Unit 1 Chapter 2 Functions of Advertising

What is the primary purpose of advertising?

• To reduce the cost of production.

• To promote products or services to potential customers.

• To inform customers about company policies.

• To provide entertainment to the audience.

How does advertising help in product differentiation?

• Advertising emphasizes unique product features and brand identity, aiding in differentiation.

• Advertising eliminates the need for product quality.

• Advertising reduces product visibility and awareness.

• Advertising focuses solely on price competition.

In what way does advertising contribute to brand identity?

• Advertising focuses solely on product features.

• Advertising contributes to brand identity by creating awareness, conveying values, and establishing emotional connections.

• Advertising has no impact on customer loyalty.

• Advertising reduces brand visibility.

Why is sustaining interest in an existing brand important?

• It allows for more frequent product recalls.

• Sustaining interest is irrelevant to brand reputation.

• It is important for maintaining customer loyalty and ensuring consistent revenue.

• It helps in reducing marketing costs for new products.

How does advertising create brand loyalty?

• Advertising creates brand loyalty by lowering prices and offering discounts.

• Advertising creates brand loyalty by building emotional connections and trust through consistent messaging and engagement.

• Advertising creates brand loyalty by focusing solely on product features.

• Advertising creates brand loyalty through celebrity endorsements alone.

What role does advertising play in expanding sales?

• Advertising plays a crucial role in expanding sales by increasing visibility and attracting customers.

• Advertising has no impact on customer awareness.

• Advertising reduces customer interest and decreases sales.

• Advertising is only effective for large corporations.

How can advertising create new demand for a product?

• Advertising eliminates competition for a product.

• Advertising reduces the need for a product by lowering its price.

• Advertising generates new demand by making consumers aware of a product and its benefits.

• Advertising creates demand by increasing product scarcity.

What is meant by creating a buzz in advertising?

• Creating a buzz means lowering the price of a product.

• Creating a buzz refers to a silent marketing strategy.

• Creating a buzz is about reducing advertising efforts.

• Creating a buzz means generating excitement and interest in a product or brand.

How does market research support an advertising campaign?

• Market research supports an advertising campaign by providing insights into target audiences and consumer behavior.

• Market research focuses solely on pricing strategies.

• Market research eliminates the need for advertising altogether.

• Market research is only useful for product development.

What is the significance of defining a target audience in advertising?

• It helps in creating a universal message for all audiences.

• It eliminates the need for market research in advertising.

• It ensures advertising is relevant and effective by targeting specific groups.

• It reduces the cost of advertising by targeting everyone.