Download Chapter 17 Public Relations, Publicity, and Corporate Advertising

Chapter 17 - Public Relations, Publicity, and Corporate Advertising
Chapter 17
Public Relations, Publicity, and Corporate Advertising
Multiple Choice Questions
1. (p. 557) From a marketer's perspective, the unfortunate part of negative publicity is it can
occur as a result of factors beyond the control of the company and:
A. for reasons the company might never anticipate
B. as result in increased advertising effectiveness
C. result in reduced censorship guidelines
D. cause an increase in online advertising
E. create increased exit audits
See opening vignette.
2. (p. 558-558) The examples of negative publicity in the opening vignette suggest:
A. top management needs to look for more creative ways to communicate with the target
market(s)
B. companies should never cut their public relations budget
C. negative publicity can come from a variety of sources
D. good things happen to good people
E. none of the above
See opening vignette.
3. (p. 559) An advertiser who is "managing the buzz" is dealing with something that is a topic of
conversation for lots of consumers—it is what is hot in society. In terms of the promotional
mix, "managing the buzz" would be most closely associated with:
A. corporate advertising
B. sales promotions
C. personal selling
D. publicity and public relations
E. direct-response advertising
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4. (p. 559) _____ 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
5. (p. 559) Which of the following is a required stage in the public relations process?
A. the integration of sales promotion and personal selling with the public relations process
B. the identification of what portion of the budget is specifically designated to public relations
C. the hiring of a specialized firm that understands the public relations process
D. the determination and evaluation of public attitudes
E. all of the above
6. (p. 559) Which of the following would most reflect the traditional role of public relations?
A. a company's sponsorship of a Little League team
B. a company's donations to a local charity
C. sponsorship within an organization of a blood drive
D. the mailing of a press release announcing a new product
E. all of the above
7. (p. 560) Which of the following best reflects the new role of public relations in an integrated
marketing communication program?
A. sponsoring the local Little League team
B. supporting local charities
C. sponsoring Olympic events to gain brand name association.
D. issuing a press release announcing a new CEO
E. advertising to announce an organization's support of a school bond referendum
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8. (p. 560) According to the new definition of public relations, the function of public relations
personnel is to:
A. assess public attitudes
B. promote products or services directly
C. create a favorable corporate image
D. develop and execute communications programs designed to bring about public
understanding and acceptance
E. do all of the above
9. (p. 560) 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
10. (p. 560) Which of the following promotional activities would best exemplify the new role of
public relations?
A. use of Brittany Spears as a spokesperson for Pepsi
B. initiation of a contest to find a new spokesperson for a brand
C. donation of money to the favorite charity of a firm's CEO
D. sponsorship of a marathon
E. donation of money to support a local children's soccer team
11. (p. 561) Marketing public relations (MPR) activities designed to support marketing
objectives add value to the integrated marketing program by:
A. building marketplace excitement
B. creating advertising news where there is none
C. providing a value-added customer service
D. defending products at risk and giving consumers a reason to buy
E. doing all of the above
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12. (p. 561) MPR activities are used by public relations agencies to:
A. receive discounts in various media
B. place new releases in mass media simultaneously
C. "microsegment" the market
D. achieve feedback from public relations activities
E. do none of the above
13. (p. 561) 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. All of the above statements describe advantages derived from the use of MPR.
14. (p. 561) Which of the following statements describes an advantage derived from the use of
marketing public relations (MPR)?
A. MPR benefits from the endorsement of independent and objective third parties who have
association with the product.
B. MPR supports advertising programs by making messages more credible.
C. MPR can circumvent consumer resistance to sales effort.
D. MPR is a highly targeted way to conduct public relations.
E. All of the above statements describe advantages derived from the use of MPR.
15. (p. 562) Which of the following statements describes a disadvantage inherent in the use of
marketing public relations (MPR)?
A. MPR lacks credibility.
B. MPR has no effect on consumers that have been found to be resistance to sales messages.
C. Clutter affects MPR more negatively than other promotional tools.
D. There are no standard effectiveness measures for MPR.
E. MPR weakens the ability of advertising programs by making them appear less credible.
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16. (p. 565) Which of the following is NOT a reason for conducting research to determine public
attitudes?
A. It provides input into the planning process.
B. It leads directly to more product sales.
C. It serves as an "early warning system" to detect problems.
D. It results in more internal support.
E. It increases the effectiveness of communications.
17. (p. 565) A good reason for conducting research to determine public attitudes is because:
A. it is a way to determine whether to use status quo pricing
B. it allows the company to appear to care about its publics
C. it is similar to and more effective than a SWOT analysis
D. it serves as an early warning system for identifying potential problems
E. it can reveal any untapped target markets through demographic evaluations
18. (p. 565) 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
19. (p. 566) In public relations, internal audiences include all of the following EXCEPT:
A. the public at large
B. suppliers
C. customers
D. stockholders
E. investors
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20. (p. 566) When determining relevant target audiences for public relations efforts, all of the
following groups are considered internal audiences EXCEPT:
A. employees of the firm
B. the media
C. current customers
D. investors
E. suppliers
21. (p. 566) In public relations targeting, external audiences include:
A. customers
B. the public at large
C. suppliers
D. stockholders
E. all of the above
22. (p. 566) Which of the following is NOT one of the ten questions suggested for use in
evaluating public relations plans?
A. Does the plan include analysis of recent editorial coverage?
B. Do the PR people understand the product's strengths and weaknesses?
C. Is the plan acceptable to marketing?
D. Are the objectives specific and measurable?
E. Does the program clearly describe what the PR activity will be and how it will benefit the
company?
See Figure 17-2.
23. (p. 567) 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
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24. (p. 568) 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
25. (p. 569-570) Which of the following is a recommended tool for improving the likelihood that
the public relations story will be told?
A. press conferences
B. interviews
C. the Internet
D. exclusives
E. all of the above
26. (p. 569) 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. MPR
E. press release
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27. (p. 569) Which of the following communications with external audiences could be
effectively done through a press conference?
A. an announcement by Ryanair, the Irish low cost airlines, that it was reducing its fares by 5
percent and introducing seven new routes
B. an announcement by Exxon, that it earned more than $100 billion in 2007, the biggest
profit in American corporate history
C. an announcement by the state of Georgia to end to its "green space" program in which it
had required developers to preserve a certain percentage of each development in its natural
form
D. Coca-Cola's announcement that it is was going to run an IMC program with Turner
Broadcasting to promote Diet Coke
E. All of the above demonstrate an effective use of a press conference.
28. (p. 569) 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
29. (p. 570) Offering a press release to only one particular medium may be termed:
A. an exclusive
B. an advertorial
C. advocacy advertising
D. lobbying
E. image advertising
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30. (p. 570) A large insurance company would have engaged in a marketing public relations
activity when:
A. its CEO appeared in an interview on ABC's Nightline
B. it donated $50,000 to Kansas counties ravaged by tornadoes
C. it created a Web site to deal with concerns about rate hikes
D. it conducted a press conference announcing plans to move the company's home office
E. it did any of the above
31. (p. 570) 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
32. (p. 570) 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.
33. (p. 571) Which of the following communications is most likely to have more credibility
among its receivers?
A. Vogue's magazine layout introducing its latest models
B. Volvo's television ad promoting new standard safety features
C. Motor Trend's announcement of the "Car of the Year"
D. the appearance of the CEO of Ford Motor Company in its ads
E. the appearance of some of the participants in American Idol in Old Navy ads
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34. (p. 571-572) Which of the following is an advantage associated with public relations?
A. greater credibility
B. ability to build positive image
C. avoidance of clutter
D. low absolute and relative cost
E. all of the above
35. (p. 571-572) 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. all of the above
36. (p. 572) Automobile manufacturers Audi, Isuzu, and Suzuki have all experienced serious
sales declines as a result of negative publicity. Publicity has such a powerful communications
effect due to:
A. its perceived credibility
B. its lack of clutter
C. its "news worthiness"
D. its ability to create an image
E. all of the above
37. (p. 572) 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
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38. (p. 573) Public relations campaigns must be evaluated in order to:
A. determine their contribution toward achieving communications objectives
B. tell management what has been achieved through PR activities
C. provide management quantitative ways to judge PR activities
D. provide management ways to judge the quality of PR activities
E. do all of the above
39. (p. 574) 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. all of the above
See Figure 17-3.
40. (p. 574) A system developed by Lotus HAL for measuring a public relations program's
effectiveness uses all of the following criterion EXCEPT:
A. percentage of negative articles over time
B. ratio of marketing to public relations activities
C. percentage of positive articles over time
D. total number of impressions over time
E. ratio of positives to negatives
See Figure 17-3.
41. (p. 574) Which of the following would NOT be a criterion used to measure the effectiveness
of a public relations campaign?
A. a comparison of the number of positive and negative articles appearing on the subject
B. a counting of the number of positive articles appearing in a medium
C. a counting of the number of negative articles appearing in a medium
D. a counting of the number of persons in the target audience for the messages
E. a determination of the total number of impressions the campaign created
See Figure 17-3.
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42. (p. 555-556) All of the following are suggested as means for effective analysis of public
relations programs EXCEPT:
A. internal audits
B. the team approach
C. the test market theorem
D. external audits
E. MBO (management by objectives)
43. (p. 573) Which of the following is a method suggested by the text 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
44. (p. 573) According to the text, Harold Mendelsohn suggests that to achieve attitude
modification throughout public relations campaigns, an organization should use:
A. the team approach
B. the reach/frequency system
C. the traditional public relations activities
D. a highly credible spokesperson
E. publicity only
45. (p. 573-574) Internal audits of a financial investment company would be conducted by:
A. the Securities and Exchange Commission
B. the Federal Trade Commission
C. a public relations specialist commissioned to do the job
D. top managers within the marketing department
E. community watchdog organizations
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Chapter 17 - Public Relations, Publicity, and Corporate Advertising
46. (p. 574) External audits of a financial investment company would be conducted by:
A. its investors
B. a public relations specialist hired specifically to conduct the audit
C. top managers within the marketing department
D. media specialists
E. creatives
47. (p. 574) 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. None of the above are differences.
48. (p. 574) 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
49. (p. 574) Publicity:
A. is typically a long-term strategy
B. is designed to provide positive information about the competition
C. is news about a person, product, or service that appears in broadcast or print media
D. is always under the control of the firm
E. may not originate from sources other than the firm
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50. (p. 574) 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
51. (p. 575) Which of the following communications methods is potentially the most powerful?
A. sales promotions
B. advertorials
C. specialty advertising
D. publicity
E. advocacy advertising
52. (p. 575) 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. all of the above
53. (p. 576) 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
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Chapter 17 - Public Relations, Publicity, and Corporate Advertising
54. (p. 576) 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
55. (p. 577) Advantages inherent in the use of publicity include:
A. the perception of being endorsed by the media in which the publicity appears
B. significant word-of-mouth communication resulting from the publicity
C. high degree of credibility
D. strong news value
E. all of the above
56. (p. 577) The two major problem areas that most commonly inhibit the effectiveness of
publicity are:
A. timing and accuracy
B. reach and frequency
C. media time and space
D. encoding and decoding
E. measurement and reach
57. (p. 577) Communications activities designed to promote a firm overall, without reference to
a specific product, are called:
A. corporate advertising
B. advocacy advertising
C. advertorials
D. lobbying
E. continuity advertising
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58. (p. 577) 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. advertorials
D. lobbying
E. continuity advertising
59. (p. 577) 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. advertorials
D. lobbying
E. continuity advertising
60. (p. 577) 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
61. (p. 577) Corporate advertising, an extension of the public relations function, is considered
controversial because:
A. consumers are not interested in this form of advertising
B. a belief held by consumers and critics that the only reason firms engage in corporate
advertising is because they are in trouble
C. corporate ads are considered a costly form of self-indulgence on the part of top managers
D. corporate ads do not appeal directly to anyone, and the logical conclusion is that they are a
waste of money
E. of all of the above reasons
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Chapter 17 - Public Relations, Publicity, and Corporate Advertising
62. (p. 578) The Ketchum Effectiveness Yardstick is a:
A. strategic approach to the measurement of public relations results
B. method of measuring the effectiveness of sales promotion combined with advertising
C. method for determining the degree of brand awareness created
D. strategic approach to studying the impact of dyadic communications
E. method used to determine the optimal level of publicity
See Figure 17-4.
63. (p. 579) Which of the following is NOT an example of a corporate advertising objective?
A. to help to ease consumer uncertainty for a newly deregulated company
B. to reach targeted goals for specific branded products
C. to establish identity for a parent firm
D. to smooth labor relations
E. to boost employee morale
64. (p. 579) Which of the following is NOT an example of image advertising?
A. recruitment ads
B. sponsorships
C. paid political announcements
D. general positioning ads
E. financial support ads
65. (p. 579) 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. recruitment ads
B. sponsorships
C. paid positive publicity
D. general positioning ads
E. financial support ads
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66. (p. 579) 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
67. (p. 579) 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
68. (p. 580) 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
69. (p. 580) To be effective image advertising also requires:
A. quality products
B. sound financial practices
C. good corporate citizenship
D. innovation
E. All of the above
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70. (p. 583) 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
71. (p. 584) 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
72. (p. 567) 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
73. (p. 584) 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
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74. (p. 584) Which of the following statements about advocacy advertising is true?
A. Only small firms employ this form of advertising.
B. Companies such as AT&T and Mobil commonly employ advocacy ads.
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.
75. (p. 584) 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. none of the above
76. (p. 584) 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
77. (p. 584) 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
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78. (p. 585) Which of the following describes a potential benefit associated with cause-related
marketing?
A. product differentiation
B. increased sales
C. increased profits
D. positive image effects
E. all of the above
79. (p. 585) Which of the following statements about cause-related marketing is true?
A. Cause-related marketing is designed to enhance the organization's image.
B. Cause-related marketing has been shown to increase sales.
C. Many consumers support cause-related marketing.
D. A majority of consumers believe cause-related marketing is designed for the sole purpose
of boosting the firm's image.
E. All of the above statements about cause-related marketing are true.
80. (p. 586) Which of the following is NOT an advantage associated with corporate advertising?
A. potential good will
B. its use as a potential positioning vehicle
C. benefits from public relations
D. the ability to reach people different from those reached by other types of advertising
E. consistent effectiveness
81. (p. 586) 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. all of the above
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82. (p. 586-587) Which of the following is a technique used to measure the effectiveness of
corporate advertising?
A. attitude surveys
B. split run tests
C. experiential marketing research
D. computer simulations
E. all of the above
83. (p. 586-587) 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. none of the above
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