent-of-customer
146. T F Advertising is paid nonpersonal communication transmitted through mass media.
Ans: True
147. T F Business organizations are the only major users of advertising.
148. T F Institutional advertising and promotional advertising are the two basic categories of advertising.
149. T F Advertisements that promote goods and services are called advocacy advertisements.
150. T F Product advertising is often used to stimulate demand directly.
151. T F If a commercial advertisement compares one brand of laundry detergent to another brand, this is a type of competitive advertising.
152. T F Pioneer advertising involves describing the features and benefits of a product in contrast to a direct competitor.
153. T F If a restaurant, known for its delicious food and fun entertainment, does not serve alcohol, it is displaying advocacy advertising.
154. T F In a comparative advertisement, advertisers point out that their brand has characteristics that are superior to those of competing brands, but they do not actually mention the brand names of competitors.
155. T F Comparative advertisements mention the actual names of competing brands.
156. T F Reinforcement advertising tells current users how to get the most satisfaction from the brand they have chosen.
157. T F Reminder advertising is not applicable to new products.
158. T F Almost all advertising campaigns are aimed at producing immediate sales.
159. T F Advertising objectives should be stated in clear, precise, and measurable terms.
160. T F The statement of advertising objectives should include a benchmark—such as the current sales level—and indicate how much improvement is sought.
161. T F A marketer’s advertising platform should consist of issues that are important to consumers.
162. T F The advertising platform consists of the basic issues and selling points that an advertiser wishes to include in the campaign.
163. T F The advertising platform is the foundation on which campaign messages are built.
164. T F Most often, the opinions of a firm’s personnel are used to develop the advertising platform.
165. T F The advertising budgets for industrial products are usually large relative to the sales of the products.
166. T F When sales go up, advertising should be increased; when sales decline, advertising should be decreased.
167. T F To assume that sales create advertising is incorrect.
168. T F The arbitrary approach to setting an advertising budget often results in inappropriate spending of the firm’s resources.
169. T F The choice of media influences the content and form of the message.
170. T F A cost comparison indicator (such as CPM) should not be used to compare the cost and impact of a television commercial with the cost and impact of a newspaper advertisement.
171. T F The signature is not part of the verbal portion of an advertisement.
172. T F Radio copy should consist of short, familiar terms.
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