Scenario 14 At Sam-Mart, a huge discount retailer, sales are around $70 billion

Question

Scenario 14 At Sam-Mart, a huge discount retailer, sales are around $70 billion a year and rising. In addition, the company employs more than 500,000 people worldwide. Sam-Mart stores carry just about every major imaginable. In addition, Sam-Mart carries its own brand called Wally's Choice. The Wally's Choice label is on products like cookies, potato chips, paper towels, and other personal and household products 5. (Scenario 1-4) In a local newspaper, Sam-Mart purchases and runs a message that does not refer to any of the products it carries. Instead, it mentions that employees of the local Sam-Mart contribute both the store's resources and their own free time to community projects. This is an example of a. a message designed to persuade b. a public service announcement. c. delayed response advertising. d. corporate advertising. 6. (Scenario 1-4) A product with a Wally's Choice label on it will come to be known by consumers by the values-both tangible and intangible of the brand, and through integrated brand promotions Sam-Mart will provide extra incentive to consumers to a. keep them brand conscious. b. sample and test new competitors products. c. stimulate latent promotion. d. remain brand loyal. (Scenario 1-4) Which of the following statements about Wally's Choice is true? a. Because it was created by retailer, Wally's Choice can't develop any connection to the 7. consumers' cultural environment of symbols and meanings Over time consumers' link of Wally's Choice to economy grocery items may increase in relevance during hard economic times b. c. It has no symbolic value. d. It was developed and marketed by manufacturers. (Scenario 1-4) If a recession hits the United States, Sam-Mart sales may drop. However, Sam-Mart may decide to keep its advertising expenditures at pre-recession levels. This is because a. consumers are more susceptible to advertising when the economy is slow b. increased demand will more directly affect the economies of scale. e. companies that maintain advertising levels tend to perform better after the recession 8. ends this level of advertising may serve to increase competition. d.

Explanation / Answer

5. D. Corporate Advertising

A form of institutional advertising focusing not on a particular product or product range but on the organization itself. The primary purpose is promoting the name, image, personnel, or reputation of a company, organization, or industry. A good corporate advertising can clarify and enhance a company’s reputation. • In a closer look the companies invest in corporate advertising campaigns for three main reasons: • Increase Sales, • Create a Stronger Reputation

6. D. Remain Brand Loyal

Since Wally's choice is the company's inhouse production brand, it does provide extra incentives to consumers so that they remain brand loyal.

7. B. Overtime consumers link of Wally's choice to economy grocery items may increase in relevance during hard economic times.

8. C. Companies that maintain advertising levels tend to perform better after the recession ends.

This is because the demand for the said product will not get down even after recession because of high amount of advertisements.

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