Advertising & Promotion BUS210

Access: Public Instant Grading

Start FlashCards Download PDF Learn

Get the best Microeconomics course in your pocket!

Do you use facebook?

Photo of a smartphone with the Facebook application open
Economics is greatly impacted by how well information travels through society. Today, social media giants Twitter, Facebook, and Instagram are major forces on the information super highway. (Credit: Johan Larsson/Flickr)

Decisions ... decisions in the social media age

To post or not to post? Every day we are faced with a myriad of decisions, from what to have for breakfast, to which route to take to class, to the more complex—“Should I double major and add possibly another semester of study to my education?” Our response to these choices depends on the information we have available at any given moment; information economists call “imperfect” because we rarely have all the data we need to make perfect decisions. Despite the lack of perfect information, we still make hundreds of decisions a day.

And now, we have another avenue in which to gather information—social media. Outlets like Facebook and Twitter are altering the process by which we make choices, how we spend our time, which movies we see, which products we buy, and more. How many of you chose a university without checking out its Facebook page or Twitter stream first for information and feedback?

As you will see in this course, what happens in economics is affected by how well and how fast information is disseminated through a society, such as how quickly information travels through Facebook. “Economists love nothing better than when deep and liquid markets operate under conditions of perfect information,” says Jessica Irvine, National Economics Editor for News Corp Australia.

This leads us to the topic of this chapter, an introduction to the world of making decisions, processing information, and understanding behavior in markets —the world of economics. Each chapter in this book will start with a discussion about current (or sometimes past) events and revisit it at chapter’s end—to “bring home” the concepts in play.

Introduction

In this chapter, you will learn about:

  • What Is Economics, and Why Is It Important?
  • Microeconomics and Macroeconomics
  • How Economists Use Theories and Models to Understand Economic Issues
  • How Economies Can Be Organized: An Overview of Economic Systems

What is economics and why should you spend your time learning it? After all, there are other disciplines you could be studying, and other ways you could be spending your time. As the Bring it Home feature just mentioned, making choices is at the heart of what economists study, and your decision to take this course is as much as economic decision as anything else.

Economics is probably not what you think. It is not primarily about money or finance. It is not primarily about business. It is not mathematics. What is it then? It is both a subject area and a way of viewing the world.


Advertising is an integral part of our modern, media-dominated society. While many of us have a love-hate relationship with the industry, advertising can be wonderfully entertaining. However, is advertising a necessary evil? Does it make meaningful contributions to our society?

With the incredible growth of social media, now is a particularly exciting time to explore the fascinating world of advertising.

The purpose of this course is to lead students in an exploration of fundamental advertising principles and the role advertising plays in the promotional mix. You will learn where advertising fits in the Marketing Mix, also known as the four Ps: Product, Price, Place, and Promotion. Although some consider all promotion synonymous with advertising, you will learn the unique characteristics that separate advertising from other forms of promotional communication. You will revisit some familiar marketing concepts within a new framework, approaching the subject from the advertiser?s perspective.

Quiz PDF eBook: 
Advertising & Promotion BUS210
Download Advertising & Promotion Quiz PDF eBook
200 Pages
2014
English US
Educational Materials



Sample Questions from the Advertising & Promotion BUS210 Quiz

Question: Coach sells ladies handbags, wallets, and other accessories. These products are expensive and well-made. When Coach advertises its products as luxurious, sophisticated, and elegant, which characteristic of a branding strategy is the company using?

Choices:

Personality

Accountability

Consistency

Differentiation

Brand equity

Question: Many companies plan a branding strategy that will create a "barrier to entry." What benefit does this provide for your brand?

Choices:

Other companies cannot launch a similar item in your product category.

Your product has such a strong image that new entries in the marketplace will find it difficult to take your customers away from you.

New companies cannot gain market share.

You are able to steal customers away from your competition.

All of the above

Question: A company with little or no brand recognition has decided to use direct response marketing. Which media outlet will provide them with the best ROI?

Choices:

Banner advertising

Print media

Social Media

Email marketing

None of the above

Question: According to your Launch! textbook, "…a branding strategy creates a clear picture of the values your product or service represents." Coca-Cola is a strong American brand that creates value to the consumer by providing a lifestyle product. Yet, when Coca-Cola introduced New Coke in 1985, it was a colossal failure. The product was removed from the shelves within 3 months. What significant strategic mistake did the Coca-Cola company make?

Choices:

The company did not change the product's packaging to match the new product's image.

The new brand was too similar to Pepsi's products.

The company did not understand the relationship consumers had with the product and what the brand meant to consumers.

The company's new advertising campaign did not effectively communicate the new product's attributes.

The company was unable to obtain enough shelf space in stores. Retailers did not want to remove the very profitable original Coke product.

Question: Before industrialization, products were sold generically. Chocolate was chocolate, butter was butter, and so on. Mass production made it possible to produce many products, resulting in branding, which eliminated the idea of generic products. However, some products have benefited from the consumer use of a generic. Which of the following brands' strategy has produced this result? How so?

Choices:

Verizon, because everyone knows they sell phones and phone service.

Nike, because they are known for athletic shoes

Kleenex, because that is what people say when they want a tissue

Bic, because they are known for writing implements

General Motors because that is how people relate to the automobile industry

Question: What is the importance of a value proposition?

Choices:

It shows that your brand is on par with other products in your product category.

A value proposition is not a necessary marketing tool.

It demonstrates your product's benefits relative to the competition.

It showcases your product's price point.

It reports on your product's annual sales levels.

Question: Jim Thorpe was known as one of the greatest athletes of the 20th century. He played professional baseball and football, and he won several Olympic gold medals. Why would a small town in Pennsylvania change its name (they actually purchased the rights to use it!) to Jim Thorpe, PA?

Choices:

Because they wanted to honor Mr. Thorpe's memory

Because it is a good strategy to name a location after a famous athlete

Because the strategy of branding places has proven to be effective and has shown to produce positive results in generating awareness and increasing business in that locale

Because many sports are popular in the town

None of the above

Question: When communicating your company's value proposition, the focus should be on which of the following?

Choices:

Company sales figures

Marketing activities

Elimination of the competition

What is important to your customers

None of the above

Question: When advertising is used to introduce a product and educate the consumer about its features, at which stage is this product?

Choices:

Competitive stage

Pioneering stage

Inner brand stage

Retentive stage

None of the above

Question: Research has shown that the most lucrative target market for your plumbing and carpentry products are professional contractors whose businesses are located in suburban and rural communities. This represents new information, because past sales have come mostly from urban do-it-your-selfers. You are planning your advertising strategy for next year and want to use the most cost effective advertising media for your plan. Which advertising medium should you include in your plan?

Choices:

Email marketing

Radio advertising

Print advertising

Outdoor billboards

All of the above

Question: What is the purpose of branding?

Choices:

To ensure a trademark for your company

To use your organization's creative department

To look similar to your competition

To distinguish your brand from other products in the marketplace

None of the above

Start FlashCards Download PDF Learn
Source:  Charles Jumper and Melinda Salzer. Advertising & Promotion (The Saylor Academy 2014), http://www.saylor.org/courses/bus306/
Dravida Mahadeo-J...
Start Quiz
Copy and paste the following HTML code into your website or blog.
<iframe src="https://www.quizover.com/embed/advertising-promotion-quiz-by-charles-jumper-melinda-salzer" width="600" height="600" frameborder="0" marginwidth="0" marginheight="0" scrolling="yes" style="border:1px solid #CCC; border-width:1px 1px 0; margin-bottom:5px" allowfullscreen webkitallowfullscreen mozallowfullscreen> </iframe>