TEST BANK for Advertising and Integrated Brand Promotion, 6th Edition. Thomas O'Guinn Chris Allen Ri by StudyGuide

Advertising and Integrated Brand Promotion, 6e Thomas O'Guinn Chris Allen Richard Semenik (Test Bank All Chapters, 100% Original Verified, A+ Grade) Chapter 1 - The World of Advertising and Integrated Brand Promotion TRUE/FALSE 1. In the new world of advertising, mass media are just about dead and gone. ANS: F DIF: Easy REF: p. 7 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-Intro TYP: Comprehension

2. One ongoing change in today’s promotions can be seen in the way that the lines between information, entertainment, networking, and commercial messages are blurring. ANS: T DIF: Easy REF: p. 7 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-Intro TYP: Comprehension

3. Today, unlike years past, if a company produces and disseminates enough digital, mobile, online, and even traditional advertising for its offering, even a brand that does not meet consumers needs can succeed. ANS: F DIF: Moderate REF: p. 8 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-Intro TYP: Comprehension

4. The company or organization that pays for an advertisement is referred to as the client or sponsor. ANS: T DIF: Easy REF: p. 11 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Knowledge

5. Brad Pitt is interviewed on the red carpet walk to the Academy Awards about his latest movie, for which he has been nominated for an Oscar. TV cameras and reporters zoom in to catch his comments. This is a form of advertising. ANS: F DIF: Moderate REF: p. 11 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Application

6. A commercial created by the Partnership for a Drug-Free America shows eggs dropping into a frying pan, with the caption, “This is your brain on drugs.” It is aired on three major television networks for free. Though this sounds like a public service message, it is actually an advertisement. ANS: F DIF: Moderate REF: p. 11 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Application

7. A firm that manufactures a device that alleviates sleep apnea produces a print ad and a television commercial that have the stated purpose of simply delivering straight information about the product. Therefore, it is not an attempt to persuade. ANS: F DIF: Moderate REF: p. 12 NAT: AACSB Ethics | CB&C Model Strategy

OBJ: 1-1 TYP: Application

8. The marketers at Apple use a number of communication methods—including advertising in many forms of media, personal selling, public relations, event sponsorship, corporate advertising, social networking, and point-of-purchase, among others—in a coordinated process to build and maintain brand exposure. The Apple promoters are demonstrating a form of integrated brand promotion (IBP).

ANS: T DIF: Moderate REF: p. 13 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Application

9. Essentially, the idea behind integrated brand promotion (IBP) is to pay for the use of many tools, including advertising, and coordinate them to launch products and boost sales. ANS: F DIF: Moderate REF: p. 13 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Knowledge

10. A single ad—or a series of coordinated ads with a similar look, feel, and message—that revolves around one consistent theme is called a promotion. ANS: F DIF: Moderate REF: p. 14 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Knowledge

11. Mass-mediated communication has three major components: production, reception and distribution. ANS: F DIF: Easy REF: p. 16 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-2 TYP: Knowledge

12. All the consumers who ultimately see an advertisement or an advertising campaign are considered its target audience. ANS: F DIF: Easy REF: p. 18 NAT: AACSB Communication | CB&C Model Customer

OBJ: 1-3 TYP: Knowledge

13. Government buyers are the most conspicuous audience today, in that most mass media advertising is directed at them. ANS: F DIF: Moderate REF: p. 18 NAT: AACSB Communication | CB&C Model Customer

OBJ: 1-3 TYP: Comprehension

14. A producer of educational materials wants to deliver an advertising message to a professional audience of teachers, principals, and school administrators. In this case, a trade journal would not be an appropriate medium to use. ANS: F DIF: Difficult REF: p. 19 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

15. A well-known computer manufacturer runs a worldwide advertising campaign for its desktops, laptops, notebooks, and other computer equipment in an attempt to provide a common theme and presentation in all markets including consumers in North America, Europe, Asia, Africa, Australia and South America. This is an example of an international advertising campaign. ANS: F DIF: Moderate REF: p. 20-21 OBJ: 1-3 NAT: AACSB Communication | CB&C Model International Perspective TYP: Application 16. A large retail chain sells groceries through its stores in 31 Western, Northwestern, Midwestern, and Southern states. However, it would not use national advertising to reach its target market. ANS: T DIF: Easy REF: p. 21 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

17. The marketing mix involves four areas of responsibility—conceiving, pricing, promoting, and distributing—involved in the promotion of goods, services, or even ideas. ANS: T DIF: Moderate REF: p. 22-23 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Knowledge

18. Advertising is only one area of the marketing mix, and it represents only one of many different IBP tools used in the marketing mix. ANS: T DIF: Moderate REF: p. 23 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Comprehension

19. A brand variant is created when a company adapts and expands its current brand into a totally new product area. ANS: T DIF: Easy REF: p. 25-26 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Knowledge

20. The set of assets linked to a brand that is built over time—such as its name, symbol, logo, etc.—is considered its brand equity. ANS: T DIF: Moderate REF: p. 26 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Knowledge

21. Consumers’ perceptions can be based on tangible differences or on image and style factors with brand differentiation. ANS: T DIF: Moderate REF: p. 28 NAT: AACSB Communication | CB&C Model Customer

OBJ: 1-4 TYP: Comprehension

22. A kitchen appliance manufacturer attempts to create a distinctive competitive position based on design features, pricing, distribution, and promotion or advertising strategy. In this way, the company is making an external-positioning decision. ANS: T DIF: Moderate REF: p. 29 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

23. Emphasizing performance features of a product through advertising is rarely enough to create a difference in the mind of the consumer between an organization’s brands and its competitors. ANS: F DIF: Moderate REF: p. 29 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

24. The fundamental purpose of marketing (and the advertising that is used in marketing) is to generate revenue. ANS: T DIF: Easy REF: p. 30 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Knowledge

25. When an organization creates large-scale demand for its brand, the quantity of product produced is increased, and unit production costs increase. ANS: F

DIF: Easy

REF: p. 31

OBJ: 1-4

NAT: AACSB Communication | CB&C Model Promotion

TYP: Knowledge

26. Organizations that have tried to stimulate primary demand in mature product categories have had considerable success. ANS: F DIF: Easy REF: p. 32 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4

27. A late-night television commercial for kitchen knives urges viewers to “call this toll-free number in the next 30 minutes to receive a free cutting board” and assures them that “operators are on duty.” This is an example of a direct response ad. ANS: T DIF: Moderate REF: p. 33 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

28. Delayed response advertising attempts to develop recognition and approval of a brand over time, relying on imagery and message themes that emphasize the benefits and satisfying characteristics of a brand. ANS: T DIF: Moderate REF: p. 33 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Comprehension

29. Gross domestic product, or GDP, is the measure of the total value of goods and services produced by a given company. ANS: F DIF: Moderate REF: p. 34 NAT: AACSB Communication | CB&C Model Product

OBJ: 1-4 TYP: Knowledge

30. In some indirect ways, advertising can affect gross domestic product. It acts to increase product demand when it helps to introduce new products, thereby increasing sales, which in turn affects GDP. ANS: T DIF: Difficult REF: p. 34 NAT: AACSB Communication | CB&C Model Product

OBJ: 1-4 TYP: Knowledge

31. When a brand is perceived by consumers as providing some form of satisfaction that is beyond the cost to purchase the brand, it is said to have brand equity. ANS: F DIF: Moderate REF: p. 35 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Knowledge

32. Essentially, the difference between value and symbolic value is that the first term refers to ads aimed at consumers, and the second term refers to ads aimed at businesses. ANS: F DIF: Moderate REF: p. 35-36 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Knowledge

33. In the advertising industry, the term social meaning refers to the perception by consumers that a brand provides satisfaction that is greater than the cost incurred to acquire the product or service. ANS: F DIF: Moderate REF: p. 36 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Knowledge

34. Nowadays, advertising is virtually the only promotional tool that is used to attract, impress, and persuade consumers. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

ANS: F DIF: Easy REF: p. 37 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-5 TYP: Comprehension

35. To survive in today’s marketplace, contemporary businesses and organizations are strongly focusing on one single concept—communication. ANS: F DIF: Moderate REF: p. 37-38 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-5 TYP: Comprehension

MULTIPLE CHOICE 1. It is evident that firms have not fully exploited all the opportunities that ____ marketing has to offer via communication through devices like smartphones and digital tablet-like devices. a. direct b. mobile c. local d. trade channel ANS: B DIF: Moderate REF: p. 8 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-Intro TYP: Comprehension

2. Which of the following is true regarding advertising? a. Advertising is a universal communication beyond language and culture. b. Advertising has as its main responsibility the increase of product sales. c. Advertising plays a pivotal role in world commerce and the way we experience life. d. Advertising rarely generates revenue. ANS: C DIF: Moderate REF: p. 10 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Knowledge

3. KidsCause, a metropolitan outreach organization that collects and donates toys for needy children, buys airtime on WXXY (a local TV station) to promote its annual toy collection. Amazing Ads, a local ad agency, shoots the video and produces the 30-second commercial and Downtown Deli donates sandwiches for volunteers on the days they collect, wrap, and distribute toys. In this promotional effort, who is the client? a. Amazing Ads b. Downtown Deli c. WXXY d. KidsCause ANS: D DIF: Moderate REF: p. 11 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 1-1 TYP: Application

4. The mayor of a midsize Southern city appears on local television, saying that she should be re-elected because she has brought jobs to the metropolitan area. Obviously, this effort is mass-mediated and is an attempt to persuade. But for it to be considered advertising, which other condition must be met? a. The message must be received by a target audience. b. There must be a public service announcement included. c. The airtime must be paid for. d. The claim must involve a product or service. ANS: C DIF: Moderate REF: p. 11 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Application

5. Public service announcements (PSAs) a. are a type of advertising run by nonprofit organizations. b. use copy and visuals in ways very different from traditional advertising. c. attempt only to inform and not necessarily to persuade. d. are not paid for like an ad. ANS: D DIF: Easy REF: p. 11 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Comprehension

6. The American Academy of Pediatrics (AAP) wants to launch a message to inform citizens about dangerous crib structures and recalled products. It hires a firm called American Message, which has expertise in working with nonprofit organizations, to create a series of television commercials around this primary theme. There is no charge for airtime on the many syndicated networks on which the ad will be broadcast. In this instance, a. the AAP is considered the client because it hired an agency. b. the syndicated networks are considered the trade channel. c. American Message is considered the sponsor because the AAP is a nonprofit organization. d. the AAP is running a public service announcement. ANS: D DIF: Difficult REF: p. 11 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Application

7. For a communication to be classified as advertising, which of the following criteria does not have to be met? a. It must be paid for. b. It must be mass-mediated rather than face-to-face. c. It must promote a product. d. It must attempt to persuade. ANS: C DIF: Moderate REF: p. 11-12 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Comprehension

8. Based on the criteria that defines the concept of advertising, which of the following communication efforts would be considered advertising? a. a candidate for city council going door-to-door urging people to vote for her b. a television message from a national trade group reminding people to eat pork c. a public service announcement about the dangers of texting while driving d. an actor being interviewed on TV about his campaign to aid disabled veterans ANS: B DIF: Moderate REF: p. 11-12 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Comprehension

9. YouTrade, an online broker, purchases a 60-second television commercial to be telecast during the Major League playoffs and the World Series. The commercial touts the reliability of YouTrade’s advice, expertise, and personal attention in assisting Internet customers with stock portfolio creation and management. The spot created by YouTrade is a. not an advertisement since it does not involve a product. b. a promotion aimed at a trade channel. c. an unpaid public service announcement. d. an advertisement promoting a service. ANS: D DIF: Difficult REF: p. 11-12 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Application

10. Integrated brand promotion (IBP) is a. closely monitored and regulated on a federal level by the Federal Trade Commission. b. the coordination of a number of promotional tools to create widespread brand exposure. c. the use of more than one media format to deliver a commercial message. d. a unique concept mainly seen in national advertising campaigns. ANS: B DIF: Easy REF: p. 13 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Application

11. EcoNature is a small manufacturing firm distributing a new line of eco-friendly household cleaning products in Western and Southwestern states. To raise awareness and encourage consumers to trial its products, it buys advertising time on cable TV, places ads in regional issues of women’s magazines, and offers coupons via a number of metropolitan newspapers. Each new communication undergoes a review process to ensure that it displays the new “green” brand logo and carries the same message. Overall, EcoNature is a. segmenting its target audience. b. running corporate advertising. c. creating primary demand. d. managing the IBP process. ANS: D DIF: Moderate REF: p. 13 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 1-1 TYP: Application

12. Farm Fresh Market, a local grocery store chain, has decided to run a series of advertisements. For this to be considered an advertising campaign, the Farm Fresh Market ads must a. focus on store products rather than store services. b. target a number of segmented audiences. c. appear in multiple forms of media. d. communicate a cohesive and integrated idea or theme. ANS: D DIF: Difficult REF: p. 14 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Application

13. What are the two major components of the mass-mediated communication model, each representing a somewhat independent process? a. primary demand and selective demand b. advertiser and consumer c. internal position and external position d. production and reception ANS: D DIF: Moderate REF: p. 16 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-2 TYP: Knowledge

14. In the model of mass-mediated communication, the a. producers of the message control the reception of the content. b. producers of the message control the interpretation of the content. c. audience members can interpret advertising any way they want. d. audience members interpret information the same way. ANS: C DIF: Moderate REF: p. 17 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-2 TYP: Comprehension

15. A husband and wife are watching a cable news program when a commercial comes on that they’ve never seen before. He thinks that the spokesperson in the ad is pretty funny. She thinks the spokesperson is just plain stupid. This is an example of

a. b. c. d.

the creation of different meanings based on social and cultural context. a failure to reach a target audience. an ad that is not effective. one person not exercising intent of interpretation.

ANS: A DIF: Difficult REF: p. 17 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-2 TYP: Application

16. During the NCAA championships, a national sports equipment manufacturer runs an edgy, fast-paced commercial featuring a well-known hip hop artist. A group of guys watching in a fraternity house seem to interpret the commercial in roughly the same way. When members of an audience share a similar interpretation of an ad like this, it is most likely the result of the a. backgrounds and value systems of audience members. b. frequency of the commercial. c. content of the commercial. d. characteristics of the product being advertised. ANS: A DIF: Moderate REF: p. 17 NAT: AACSB Communication | CB&C Model Customer

OBJ: 1-2 TYP: Application

17. A particular group of consumers that is singled out by an organization for its advertising or IBP campaign is called a(n) a. target audience. b. trade channel. c. household. d. organization. ANS: A DIF: Easy REF: p. 18 NAT: AACSB Communication | CB&C Model Customer

OBJ: 1-3 TYP: Knowledge

18. A marketer is asked to analyze her company’s advertising industry expenditures by target market. She wants to start with the broad market that is most often selected by advertisers. She begins her work by looking at a. members of trade channels. b. government employees. c. professionals. d. household consumers. ANS: D DIF: Moderate REF: p. 18 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

19. A well-known manufacturer of office machines needs to hire a new product manager for its line of high-end copying machines for office use. The human resources associate is aware that the new manager she hires will most likely need to a. rely on consumer advertising to reach as many people as possible. b. use both personal selling and advertising. c. eliminate government organizations as a potential target market. d. ignore not-for-profit businesses. ANS: B DIF: Difficult REF: p. 18 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

20. FoodPro is a manufacturer of innovative versions of traditional small kitchen appliances like toasters, can openers, and blenders. Because it competes with national giants like GE and Sunbeam, the firm decides to launch ads designed to get the attention of shippers, handlers, brokers, and store managers who carry, deliver, distribute, and display its products. Taken together, the retailers, wholesalers, and distributors targeted by FoodPro comprise its a. professional segment. b. trade channel. c. marketing mix. d. target audience. ANS: B DIF: Moderate REF: p. 18-19 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

21. A medical equipment supplier is targeting a number of healthcare professionals (doctors, nurses, physical therapists) with its latest advertising. This firm should be aware that the advertising is attempting to reach an audience that a. has little real purchasing power within this industry. b. can best be found through general interest magazines. c. has the same broad and generalized needs as the rest of the population. d. relies on specific language, images, and terminology. ANS: D DIF: Difficult REF: p. 19 NAT: AACSB Communication | CB&C Model Customer

OBJ: 1-3 TYP: Application

22. Which of the following would be considered a trade journal? a. a financial publication like The Wall Street Journal b. a publication written for health professionals like Nursing c. a magazine aimed at fitness enthusiasts like Runners World d. a metropolitan newspaper like The Boston Globe ANS: B DIF: Moderate REF: p. 19 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

23. The advertising aimed at government officials and bureaucrats who have big budgets to spend usually centers around a. local and regional television commercials. b. pitches in national magazines and city trade journals. c. direct mail, catalogs, and Web ads. d. public relations promotions. ANS: C DIF: Moderate REF: p. 19 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Comprehension

24. A marketing manager for a giant beverage firm has been put in charge of all advertising for a new soft drink that appears to have a common appeal in different cultures around the world. This manager will most likely engage in a. national advertising. b. international advertising. c. multicultural advertising. d. global advertising. ANS: D DIF: Moderate REF: p. 19 OBJ: 1-3 NAT: AACSB Communication | CB&C Model International Perspective TYP: Application

25. Which of the following is an example of international advertising? a. Gatorade promoting its new line of six-pack drinks at the Olympics b. Sony advertising its flat-screen TVs around the world c. Procter & Gamble creating different versions of its Tide ad for various countries d. Nike featuring its “swish” logo on gear worn by tennis players at Wimbledon ANS: C DIF: Moderate REF: p. 20 OBJ: 1-3 NAT: AACSB Communication | CB&C Model International Perspective TYP: Application 26. A furniture retailer establishes itself in the Pacific Northwest with massive stores in Seattle and Portland. Over the years it expands into the West and Northwest, with large outlets in Billings, Fargo, and Denver. Its promotions throughout these locations would be considered ____ advertising. a. national b. corporate c. business-to-business d. regional ANS: D DIF: Easy REF: p. 21 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

27. A family-owned butcher shop has expanded to four locations within the St. Louis metropolitan area and suburbs, running regular promotions in the daily editions of The Kansas City Star. These newspaper ads forms of ____ advertising. a. local b. trade c. regional d. cooperative ANS: A DIF: Easy REF: p. 21-22 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

28. When national companies and local merchants share advertising expenses, they are taking part in ____ advertising. a. external b. local c. cooperative d. selective ANS: C DIF: Easy REF: p. 22 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Knowledge

29. A marketer has been given the task of monitoring all the elements of the marketing mix for a large Oregon winery. He has many responsibilities, but one aspect that he is not concerned with is the ____ of the winery’s products. a. production b. conception c. pricing d. promotion ANS: A DIF: Moderate REF: p. 22 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

30. Which of the following is the result of a company creating a brand extension? a. a public service announcement run by the NFL during Monday Night Football telecasts

b. a new type of dog collar advertised in Dog World and other magazines for pet owners c. a women’s fragrance imitating a popular Calvin Klein cologne d. a candy bar created with Oreos and launched by Nabisco ANS: D DIF: Moderate REF: p. 26 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

31. Market segmentation is the process of a. creating a perceived difference between the brand of one firm and the brand of a competitor. b. adding a level of value and meaning to a product’s identity. c. breaking down a large heterogeneous market into homogeneous submarkets. d. identifying a competitive niche for a brand. ANS: C DIF: Moderate REF: p. 28 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Knowledge

32. What is the term for the effort to create a perceived distinction between an organization's brand and the competition's brand? a. internal positioning b. external positioning c. market segmentation d. differentiation ANS: D DIF: Difficult REF: p. 28 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Knowledge

33. EarthWorld, a manufacturer of camping gear and apparel, sells several lines of sleeping bags that are very similar to each other. The company does not want one line of sleeping bags to steal market share from the others. To protect against this, EarthWorld must be concerned with the effective use of a. economies of scale. b. internal positioning. c. primary demand stimulation. d. institutional advertising. ANS: B DIF: Difficult REF: p. 30 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 1-4 TYP: Application

34. Effective ________ positioning is accomplished by either developing vastly different products within the firm’s own product line or creating advertising messages that appeal to different consumer needs and desires. a. external b. crossc. perceptual d. internal ANS: D DIF: Easy REF: p. 30 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 1-4

35. A manufacturer creates massive demand for its new plastic sandal and greatly increases its production level. Over time, its high-volume production brought on by demand stimulation results in lower costs. This is an example of a. inelasticity of demand. b. economies of scale. c. brand loyalty.

d. symbolic value. ANS: B DIF: Difficult REF: p. 31 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 1-4 TYP: Application

36. When the advertising of Brandmoor’s, a regional department store, is created to encourage and maintain brand loyalty, it supports successful price increases. Economists would call this department store’s strategy an example of a. direct response advertising. b. selective demand stimulation. c. primary demand stimulation. d. inelasticity of demand. ANS: D DIF: Difficult REF: p. 31 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

37. A manufacturer of a new electronic device launches a campaign to create demand for the entire product category, since it is new to the public. This is known as a. selective demand stimulation. b. latent demand stimulation. c. elastic demand stimulation. d. primary demand stimulation. ANS: D DIF: Moderate REF: p. 31 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

38. When consumers are brand loyal, the term inelasticity of demand is often used. This means that a. consumers won’t accept price increases for a particular product category. b. consumers are less sensitive to price increases for a brand they like. c. firms have the flexibility to lower prices if this will increase sales. d. firms may decrease production in order to increase demand. ANS: B DIF: Moderate REF: p. 31 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Comprehension

39. The advertising for a snow blower points out a brand’s unique benefits compared to the snow blowers offered by the competition. This is known as a. selective demand stimulation. b. primary demand stimulation. c. corporate advertising. d. direct response advertising. ANS: A DIF: Moderate REF: p. 33 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

40. The attempt to develop brand awareness and preference over time, as well as emphasize the benefits of using that brand is called a. delayed response advertising. b. selective demand stimulation. c. corporate advertising. d. primary demand stimulation. ANS: A DIF: Difficult REF: p. 33 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Knowledge

41. Which slogan is an example of corporate advertising rather than brand advertising?

a. b. c. d.

“Mmm-mmm good” (Campbell’s) “The quicker picker-upper” (Bounty) “Snap! Crackle! Pop!” (Kellogg) “We bring good things to life” (General Electric)

ANS: D DIF: Moderate REF: p. 33 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

42. What type of advertising communicates the specific features, values, and benefits of a product offered by a particular company? a. internal advertising b. corporate advertising c. brand advertising d. institutional advertising ANS: C DIF: Moderate REF: p. 33 NAT: AACSB Communication | CB&C Model Product

OBJ: 1-4 TYP: Application

43. As the holidays approach, corporate advertising is placed in a trade channel by large retailers such as JCPenney, Macy’s, Sears, and Dillard’s. Their main objective is to get people into their stores and get into the mood to shop rather than to look for a particular item or brand. This is an example of ____ advertising. a. institutional b. direct response c. external d. professional ANS: A DIF: Moderate REF: p. 34 NAT: AACSB Communication | CB&C Model Product

OBJ: 1-4 TYP: Application

44. The demand for goods and services is stimulated by advertising in a small Caribbean nation. The economic system of the country should benefit by a(n) a. increase in the gross domestic product. b. reduction of expenses needed to compete within that product category. c. lessening of inelasticity of demand. d. expansion of institutional advertising. ANS: A DIF: Moderate REF: p. 34 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

45. A critic of advertising tells you that the costs of advertising are built into the costs for products, which are then passed on to the consumer. You have decided to argue the issue. You can make many points, but which argument should you not present? a. The increased demand for products that results from advertising can lower the cost of the production of the products. b. Economies of scale spread fixed costs over a large number of production units. c. The cost of advertising is usually not built into the cost of products. d. This must be balanced against the time it would take a person if he or she had to search for information about products without advertising. ANS: C DIF: Difficult REF: p. 35 NAT: AACSB Analytic | CB&C Model Pricing

OBJ: 1-4 TYP: Application

46. A brand of soup is perceived by consumers as a “good deal,” one that provides a certain level of comfort and satisfaction that goes well beyond just the money it takes to purchase a few cans. In this way, the soup is said to have a. demand stimulation. b. inelastic demand. c. positioning. d. value. ANS: D DIF: Moderate REF: p. 35 NAT: AACSB Communication | CB&C Model Customer

OBJ: 1-4 TYP: Application

47. A greeting card manufacturer runs a commercial indicating that people who receive greeting cards appreciate them much more when they see its company name on the back. This is an example of a company focusing on a. symbolic value. b. direct response. c. primary demand stimulation. d. mobile marketing. ANS: A DIF: Difficult REF: p. 36 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

48. Products that signify a certain class membership for those who purchase them—or hope to purchase them—are said to carry a certain level of ____ with their name and brand. a. symbolic value b. social meaning c. differentiation d. brand equity ANS: B DIF: Difficult REF: p. 36 NAT: AACSB Communication | CB&C Model Customer

OBJ: 1-4 TYP: Application

49. By about 1990, the idea of combining various promotional tools came to be known as ____, though over the past two decades this phrase has shifted and evolved, giving way to a new term. a. integrated marketing communications b. marketing mix c. integrated brand promotion d. economies of scale ANS: A DIF: Moderate REF: p. 37-38 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-5 TYP: Knowledge

50. The reality of today’s promotions, beyond all else, centers around a strong emphasis on the a. communication. b. corporation. c. media. d. brand. ANS: D DIF: Easy REF: p. 38 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-5 TYP: Comprehension

51. Which acronym refers to the broad concept that defines today’s emphasis on building awareness and preference for brands, beyond merely communicating about products? a. IMC b. GDP

c. IBP d. PSA ANS: C DIF: Easy REF: p. 38 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-5 TYP: Knowledge

52. What three elements do today’s marketers want to build and maintain through their promotional efforts? a. awareness, identity, and preference b. attention, interest, and response c. demand, value, and loyalty d. information, message, and communication ANS: A DIF: Easy REF: p. 38 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-5 TYP: Knowledge

Scenario 1-1 In 1996, University of Maryland grad Kevin Plank founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes since the company’s inception. Along with the new product line, says Plank, needs to come a new brand image. “I called our marketing team and said go through this building and find anything that says we are only an apparel brand and throw it away.” The company has also pulled all advertisements carrying the word “apparel,” and will begin exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall “performance” company, which will ultimately enable it to compete with footwear from powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share. 53. (Scenario 1-1) One of Under Armour’s new retail outlets in the U.S. sends a direct mail piece to 500 households within a one mile radius of the new store. In the flyer, the store announces the introduction of its new line of basketball shoes and offers several incentives to any customers that may come in to purchase a pair of shoes from the new line. This direct mail piece a. is paid for, mass mediated, and an attempt to persuade; therefore, it should be considered advertising. b. is paid for and an attempt to persuade; however, it is only distributed locally and therefore cannot be considered advertising. c. is not received by a large enough number of people to be considered advertising. d. is not part of a campaign, and thus is not considered advertising. ANS: A DIF: Moderate REF: p. 11-12 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 1-1 TYP: Application

54. (Scenario 1-1) Under Armour hopes changing the company’s image from an apparel company to a “performance” brand will help increase footwear sales. To make consumers aware of the change, Under Armour designs a number of commercials, print ads, and Internet advertisements all focusing around the company’s new motto, and immediately begin to apply them. All of these elements make up a(n) a. communication process. b. IBP campaign. c. advertising campaign. d. promotional mix. ANS: C

DIF: Moderate

REF: p. 14

OBJ: 1-1

NAT: AACSB Communication | CB&C Model Promotion

TYP: Application

55. (Scenario 1-1) One person receives a direct mail piece from Under Armour that offers a free poster of basketball star Brandon Jennings wearing a pair of the company’s new shoes and thinks the offer is pretty cool. Another person receives the same direct mail piece and immediately throws the offer in the trash. The differing interpretations are most likely the result of a. differing content. b. the salient social networks of the recipients. c. incorrect target marketing. d. the rules and regulations of the direct mail medium. ANS: B DIF: Moderate REF: p. 17 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-2 TYP: Application

56. (Scenario 1-1) To promote Under Armour’s new brand image, the company creates a number of print ads, and intends to distribute them to markets all over the world (with only a few minor changes for different markets). This is an example of a. international advertising b. global advertising. c. regional advertising. d. national advertising. ANS: B DIF: Moderate REF: p. 19 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 1-3 TYP: Application

57. (Scenario 1-1) Under Armour decides to sponsor a youth basketball camp to help promote brand awareness for its new shoes. Along with this sponsorship, Under Armour designs new advertisements for the shoes, and even redesigns its website. However, the company soon realizes it has not been sending a consistent message through the various mediums. This attempt at integrated brand promotion will likely be unsuccessful because a. it is not utilizing social media sites such as Facebook and Twitter. b. sponsoring a youth basketball camp is not the right target market. c. the campaign lacks coordination, which is essential to any IBP effort. d. the brand was successful before, and redesigning the company website will cause older customers to grow frustrated with the new direction of the company. ANS: C DIF: Moderate REF: p. 38 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 1.5 TYP: Application

Scenario 1-2 Chug Enterprises is considering entering the already-crowded sports drink market with a line of products. The first brand will be advertised to teenagers as being the best-tasting sports drink on the market. The second brand will be advertised to adults as being the lowest calorie sports drink you can buy. The third brand will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each brand will have separate, distinctive packaging. However, the drinks inside are actually identical to one another. 58. (Scenario 1-2) To help build brand awareness, preference and loyalty, Chug Enterprises plans a coordinated campaign using a variety of promotional tools including advertising. This process of combining coordinated communication to help customers identify and evaluate the relevance of Chug Enterprises products to their lives and value systems is considered a. delayed response advertising. b. integrated brand promotion. c. indirect response advertising. d. institutional advertising.

ANS: B DIF: Moderate REF: p. 13 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Application

59. (Scenario 1-2) To be successful, Chug Enterprises believes it must convince grocery store chains to carry all three brands. If Chug Enterprises uses what is generally considered to be the major promotional tool available to accomplish this, it will engage in a program that emphasizes a. personal selling. b. free sampling. c. consumer promotions. d. trade advertising. ANS: A DIF: Moderate REF: p. 18-19 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

60. (Scenario 1-2) If the brand aimed at senior citizens is successful in the U.S. market, Chug Enterprises plans to introduce it worldwide. However, appropriate images of senior citizens vary from culture to culture. Therefore, Chug Enterprises would be wise to engage in a. local advertising. b. international advertising. c. national advertising. d. regional advertising. ANS: B DIF: Easy REF: p. 20 OBJ: 1-3 NAT: AACSB Reflective Thinking | CB&C Model International Perspective TYP: Application 61. (Scenario 1-2) Chug Enterprises chose the positions of the three products to appeal to separate target markets. This was done to keep its brands from competing for market share with one another. This shows that Chug Enterprises understands the importance of a. internal positioning. b. external positioning. c. inelasticity of demand. d. primary demand. ANS: A DIF: Moderate REF: p. 29 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

62. (Scenario 1-2) What would most likely be the least effective strategy Chug Enterprises could pursue in marketing its product to consumers? a. to focus on integrated brand promotion b. to use delayed response advertising c. to stimulate primary demand d. to attempt to increase elasticity of demand ANS: C DIF: Moderate REF: p. 31 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 1-4 TYP: Application

Scenario 1-3

In 2006, gaming giant Nintendo launched an innovative motion-sensing gaming console called the Wii. The Wii quickly took over as the leading gaming console because of its unique activity-enabling qualities, and for nearly four years, dominated hardware sales in the gaming industry as any true competition for the product was yet to be introduced. However, this changed in late 2010 as Sony introduced its own motion-detecting gaming system to the market, the Playstation Move. Sony has marketed the product as a superior product to Nintendo’s, claiming it is more precise and flaunting the Playstation’s high-quality graphics. Sony’s Move has been a topic of great debate, but the reception of the product over the long haul has yet to be seen. To dethrone the Wii, Sony will need to find a way to appeal to those that have not yet bought into “motion-gaming.” And of course, it wouldn’t hurt if Sony somehow found a way to entice Nintendo followers to switch over to its newest addition to the gaming industry. 63. (Scenario 1-3) Through various studies, Sony discovers that 40 percent of U.S. households do not own a Nintendo Wii, so it purchases advertising to directly target those households. The 40 percent to which the advertising is aimed is best described as the a. potential client. b. target audience. c. receiver. d. client. ANS: B DIF: Easy REF: p. 18 NAT: AACSB Communication | CB&C Model Customer

OBJ: 1-3 TYP: Application

64. (Scenario 1-3) To have the greatest opportunity for success in selling the Playstation Move, Sony must rely on a number of different tools available in the marketing mix. Which one of the following is true? a. Instructions for the use of the Move are not considered part of the product in the marketing mix. b. Advertising is considered one of the four main categories of Sony's marketing mix. c. The primary job of Sony's marketing mix is to support the advertising. d. Sony's product distribution should be considered part of the marketing mix. ANS: D DIF: Moderate REF: p. 22 NAT: AACSB Communication | CB&C Model Distribution

OBJ: 1-4 TYP: Application

65. (Scenario 1-3) The fundamental purpose of marketing the Playstation Move as a superior gaming console to the Wii because of its increased precision and improved graphics is to a. differentiate Sony from other entertainment options such as Nintendo and the Microsoft Xbox. b. create and increase the awareness of Sony. c. support the promotional mix behind Sony. d. establish primary demand stimulation for the Move. ANS: A DIF: Moderate REF: p. 28 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 1-4 TYP: Application

66. (Scenario 1-3) If the advertisements aimed at consumers who do not currently have a gaming system are successful, it may result in the Move being thought of as the best option for today's gaming entertainment at the expense of the Wii. This is an example of a. successful product positioning for Sony. b. primary demand stimulation on the part of Sony. c. an integrated marketing communications plan. d. achievement of internal positioning by Sony. ANS: A DIF: Difficult REF: p. 29 NAT: AACSB Communication | CB&C Model Product

OBJ: 1-4 TYP: Application

Scenario 1-4 At Target, a global discount retailer, sales are around $65 billion a year and rising. In addition, the company employs more than 360,000 people worldwide. Target stores carry just about every major brand imaginable. In addition, Target carries a number of its own brands including Market Pantry, Archer Farms, and Up and Up. Each of the brand labels appears on different products throughout the store—for example, The Archer Farms label appears on the retailer’s highest quality foods. The Market Pantry label appears on food items as well, however these items are often sold at a significantly lower price. The Up and Up label is on a large range of products ranging from paper products to household cleaning supplies. 67. (Scenario 1-4) The goal is for a product with any one of Target’s in-house brand labels on it to come to be known by consumers for the values of the brand—both tangible and intangible. And, through integrated brand promotions, Target will provide extra incentives to consumers to a. sample and test new competitors’ products. b. seek out the best prices, regardless of the brand. c. remain brand loyal. d. stimulate latent promotion. ANS: C DIF: Moderate REF: p. 26 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

68. (Scenario 1-4) In one city, Walmart, a competing retail outlet, opens a store across the street from Target and a battle for business ensues. To distinguish their stores from one another, both retailers create a series of new commercials to help promote their brand. Target’s commercials stress the fast, fun and friendly service it provides all of its guests, and uses several celebrity endorsements. Meanwhile,Walmart runs three different commercials that stress the point that it has very low prices. This is an example of a. corporate advertising. b. internal positioning. c. external positioning. d. product placement. ANS: C DIF: Moderate REF: p. 29 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

69. (Scenario 1-4) In a majority of Target’s promotions, the store is marketed as somewhat “upscale,” and this is demonstrated through its prices, which are generally higher than its biggest competitor, Walmart. Still, even in times of recession, Target continues to increase its annual revenues and retain many of its customers. This can be attributed to a. Target’s emphasis on economies of scale. b. the inelasticity of demand shown by many of the company’s customers. c. Target’s increase in gross domestic product (GDP). d. the elasticity of demand shown by many of the company’s customers. ANS: B DIF: Difficult REF: p. 31 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

70. (Scenario 1-4) In a local newspaper, Target purchases and runs a message that does not refer to any of the products it carries. Instead, it mentions that employees from each of its national stores contribute both the store's resources and their own free time to community projects such as United Way. This is an example of a. corporate advertising. b. a public service announcement. c. delayed response advertising.

d. a message designed to persuade. ANS: A DIF: Difficult REF: p. 33 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

Scenario 1-5 Exodus Moving is a small business that was created to serve local furniture stores’ delivery needs in the Boulder Colorado area. They have specialized equipment that allows them to lift and transfer large and bulky pieces of furniture with less risk of damage than most traditional movers. Many of these furniture stores do not sell enough volume to keep their own trucks and drivers busy all of the time, so Exodus fills a real market need. As a result, most such stores are very interested in outsourcing delivery service needs. Exodus has attracted many customers from these stores by guaranteeing 48 hour delivery within a 50 mile radius of any of the stores they serve. Eventually, Exodus hopes to attract the business of other retailers who might require delivery services, such as electronics or appliance stores. 71. (Scenario 1-5) Exodus marketers limit their current advertising to furniture store publications, because they perceive that readers of these publications are a. their target audience. b. their trade channel. c. household consumers. d. professionals and business organizations. ANS: A DIF: Easy REF: p. 18 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

72. (Scenario 1-5) Exodus advertises in the trade magazine Western Interiors, which is read by furniture retailers and interior decorators throughout twelve Western states. Which of the following best describes this type of advertising? a. national advertising b. regional advertising c. institutional advertising d. corporate advertising ANS: B DIF: Moderate REF: p. 21 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

73. (Scenario 1-5) In all of the promotional materials, Exodus Moving uses the slogan “Swift, Yet Gentler.” This process of creating a distinct place relative to other movers in the market is known as a. positioning. b. global advertising. c. an advertising campaign. d. product differentiation. ANS: A DIF: Moderate REF: p. 29 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

74. (Scenario 1-5) Exodus has learned that the more furniture moving volume it has, the lower the cost per item. This has encouraged the president of Exodus to do more advertising so that they can achieve ____ as they get more stores to use their services. a. brand loyalty b. economies of scale c. inelasticity of demand d. elasticity of demand

ANS: B DIF: Moderate REF: p. 31 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

75. (Scenario 1-5) Exodus Moving's advertising is designed to convince managers of local furniture stores that they should consider outsourcing their delivery needs instead of using their own in-house trucks and drivers. Which of the following best describes the types of advertising that Exodus is using based on functional goals? a. corporate advertising b. primary demand stimulation c. direct response advertising d. selective demand stimulation ANS: B DIF: Moderate REF: p. 31 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-4 TYP: Application

Scenario 1-6 Gillette M3Power—a MACH3 razor innovation—is a groundbreaking, powered wet shaving system for men that delivers a totally new shaving experience resulting in Gillette’s best shave ever. M3Power builds on the heritage of MACH3 and combines Gillette’s latest and best razor and blade technologies. M3Power outperforms all other blades and razors in closeness, comfort and safety during and after the shave. Gillette M3Power features other innovations beyond power: new blades featuring PowerGlide™—an enhanced blade coating for incredible glide and maximum comfort, a moisturizing Indicator® Lubrastrip™ and a technologically-advanced handle (www.Gillette.com). Recently, Gillette Co. direct-mailed users of competing male products, throughout the United States, a free MACH3Power razor with blades and a coupon offer. In addition, a series of coordinated advertisements to male consumers were developed to increase awareness of this product. Gillette said that its goal was to have a market awareness rate of 70 percent within four months. 76. (Scenario 1-6) Gillette advertises to consumers, retailers, and even wholesalers with the slogan “The Best a Man Can Get” to encourage more distribution of its products. It also has personal salespeople meeting with retailers and wholesalers on a regular basis. Gillette offers promotional items in stores for consumers and is known to sponsor events like NASCAR races. This emphasis on the brand and not just communication is known as a. integrated brand promotion. b. selective demand stimulation. c. primary demand stimulation. d. advertising. ANS: A DIF: Moderate REF: p. 13 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-1 TYP: Application

77. (Scenario 1-6) Gillette Co. considers the model of mass-mediated communication when developing its consumer advertising. For example, Gillette always tests ____, to learn whether individual audience members understand the advertisement. a. accommodation b. reception c. negotiation d. production ANS: B DIF: Difficult REF: p. 16 NAT: AACSB Communication | CB&C Model Research

OBJ: 1-2 TYP: Application

78. (Scenario 1-6) Gillette's direct mail advertising campaign is best considered ____ advertising. a. global b. international

c. regional d. national ANS: D DIF: Easy REF: p. 21 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 1-3 TYP: Application

79. (Scenario 1-6) The functional goal for Gillette's advertising of the Mach3Power razor is to get male consumers to shift their preferences from other brands. This is known as a. corporate advertising. b. direct response advertising. c. selective demand stimulation. d. primary demand stimulation. ANS: C DIF: Moderate REF: p. 33 NAT: AACSB Communication | CB&C Model Customer

OBJ: 1-4 TYP: Application

ESSAY 1. What is advertising? Give a brief definition. What are the three criteria that must be met for a communication to be considered an advertisement? How does a public service announcement differ from advertising in the ways that it meets, or fails to meet, each of these criteria? What about a publicity event or other public relations effort? ANS: Advertising is a paid attempt to reach often large numbers of people through mass media, a communication from a company or organization that wants to persuade a population by having its message disseminated. The three criteria that must be met for a communication to be considered an advertisement are that it must be paid for, it must be mass mediated, and it must be an attempt to persuade. A public service advertisement is mass mediated and an attempt to persuade. However, by definition, a public service announcement is not paid for and cannot be considered advertising. A public relations effort in the form of a publicity event, like a celebrity promoting his latest movie on a talk show, also attempts to persuade and uses mass media, but it is not paid for so is not advertising. DIF: Moderate REF: p. 11-12 OBJ: 1-1 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Comprehension

2. What is an audience? A target audience? Of the five broad audience categories that are commonly used in advertising, name as many as you can, and add a very brief description of each. ANS: An audience is a group of individuals—any large group of people—who receive and interpret messages sent from companies and organizations. A target audience is a certain group of individuals or consumers who are singled out by a business or organization for its ad or IBP campaign, usually because they are known to like the product category and may be attracted by this particular brand within that category. However, they are always considered as only a potential audience because it cannot be guaranteed that the message actually gets through to them as intended. Five broad audience categories are commonly used in advertising:

Household consumers. Ordinary members of the population, grouped by household, are the most conspicuous audience because most mass media advertising is directed at them. Members of business organizations. People who represent businesses are targeted by advertising for business and industrial goods and services, office equipment and supplies, and computer hardware and software. Members of trade channels. Retailers, wholesalers, and distributors are targeted by producers of household and business goods and services. Professionals. Specialized target audiences are made up of doctors, lawyers, accountants, teachers, and others belonging to professional groups that require special training or certification, and therefore have specialized needs and interests. Government officials and employees. Federal, state, and local bureaucrats and other employees make up a target category largely due to the massive amount of spending and purchasing involved in running government departments and services. DIF: Moderate REF: p. 18-19 OBJ: 1-3 NAT: AACSB Analytic | CB&C Model Consumer

TYP: Knowledge

3. What is the definition of a brand? Why is so much emphasis put on “brands” and “branding” in today’s marketing? ANS: A brand is a name, term, sign, symbol, or any other feature that identifies one seller’s goods or service as different and distinct from those offered by other sellers. Today’s advertising and promotion put significant emphasis on creating, developing, and communicating about their brands because a brand represents the image and identity of the organization. In many ways, a brand is the most valuable and the precious business asset owned by a company, because it allows an organization to communicate efficiently and consistently within the marketplace. A brand can be at a serious disadvantage in the competitive marketplace if it doesn’t have effective advertising to identify and promote it. DIF: Moderate REF: p. 23-24 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion

TYP: Knowledge

4. A brand is greatly shaped and impacted by advertising in five important ways. Name at least three of these ways that advertising influences brand management, and explain briefly. ANS: Advertising can affect a brand in five broad ways: By informing and persuading -- using message to inform or persuade audiences about values and benefits of the brand By introducing new brands or brand extensions -- getting the word out about new goods or services, or adaptations of current goods or services By building and maintaining loyalty among consumers -- aiming at repeat purchases of the brand by the consumer to the exclusion of other brands

By creating an image and meaning for a brand -- describing how a brand not only fulfills needs and desires, but is linked to the larger social or cultural environment By building and maintaining brand loyalty within the trade -- gaining support from those who distribute and sell the product to favor the brand over all others in their handling, delivery, and display of the product DIF: Moderate REF: p. 24-27 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion

TYP: Knowledge

5. Define and briefly explain the concepts of market segmentation, differentiation, and positioning. ANS: Advertising can help a firm by providing each of these aspects. Market segmentation is the process of breaking down a large and widely varied market (a heterogeneous market) into many smaller sub-markets or segments (homogeneous markets) based on certain consumer characteristics. Its strategy is based on the supposition that consumers have many wants, differ among each other regarding their wants, and can change their wants based on various circumstances. It identifies various segments of the population that, for various reasons, want to buy certain goods or services. Differentiation is the process of creating in the mind of the consumer the perception of a clear difference -- whether concrete and tangible, or emotional and intangible -- between an organization’s brand and that of its competitors. Its strategy revolves around the emphasis on having the consumer perceive a difference between brands, of course referring to a positive difference for the organization’s brand. Positioning is the process of designing a brand so it can occupy a distinct and valued place in the consumer’s mind and communicating this distinction to the consumer. Its strategy revolves around the perceptual space created in the minds of consumers that encompasses all possible brands they might consider purchasing, and giving the brand a prominent position in that space when compared with others. DIF: Moderate REF: p. 28-29 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion

TYP: Knowledge

6. Consider the various types of advertising and the ways that advertising messages can be categorized. Then explain in a few words how the following marketing concepts help to categorize advertising into various types: primary demand stimulation versus selective demand stimulation, direct response advertising versus delayed response advertising, and corporate advertising versus brand advertising. ANS: Advertising can be categorized by these three sets of criteria depicting fundamental approaches to communication: Primary demand stimulation is an attempt to create demand for an entire product category, a costly process that is often used for launching totally new innovations or inventions on the market. Selective demand stimulation points out the brand’s unique benefits compared to those of competing products or services.

Direct response advertising asks consumers to act now, to make the purchase immediately. Delayed response advertising develops awareness and preference for a brand over time. Corporate advertising communicates a favorable view toward a business or organization as a whole. Brand advertising communicates specific values, features, and benefits of a specific product or service offered by the business or organization. DIF: Moderate REF: p. 31-33 OBJ: 1-4 NAT: AACSB Communication | CB&C Model Promotion

TYP: Knowledge

Chapter 2 - The Structure of the Advertising and Promotion Industry: Advertisers, Agencies, Media, and Support Organizations TRUE/FALSE 1. Overall, media fragmentation is a big plus for consumers but a big headache for advertisers and agencies. ANS: T DIF: Easy REF: p. 45 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 2-Intro TYP: Comprehension

2. One or more of the major business and societal forces—technological advances, economic conditions, cultures, lifestyles, business philosophies, etc.—are always affecting advertising and promotion efforts. ANS: T DIF: Easy REF: p. 46 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 2-Intro TYP: Comprehension

3. Social media come in highly accessible forms, allowing individuals and groups to share almost unlimited textual and visual information. ANS: T DIF: Easy REF: p. 47 NAT: AACSB Communication | CB&C Model Customer

OBJ: 2-1 TYP: Comprehension

4. Once considered amateurish and unsophisticated, blogs have begun to gain respect, now numbering about 133 million, with almost 350 million people around the world visiting them. ANS: T DIF: Moderate REF: p. 47 NAT: AACSB Communication | CB&C Model Customer

OBJ: 2-1 TYP: Comprehension

5. Now more than ever, advertisers are in greater control of the information they disseminate, and the way it is delivered, regarding product categories and the brands within those categories. ANS: F DIF: Easy REF: p. 48 NAT: AACSB Communication | CB&C Model Customer

OBJ: 2-1 TYP: Comprehension

6. Despite the explosion of new media in recent years—cable television stations, direct marketing technologies, Web options, digital and mobile alternatives—today’s media options are actually reduced from those of past decades. ANS: F DIF: Moderate REF: p. 48 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 2-1 TYP: Comprehension

7. Even in the face of new communication formats such as online, branded¸ and sponsorship options, today’s companies are putting more faith and energy back into traditional advertising formats placed in mainstream media. ANS: F DIF: Moderate REF: p. 48-49 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 2-1 TYP: Comprehension

8. The industry’s media and agencies seem to be consolidating into fewer and fewer large firms, thus, there are fewer media options.

ANS: F DIF: Difficult REF: p. 49 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-1 TYP: Comprehension

9. Given the backlash against advertising that clutter can cause, advertisers and their agencies are integrating more tools within the overall promotional effort to try and reach more consumers in different ways. ANS: T DIF: Moderate REF: p. 49 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 2-1 TYP: Comprehension

10. Spending on all forms of integrated brand promotion, including advertising, now exceeds a trillion dollars a year. ANS: T DIF: Moderate REF: p. 52 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-2 TYP: Knowledge

11. Among the twenty largest advertisers in the United States in 2008, eleven actually showed a decrease in overall advertising spending. ANS: T DIF: Moderate REF: p. 52 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-2 TYP: Knowledge

12. In 2009, spending on integrated brand promotion tools other than advertising totaled nearly $100 billion annually across all forms of promotion. ANS: T DIF: Moderate REF: p. 52-53 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-2 TYP: Comprehension

13. Just about all types of organizations, regardless of industry, product, service, or message, tend to use advertising and promotion in the same ways. ANS: F DIF: Moderate REF: p. 54 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-2 TYP: Comprehension

14. Scott and Mark hear a local radio spot for McDonald’s as they begin driving on an interstate highway one morning. Later they see a billboard for McDonald's, so they pull over at the next exit and have lunch there. In these ways, McDonald’s acts as a large local reseller that uses various promotion efforts to communicate with customers on a local basis. ANS: F DIF: Moderate REF: p. 56 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 2-2 TYP: Application

15. The majority of service firms, governments, social organizations, and agencies cannot afford to participate in today’s advertising process. ANS: F DIF: Moderate REF: p. 56-57 NAT: AACSB Diversity | CB&C Model Promotion

OBJ: 2-2 TYP: Comprehension

16. It is common for social organizations to advertise at the national, state, and local levels. ANS: T DIF: Moderate REF: p. 57 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-2 TYP: Comprehension

17. While many full-service agencies have depended on giant accounts, some have managed to build a stable base of international clients by acquiring and grooming one smaller or midsize account at a time. ANS: T DIF: Moderate REF: p. 59 OBJ: 2-3 NAT: AACSB Communication | CB&C Model International Perspective TYP: Comprehension 18. Creative boutiques are often referred to as “idea factories.” ANS: T DIF: Moderate REF: p. 60 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Application

19. Digital/interactive agencies are those that have expertise in preparing communications for new media, such as the Internet, mobile marketing, and interactive television. ANS: T DIF: Easy REF: p. 60 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 2-3 TYP: Knowledge

20. The reason prominent advertisers like Benetton, Calvin Klein, and Revlon do most of their work inhouse is to maintain control over marketing activities such as product development and distribution tactics. ANS: T DIF: Moderate REF: p. 61 OBJ: 2-3 NAT: AACSB Communication | CB&C Model Product/Distribution TYP: Application 21. Media specialists can typically acquire media time and space at lower costs than an agency can. ANS: T DIF: Moderate REF: p. 62 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 2-3 TYP: Comprehension

22. A marketer for a large corporation often turns to a media specialist, especially when time is short. This is because media specialists often have time and space in inventory and can offer last-minute placement to advertisers. ANS: T DIF: Difficult REF: p. 62 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 2-3 TYP: Application

23. Firms that maintain and manage large databases of mailing lists as one of their services are alternatively referred to as direct marketing agencies, database agencies, or direct response agencies. ANS: T DIF: Moderate REF: p. 62 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

24. A graphic mark that identifies a company, and often a brand, is called a logo. ANS: T DIF: Easy REF: p. 63 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

25. Today’s media planners and buyers often examine an enormous number of options to put together an effective media plan within a client’s budget. ANS: T

DIF: Moderate

REF: p. 66

OBJ: 2-3

NAT: AACSB Communication | CB&C Model Strategy

TYP: Comprehension

26. Most large agencies, such as Omnicom, Chiat/Day, and Fallon McElligott, set up digital/interactive media groups only recently in response to the sudden surge of client demands that Internet and mobile media options be included in nearly every IBP plan. ANS: F DIF: Difficult REF: p. 66-67 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 2-3 TYP: Application

27. The four most prevalent agency compensation methods are commission, consultant, external facilitator, and production facilitator plans. ANS: F DIF: Moderate REF: p. 67 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 2-3 TYP: Knowledge

28. Changes in consumer media use over the past two decades, and particularly in the past five years, have made both advertisers and agencies question the wisdom of using the commission system. ANS: T DIF: Difficult REF: p. 67-68 NAT: AACSB Reflective Thinking | CB&C Model Pricing

OBJ: 2-3 TYP: Comprehension

29. Procter and Gamble’s global marketing officer identified the basis for compensation change when he declared that the media-based model dependent on the 30-second TV spot was “broken.” ANS: T DIF: Difficult REF: p. 68 NAT: AACSB Reflective Thinking | CB&C Model Pricing

OBJ: 2-3 TYP: Comprehension

30. A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on an hourly rate for different services provided. ANS: T DIF: Easy REF: p. 68 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 2-3 TYP: Knowledge

31. The most popular form of agency compensation used today is the markup charge. ANS: F DIF: Easy REF: p. 68 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 2-3 TYP: Knowledge

MULTIPLE CHOICE 1. Collectively, millions of individuals are continually creating and sharing content through blogs, social media, wikis, and video sites. What is the term for this phenomenon? a. Internet facilitation b. crowdsourcing c. Web 2.0 d. digital/interactive production ANS: C DIF: Moderate REF: p. 47 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 2-1 TYP: Comprehension

2. What type of digital media has emerged as the most significant form of consumer control over information creation and communication? a. Web advertising

b. social media c. interactive television d. mobile marketing ANS: B DIF: Moderate REF: p. 47 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 2-1 TYP: Comprehension

3. Websites frequented by individuals with common interests where they can post facts, opinions, and personal experiences have emerged as sophisticated sources of product and brand information. This definition refers to a. spam. b. blogs. c. phishing. d. chat rooms. ANS: B DIF: Moderate REF: p. 47 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 2-1 TYP: Knowledge

4. Research shows that compared to traditional marketing efforts, ___ communication between consumers is more meaningful and results in longer lasting impressions that affect buying behavior. a. word-of-mouth b. social network c. online d. mobile ANS: A DIF: Moderate REF: p. 47 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 2-1 TYP: Knowledge

5. Which company has become a media conglomerate on the Web, amassing its own digital empire of diverse Internet sites? a. ABC Broadcasting Network b. Facebook c. Dell d. InterActiveCorp ANS: D DIF: Difficult REF: p. 48 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 2-1 TYP: Knowledge

6. With media clutter and fragmentation, there are a. many more options and players in the industry. b. more receptive consumers than ever before. c. less and less media choices available to advertisers. d. opportunities for accreditation of advertising agency principals. ANS: A DIF: Difficult REF: p. 49 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-1 TYP: Comprehension

7. What contemporary technique is used by organizations specifically to get consumers involved with and committed to brands, much more than passive advertising every could? a. Web 2.0 b. trade reselling c. crowdsourcing d. event planning ANS: C DIF: Moderate REF: p. 50 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-1 TYP: Knowledge

8. Yearly spending on all forms of integrated brand promotion, including advertising, now exceeds a. $25 billion. b. $50 billion. c. $200 billion. d. $1 trillion. ANS: D DIF: Moderate REF: p. 50 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-2 TYP: Knowledge

9. Advertising is a major business in the United States. One indication of this is the fact that a. the United States spends more than $300 billion a year on advertising. b. advertising in the United States is subject to the fewest government restrictions of any country in the world. c. advertising agencies do not have to actively compete to get business. d. only agencies in the United States are financially capable of offering a complete range of advertising services. ANS: A DIF: Moderate REF: p. 52 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 2-2 TYP: Comprehension

10. There are many types of advertisers in the marketplace today. But which of the following would not be classified as an advertiser? a. the U.S. Army b. the city of Las Vegas c. the American Cancer Society d. the IRS Audit Department ANS: D DIF: Moderate REF: p. 54 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-2 TYP: Application

11. The largest manufacturers of consumer products and services in the United States have one thing in common. They all a. use advertising better than small manufacturers. b. are resellers of products. c. engage in global advertising. d. are the most prominent users of advertising and promotion. ANS: D DIF: Moderate REF: p. 54-55 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-2 TYP: Comprehension

12. Who are today’s most visible reseller advertisers and promoters? a. wholesalers that deal with household goods b. retailers that sell in national or global markets c. transportation companies that work internationally d. industrial organizations that supply the construction industry ANS: B DIF: Moderate REF: p. 56 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-2 TYP: Comprehension

13. The United States federal government spends more than $2 billion annually on advertising and promotion. Most of that money is spent in what two areas? a. lottery advertising and armed forces recruitment b. campaign advertising and armed forces recruitment c. armed forces recruiting and social issues

d. social issue advertising and political campaign advertising ANS: C DIF: Moderate REF: p. 56-57 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-2 TYP: Comprehension

14. In order to meet all the promotional needs of its clients, the owners of Barlow & Baley advertising agency have decided to add public relations and media buying to the creative services it offers clients. What kind of agency will it become? a. full-service b. large c. creative boutique d. promotion ANS: A DIF: Moderate REF: p. 59 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Application

15. The owners of Bud’s Greenery, a small local chain of five garden and floral supply stores, handle most of their own marketing and promotion services. All they want from an outside agency is a lot of ideas to choose from, not a lot of services that they can handle themselves. Therefore, they are in need of a a. consultation firm. b. creative boutique. c. digital/interactive agency. d. full-service agency. ANS: B DIF: Moderate REF: p. 59-60 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Application

16. There are many types of external facilitators in the advertising community. ____ help advertisers prepare communications for new media such as the Internet, mobile marketing and interactive television. a. Digital/interactive agencies b. Production facilitators c. Advertising research firms d. Communication organizations ANS: A DIF: Moderate REF: p. 60 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Comprehension

17. What is often called the advertising department within the firm? a. the creative boutique b. the digital/interactive firm c. the media-buying department d. the in-house agency ANS: D DIF: Easy REF: p. 61 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

18. Which entity acts as support for direct marketing agencies and follow-up for the delivery of their direct mail? a. creative boutiques b. in-house agencies c. pay-for-results systems d. fulfillment centers ANS: D DIF: Easy REF: p. 62 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

19. What is the world’s largest list management and list brokerage firm? a. Starcom MediaVest Group b. Direct Media, Inc. c. Leo Burnett d. TheFutureBuzz.com ANS: B DIF: Moderate REF: p. 62 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

20. Which company is involved with listing and cataloguing producers of infomercials from around the world? a. InterActiveCorp b. Omnicom c. BBDO Worldwide d. AdProducers.com ANS: D DIF: Moderate REF: p. 62 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

21. Agencies that specialize in ____ are experts in designing incentive programs, trade shows, sale forces contests, and in-store merchandising. a. direct marketing b. trade-market sales promotions c. direct response advertising d. consumer sales promotions ANS: B DIF: Moderate REF: p. 62-63 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

22. What kind of firm acts as an expert in finding locations, securing dates, scheduling activities, and pulling together teams of facilities managers, caterers, security people, entertainers, and celebrities? a. an event-planning agency b. a sales promotion agency c. a direct marketing agency d. a design firm ANS: A DIF: Easy REF: p. 63 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

23. According to the text, which marketing professionals don’t get enough credit for their part in today’s advertising and promotion process? a. agency owners and consultants b. media planners and account services executives c. designers and graphics specialists d. e-commerce experts and Web masters ANS: C DIF: Moderate REF: p. 63 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

24. Why has TBWA of the Omnicom Group created a new position called Chief Compensation Officer? a. because so many of its clients are facing bankruptcy b. because its traditional commission is not being paid c. because financial talks between clients and agency aren’t working d. because TBWA is facing bankruptcy

ANS: C DIF: Difficult REF: p. 65 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Comprehension

25. One advertiser needs to get its message out to a number of diverse communities within the U.S. Another advertiser wants to reach populations in diverse nations across the three continents where its product is sold. Which person in the advertising agency will work with both of these clients to translate cultural and consumer values into advertising messages? a. media services director b. director of production c. account services manager d. administrative executive ANS: C DIF: Moderate REF: p. 65 OBJ: 2-3 NAT: AACSB Communication | CB&C Model International Perspective TYP: Knowledge 26. Which person in a marketing research group coordinates the research effort, and is on par with an account executive? a. graphics designer b. event planner c. account planner d. media buyer ANS: C DIF: Moderate REF: p. 65 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

27. What kind of groups are responsible for coming up with the concepts that express the benefits of a brand? a. creative and production services b. direct-marketing departments c. account services d. marketing research departments ANS: A DIF: Easy REF: p. 66 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

28. The ____ services department of an advertising agency typically houses its art directors, illustrators, and copywriters. a. creative b. account c. marketing d. production ANS: A DIF: Easy REF: p. 66 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

29. What type of firm or group takes creative ideas and turns them into actual ads? a. marketing research services b. creative services c. account services d. production services ANS: D DIF: Easy REF: p. 66 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-3 TYP: Knowledge

30. Though many agencies no longer use the traditional commission system for compensation, Starr Agency does. Using the standard percentage rate, how much would Starr Agency receive from billing $500,000 of television airtime? a. $150,00 b. $125,000 c. $100,000 d. $75,000 ANS: D DIF: Moderate REF: p. 67 NAT: AACSB Analytic | CB&C Model Pricing

OBJ: 2-3 TYP: Application

31. One method of agency compensation has been accused of encouraging advertising agencies to recommend only the most costly media vehicles available. This method is the _____ system. a. commission b. fee c. retainer d. markup charge ANS: A DIF: Moderate REF: p. 67-68 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 2-3 TYP: Comprehension

32. A Los Angeles agency uses a compensation system much like that used by consultants or attorneys to bill clients. This agency is using a ____ system. a. fee b. commission c. markup charge d. media commission ANS: A DIF: Easy REF: p. 68 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 2-3 TYP: Application

33. Which type of compensation system became popular in the advertising industry due to all the outside facilitators that were being used? a. markup b. fee c. pay-for-results d. commission ANS: A DIF: Easy REF: p. 68 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 2-3 TYP: Knowledge

34. Harper, Kane, and Charles advertising agency sets an hourly rate for its services, based on the average salary of all the members of a particular department. Harper, Kane, and Charles uses the ____ system. a. commission b. fixed-fee c. markup charge d. fee ANS: D DIF: Moderate REF: p. 68 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 2-3 TYP: Application

35. A small Midwest agency agrees to a fixed fee, or contract, with a new client. What is the downside for an agency like this when it uses the fixed-fee system? a. Most clients do not want to pay a flat 15 percent rate for all ads placed. b. Standard percentage rates to be charged keep dropping.

c. Client and agency rarely agree on a fee without hard feelings or conflicts. d. More work may be needed than is originally predicted. ANS: D DIF: Moderate REF: p. 68 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 2-3 TYP: Application

36. Ad agencies have recently developed compensation programs that are based upon achievement of specific objectives for the client. These programs are known as ____ compensation. a. pay-for-results b. markup c. commission d. fee-based ANS: A DIF: Moderate REF: p. 68-69 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 2-3 TYP: Comprehension

37. Kowalski and Associates has been a successful mid-sized, full-service advertising agency for more than two decades. In an attempt to serve its clients more efficiently in a competitive marketplace, the agency has changed its compensation package to include payment based on results. If the client agrees, Kowalski and Associates will likely be evaluated on increases in a. sales as well as brand awareness and identification. b. market share. c. positive consumer attitudes toward brand. d. fees following market performance measures. ANS: A DIF: Moderate REF: p. 68-69 NAT: AACSB Reflective Thinking | CB&C Model Pricing

OBJ: 2-3 TYP: Application

38. McMann and Young advertising agency has been hired by Broadway Bicycles, Inc. to assist with advertising and promotions for a chain of bicycle stores in Vermont. The agency has agreed that a certain level of awareness and interest in Broadway Bicycles will be generated in order to gain the sales results the company desires, and they have agreed to be paid accordingly. This is called a. amortization. b. a retainer. c. cost plus. d. pay-for-results compensation. ANS: D DIF: Difficult REF: p. 68-69 NAT: AACSB Analytic | CB&C Model Pricing

OBJ: 2-3 TYP: Application

39. A regional fast food chain called Platters is interested in opening a new type of casual dining facility in a new market, called Diners. What type of firm might collect the data needed to expand into the new market? a. a marketing or advertising research firm because it acts as a facilitator b. an advertising agency because it is imaginative c. the advertiser because they know the product best d. media organizations because they have large datasets available ANS: A DIF: Moderate REF: p. 69-70 NAT: AACSB Analytic | CB&C Model Research

OBJ: 2-4 TYP: Application

40. A large agency in Minneapolis hires a number of external facilitators to complete specific aspects of its projects. Which of the following is not an external facilitator in the structure of the advertising industry? a. television network

b. advertising research firm c. production facilitator d. software firm ANS: A DIF: Moderate REF: p. 69-71 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-4 TYP: Application

41. An advertising agency hires Starch INRA Hooper to act as an external facilitator. Most likely, Starch INRA Hooper will be asked to a. run recognition tests on print advertising. b. aid the agency in the production process. c. examine the agency’s billing structure for inefficiencies. d. oversee the agency's IBP efforts. ANS: A DIF: Difficult REF: p. 70 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 2-4 TYP: Application

42. Ocean Waves Resorts wants to purchase land and construct a resort hotel on the shorefront in San Clemente next to the Nixon retreat. Ocean Waves would also like to construct a golf course on the property and needs help with understanding local regulations, zoning restrictions, and especially political relationships. What kind of company should Ocean Waves hire to assist with the project? a. a consulting firm b. a creative boutique c. a sports marketing company d. a wholesale company ANS: A DIF: Moderate REF: p. 70 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 2-4 TYP: Application

43. What is a new type of consultant who gathers and analyzes information, cross-references and merges it, working with both advertisers and agencies to develop effective communications? a. database consultant b. financial consultant c. brand consultant d. Web developer and consultant ANS: A DIF: Moderate REF: p. 70 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-4 TYP: Knowledge

44. In which area do both advertisers and their agencies rely the most on external facilitators? a. consumer research b. media buying c. software incorporation d. production processes ANS: D DIF: Moderate REF: p. 71 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-4 TYP: Comprehension

45. For what type of tasks do today’s advertisers and agencies rely on external facilitators the most? a. production b. research c. management d. accounting ANS: A DIF: Moderate REF: p. 71 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-4 TYP: Knowledge

46. The high-speed technology that allows consumers to customize programming from various providers over the Internet and target very specific audiences a. is an example of scattering. b. is an example of the halo effort. c. is known as broadband. d. forbids localization of a master network. ANS: C DIF: Easy REF: p. 73 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 2-5 TYP: Knowledge

47. Which of the following is an interactive broadband television news network that allows Web users to customize their news broadcasts to their personal preference? a. BurkeandSimmons b. BusinessObjects c. The FeedRoom d. SRI ANS: C DIF: Difficult REF: p. 73 NAT: AACSB Technology | CB&C Customer

OBJ: 2-5 TYP: Knowledge

48. What corporation is one of the world’s largest media conglomerates, one that offers broadcasting, film, music, cable, print, publishing, and a large Internet presence? a. News Corp b. Fox c. Sony d. Time Warner ANS: D DIF: Difficult REF: p. 73 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 2-5 TYP: Knowledge

49. Often referred to as out-of-home media, support media organizations do not include a. bus and taxi boards. b. databases. c. performance arenas for sponsorships. d. specialized directory companies. ANS: B DIF: Moderate REF: p. 73 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-5 TYP: Comprehension

50. Which of the following is true of organizations whose audiences are primarily non-consumer business and government audiences? a. Many use a variety of advertising and IBP tools. b. Few rely on public relations to maintain their brand images. c. They do not use personal selling to further their business goals. d. They rely primarily on business journals written for their industries. ANS: A DIF: Moderate REF: p. 73 NAT: AACSB Communication | CB&C Model Customer

OBJ: 2-5 TYP: Comprehension

51. A local group called Gimme Shelter erects a billboard urging people to assist in the group’s struggle to find shelter for the homeless. The same day, a producer of women’s sportswear called GameOn launches a multi-million dollar ad campaign announcing that it will be sponsoring women’s international soccer events held in North America, South America, and Europe. Which statement regarding these two efforts is true?

a. Gimme Shelter must be concerned with media clutter, but GameOn need not worry about it. b. GameOn is running corporate advertising, while Gimme Shelter is running brand advertising. c. Both groups are using out-of-home media, the first on a local level and the second on a global level. d. Both groups have narrowly defined target audiences. ANS: C DIF: Difficult REF: p. 73 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 2-5 TYP: Application

Scenario 2-1 As one of the world’s largest computer and technology developers, Dell, Inc. has never been a stranger to advertising. However, due to a consistent decline in market share, the Texas-based company is looking to overhaul its advertising efforts for the first time in years. In the past, Dell found success promoting its products as some of the top “inexpensive” computer products on the market. However, the company’s new ad campaign, which will be targeted towards more high-end users, will make no mention of product price. The company is looking to reinvent its image, and believes the first step in doing so is to revamp its outdated advertising campaign. 52. (Scenario 2-1) Dell decides not to use a full-service advertising agency because it would like its own employees to take responsibility for the new ad campaign. Still, full-service agencies do provide a number of advantages—one of these advantages is a. full-service agencies are often expensive, and spending a lot of money on advertising impresses consumers. b. full-service agencies are very large, so there are lots of people to help design ad campaign. c. full-service agencies often have an array of talented professionals to meet all the needs of a client. d. full-service agencies are the only way to create an ad campaign that implements integrated brand promotion. ANS: C DIF: Moderate REF: p. 59 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-3 TYP: Application

53. (Scenario 2-1) In order to reinvent the company’s image, Dell formulates a team in its marketing department that will be responsible for every aspect of the advertising campaign. The company decides that using company employees will allow it to maximize the profits generated from the new campaign. This team will be an example of a. an interactive agency. b. a full service advertising agency. c. a public relations firm. d. an in-house agency. ANS: D DIF: Difficult REF: p. 61 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-3 TYP: Application

54. (Scenario 2-1) In recent years, Dell has struggled to compete with companies such as HP and Apple. To generate interest in its new line of computers, Dell hires a company to design a number of contests and incentive programs that will help build excitement for the new line. This company is likely an example of a(n) a. direct marketing agency. b. e-commerce agency. c. sales promotion agency. d. marketing research firm.

ANS: C DIF: Moderate REF: p. 62 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-3 TYP: Application

55. (Scenario 2-1) Dell realizes that changing its company image will be a difficult task. To help the process along, the company realizes it will need to begin reaching out to consumers more, and will also need to improve its relationships with the media and various competitors. The type of agency that will be responsible for improving these relationships will most likely be a a. public relations firm. b. digital/interactive agency. c. creative boutique. d. database agency. ANS: A DIF: Difficult REF: p. 63 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-3 TYP: Application

Scenario 2-2 Brush Strokes is an art supply store located in a town with a population of about 100,000 people. The town is also home to a major state university. Brush Strokes gets a majority of its business from the student population. It has used the services of a local full-service advertising agency in the past. A great majority of its marketing budget has gone toward running small advertisements in the local and school newspapers at the beginning of each term. The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the university’s football and basketball games. While the owners of Brush Strokes agree that they could be doing a better job of reaching a larger portion of the student population, they have not come to any conclusions about the best way to accomplish this. 56. (Scenario 2-2) In all likelihood, with which one of the following would Brush Strokes’s full-service agency be least qualified to handle? a. interpreting research on the student market b. creating a 30-second television commercial c. forecasting dividend earnings of stockholders d. creating a competitive position against other art supply stores ANS: C DIF: Easy REF: p. 58-62 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-3 TYP: Application

57. (Scenario 2-2) The owners of Brush Strokes have called a meeting with their agency to determine how Brush Strokes can benefit best from its advertising. The one agency department that must be represented at this meeting to help identify the benefits of the brand, its target audience, the best competitive positioning and then develop a complete plan is a. media-planning. b. research. c. account services. d. creative services. ANS: C DIF: Moderate REF: p. 65 OBJ: 2-3 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 58. (Scenario 2-2) The owners of Brush Strokes are concerned that their agency may be recommending television advertising because it would be profitable for the agency. To protect against this, Brush Strokes wants to switch to an incentive-based compensation plan. To do so, Brush Strokes suggests that compensation for the agency should be a. set at a 15 percent commission with no additional charges. b. changed from a commission system to a fee system.

c. changed to a pay-for-results basis for compensation. d. based on services plus markup. ANS: C DIF: Moderate REF: p. 68-69 NAT: AACSB Reflective Thinking | CB&C Model Pricing

OBJ: 2-3 TYP: Application

59. (Scenario 2-2) The agency has informed Brush Strokes that if they agree to its recommendation for television advertising, the agency will have to rely on outside sources for some of the work. In all likelihood, the agency will seek the most help with a. producing the spots. b. creating the ideas for the spots. c. developing the strategy behind the spots d. assessing the effectiveness of the spots. ANS: A DIF: Moderate REF: p. 71 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 2-4 TYP: Application

Scenario 2-3 After it drew a record-low 9.8 million viewers in 2004, ABC dropped the rights to air the Miss America pageant. Six years later, in 2010, ABC once again agreed to air the event after cable network TLC declined to pick up the pageant for a fourth year. Although ABC decided to pick up the pageant for a second time in the last twelve years, the terms of the agreement are far more favorable for the large cable network. Similar to its first stint with the network, the pageant will be shown on Saturday nights (television’s lowest viewing night of the week). The difference this time comes in the price ABC had to pay to acquire rights to the event—because of the recent decline in the event’s popularity, the network had to pay very little, and ultimately deemed the deal to be a “no-lose” situation. 60. (Scenario 2-3) One of the problems the Miss America Pageant has encountered has been an indifference or sometimes negative response to beauty pageants in general. Many viewers are critical of the swimsuit competition which awards points for physical characteristics. The pageant feels this part of the competition is integral to the overall program and wants to educate the public about why the swimsuit competition is included and how it contributes to a well-rounded program. To achieve its goals in this area, the pageant might employ the services of a(n) a. media buying service. b. public relations specialist. c. sales promotion agency. d. in-house agency. ANS: B DIF: Difficult REF: p. 63 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-2 TYP: Application

61. (Scenario 2-3) Obviously, the Miss America pageant will need to achieve more success if it is to remain on the ABC network. One aspect of this will hinge on whether or not the pageant can provide a clean, mistake-free program to all of its viewers. In order to ensure a smooth-running event, the pageant should hire a(n) a. design firm. b. production facilitator. c. market research firm. d. event planning agency. ANS: D DIF: Moderate REF: p. 63 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-3 TYP: Application

62. (Scenario 2-3) One of the difficulties facing the pageant’s board of directors is appealing to a younger target audience. The board decides that utilizing social networks such as Facebook and Twitter is crucial, and feels it needs to do something exciting and memorable in order to attract viewers. What type of group would be effective in making this happen? a. production services group b. creative services group c. market research group d. buying services group ANS: B DIF: Moderate REF: p. 66 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-3 TYP: Application

63. (Scenario 2-3) The pageant’s board of directors realizes that holding the event on a Saturday night is detrimental to its success. To supplement the television broadcast, the board contemplates setting up a pageant website and simulcasting the event live over the Internet. What kind of organization or expert might be helpful in planning the webcast? a. a specialized consultant b. an advertising agency c. a media buying agency d. a creative boutique ANS: A DIF: Difficult REF: p. 70 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 2-4 TYP: Application

Scenario 2-4 Advertising is a $300-billion-per-year business in the United States. Understandably, competition for clients is fierce among advertising agencies. There are many different reasons why a client may choose to move its business to a new agency, but there is one constant. The agency that wins the business is celebrated by the press; the agency that loses the business, however, is typically forgotten fairly soon. 64. (Scenario 2-4) What type of agency would Subway most likely select to promote its new line of sandwiches and bread to a national television audience? a. an Internet publisher b. an in-house advertising agency c. a creative boutique d. a full-service advertising agency ANS: D DIF: Easy REF: p. 59 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 2-3 TYP: Application

65. (Scenario 2-4) A client is unhappy because the work that its agency is turning out is constantly behind schedule and over budget. This client is likely to look for a new agency with a stronger ____ department. a. media planning b. creative c. account services d. trade-market services ANS: C DIF: Moderate REF: p. 65 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-3 TYP: Application

Scenario 2-5

In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago consumers various “deals of the day.” At the time, Groupon had a unique business model—each day, one “groupon” would be offered in a particular city. If a certain number of people signed up for the offer, then the deal became available to all. Now, only two years later, the business continues to grow, and the service is being offered in several more U.S. cities. Google made a multi-billion dollar offer for the company that Mason turned down in December of 2010. Continuing the company’s rapid rise to success will be a challenging task for CEO Andrew Mason and his team because they will be the first to attempt to advertise the unique services. Groupon needs to find ways to attract new users, and looking into new forms of advertising will be essential to the company’s success. 66. (Scenario 2-5) Because Groupon’s services differ depending on the city in which it is offered, its CEO decides each variation needs to have a catchy slogan that relates to that particular market. Which of the following types of advertising agencies would likely be the best choice to accomplish this specific goal? a. an interactive agency b. a full-service agency c. a creative boutique d. a in-house agency ANS: C DIF: Moderate REF: p. 59-60 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 2-3 TYP: Application

67. (Scenario 2-5) Groupon’s management has budgeted $20,000 for social media advertising for the coming year. How much can their advertising agency expect to earn from this commitment using a traditional commission system compensation plan? a. $2,000 b. $3,000 c. $5,000 d. $8,000 ANS: B DIF: Difficult REF: p. 67 NAT: AACSB Analytic | CB&C Model Pricing

OBJ: 2-3 TYP: Application

68. (Scenario 2-5) Groupon decides to hire a full-service advertising agency to create a new campaign for the company. The ad agency agrees to be compensated through an incentive based program that will measure increased brand awareness and brand identification. This type of compensation program is called a a. fee system. b. commission system. c. pay-for-results system. d. mark-up charge system. ANS: C DIF: Easy REF: p. 68-69 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 2-3 TYP: Knowledge

69. (Scenario 2-5) Because Groupon does not do an extensive amount of advertising, it decides to look outside the company for help in guiding its efforts. The company called upon to aid Groupon would be referred to as a(n) a. client. b. market research firm. c. advertiser. d. external facilitator. ANS: D DIF: Moderate REF: p. 69 NAT: AACSB Reflective Thinking | CB&C Model Research

OBJ: 2-3 TYP: Application

Scenario 2-6 SC Johnson & Son produces a wide variety of very popular consumer products such as Shout®, Windex®, Mr. Muscle®, Ziploc®, Edge®, Glade®, Vanish®, Raid®, OFF!®, Pledge®, and Scrubbing Bubbles® Bathroom Cleaner. These products are in highly competitive markets and require substantial investments in consumer promotion to maintain market share. 70. (Scenario 2-6) SC Johnson is not interested in doing any of the duties associated with advertising research, creative development, or media placement. Which of the following types of organizations would likely be the best match for their needs? a. a media buying service b. a creative boutique c. a research firm d. a full-service agency ANS: D DIF: Moderate REF: p. 59 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-3 TYP: Application

71. (Scenario 2-6) SC Johnson has recently hired an advertising agency to help promote their products. Several of SC Johnson’s senior managers have indicated that they are uncertain as to the specific benefits of advertising their consumer products or how to best position their products in the competitive market. Which of the following departments of their advertising agency should be involved in giving this information to this client? a. administrative services b. creative services c. account services d. marketing research services ANS: C DIF: Moderate REF: p. 65 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 2-3 TYP: Application

72. (Scenario 2-6) SC Johnson’s managers have agreed that their advertising agency will be compensated based on measures of audience awareness of their consumer products. This indicates that they have chosen a ____ compensation program for their agency. a. commission b. pay-for-results c. markup d. fee ANS: B DIF: Moderate REF: p. 69 NAT: AACSB Reflective Thinking | CB&C Model Pricing

OBJ: 2-3 TYP: Comprehension

73. (Scenario 2-6) SC Johnson has decided that additional data are necessary to determine specific messages that should be directed towards consumers. Which of the following departments in their ad agency will most likely be responsible for conducting this work? a. media services b. creative services c. account services d. marketing research services ANS: D DIF: Easy REF: p. 69-70 NAT: AACSB Reflective Thinking | CB&C Model Research

OBJ: 2-4 TYP: Comprehension

ESSAY

1. The advertising industry seems to be in constant transition nowadays. The text offers five broad issues that are affecting the structure of the advertising industry. Name at least three of these trends and explain why they are having such a great impact. ANS: Consumer control. Today’s consumers get on the Internet and choose the sites they want to visit, browsing and shopping where they wish, and viewing the items they feel like viewing. Social media sites offer highly accessible, continually updated personal information shared among unlimited numbers of participants. Blogs have overcome their early setbacks, with many now recognized as trusted sources of news and specialized information. DVRs like TiVo and controllers like Slingbox offer consumers control over programming choices and reduced viewership of ads. Media proliferation, consolidation, and “multiplatform” organizations. Cable channels, direct marketing technology, Web options, and alternative media like mobile marketing have led to a proliferation of media options. Both media and agency organizations are consolidating into fewer and fewer large firms. And giant media companies are branching into more and more new properties— often owning interests in television news, newspapers, magazines, cable, and satellite, cable—thereby creating multiplatform media organizations. And the Web is now seeing its own media conglomerates. Media clutter and fragmentation. There are more ways to try to reach consumers than ever before. Today, the average household has over 100 television channels. Ads are everywhere—on virtual billboards, on Internet banners, in podcast messages, on mobile devices. Consumers are bombarded by ad messages, and advertisers are continually finding ways to deal with the backlash against too much advertising. Crowdsourcing. This involves the online distribution of certain tasks to groups, or crowds, of experts, specialists, aficionados, and other consumers so they can become involved and committed to the brand while helping to build the brand with their advice and recommendations. Mobile marketing and mobile media. Of all the new media trends affecting advertising, mobile marketing may turn out to be the most relevant game-changer, depending on how consumers react, and the role these devices will play. Today’s ever-changing mobile devices (smartphones, tablets, personal navigation devices) offer wireless capability and new channels for advertising messages. DIF: Difficult REF: p. 46-51 OBJ: 2-1 NAT: AACSB Reflective Thinking | CB&C Model Promotion

TYP: Comprehension

2. Briefly summarize the structure of the advertising industry today by naming the key players and tracing their potential relationships and connections. Your answer does not have to be detailed—just a basic sketch of this structure is sufficient. ANS: The structure of the advertising industry today involves many talented and specialized professionals performing a wide range of tasks needed to initiate, prepare, plan, and place advertising. Overall, advertisers (also called clients) can employ the services of advertising agencies and/or promotion agencies, which may in turn contract out specialized services from external facilitators, which may then use the help of various media organizations or target audiences to create and deliver the message. Of course, advertisers do not always hire agencies, and agencies do not always use external facilitators, etc.

Today’s advertisers are the businesses, not-for-profits, and government agencies that want to get their message to certain audiences. Manufacturers and service firms are the large national producers of consumer goods and services. Trade resellers are all organizations that buy and resell goods within the distribution channels, including retailers, wholesalers, and distributors. Federal, state, and local governments are the civic bodies that use advertising, promotion, recruiting, and personal selling to deliver their messages. Social organizations and not-for-profit organizations use ads and promotional efforts not to sell anything but to promote their causes and services, stimulate demand, disseminate information, and solicit donations and volunteers. DIF: Moderate REF: p. 52-57 OBJ: 2-2 NAT: AACSB Analytic | CB&C Model Strategy

TYP: Comprehension

3. What are the six broad areas of services offered by today’s advertising agencies and promotion firms? List as many as you can, then choose three, define briefly, and give an example. ANS: Though any agency structure may specialize in some of these, and some may provide all, the six services that can be offered by advertising agencies and promotion firms are as follows (student examples will vary): Account services -- to determine how the brand can benefit most from ads and promotions by identifying the brand benefits, target audiences, competitive positioning, and marketing plan Marketing research services -- to help the client interpret data and communicate these interpretations, often coordinated by an account planner Creative and production services -- to come up with the concepts, words, and images that express the value of the brand in a unique and memorable way Production services -- to take creative ideas and turn them into advertisements, commercials, direct mail pieces, and other promotional formats Media planning and buying services -- to determine how the client’s message can most effectively reach the target audiences, from among an enormous number of options, often coordinated by a media planner Administrative services -- to handle accounting, billing, and selling, as well as monitoring products to be sure deadlines are met, usually within the traffic department DIF: Difficult REF: p. 65-67 OBJ: 2-3 NAT: AACSB Reflective Thinking | CB&C Model Promotion

TYP: Comprehension

4. List the four major methods of agency compensation and briefly each describe. Outline any advantages or disadvantages associated with each system. ANS: Commission system. This is based on the amount of money the advertiser spends on media. At one time under this method, 15 percent of the total amount billed by the media organization was retained by the advertising agency as compensation for all costs in creating advertising for the client. Today, while about half of advertisers compensate agencies with a commission based on media costs, and not many adhere to the 15 percent level anymore. This system can create pressure on agencies to recommend the most expensive media options.

Markup charges. This involves the addition of a percentage added to services the agency purchases from outside sources, when it hires external facilitators for art, graphics, production, etc. If it is not used, there is no way for an agency to be compensated for its work related to contracting, communicating, and working with these outside firms. Fee system. This compensation is based on an agreed-upon hourly rate for services provided. Most agencies work on this type of system rather than commission. A variation of this, the fixed-fee or contract system, is based on a single fee charged for a project. Unless the agency and client agree precisely as to what services are covered by the fee, serious rifts can result. Pay-for-results. Recently many advertisers and agencies alike have been working on compensation programs called pay-for-results, that base the agency’s fee on the achievement of agreed-upon results. The drawback is in defining “results,” which have often been narrowly defined as sales. The system works better if results are measured brand awareness, identification, or exposure. DIF: Moderate REF: p. 67-69 OBJ: 2-3 NAT: AACSB Analytic | CB&C Model Pricing

TYP: Knowledge

5. What is an external facilitator? List the four main types and identify briefly. Within these categories, what kinds of new facilitators have emerged in recent years? Give an example. ANS: An external facilitator is an organization or individual that provides specialized services and expertise to advertisers and agencies in the process of planning, preparing, and executing promotional campaigns. The four main types of facilitators are as follows: Marketing and advertising research firms. They perform original research using focus groups, surveys, or experiments to help clients and marketers understand the potential market and target audience for a product. Consultants. They specialize in various areas of marketing, such as event planning, sponsorship, public relations, and media. Recently, four new types of consultants have emerged—those specializing in databases, Web development and management, customer relationship management, and even those specializing in traditional management. Production facilitators. They are heavily relied upon by advertisers due to the technological expertise required in today’s media formats and marketing environments. Even large agencies cannot keep on staff experts in broadcast production, direct mail production, trade show booths, or in-store promotions. Software firms. They have recently expanded and diversified into many types of specializations to meet the needs of today’s technological messaging. DIF: Moderate REF: p. 69-71 OBJ: 2-4 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Knowledge

Chapter 3 - The History of Advertising and Brand Promotion TRUE/FALSE 1. When the Western world turned to capitalism as the foundation of an economic system, the foundation was also laid for advertising. ANS: T DIF: Easy REF: p. 81 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-1 TYP: Knowledge

2. Advertising is a source of information and persuasive ideas regarding a society’s products and services, but it is no longer essential to the competition for resources in a capitalistic society. ANS: F DIF: Easy REF: p. 81 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-1 TYP: Comprehension

3. The Industrial Revolution was an economic force that yielded the need for advertising. ANS: T DIF: Easy REF: p. 81 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-1 TYP: Knowledge

4. The expansion and connection of the U.S. highway system by the late 1860s created the beginnings of a nationwide distribution network. ANS: F DIF: Easy REF: p. 82 NAT: AACSB Technology | CB&C Model Distribution

OBJ: 3-1 TYP: Knowledge

5. In the late 1880s, a few companies began putting names and labels on previously unmarked products, and branding began. ANS: T DIF: Moderate REF: p. 82 NAT: AACSB Strategy | CB&C Model Promotion

OBJ: 3-2 TYP: Comprehension

6. Folgers coffee, Miller beer, Dial soap, and Pepsi-cola were some of the first branded goods on store shelves. ANS: F DIF: Moderate REF: p. 82 NAT: AACSB Strategy | CB&C Model Promotion

OBJ: 3-2 TYP: Comprehension

7. Widespread branding of products among almost limitless categories, in the way we think of it today, was seen in the U.S. by the late 1800s. ANS: F DIF: Easy REF: p. 82 NAT: AACSB Strategy | CB&C Model Promotion

OBJ: 3-2 TYP: Comprehension

8. It was found early on that branding has its own power. If consumers demanded Ivory soap, then grocers had better stock it. ANS: T DIF: Moderate REF: p. 82 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 3-2 TYP: Comprehension

9. In the late 1800s, consumers were willing to pay more for brands than for unmarked commodities, even if they were otherwise identical. ANS: T DIF: Difficult REF: p. 82 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 3-2 TYP: Comprehension

10. During the mid-1800s, a number of magazines were launched, though circulation was limited because they were designed for socially privileged audiences and not the mass public. ANS: F DIF: Easy REF: p. 83 NAT: AACSB Communication | CB&C Model Customer

OBJ: 3-2 TYP: Knowledge

11. In the mid-1800s, mass-circulation magazines began to make national advertising possible, and national advertising began to make national brands possible. ANS: T DIF: Difficult REF: p. 83 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 3-2 TYP: Comprehension

12. Without the rise of mass media, there would have been no national brands because there would have been no national advertising. ANS: T DIF: Difficult REF: p. 83 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 3-2 TYP: Comprehension

13. Media vehicles—television networks, radio stations, newspapers, magazines, and websites—exist so they can sell audiences and make money. ANS: T DIF: Difficult REF: p. 83 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-2 TYP: Comprehension

14. The Chicago Tribune featured what is considered the first newspaper ad in the U.S., when it printed two notices under the heading of “Advertising” in the early 1880s. ANS: F DIF: Moderate REF: p. 83 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

15. Newspaper publication expanded rapidly during the Industrial period, to the point where circulation of the dailies was up to 10 million copies a day nationwide by 1850. ANS: F DIF: Moderate REF: p. 84 NAT: AACSB Communication | CB&C Model Distribution

OBJ: 3-3 TYP: Comprehension

16. Advertising was totally unregulated during the Industrial era, and advertisers took this opportunity to lie, cheat, and deceive with no worry about punishment. ANS: T DIF: Moderate REF: p. 84 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 3-3 TYP: Comprehension

17. Advertising of the early 1800s was widely considered a tawdry embarrassment, with a status so low that firms risked their credit ratings due to their advertising, because banks considered its use a sign of financial weakness. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

ANS: T DIF: Moderate REF: p. 84 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 3-3 TYP: Comprehension

18. By about 1900, an increase in the supply of mass-produced goods, and in the demand for these goods by a growing urban population, led to the growth of advertising. ANS: T DIF: Difficult REF: p. 85 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 3-3 TYP: Comprehension

19. The first regulatory initiative by the federal authorities that would exert strict regulations on many levels of advertising and promotion was the Pure Food and Drug Act. ANS: F DIF: Easy REF: p. 85 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

20. Manufacturers were required to list the active ingredients in their products after passage of the Pure Food and Drug Act in the early 1900s. ANS: T DIF: Moderate REF: p. 85 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

21. The Pure Food and Drug Act actually had only a minimal effect on advertising, since it really didn’t restrict advertiser’s claims. ANS: T DIF: Moderate REF: p. 85 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

22. The prewar movement to reform and regulate advertising was pretty much dissipated in the 1920s by the distractions of war and advertising’s role in the war effort. ANS: T DIF: Moderate REF: p. 86 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

23. Men became the major target of advertisers in the 1920s, because they were the heads of households and the keepers of finances. ANS: F DIF: Moderate REF: p. 87 NAT: AACSB Communication | CB&C Model Customer

OBJ: 3-3 TYP: Comprehension

24. Demonstrations dominated the advertising of the 1920s, detailing product use and benefits step-bystep, and remaining one of the most popular and successful forms of ad communication to this day. ANS: F DIF: Moderate REF: p. 87-88 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 3-3 TYP: Comprehension

25. In 1924, Bruce Barton blended capitalist and religious principles in his book, The Man Nobody Knows, allowing readers to resolve their conflicts over religious warnings of excess and the country’s new consumer culture. ANS: T DIF: Moderate REF: p. 89-90 NAT: AACSB Communication | CB&C Model Customer

OBJ: 3-3 TYP: Comprehension

26. Advertisers responded to the Depression by adopting a tough, no-frills style in their ads. ANS: T DIF: Moderate REF: p. 90 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

27. Even during the widespread poverty of the Great Depression, advertising still maintained its high-class status and continued to be viewed as glamorous and inviting. ANS: F DIF: Easy REF: p. 90-91 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

28. During the 1950s, a renewed consumer culture resumed, and advertising once again found the respectability and fame it had in its heyday of the 1920s. ANS: F DIF: Moderate REF: p. 93 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

29. After WWII and into the 1950s, ads began to take on an air of self-awareness, conveying the sentiment that “you know it’s an ad and so do we.” ANS: F DIF: Moderate REF: p. 93 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

30. The “creative revolution” was a period of time in which advertising started to take on the themes, language, and look of the revolutionary 1960s. ANS: T DIF: Moderate REF: p. 95 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

31. Advertising directed at children had become a booming business by the 1970s, with spending of about $200 million a year. ANS: T DIF: Easy REF: p. 102 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 3-3 TYP: Comprehension

32. In the 1970s, groups such as Action for Children’s Television lobbied the government to strictly regulate content of children’s television shows and ban all advertising that specifically targeted children. ANS: F DIF: Moderate REF: p. 102 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 3-3 TYP: Comprehension

33. Television advertising during the 1980s was influenced by the serious social issues explored in the new wave of independent films seen at that time. ANS: F DIF: Difficult REF: p. 106 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

34. The mid-1990s presented scary moments for those heavily invested in traditional advertising. ANS: T

DIF: Moderate

REF: p. 106-107

OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion

TYP: Comprehension

35. By the mid-1990s, after decades of friendly rivalry among agencies across the country, New York was finally accepted as the center of the global advertising universe. ANS: F DIF: Easy REF: p. 108 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

36. In the 1990s, the advertising world moved away from the East Coast, with agencies springing up in Minnesota, California, Oregon, and Washington, as well as in international hot spots such as London and Singapore. ANS: T DIF: Moderate REF: p. 108 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

37. Procter & Gamble is an example of a giant corporation that has continued to invest heavily in new ways to connect with consumers, including interactive websites that gather data, test new product ideas, and reach global audiences. ANS: T DIF: Moderate REF: p. 110 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 3-4 TYP: Comprehension

38. While online advertising continues to grow, the massive audiences and net revenues of television are still very attractive to today’s businesses. ANS: T DIF: Moderate REF: p. 114 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 3-5 TYP: Comprehension

MULTIPLE CHOICE 1. The rise of advertising is linked to the rise of capitalism in America, and is a natural feature of any capitalistic economic system, because it a. can stimulate demand, which, in turn, attracts revenue. b. lays the groundwork for an industrial revolution. c. reduces competition for scarce resources. d. is actively encouraged by capitalistic governments. ANS: A DIF: Difficult REF: p. 81 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-1 TYP: Comprehension

2. A number of economic and social elements fell in place that ultimately encouraged the expansion of advertising in the U.S. But which of the following is not one of the major factors credited for contributing to the rapid growth of advertising? a. the economics of the Great Depression b. the emergence of modern mass media c. the process of branding d. the rise of capitalism ANS: A DIF: Moderate REF: p. 81 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-1 TYP: Comprehension

3. Much investment capital was needed to finance the Industrial Revolution in the U.S. during the 1840s. The ____ emerged as way for individuals to reduce the risk of the loss of personal wealth when investing in business ventures. a. creation of business insurance b. principle of limited liability c. concept of privatization d. first government underwriting ANS: B DIF: Difficult REF: p. 82 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 3-1 TYP: Comprehension

4. A number of economic and social changes occurred during the Industrial Revolution that helped develop the role of advertising as a business communication. Many sweeping changes occurred almost simultaneously, but which of the following was not one of these changes? a. growth of rural areas and decrease in number and size of cities b. dependency on a marketplace as a way of live c. development of the railroad d. reduced risk for people forming corporations ANS: A DIF: Moderate REF: p. 82 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-1 TYP: Comprehension

5. Why did national firms begin putting their names on household goods and investing in promotions for them? a. because they were limited in what they could say based on copyrights b. because they were protected by the principle of limited liability c. because brands commanded a higher price than unmarked commodities d. because consumers wanted a way to identify various products ANS: C DIF: Moderate REF: p. 82 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 3-2 TYP: Comprehension

6. By the late 1800s, manufacturers were developing brand names so that consumers could a. decrease distribution channels. b. transfer the power to the retailer. c. focus their attention on a clearly identified item. d. find the similarities between products. ANS: C DIF: Moderate REF: p. 82 NAT: AACSB Communication | CB&C Model Product

OBJ: 3-2 TYP: Knowledge

7. How did many early marketers establish a degree of power with their brands? a. by getting consumers to identify them and pay higher prices for them b. by making them seem normal and ordinary so consumers would easily accept them c. by forcing general stores and grocers to replace unmarked products with their branded ones d. by becoming widely recognized and defeating any branded competitors in the market ANS: A DIF: Difficult REF: p. 82 NAT: AACSB Communication | CB&C Model Distribution

OBJ: 3-2 TYP: Comprehension

8. It is important to realize that, for the most part, ____ are supported by advertising. a. government policies

b. not-for-profit organizations c. public programs d. mass media ANS: D DIF: Easy REF: p. 83 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 3-2 TYP: Comprehension

9. Early newspaper advertising of the 1700s a. was seen in gaily designed promotions of taverns and boarding houses. b. dominated papers such as the Pennsylvania Gazette and threatened the demise of real news. c. began with two small ads in the Boston News Letter. d. was banned in the U.S. due to English laws still in effect. ANS: C DIF: Moderate REF: p. 83 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

10. Advertising messages were primarily informational in nature during the a. Preindustrialization Era (pre-1800). b. Era of Industrialization (1800 to 1875). c. P.T. Barnum Era (1875 to 1918). d. 1920s (1918 to 1929). ANS: A DIF: Moderate REF: p. 83 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

11. Volney Palmer, thought to be the first advertising agent in the U.S., opened shop in the mid-1800s. Overall, Palmer a. was dismissed by local merchants as foolish and naive. b. solicited orders for ads and collected payment from newspapers. c. pushed for the creation of the democracy of goods. d. created and placed ads in mass-circulation magazines. ANS: B DIF: Moderate REF: p. 84 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

12. The expansion of newspaper circulation in America was fostered by a. traveling circuses, carnivals, and theatrical performances. b. increased interest among readers for television program listings. c. extended railroads and growing urban centers. d. highly differentiated but unbranded products. ANS: C DIF: Easy REF: p. 84 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

13. The advertising of the industrialization era allowed previously unmarked commodities to become known as differentiated product offerings, and then communicated about these brands, thereby a. creating new social symbols and identity markers. b. inhibiting the power of retail chains. c. diminishing the growth of grocers and wholesalers. d. dropping the prices of previously unregulated goods. ANS: A DIF: Moderate REF: p. 85 NAT: AACSB Communication | CB&C Model Product

OBJ: 3-3 TYP: Comprehension

14. By the early 1900s, the “power of advertising” was based on the reality that consumers are willing to a. accept what an advertiser claims without questioning or even considering it. b. listen to long and detailed sales pitches even if they don’t believe them. c. pay more for brands than unmarked commodities even if they are identical. d. buy products they don’t need and don’t want if the ads make them appear glamorous and luxurious. ANS: C DIF: Moderate REF: p. 85 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 3-3 TYP: Comprehension

15. Ads for products during the “P.T. Barnum Era” (1875 to 1918) were characterized by a. a bold and garish style full of incredible claims. b. an abundance of color and illustrations. c. simple ads with information and truthful claims. d. little copy but lots of sophisticated visuals. ANS: A DIF: Moderate REF: p. 85 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

16. Why did women become the primary target for advertisers in the 1920s? a. Men weren’t interested in advertising b. They made most of the purchasing decisions for the household c. Men had already been segmented, targeted, and solicited for decades d. They read the most newspapers and magazines ANS: B DIF: Easy REF: p. 87 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 3-3 TYP: Comprehension

17. Ads in the 1920s were more visual than in the past, and showed slices of life in a way that depicted a. garish designs illustrating unrealistic situations and cartoonish characters. b. consumer power and resulting federal regulation. c. people enjoying products and having a good time in modern social settings. d. large companies vying for the earnings of corporate America. ANS: C DIF: Easy REF: p. 87 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

18. What advertising agency dominated the 1920’s ad industry? a. Doyle Dane Bernbach b. J. Walter Thompson c. N.W. Ayer d. Lord and Thomas ANS: B DIF: Easy REF: p. 89 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 3-3 TYP: Knowledge

19. The 1924 best seller, The Man Nobody Knows, portrayed ____ as an advertising man, thereby dealing with cultural contradictions concerning frugality and consumption. a. the president b. the pope c. an evangelist d. Jesus

ANS: D DIF: Easy REF: p. 89-90 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 3-3 TYP: Knowledge

20. During which era were big business and advertising viewed with suspicion? a. Depression (1929 to 1941) b. 1920s (1918 to 1929) c. P.T. Barnum (1875 to 1918) d. World War II and the 50s (1942 to 1960) ANS: A DIF: Moderate REF: p. 90 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

21. The advertising industry during the period from 1929 to 1941 saw some dramatic changes, but which of the following statements is not accurate about advertising during that time? a. Print advertisements became cluttered with both pictures and copy. b. Agencies provided more and more free services in the struggle to keep accounts. c. Advertising reform was put on hold as the nation struggled with its economic situation. d. Radio became the new and powerful advertising medium. ANS: C DIF: Difficult REF: p. 91 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

22. Beginning in 1938, the U.S Congress began to pass real advertising reform, including a law banning “deceptive acts of commerce.” This meant that advertisers were now a. expected to use “clean language” and promote family values. b. banned from advertising cigarettes and alcohol. c. forced to revise packaging to show all ingredients. d. held liable for making false claims or using deceptive practices. ANS: D DIF: Difficult REF: p. 91 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

23. For advertisers, one main difference between the period immediately following World War I and the period immediately following World War II was that after World War I, a. advertising was highly respected; after World War II, it was distrusted. b. the country entered a recession; after World War II, it entered prosperous times. c. there was an emphasis on modernity; after World War II, there was an emphasis on tradition. d. the country entered prosperous economic times; after World War II, it entered a recession. ANS: A DIF: Difficult REF: p. 91 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

24. When America was experiencing tremendous economic growth after WWII, companies wanted to take full advantage of this. So advertising agencies began to conduct research to understand the a. level of purchasing power in America. b. psychology and motivation behind the sell. c. preferences and opinions of homemakers. d. differences between consumer and business purchases. ANS: B DIF: Difficult REF: p. 93 NAT: AACSB Ethics | CB&C Model Research

OBJ: 3-3 TYP: Comprehension

25. Following the post-war boom of World War II, the 1950s ushered in great concern over the nature of advertising. Americans feared they were being a. seduced by subliminal advertising to buy things. b. bombarded with ridiculous ads and unbelievable claims. c. enticed by the glamour of Madison Avenue. d. brainwashed by the large networks that controlled television program content. ANS: A DIF: Easy REF: p. 93-94 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

26. How were women depicted by advertisers in the 1950s? a. as free spirits with new-found equality and respect b. as prominent members of the business community c. as heading large families and staffs of servants d. as chaste homemakers ANS: D DIF: Moderate REF: p. 94 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

27. Who added to the fear and hysteria over advertising in the 1950s? a. Bruce Barton’s book about Christ as an advertising man b. Morning Again in America, a novel by Hal Riney c. James Vicary’s false story of embedded commercial messages at movie theatres d. Phil Dusenberry’s true story of “drink me” messages in Pepsi ads ANS: C DIF: Moderate REF: p. 94 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

28. What was one of the main shifts seen during the creative revolution of advertising? a. a more serious, helpful, and almost therapeutic tone in ads b. an increased representation of women and minorities in ads c. an expansion of power by corporate CEOs and agency executives over creative work on ads d. an emphasis on art, inspiration, and intuition more than facts and information ANS: D DIF: Moderate REF: p. 96 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

29. Which of the following were among the four agencies most noted for their early role in the creative revolution? a. Doyle Dane Bernbach and Wells Rich & Green b. J. Walter Thompson and N. W. Ayer c. Young & Rubicam and BBDO d. Tatham, Laird & Kudner and Ted Bates ANS: A DIF: Difficult REF: p. 97 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

30. By the late1960s, advertisers had managed to successfully deal with the paradox of combining the decade’s revolutionary impulses with its a. anti-capitalism rhetoric. b. youthful rebellion. c. need for consumption.

d. nostalgic yearning for the old days. ANS: C DIF: Difficult REF: p. 99-100 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

31. More than anything, the 1970s was America’s age of ____, and the advertising of the time reflected this. a. self-doubt b. class-consciousness c. modernity d. consumer culture ANS: A DIF: Moderate REF: p. 101 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

32. What became the biggest word of the 1970s, a word that was quickly picked up by advertising and expanded into the promotional theme of the decade? a. “we” b. “society” c. “me” d. “modern” ANS: C DIF: Moderate REF: p. 101 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

33. What is now considered the “new” branded entertainment was actually seen much earlier, when content was combined with brand promotion in the form of a. silent films of the 1920s. b. television specials of the 1950s. c. radio programs of the 1930s. d. children’s television shows of the 1970s. ANS: D DIF: Moderate REF: p. 102 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

34. During which era of advertising did consumers first begin to surround themselves with devices related to communication? a. the 1970s (1973 to 1980) b. Peace, Love, and the Creative Revolution (1960 to 1972) c. World War II and the 50s (1942 to 1960) d. the Depression (1929 to 1941) ANS: A DIF: Easy REF: p. 105 NAT: AACSB Technology | CB&C Model Customer

OBJ: 3-3 TYP: Knowledge

35. In which era were ads particularly conscious of social class while promoting consumption in a rather conservative way, wrapped up in traditional American values? a. the Designer Era (1980 to 1992) b. the 1970s (1973 to 1980) c. Peace, Love, and the Creative Revolution (1960 to 1972) d. World War II and the 50s (1942 to 1960) ANS: A DIF: Easy REF: p. 105 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 3-3 TYP: Knowledge

36. At the same time that television advertising was beginning to be influenced by the bold editing style of music videos, many mainstream ads could be described as a. acting as a form of hard sell. b. challenging accepted values. c. promoting anti-consumption. d. being social-class conscious. ANS: D DIF: Moderate REF: p. 105-106 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

37. One of the changes seen in advertising during the 1980s was the a. growth and impact of British agencies. b. fear of subliminal advertising. c. advent of documentary advertising. d. separation of business and politics. ANS: A DIF: Moderate REF: p. 106 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

38. In the mid-1990s, William T. Esrey, chairman and CEO of Sprint, announced that clients were “going to hold ad agencies more closely accountable” than ever before. He said this because a. billing scandals had undermined the confidence of advertisers in their agencies. b. there was now proof that advertising leads directly to sales. c. the technology to measure advertising impact had improved. d. the fundamental reasons to advertise had changed. ANS: C DIF: Moderate REF: p. 107 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

39. During the 1990s, New York was challenged as the “center of the advertising universe” by a. highly creative agencies in California, Oregon, and Washington. b. the federal government who broke up agency monopolies into various subsidiaries. c. fear of the new media promoted by London agencies. d. Milan’s creative agencies in a new world-wide advertising venue. ANS: A DIF: Difficult REF: p. 108 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Knowledge

40. After the “dot-com” meltdown of 2000 and the demise of many websites, Phase II of the e-ad revolution has been a. eliminating advertising entirely. b. in limbo awaiting better ad measurement tools. c. likely to decrease in the next decade. d. much more successful. ANS: D DIF: Moderate REF: p. 108-109 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 3-3 TYP: Comprehension

41. In today’s age of Web 2.0, a. established companies like Procter & Gamble will only use traditional media. b. more and more time will be spent by viewers watching broadcast television. c. newspaper circulations will increase.

d. the consumer is much more empowered and can actually talk back to marketers. ANS: D DIF: Difficult REF: p. 109 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 3-4 TYP: Comprehension

42. Some analysts have referred to the current era, since 2000, as the post-advertising age. One of the elements that characterizes advertising today is that, more than ever before, consumers a. rely on advertisers and agencies for information. b. are empowered. c. are no longer expected to “connect” with brands. d. have lost interest in advertising. ANS: B DIF: Moderate REF: p. 109 NAT: AACSB Communication | CB&C Model Customer

OBJ: 3-4 TYP: Comprehension

43. The ability of today’s consumers to go to websites for product information and brand options means that a. consumers come willingly to advertisers and not the other way around. b. advertising as we know it is over. c. advertising will continue to become more sophisticated, elitist, and costly. d. consumers are experiencing information overload. ANS: A DIF: Difficult REF: p. 110 NAT: AACSB Technology | CB&C Model Customer

OBJ: 3-4 TYP: Knowledge

44. The text points out that a certain form of commercial message is seen as “artistic speech” and gets more free speech protection by the First Amendment than others do. What is it? a. the copy in a print ad b. the radio spot c. the information on a product label d. the promotional pitch in branded entertainment ANS: D DIF: Difficult REF: p. 112 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 3-4 TYP: Comprehension

45. With the addition of new channels like wireless technology and Web video, a. advertising is still a paid, mass-mediated attempt to persuade. b. advertising is no longer a tool that contributes to nurturing brand loyalty. c. no change will occur in the advertising prepared and delivered to the target audience. d. advertising is no longer one of the primary marketing mix tools used to stimulate demand. ANS: A DIF: Difficult REF: p. 114 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 3-5 TYP: Comprehension

Scenario 3-1 In the early and mid-1800s, soaps were made from animal fats. The perishable quality of the soap, however, allowed manufacturers to sell a product with only regional appeal. This changed when soap makers began to use vegetable fats and perfume in the soap-making process.

According to Procter & Gamble legend, one batch of this vegetable-based soap was left to mix too long. The result was a product that floated in water due to an excess amount of air. The company turned this into a selling point and, in 1882, launched one of the first soaps with the potential for national sales—Ivory soap—with the slogans “It floats” and “99-44/100 percent pure.” (Stephen Fox, The Mirror Makers, [New York: Random House, 1984], 24.) 46. (Scenario 3-1) The innovation of Ivory soap created which advantage for the advertiser? a. differentiating the product from other soaps b. instilling fear in the consumer c. selling the product regionally d. avoiding regulation of the product by the Federal Trade Commission ANS: A DIF: Difficult REF: p. 82 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 3-1 TYP: Application

47. (Scenario 3-1) Which one of the following is not a characteristic of the period in which Ivory soap was introduced? a. growing concern about the abuses of capitalism b. popularity of radio as an advertising medium c. first wave of feminism d. massive immigration ANS: B OBJ: 3-2 TYP: Application

DIF: Difficult REF: p. 82| p. 84-86 NAT: AACSB Communication | CB&C Model Promotion

48. (Scenario 3-1) By 1900, shortly after Ivory soap was originally branded, a. any form of advertising was suspect and distrusted. b. the first advertising agencies were still decades in the future. c. the branding of products was the norm. d. that was not associated with the appearance of a “consumer culture.” ANS: C DIF: Moderate REF: p. 85 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

49. (Scenario 3-1) One effect of the passage of the Pure Food and Drug Act of 1906 was that a. Ivory soap had to become 100 percent pure. b. advertising claims for products like Ivory soap became strictly regulated. c. the manufacturer of Ivory soap had to list its ingredients on the label. d. branded products like Ivory had to trademark their brand names. ANS: C DIF: Moderate REF: p. 85 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 3-3 TYP: Application

50. (Scenario 3-1) If an advertisement for Ivory soap was reflective of the style of ads during the period known as the “P.T. Barnum Era,” it would a. be loaded with dense copy full of exaggerations. b. use a black-and-white photograph to get attention. c. reflect the social values of the product. d. emphasize users of the product, instead of the product itself. ANS: A DIF: Moderate REF: p. 85 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

Scenario 3-2 When referring to the period of advertising known as the creative revolution, advertising pundit and practitioner Jerry Della Femina wrote, “Volkswagen was being handled in the United States by Fuller & Smith & Ross. Doyle, Dane took over the account around 1959. One of the first ads that came out for Volkswagen was the first ad that anyone can remember when the new agency style came through with an entirely different look. The ad simply said, ‘Lemon.’ The copy for ‘Lemon’ said that once in a while we turn out a car that’s a lemon, in which case we get rid of it. We don’t sell them. And we are careful as hell with our cars, we test them before we sell them, so the chances are you’ll never get one of our lemons. “For the first time in history an advertiser said that he was capable, on rare occasions, of turning out an inferior product . . . By today’s standards, of course, this is pretty tame stuff.” (Jerry Della Femina, From Those Wonderful Folks Who Gave You Pearl Harbor, [New York: Simon and Schuster, 1970], 26-27.) 51. (Scenario 3-2) Which one of the following is an accurate description of the era in which Bill Bernbach created the Volkswagen campaign? a. The ads were filled with wild and unsubstantiated claims. b. The focus was on new technology and interactivity with customers. c. The creative side of advertising rose to new prominence. d. Radio emerged as a significant advertising medium. ANS: C DIF: Moderate REF: p. 96 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Application

52. (Scenario 3-2) The “Lemon” ad just described is characteristic of the style of advertising for which the creative revolution is known because it can be described as having a a. well-researched, hard-sell approach. b. simple style and self-effacing humor. c. complex, yet intelligent, execution. d. clean look and simple copy. ANS: B DIF: Moderate REF: p. 96 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Application

53. (Scenario 3-2) One notable characteristic of the creative revolution was that a. advertising was finally viewed as an art instead of a science. b. the advertising industry actively fought against the past stereotypes of women and minorities. c. art directors and copywriters began to have more say over how agencies were run. d. advertising showed quick support of the massive social revolution going on in society. ANS: C DIF: Moderate REF: p. 96 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Comprehension

54. (Scenario 3-2) While the creative revolution did not last long, its advertising a. allowed advertisers to create television commercials without advertising agencies. b. reverted back to focusing on the product. c. became aware of its own role in consumer culture, that of creating cultural icons. d. recreated the effort to feature women in domestic roles. ANS: C

DIF: Moderate

REF: p. 99

OBJ: 3-3

NAT: AACSB Communication | CB&C Model Promotion

TYP: Comprehension

Scenario 3-3 Zooppa is a global social network for creative talent that partners with companies to launch usergenerated advertising campaigns. Two years after it was initially founded in 2008, the company continues to offer consumers an outlet for their creative advertising ideas. Members of the network submit their original ads in response to a company's creative brief. These ads can take various formats including video, print, banners, concepts, and radio, and winners of the various competitions often take home a monetary prize. The site now boasts over 60,000 members, a number that will surely continue to grow as more consumers feel the urge to influence the way their favorite products are advertised through various forms of media. 55. (Scenario 3-3) To an older generation, creative companies such as Zooppa would likely be found in one geographic location in the United States. However, in recent years, the shift of “creative power” has moved from “the center of the advertising universe” to another area of the country. Which of the following describes that shift? a. New York to California, Oregon, and Washington b. Chicago to Los Angeles c. Boston to Denver d. New York City to Toronto and Mexico City ANS: A DIF: Moderate REF: p. 108 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-3 TYP: Application

56. (Scenario 3-3) Zooppa was created to inspire what type of content? a. branded entertainment b. creative advertising c. subliminal advertising d. consumer-generated content ANS: D DIF: Difficult REF: p. 109 NAT: AACSB Communication | CB&C Model Customer

OBJ: 3-4 TYP: Application

57. (Scenario 3-3) What is one main reason why companies such as Zooppa, as well as many other online companies have succeeded in the Web 2.0 era when they could not in the dot-com era? a. The brand promotion model is now focused on pulling in the consumer, rather than pushing numerous ads at them. b. Technology is better, so companies have more resources. c. It is now easier to attract consumers to online sites because more people have the means to purchase products online. d. The brand promotion model is now focused on pushing numerous ads on the consumer, rather than pulling them in for a look first. ANS: A DIF: Moderate REF: p. 109 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 3-4 TYP: Application

Scenario 3-4

In 2010, Procter & Gamble, the world’s largest ad spender, teamed up with Walmart and NBC to create a number of prime-time family movies produced by P&G Productions. The films are designed to lure consumers to buy P&G products at Walmart using original family movies and exclusive ad buys. This was not the first time the two major brands teamed up to push family-oriented entertainment—in the late 1990’s, both companies were launch members of the Association of National Advertisers' Alliance for Family Entertainment—the organization responsible for getting the WB’s Gilmore Girls on the air. The two have each found great success as a result of the moves, with each seeing an increase both in sales and brand favorability scores. Both companies have expressed strong interest in continuing their working partnership down the road, and as long as they continue to encounter favorable results, the relationship will likely remain a positive one. 58. (Scenario 3-4) During the P.T. Barnum era, life in the United States began to change rapidly. Consumers began taking pride in their ability to purchase material goods, and advertising efforts became far more important. This new purchase-oriented attitude is commonly referred to as a. the progressive movement. b. advertising awareness. c. consumer culture. d. the principle of limited liability. ANS: C DIF: Moderate REF: p. 84 NAT: AACSB Communication | CB&C Model Customer

OBJ: 3-3 TYP: Application

59. (Scenario 3-4) A recent advancement makes the use of various forms of advertising more desirable because it allows the amount of ad exposure and impact to be directly measured, and allows companies such as P&G and Walmart to measure the success of their experimental methods. This advancement is in a. e-commerce. b. branding. c. advertising ethics. d. interactive media. ANS: D DIF: Moderate REF: p. 107 NAT: AACSB Technology | CB&C Model Research

OBJ: 3-3 TYP: Application

60. (Scenario 3-4) The partnership between P&G and Walmart to create family-oriented movies is a perfect example of a. consumer-generated content. b. consumer empowerment. c. subliminal advertising. d. branded entertainment. ANS: D DIF: Moderate REF: p. 112 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 3-4 TYP: Application

61. (Scenario 3-4) Branded entertainment has become incredibly popular in recent years because of its many advantages. One of its main advantages is a. branded entertainment programs can avoid consumers’ well-trained avoidance mechanisms to advertisements. b. branded entertainment programs are more heavily regulated than regular programs. c. more big name companies take part in branded entertainment, so the efforts are usually coordinated better. d. branded entertainment makes consumers feel good about purchasing family-oriented products and merchandise.

ANS: A DIF: Moderate REF: p. 112 NAT: AACSB Communication | CB&C Model Customer

OBJ: 3-4 TYP: Comprehension

Scenario 3-5 Jerome Brown is a student of marketing and advertising at a small college in the Midwest. He has been given the task of researching the history of modern advertising as a part of a group presentation. Jerome is sitting in the school’s library, carefully looking at a wide variety of magazine ads of different time periods of the 20th century to try to understand how advertising has evolved. Here are some descriptions of the ads that he found: 62. (Scenario 3-5) Ads that focused on the product itself, using lots of copy while lacking the real-world context of accurate information and realistic visuals, were dominant in which era? a. the Designer Era (1980 to 1992) b. Peace, Love, and the Creative Revolution (1960 to 1972) c. World War II and the ‘50s (1942 to 1960) d. P.T. Barnum Era (1875 to 1918) ANS: D DIF: Difficult REF: p. 85 NAT: AACSB Communication | CB&C Model Product

OBJ: 3-3 TYP: Application

63. (Scenario 3-5) Ads that first showed the “male” domain as the office and the “feminine” space as the home likely came from which era? a. World War II and the ‘50s (1942 to 1960) b. the Depression (1929 to 1941) c. the 1920s (1918 to 1929) d. P.T. Barnum (1875 to 1918) ANS: C DIF: Easy REF: p. 87 NAT: AACSB Communication | CB&C Model Customer

OBJ: 3-3 TYP: Application

64. (Scenario 3-5) Shows that blended product advertising and program content, like one based on the Strawberry Shortcake toy, drove regulators nuts during which period? a. World War II and the ‘50s (1941 to 1960) b. the Designer Era (1980 to 1992) c. the 1970s (1973 to 1980) d. Peace, Love, and Creative Revolution (1960 to 1972) ANS: C DIF: Moderate REF: p. 102 NAT: AACSB Communication | CB&C Model Product

OBJ: 3-3 TYP: Application

65. (Scenario 3-5) An ad with the sponsor’s Internet address attached likely came from which era? a. the E-Revolution (1993 to 2000) b. the Designer Era (1980 to 1992) c. the 1970s (1973 to 1980) d. the Peace, Love, and Creative Revolution (1960 to 1972) ANS: A DIF: Easy REF: p. 106-107 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 3-3 TYP: Application

66. (Scenario 3-5) An ad that picks up on the (admittedly stereotyped) mindset of the Generation-X population of today’s era would most likely reflect a. aggressive social climbing.

b. unquestioned optimism. c. quiet scholarship. d. slacker cynicism. ANS: D DIF: Moderate REF: p. 108 NAT: AACSB Communication | CB&C Model Customer

OBJ: 3-3 TYP: Application

ESSAY 1. How did the Industrial Revolution lead to important social and economic changes that contributed to the rise in advertising? List two of these changes and explain how they encouraged the expansion of advertising and promotion. ANS: The Industrial Revolution, which spread from England to North America in the 1800s, was a major economic force and social upheaval that led to a need for advertising, as well as a number of cultural changes. By the mid-1800s, the advent of factories that created interchangeable parts, manufacturing innovations, and the perfection of tools like the sewing machine, coupled with the Civil War in the 1860s, led to widespread industrialization. This resulted in several movements. American households moved away from self-sufficiency to a dependency on the marketplace for goods. Improved transportation, especially the growth of the railroad, allowed for the distribution of mass quantities of goods. Rapid population growth in urban areas created a reachable audience. The rise of mass communication created viable advertising vehicles. DIF: Moderate REF: p. 81-82 OBJ: 3-1 NAT: AACSB Communication | CB&C Model Promotion

TYP: Knowledge

2. American advertisements over the years have often revolved around the theme of modernity. Discuss the two eras that are characterized by the use of this theme. How was modernity used as a foundation for persuasion, and what was meant by being “modern”? Briefly describe the societal trends that made the use of this theme effective during each era. What massive social change in America curtailed this celebration of modern life? ANS: The era that introduced the concept of modernity spanned the late 1800s through early 1900s, and an expanded version of modernity continued in the 1920s. The P.T. Barnum era (1875 to 1918) focused on the modernity of American culture and city life, progress, and public consumption. It was noted for rapid urbanization, massive immigration, labor unrest, and concerns over the abuses of capitalism. It included the first wave of the feminist movement, the progressive movement, motion pictures, and mass culture. It led to the birth of modern advertising. Its early ads were bold, garish, and dense with incredible claims. Patent medicines were the rage. Advertising could solve any problem, offering solutions to the stresses—large and small, real and imagined—of this rapidly changing modern life. And mass production’s increase in goods created a demand for advertising—a way to distinguish from among almost-identical products—which in turn focused on buying these products to live the “modern” way.

The 1920s (1918 to 1929) were prosperous times. Victorian sexual repression and modesty gave way to a more open sexuality and a love affair with modernity. Ads instructed consumers how to be thoroughly modern and how to avoid the pitfalls of this new age. There was a product with a cure for every social anxiety and personal failing. Many ads from this era featured themes of modernity, the division between public work space (the male domain of the office) and the private (or feminine) space of the home. In addition, scientific and technological themes became prevalent. If it was scientific, it was modern. DIF: Difficult REF: p. 84-90 OBJ: 3-3 NAT: AACSB Communication | CB&C Model Promotion

TYP: Comprehension

3. How did the advertising industry of the 1920s undergo major changes as it evolved into the very different industry of the 1930s? Describe the change in consumer perception that occurred and the reasons for these social shifts. How did the style of advertising itself shift and evolve between these two eras? ANS: The ads of the 1920s exhorted the public to consume and enjoy life. The world of advertising found a previously unknown level of respectability, fame, and glamour as it persuaded Americans to live it up, enjoy life, and have it all, which could only be obtained by purchasing goods and services. Ads at this time became highly aesthetic—much more visual and far less wordy than in the past. Ads focused on lifestyles, glamour, and the social world, and on fitting in with the “smart” crowd. They featured “snapshots” and vignettes, leading to slice-of-life advertising. All this changed by the 1930s with the Great Depression, however. The harsh reality of massive poverty changed forever the way people thought about money, spending, government, and business, as well as advertising. Advertising was part of big business, and big business was the greedy tyrant that led to this economic collapse. Advertising was now seen as a villain, blamed for seducing people into the excesses of the 1920s. Ads at this time reflected these dramatic changes. The 1930s ads no longer trumpeted over-the-top modern advancements, but became harsh, cluttered, and full of tabloid-type images that were often unethical or inappropriate. They crammed the space with visuals and copy in a no-frills way, playing on the anxieties of a troubled and broken population. DIF: Moderate REF: p. 86-91 OBJ: 3-3 NAT: AACSB Reflective Thinking | CB&C Customer

TYP: Comprehension

4. What medium expanded and evolved during the Great Depression years of the 1930s? How did it make notable contributions to advertising? ANS: Radio, which had emerged the decade before, now grew and reached its heyday in the 1930s. Radio stations multiplied and radio sets quadrupled. Virtually every household had a radio. This medium became popular because it was easily accessible and it reflected a yearning for a social community “out there” that would pull people together in tough times. Its ads reflected this feeling, socializing customers to learn to depend on distant characters, programs, and brands to get them through hard times. Radio and its trademark ads remained very popular through the 1950s. DIF: Moderate REF: p. 91 OBJ: 3-3 NAT: AACSB Reflective Thinking | CB&C Model Promotion

TYP: Comprehension

5. How did Americans view advertising after WWII? What overall emotions arose after WWII and characterized the 1950s, as well as the ads that were created at the time? How did ad agencies play on these sentiments? ANS: After WWII, affluent populations were encouraged to visit new shopping malls and start a new consumer spree, but attitudes toward advertising were more skeptical and negative than they had been in the last (1920s) economic escalation. Many believed that America’s powerful war department veterans and propaganda experts simply moved into advertising, using “mind control” of Cold War communism. Fear became the driving factor behind many social and cultural trends, as well as the ads that appeared at the time. Fearful people could be persuaded to do almost anything that they felt might alleviate their anxieties, including purchasing products and goods. At the same time, the public was uneasy about motivation research and the psychological techniques that were being explored and used, convinced that “subliminal” ads could overtake their thoughts and their buying habits. Emotions related to sex were also at the forefront. Conformity, the nuclear family, and strict gender roles were reflected in the advertising pitches of the time. Ads reflected chastity for women but a looser standard for men. DIF: Moderate REF: p. 92-95 OBJ: 3-3 NAT: AACSB Reflective Thinking | CB&C Customer

TYP: Comprehension

6. The creative revolution in advertising occurred at the same time that a larger societal revolution was underway in the United States. Describe what was occurring in America at that time. Describe how the advertisements of the era related to the larger societal changes. How did the style and look of ads change at this time? ANS: Ads of the 1960s began to take on the themes, language, and look of the quickly changing culture. It followed the free-for all, “peace and love” trappings of the decade, but remained a conservative capitalist institution. Advertising in the United States at this time was slow to respond to the massive social revolution going on all around it. While the nation was struggling with civil rights, the Vietnam War, and the sexual revolution, advertising was often still portraying women and minorities in subservient roles. The only thing really revolutionary about 1960’s advertising was the creative revolution. Creatives began to have a bigger say in the final look and feel of their ads. At first they were just clean and minimal, but in the late 1960s, ads moved to a true change, becoming self-aware, hinting at inside jokes, using cool irony, and at times succeeding at becoming hip. It was the time when advertising as an institution became aware of its own consumer culture, and at the same time—incorporating the work of artists, poets, and musicians—became a symbol of that culture. DIF: Moderate REF: p. 95-100 OBJ: 3-3 NAT: AACSB Reflective Thinking | CB&C Customer

TYP: Comprehension

Chapter 4 - Social, Ethical, and Regulatory Aspects of Advertising and Promotion TRUE/FALSE 1. If “Project Beacon” had been launched as planned, all the online searches and purchases of Facebook users would have appeared on their Facebook sites and then would have been broadcast to all their other Web connections. ANS: T DIF: Moderate REF: p. 120 NAT: AACSB Ethics | CB&C Model Online/Computer

OBJ: 4-Intro TYP: Comprehension

2. Societies tend to monitor advertising to determine what is irresponsible, unethical, or illegal. Despite social shifts and technological advances, a culture’s views on what is acceptable and unacceptable never change. ANS: F DIF: Moderate REF: p. 121 NAT: AACSB Ethics | CB&C Model International Perspective

OBJ: 4-Intro TYP: Comprehension

3. As a promotional tool and an industry, advertising gets a lot of attention, scrutiny, and criticism today because it is so conspicuous and has established a global presence. ANS: T DIF: Moderate REF: p. 121 OBJ: 4-Intro NAT: AACSB Reflective Thinking | CB&C Model International Perspective TYP: Comprehension 4. Though some are legitimate, many criticisms of advertising prove to be uninformed and simplistic, based on emotion rather than fact, and ignoring complex social and legal factors. ANS: T DIF: Moderate REF: p. 121 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 4-Intro TYP: Comprehension

5. Advertisers of “controversial products” are in danger of deceiving the public when they attempt to show social responsibility, such as beer companies spending millions a year promoting responsible drinking. ANS: F DIF: Moderate REF: p. 122 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-1 TYP: Application

6. Critics of advertising claim that advertising carries little if any good product information and that most advertising is biased, limited, and inherently deceptive. ANS: T DIF: Easy REF: p. 122 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-1 TYP: Comprehension

7. Some analysts believe that society is actually better off with a large mix of ads, commercials, and promotions because these do little more than “shuffling existing total demand” rather than increasing or decreasing it. ANS: F DIF: Moderate REF: p. 125 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 4-1 TYP: Comprehension

8. There are those who insist that advertising creates conformity and status-seeking behavior, while others argue that advertising reflects, not causes, America’s age of consumption. ANS: T DIF: Moderate REF: p. 127 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 4-1 TYP: Comprehension

9. It is possible to make a reasonable argument that the massive consumption that advertising upholds and glorifies is actually quite good for American society, and for other cultures around the world. ANS: T DIF: Easy REF: p. 130 OBJ: 4-1 NAT: AACSB Analytic | CB&C Model International Perspective TYP: Comprehension 10. Research shows that subliminal advertising can lead people to buy things they otherwise wouldn’t want, because much persuasive imagery and information is accepted as true when processed in a subconscious way. ANS: F DIF: Easy REF: p. 130-131 NAT: AACSB Communication | CB&C Model Research

OBJ: 4-1 TYP: Knowledge

11. Even those who view advertising positively for other reasons often admit that it rarely contributes to art and culture, and art and culture have little room for advertising. ANS: F DIF: Easy REF: p. 132 NAT: AACSB Diversity | CB&C Model Promotion

OBJ: 4-1 TYP: Comprehension

12. Advertisers have historically been responsible for buying air time on educational and cultural programs despite their smaller audiences, thereby boosting the overall quality of American television. ANS: F DIF: Easy REF: p. 133 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 4-1 TYP: Comprehension

13. Truth in advertising is a broad term referring to the common sense and acceptance of general standards that is expected of anyone promoting something, rather than a legal definition regarding real deception. ANS: F DIF: Easy REF: p. 134 NAT: AACSB Ethics | CB&C Model Strategy

OBJ: 4-2 TYP: Knowledge

14. It is almost impossible to legislate against emotional appeals in ads, since even if they seem exaggerated or inaccurate, they are unquantifiable so there is no way to prove this. ANS: T DIF: Moderate REF: p. 134 NAT: AACSB Ethics | CB&C Model Strategy

OBJ: 4-2 TYP: Comprehension

15. The calls for restrictions on advertising to children over the years have been based on a number of concerns, one of which is the promotion of superficial material things as necessary and valuable. ANS: T DIF: Moderate REF: p. 134 NAT: AACSB Ethics | CB&C Model Strategy

OBJ: 4-2 TYP: Comprehension

16. The Children’s Food and Beverage Advertising Initiative is a voluntary commitment, signed by many well-known corporations, to stop advertising on children’s television programs.

ANS: F DIF: Moderate REF: p. 135 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 4-2 TYP: Knowledge

17. The FTC has regularly issued warnings to tobacco companies about ads that have been shown to cause young people to start smoking, backed up by decades of substantial evidence to this effect published by reputable medical journals. ANS: F DIF: Difficult REF: p. 136 NAT: AACSB Ethics | CB&C Model Research

OBJ: 4-2 TYP: Comprehension

18. The three primary areas of advertising regulation are obscenity and profanity, deception, and unsolicited or direct marketing. ANS: F DIF: Moderate REF: p. 138 NAT: AACSB Ethics | CB&C Model Strategy

OBJ: 4-3 TYP: Knowledge

19. The FTC’s regulations on deception have no authority over omissions or missing information about a product, but only cover those false statements or misleading claims actually made by the advertiser. ANS: F DIF: Difficult REF: p. 138 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 4-3 TYP: Application

20. When a manufacturer and dealer share the expense of ads, at times adding hidden price concessions and moving into illegal territory, they are involved in vertical cooperative advertising. ANS: T DIF: Easy REF: p. 139 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Knowledge

21. An advertisement for Jif peanut butter that compared it to Skippy peanut butter, even if the information is accurate, would be illegal because it mentions brand-name goods produced by another firm. ANS: F DIF: Difficult REF: p. 139 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Application

22. Consumer groups have been just as successful as the FTC in restricting children’s advertising. ANS: T DIF: Moderate REF: p. 141 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 4-3 TYP: Knowledge

23. A powerful ruling by the FTC in dealing with unfair advertising is a cease-and-desist order, in which an advertiser agrees to stop running the ad but doesn’t have to admit any guilt or wrongdoing. ANS: F DIF: Moderate REF: p. 145 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 4-3 TYP: Knowledge

24. The FTC’s advertising substantiation program, set up in the 1970s, requires that documented evidence supporting any claims is made available to consumers, and that such evidence provides a “reasonable basis” for believing that the claims are true. ANS: T DIF: Moderate REF: p. 143 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Knowledge

25. State governments have very little authority over promotional activities of firms, and since most companies conduct interstate commerce, any violations are federal issues. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

ANS: T DIF: Easy REF: p. 145 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Knowledge

26. When an NFL football player begins endorsing a line of energy bars and protein drinks, he is required by the FTC to disclose this relationship and the fee received, but he is not required to actually use the products. ANS: F DIF: Moderate REF: p. 145 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Application

27. Depending on the viewpoint, self-regulation can be considered a triumph of business integrity over meddling government, or a meaningless sham with no real authority beyond the cooperation of industry members. ANS: T DIF: Moderate REF: p. 145 NAT: AACSB Ethics | CB&C Model Strategy

OBJ: 4-4 TYP: Comprehension

28. A relatively new federal agency is the National Advertising Division (NAD), empowered to create and enforce strict standards for packaging, labeling, distribution, and merchandising through its National Advertising Review Board (NARB). ANS: F DIF: Moderate REF: p. 146-147 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 4-4 TYP: Knowledge

29. The three divisions within a local Better Business Bureau—merchandise, financial, and solicitations— investigate advertising practices of companies in their geographic area. ANS: T DIF: Moderate REF: p. 148 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 4-4 TYP: Knowledge

30. Since there has been little regulation of advertising and promotion on the Internet to date, the industry itself has had to act as its main governing body. ANS: T DIF: Moderate REF: p. 149 OBJ: 4-4 NAT: AACSB Communication | CB&C Model Online/Computer TYP: Knowledge 31. Consumer and industry groups are free to make attempts at shaping and restricting the advertising process, but in reality have little voice or power compared to the federal government. ANS: F DIF: Difficult REF: p. 149 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 4-4 TYP: Comprehension

32. Almost 50 percent of all email traffic is spam, amounting to about 1 billion spam messages sent around the world every 24 hours, one-third of which involves pornographic messages. ANS: F DIF: Moderate REF: p. 151 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 4-5 TYP: Knowledge

33. The main restriction of direct mail sweepstakes, as imposed by Congress, involves the requirement that they are randomly and fairly distributed to a wide range of communities and addresses throughout the 50 states.

ANS: F DIF: Moderate REF: p. 152 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-5 TYP: Knowledge

34. The first government restriction on telemarketing required companies to remove households from their dialing lists when residents requested this. ANS: F DIF: Moderate REF: p. 152 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 4-5 TYP: Knowledge

35. The field of public relations is not restricted by the same types of laws as other business elements of the promotional and marketing mix. ANS: T DIF: Easy REF: p. 154 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-5 TYP: Knowledge

MULTIPLE CHOICE 1. In response to the argument that advertising provides little useful information about product features and functions, proponents say that a. emotional significance and lifestyle factors are often more important to a consumer. b. today’s detailed ads are often overflowing with too much utilitarian information. c. brand name is all that really matters to most people. d. all relevant facts about a product cannot fit into a single ad. ANS: A DIF: Moderate REF: p. 123 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 4-1 TYP: Comprehension

2. A Planetfeedback.com survey found that as many as 95 percent of respondents considered themselves as a. frequent Internet shoppers. b. easy targets for online fraud or identity theft. c. benefiting from individualized messages and personalized ads. d. angry or furious over spam and pop-up ads. ANS: D DIF: Moderate REF: p. 124 NAT: AACSB Technology | CB&C Model Research

OBJ: 4-1 TYP: Comprehension

3. Many consumers are becoming frustrated or cynical regarding the increase of brand-name products that appear in television shows and movies or show up in bloggers’ commentaries. These are examples of a. stealth sponsorship. b. hierarchy of needs. c. emotional appeals. d. commerce-content crossover. ANS: D DIF: Moderate REF: p. 124 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 4-1 TYP: Comprehension

4. Which of the following is one of the four major aspects of advertising that lower the overall cost of products, according to proponents? a. appropriation b. hidden price concessions c. affirmative disclosure d. economies of scale

ANS: D DIF: Moderate REF: p. 125 NAT: AACSB Analytic | CB&C Model Pricing

OBJ: 4-1 TYP: Knowledge

5. Today’s advertising process can make use of its speed, widespread reach, and ability to describe benefits. This promotes the diffusion of innovations, meaning that products are a. delivered quickly to a large portion of the marketplace. b. priced affordably for the average consumer. c. designed to meet a number of basic human needs. d. produced to imitate the goods of competitors rather than offer creative new options. ANS: A DIF: Difficult REF: p. 125 NAT: AACSB Analytic | CB&C Model Distribution

OBJ: 4-1 TYP: Comprehension

6. According to Maslow’s hierarchy of needs, ads for breakfast cereals and soft drinks, as well as antibacterial soap and fluoride toothpaste, can be thought of as promotions for products that address a. physiological needs. b. love and belonging needs. c. self-actualizing needs. d. esteem needs. ANS: A DIF: Moderate REF: p. 126 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 4-1 TYP: Application

7. A high-end specialty store, recognized nationwide for its prestigious reputation, is busy with customers eyeing and buying costly items of clothing with designer labels. They’re also adding $400 purses, $500 shoes, and $1,000 bracelets and necklaces to their ensembles. Which basic needs on Maslow’s Hierarchy are most likely being fulfilled by these purchases? a. safety needs b. love and belonging needs c. esteem needs d. self-actualization needs ANS: C DIF: Moderate REF: p. 126 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 4-1 TYP: Application

8. Stephen Fox, chronicler of advertising history, maintains that America's materialistic consumption culture a. is a direct result of our society’s rush toward progress with massive amounts of advertising. b. is a healthy situation and a positive economic phenomenon thanks to decades of advertising. c. is the work of hidden persuaders who create artificial symbols of success and push our buttons to aspire toward these. d. is reflected by advertising in its visual manifestation of that culture, not caused by advertising. ANS: D DIF: Difficult REF: p. 127 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 4-1 TYP: Comprehension

9. In their 2004 “Campaign for Real Beauty,” the people creating the groundbreaking Dove ads attempted to be realistic, show sensitivity, and fight stereotypes by featuring a. plus-size models who do not fit the narrow norm of beauty. b. real women displaying various ethnicities, looks, and sizes. c. both men and women using Dove products.

d. endorsements by famous elderly actresses with young-looking skin. ANS: B DIF: Moderate REF: p. 128-129 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 4-1 TYP: Application

10. Both the Centers for Disease Control, a highly respected federal agency, and Coca-Cola, an established giant supplying the world with one of its most popular products, have run into problems with ads that a. made false claims that had to be retracted and corrected. b. promoted cultural stereotypes while targeting young children. c. used purposefully confusing and misleading language. d. were criticized for being explicit and offensive. ANS: D DIF: Moderate REF: p. 129 NAT: AACSB Communication | CB&C Model Customer

OBJ: 4-1 TYP: Application

11. In recent years, the U.S. Senate has approved a tenfold increase in fines for advertising situations that are determined to step over the line regarding American society’s basic ethical principles. What issues are being regulated in this way? a. ad agencies that knowingly make false claims b. advertisers that lure children into dangerous or unhealthy behaviors c. TV and radio stations that violate rules on airing profanity or sexually explicit materials d. print media with ads that include erotic images or language ANS: C DIF: Moderate REF: p. 130 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-1 TYP: Comprehension

12. Some people believe that advertising can communicate below the threshold of consciousness, despite no solid evidence to prove this. Still, based on this belief, they have concerns that advertising is a. consistently offensive. b. influencing program content. c. perpetuating cultural stereotypes. d. deceiving due to subliminal stimulation. ANS: D DIF: Moderate REF: p. 130-131 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 4-1 TYP: Comprehension

13. Well-known illustrator Andy Warhol felt strongly that the American ads that had promoted the nation’s most popular products over the decades were a. visual manifestations of a sick society overtaken with consumerism and greed. b. anti-elitist artworks for the masses depicting ordinary goods used by both rich and poor. c. pioneering graphic innovations that visually displayed the power of capitalism. d. flashy images and tasteless visuals that cluttered the cultural landscape. ANS: B DIF: Moderate REF: p. 132 OBJ: 4-1 NAT: AACSB Diversity | CB&C Model Creativity and Innovation TYP: Comprehension 14. One way that advertising has shaped media in a negative and unhealthy way is seen in ____, in which reporters are paid by corporations in exchange for favorable treatment and promotion in editorials and commentaries. a. unfair advertising b. behavioral targeting c. stealth sponsorship d. subliminal advertising ANS: C

DIF: Easy

REF: p. 133

OBJ: 4-1

NAT: AACSB Ethics | CB&C Model Promotion

TYP: Knowledge

15. Which of the following best defines ethics? a. moral standards and principles used to evaluate behavior b. truthful and validated statements and beliefs c. legal limits placed on personal practices d. universal and timeless values about what is good or bad ANS: A DIF: Easy REF: p. 134 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-2 TYP: Knowledge

16. According to your text, how are most of our decisions made regarding what is ethical or unethical in advertising? a. through personal judgment b. through industry codes of ethics c. through government regulation d. through artistic instinct ANS: A DIF: Moderate REF: p. 134 NAT: AACSB Ethics | CB&C Model Strategy

OBJ: 4-2 TYP: Comprehension

17. What is the most fundamental ethical issue in advertising? a. exaggeration, which is a serious but increasingly common practice b. taste, particularly regarding society’s exposure to offensive messages c. materialism, which also is a key legal issue d. deception, particularly false or misleading statements ANS: D DIF: Easy REF: p. 134 NAT: AACSB Ethics | CB&C Model Strategy

OBJ: 4-2 TYP: Comprehension

18. Which of the following claims demonstrates puffery in advertising? a. "Only Crest Earns the Dental Seal of Approval Among All Major Brands!" b. "Ford Trucks Have Lower MPG than Chevy Trucks!" c. "Tide Beats Cheer in Sales 8th Year in a Row!" d. "World’s Best Cup of Coffee Served with a Smile Here!" ANS: D DIF: Easy REF: p. 134 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 4-2 TYP: Application

19. Which aspects of advertising are legal but fall into an ethical gray area, making them almost impossible to legislate against? a. disclaimers b. emotional appeals c. testimonials d. contests and sweepstakes ANS: B DIF: Moderate REF: p. 134 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-2 TYP: Comprehension

20. What was one of the government’s earliest restrictions that targeted specific techniques and policies being used in programming and advertising designed for children? a. the Children’s Food and Beverage Advertising Initiative b. the Nutrition Labeling and Education Act c. the “Cheeseburger Bill” d. the Children’s Television Act

ANS: D DIF: Moderate REF: p. 135 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 4-2 TYP: Knowledge

21. Three teenage girls who hang around together all start to smoke cigarettes, and eventually start to drink beer on weekends. In studying advertising that supposedly makes dangerous and addictive products appealing to young people, multiple research studies have found that decisions on the part of girls like this to use tobacco and alcohol a. are most strongly influenced by families, friends, and peers, not by advertising. b. have been increasingly put off until their adult years while still driven somewhat by ads at that time. c. often stem from hereditary traits. d. directly relate to advertising campaigns of criminally negligent firms. ANS: A DIF: Difficult REF: p. 135-136 NAT: AACSB Ethics | CB&C Model Research

OBJ: 4-2 TYP: Application

22. The text poses questions about whether advertising causes people to smoke and drink. How does it answer these questions? a. Brands in these categories don’t spend enough advertising dollars to truly influence consumers. b. These ads are usually designed to be subliminal, suggesting but not causing behavior. c. Even sophisticated and knowledgeable consumers are highly influenced by ads to use these products. d. Advertising cannot create primary demand in mature product categories such as these. ANS: D DIF: Difficult REF: p. 135-136 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-2 TYP: Comprehension

23. Which of the following depicts advertising as it plays its most important role, and demonstrates its most powerful influence, in our society and around the world? a. communicating with various cultures about their most important social issues (example: dangers of drinking and driving) b. educating people to become consumers, who by definition start out as “information poor” (example: ingredients in beer) c. causing people to decide for the first time to try items from a generic classification of goods (example: alcohol) d. influencing people to choose a certain brand once they’ve decided to use a product category (example: Budweiser) ANS: D DIF: Difficult REF: p. 136-137 OBJ: 4-2 NAT: AACSB Reflective Thinking | CB&C Model International Perspective TYP: Application 24. Four friends, all 13-year-old girls, decide to try coloring their hair for the first time. They scan the drugstore shelves together, with no real knowledge and no preference for any particular item, but they each leave with a hair coloring kit. Which concept is involved here? a. primary demand stimulation b. mature product promotion c. product category demand d. brand/product placement ANS: A DIF: Difficult REF: p. 137 NAT: AACSB Reflective Thinking | CB&C Model Product

OBJ: 4-2 TYP: Application

25. To protect vulnerable consumers from widespread exposure to a “controversial product” area, in 2006 the federal government took the step to ban all ____ in the United States. a. online gambling b. child pornography c. Internet pharmaceutical sales d. abortion pills ANS: A DIF: Easy REF: p. 137 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 4-2 TYP: Knowledge

26. Which of the following actions would be outlawed under the “Cheeseburger Bill,” passed by the U.S. House in 2004? a. featuring high-calorie and high-fat foods during children’s programming b. falsifying nutrition information for fast foods c. promoting toys to children that tie in with fast foods, sugary drinks, and salty snacks d. suing food companies for causing someone to become obese ANS: D DIF: Moderate REF: p. 137 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-2 TYP: Knowledge

27. Although the courts and the FTC have been quite specific about defining many other practices, the definition of ____ has always been relatively vague. a. unfair advertising b. copyright infringement in advertising c. deception in advertising d. phishing in online advertising ANS: A DIF: Moderate REF: p. 138-139 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Knowledge

28. Vertical cooperative advertising is usually legal, except when a. unquantifiable emotional appeals are involved. b. a representation, omission, or practice is misleading. c. large corporations and mega-retailers create monopolies in this way. d. bogus advertising allowances are given in the form of hidden price concessions. ANS: D DIF: Difficult REF: p. 139 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Comprehension

29. If firms decide to use comparison advertisements, they a. may be required by the FTC to substantiate their claims. b. share the costs of advertising with local dealers and distributors. c. are acting in opposition to the recommendations of the American Association of Advertising Agencies. d. cannot legally mention a competing firm or brand by name. ANS: A DIF: Moderate REF: p. 139-140 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Comprehension

30. A company is found to be making a technically “true” but unfair comparison to a competitor’s product. It may be required to add information in future ads clarifying its benefits against those of a competitor in a balanced and fair way. This is called a. vertical comparative advertising. b. stealth sponsorship. c. a trade allowance.

d. a disclaimer. ANS: D DIF: Moderate REF: p. 140 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Application

31. ________, established by the Better Business Bureau, evaluates ads directed at children based on guidelines that encourage sensitivity to their level of sophistication and knowledge, as well as emphasis on positive social traits such as friendship and kindness. a. The Family Research Council b. The Children’s Food and Beverage Advertising Initiative c. The Children’s Advertising Review Unit d. Action for Children’s Television ANS: C DIF: Moderate REF: p. 141 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 4-3 TYP: Knowledge

32. Which organization is the newest addition to the federal government’s regulatory team regarding advertising issues? a. the Library of Congress b. the Federal Communications Commission c. the Consumer Finance Protection Agency d. the U.S. Patent Office ANS: C DIF: Easy REF: p. 141 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Knowledge

33. The Wheeler-Lea Amendment in 1938 greatly influenced the future of advertising in America by a. establishing the powerful Federal Trade Commission (FTC). b. allowing the FTC to stop practices that were misleading regardless of their impact on competition. c. granting industries the right to form self-regulatory organizations to reduce FTC interference. d. reducing FTC control over advertising practices regarding competition and monopoly. ANS: B DIF: Difficult REF: p. 142 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 4-3 TYP: Comprehension

34. Due to 1990 legislation, the FTC’s role in regulating advertising was expanded regarding a. nutrition labeling. b. spam. c. telemarketing. d. direct mail. ANS: A DIF: Moderate REF: p. 142 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Knowledge

35. An established cereal manufacturer is being investigated by the FTC for claims that its oatmeal can repair damaged arteries and prevent heart disease. Its executives are aware that if the claims are found to be false, the firm may receive the FTC’s most severe penalty, which involves a. ordering corrective advertising. b. issuing a cease-and-desist order. c. ruling on advertising substantiation. d. dissolving the corporation. ANS: A DIF: Moderate REF: p. 143-144 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Application

36. Endorsements, testimonials, or other positive comments about products made by ____ have recently been more tightly restricted by the FTC, requiring that they disclose any payments for these promotions. a. experts b. bloggers c. celebrities d. average consumers ANS: B DIF: Easy REF: p. 145 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Knowledge

37. A potentially problematic shampoo ad is submitted to the National Advertising Review Board by an upset major competitor that considers its wording to be deceptive. The NARB has several options in the actions it may take, but which outcome is it not authorized to direct? a. persuading the advertiser to change the wording in the ad b. assessing a fine against the advertiser c. publicly identifying the advertiser, complaint, or findings d. dismissing the case altogether ANS: B DIF: Moderate REF: p. 148 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-4 TYP: Application

38. A claim has been reviewed by the NARB and a commercial for a bottled sports drink is judged to be full of allusion, innuendo, and vague health claims. Now the ____ will be held responsible for the false content. a. CEO of the sports drink supplier b. advertising agency promoting the sports drink c. cable television stations that ran the ad d. sports drink manufacturing factory ANS: B DIF: Moderate REF: p. 148 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-4 TYP: Application

39. What is one of the most widely recognized standards in the advertising industry, explaining its responsibilities, social influences, and ethical guidelines for decency and honesty? a. the FTC voluntary commitments b. the 4As Creative Code c. the BBB set of guidelines d. the Code Authority of the NAB ANS: B DIF: Easy REF: p. 148 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-4 TYP: Knowledge

40. The U.S. Internet Industry Association differs from similar trade groups of online advertisers in the United Kingdom and Canada in that it a. has much power and authority to restrict the actions of its members. b. is a federal organization with legal powers. c. restricts not only spam but all forms of unsolicited email. d. has issued no self-regulatory guidelines. ANS: D DIF: Moderate REF: p. 149 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 4-4 TYP: Comprehension

41. Which of the following is true regarding the concept of consumerism?

a. It is a relatively recent concept first observed in the 20th century. b. It involves consumer-oriented promotions such as coupons, premiums, and sweepstakes. c. It defines the tactics that individuals and groups use to enact laws, pressure firms, or target unethical practices regarding goods and services. d. It refers to the ongoing expansion of contemporary marketing beyond traditional production of ads and commercials, including e-commerce and behavioral targeting. ANS: C DIF: Moderate REF: p. 149 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 4-4 TYP: Comprehension

42. Which of the four primary consumer protection organizations was the first to be established, and is best known for its publication of Consumer Reports? a. Consumer Federation of America b. Consumers Union c. Consumer Alert d. Commercial Alert ANS: B DIF: Difficult REF: p. 149 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 4-4 TYP: Knowledge

43. Which company found itself at the center of a widespread movement instigated by consumers, and one of the most publicized events in the history of marketing? a. Nike b. General Mills c. Coca-Cola d. Procter & Gamble ANS: C DIF: Moderate REF: p. 150 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 4-4 TYP: Knowledge

44. What is the most pressing regulatory issue facing both direct marketing and e-commerce today? a. the growing flood of unsolicited advertising messages b. the unethical aspects of contests and sweepstakes c. the increase in identity theft and fraud d. the privacy concerns stemming from database development ANS: D DIF: Moderate REF: p. 150 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 4-5 TYP: Comprehension

45. The biggest concern over the future of behavioral targeting involves its growing ability to a. tap into confidential credit card databanks. b. jam global traffic with billions of unwanted emails. c. hack into sensitive government websites. d. track a person’s moves on the Internet. ANS: D DIF: Moderate REF: p. 150 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 4-5 TYP: Comprehension

46. The ____ does not outlaw all unsolicited email, but does target fraudulent, deceptive, or pornographic messages sent to email addresses. a. Robinson-Patman Act b. CAN SPAM Act c. Wheeler-Lea Amendment d. Children’s Online Privacy Protection Act ANS: B

DIF: Easy

REF: p. 151

OBJ: 4-5

NAT: AACSB Technology | CB&C Model Online/Computer

TYP: Knowledge

47. Marketers have to be particularly cautious about using ____ as a form of promotion, because fraud abounds in this area. a. coupons b. telemarketing c. premiums d. trade allowances ANS: A DIF: Moderate REF: p. 151-152 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 4-5 TYP: Knowledge

48. The Telephone Consumer Fraud and Abuse Prevention Act of the mid-1990s a. created restrictions for telemarketers. b. banned recorded messages and robocalls. c. allowed consumers to switch their numbers to an unlisted status. d. set up the Do Not Call Registry. ANS: A DIF: Moderate REF: p. 152 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 4-5 TYP: Knowledge

49. Sales promotions are regulated by the federal government over which broad areas? a. direct marketing, telemarketing, and e-commerce b. premiums, trade allowances, and sweepstakes/contests c. direct mail, coupons, and lotteries d. spam, phishing, and behavioral targeting ANS: B DIF: Moderate REF: p. 153 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-5 TYP: Knowledge

50. Issues of both _____ and _____ represent restrictions on the activities of public relations firms, and involve getting written permission for the use of certain materials. a. affirmative disclosure; diffusion of innovation b. defamation; material representation c. substantiation; behavioral targeting d. appropriation; copyright ANS: D DIF: Difficult REF: p. 154 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-5 TYP: Knowledge

51. What concept is involved when a statement that occurs in print is untrue and damages the reputation of a person, based on words found in magazine, newspaper, direct mail, or Internet reports? a. libel b. slander c. stealth sponsorship d. affirmative disclosure ANS: A DIF: Easy REF: p. 155 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-5 TYP: Knowledge

Scenario 4-1

A group called Adbusters has a website containing many pages that address issues of consumption and culture, media practices, and corporate responsibilities. For example, “The momentum has clearly accelerated. By some measures humans have used more physical resources since World War II than in all of history before it. It’s now taking a toll beyond anything we could ever have imagined. What does it mean when one-sixth of the world’s population consumes without any real restraint?” Throughout the website, there are many references to advertising's role in creating and maintaining this situation. Not surprisingly, virtually all of the references to the practice of advertising are negative. (http://www.adbusters.org/home/) 52. (Scenario 4-1) Organizations like Adbusters see advertising as superficial. This view of advertising says that it a. is not entertaining, or even interesting, to consumers. b. has no effect on demand for specific brands of products. c. offers little information based on function or performance. d. ignores the hedonic aspects of products. ANS: C DIF: Easy REF: p. 122 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 4-1 TYP: Knowledge

53. (Scenario 4-1) Some philosophies regarding our path to overconsumption proposed by Adbusters echo the words of advertising historian Stephen Fox when he wrote, "One may build a compelling case that American culture is—beyond redemption—money-mad, hedonistic, superficial, rushing heedlessly down a railroad track called Progress." Fox then concluded that advertisers a. are not creating the American way of life, but just reflecting it, good or bad. b. have nothing to do with the fact that all modern cultures have essentially become obsessed with consumption, not just America. c. are the self-serving manipulators and hidden persuaders who have created this situation. d. have in fact focused on progress, which despite its drawbacks has led to improved conditions and comfortable lifestyles for many Americans. ANS: A DIF: Moderate REF: p. 127 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 4-1 TYP: Application

54. (Scenario 4-1) A counterargument to claims that ads only lead to mindless consumption points to advertisers continued financial support for a varied and accessible mass media. In fact, the advertising world spent about $ ____ in 2009 on traditional mass media, and with the addition of online advertising, that figure increased to $ ____. a. 100 million; 150 million b. 30 billion; 50 billion c. 140 billion; 200 billion d. 220 billion; 400 billion ANS: C DIF: Moderate REF: p. 132 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 4-1 TYP: Knowledge

55. (Scenario 4-1) In the past, Adbusters has cited 12 magazines that it said are responsible for pushing "a clean, exciting image for one of the dirtiest products around: tobacco." It suggested that Americans cancel their subscriptions to these magazines until they stopped accepting these ads. This is an example of a. the social phenomenon called corrective advertising. b. a strategic tool for pressuring advertisers called boycott. c. a push for consumers to mobilize and take certain actions called behavioral targeting. d. the self-regulatory practice called corrective advertising.

ANS: B DIF: Moderate REF: p. 149 NAT: AACSB Ethics | CB&C Model Strategy

OBJ: 4-4 TYP: Application

Scenario 4-2 "Consumerism is a pattern of behavior that helps to destroy our environment, personal financial health, the common good of individuals and human institutions." This quote is stated on the home page of a website called Overcoming Consumerism. The quote goes on to say, "This site details methods that you can use to help defeat consumerism, save money, work less and lead a more satisfying and environmentally benign life while you help to restore the economic self-sufficiency of your community." (http://www.verdant.net/) As one navigates from page to page on the site, advertising is often implicated as a source of the movement toward consumerism. Many of the same criticisms of advertising found on the site were outlined in the textbook. 56. (Scenario 4-2) One quote from the site reads, "Time, the precious shrinking commodity of our lives, is exchanged for money to buy things that there is usually little time to enjoy. What time is left over after work is often devoured by television, basically a series of ever-more mediocre filler programs inserted between ever-more spectacular commercials whose purpose is to stoke further desire for more things." In response to the charge that contemporary advertising robs people of time, supporters of advertising would state that it a. is worth the time because it usually contains a great deal of functional information. b. offsets the time spent processing ad content with the time spent purchasing products. c. is continually producing shorter and faster messages so it really doesn’t take much time. d. actually saves time since people don't have to search as hard to find information about products they desire. ANS: D DIF: Difficult REF: p. 122 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 4-1 TYP: Application

57. (Scenario 4-2) One page on the site maintains that advertising seduces children into believing that "their self-worth is based on $100 inflatable, illuminated sneakers." Besides this concern that ads promote superficiality and materialism, the text outlines other concerns regarding children’s advertising. For instance, sophisticated ads aimed at children can cause a. conflicts between parents and children. b. dissatisfaction with the actual programming. c. controversies that cannot regulated by the government due to First Amendment rights. d. complex decision-making skills and adult purchasing processes at too young an age. ANS: A DIF: Difficult REF: p. 135 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 4-2 TYP: Application

58. (Scenario 4-2) The writers of Overcoming Consumerism believe that as consumerism grows and advertising continues to support it, people will be lured into buying anything and everything. But the text notes that advertising a. can only create a primary demand for mature product categories. b. cannot create a primary demand in mature product categories. c. points out both the pros and cons of any particular product, so consumers can’t be “lured” into buying anything. d. merely informs the consumer and does not try to persuade. ANS: B DIF: Moderate REF: p. 136 NAT: AACSB Analytic | CB&C Model Product

OBJ: 4-2 TYP: Application

Scenario 4-3 The Lightning Rod is a fishing rod being introduced by Castaway Sports. At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent. The account executive asks if the president has data to support this, and the president says “Yes.” The agency proceeds to produce a series of television spots featuring a well-known sports celebrity using the rod and rating it as excellent. The spots run on network television and trumpet the improved casting distance that the rod provides. The slogan of the spots is “Lightning Rod—The Finest Rod Ever Cast.” After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims, and decides to file a complaint with the FTC. 59. (Scenario 4-3) The slogan for the spot, "Lightning Rod—The Finest Rod Ever Cast," would most likely be considered by U.S. courts to be a. a false and misleading statement, which needs to be retracted. b. a superlative, which must be provable. c. unethical, but not truly deceptive. d. puffery, which doesn't need to be proved or disproved. ANS: D DIF: Moderate REF: p. 134 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-2 TYP: Application

60. (Scenario 4-3) The FTC investigates the claim of 20 percent more casting distance when using the Lightning Rod. Castaway Sports admits that it has no actual data to support the claim but believes it to be true. Still, the FTC rules that should stop running the ads. This is an example of a. affirmative disclosure. b. a cease-and-desist order. c. a consent order. d. corrective advertising. ANS: C DIF: Moderate REF: p. 143 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Application

61. (Scenario 4-3) In the commercial, the sports star is shown in a sailboat on a beautiful lake, sending a long cast into the water, then listing the excellent features of the Lightning Rod. It closes with him happily reeling in a fish. To meet FTC standards for this type of endorsement, the celebrity must a. be considered an expert in the field of sport fishing. b. be approved by the FTC before the spot can be produced. c. actually use the Lightning Rod when fishing on his own. d. write the statements that he makes in the ad. ANS: C DIF: Moderate REF: p. 144-145 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-3 TYP: Application

62. (Scenario 4-3) Based on the FTC decision, the claim of 20 percent extra casting distance is now found to be undocumented and lacking believable evidence. Who is held responsible for making this unsubstantiated claim? a. the president of Castaway Sports b. the agency that produced the commercial c. the corporation that manufactures the Lightning Rod d. the celebrity who made the claim in the commercial ANS: B DIF: Easy REF: p. 148 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-4 TYP: Application

63. (Scenario 4-3) The competitor who filed a complaint with the FTC also had the option of working with the media self-regulatory organization that evaluates ethical issues, the _____, which has the authority to review concerns over issues of truth, fairness, or good taste and make recommendations based on its findings. a. Consumer Federation of America b. NAB's Code Authority c. Family Research Council d. National Association of Attorneys General ANS: B DIF: Moderate REF: p. 148 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 4-4 TYP: Application

Scenario 4-4 Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on Toyota Camrys. He was interested in that model because he had seen a number of television and magazine ads describing the car's features and reputation for reliability. After closely examining the stickers, Joe noticed a line that said "Dealer Promotion Allowance—$125.00." Joe asked a salesperson what that meant. The salesman replied that it was a charge that helped the dealership pay for local advertising to encourage consumers to shop at that particular dealer. After further discussion, Joe learned that almost 5 percent of the cost of the vehicle comes from expense for national and local advertising. 64. (Scenario 4-4) After Joe complained, the salesperson replied, "If our industry didn't do so much advertising you probably couldn't afford to buy that computer to do your own research." Which of the following “pros” of advertising is the salesperson likely using to support his comment? a. Advertising fosters a diverse and affordable mass media. b. Advertising fosters new product success and lowers costs. c. Advertising reflects the priorities of a society. d. Advertising contributes to art and culture in a society. ANS: B DIF: Moderate REF: p. 125 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 4-1 TYP: Application

65. (Scenario 4-4) Joe Rowan was frustrated to learn that such a large percentage of the price of a car came from advertising expenses. He said to the dealer spokesperson, "If you would stop advertising so much, I could save money on this car. Heck, I would be willing to spend my own time and money to do an Internet search and buy consumer books to find a good car. There’s probably not much difference in this one anyway, you can just say whatever you want in your ads!" Which criticism of advertising is most disconcerting to Joe at this moment? a. Advertising promotes materialism. b. Advertising creates needs. c. Advertising is often offensive. d. Advertising wastes resources. ANS: D DIF: Moderate REF: p. 125 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 4-1 TYP: Application

66. (Scenario 4-4) Joe saw a television ad that stated the Toyota Camry was "the world's best car for reliability." The use of such absolute superlatives in advertising is a. an illegal use of advertising language. b. unethical but legal. c. a legal and quite common use of exaggeration. d. unfair advertising but not deceptive advertising. ANS: C DIF: Easy REF: p. 134 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-2 TYP: Application

67. (Scenario 4-4) The Pederson dealership and Toyota share the expense of local advertising in this market. This is an example of ____ advertising. a. unfair b. vertical cooperative c. comparison d. corrective ANS: B DIF: Easy REF: p. 139 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 4-3 TYP: Application

68. (Scenario 4-4) Which government agency might eventually be reviewing the case if Joe felt he should file a complaint about advertising in the automotive industry? a. the Consumer Finance Protection Agency b. the Federal Communications Commission c. the Federal Trade Commission d. the Consumer Federation of America ANS: C DIF: Easy REF: p. 142 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 4-3 TYP: Application

Scenario 4-5 Students from several organizations on campus sponsored a forum to debate the pros and cons of advertising. Student organizations representing consumers, journalists, marketers, entrepreneurs, and political scientists all had members in attendance. Following are some of the comments made at the forum. 69. (Scenario 4-5) One student said, "I am sick and tired of seeing nothing but supermodels advertising women's clothes. Nobody I know looks like that! They don't give us any way to know how a normal woman might look in their clothes." On which of the following “cons” of advertising is this comment most likely based? a. Advertising wastes resources. b. Advertising perpetuates stereotypes. c. Advertising creates needs. d. Advertising promotes materialism. ANS: B DIF: Moderate REF: p. 128 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 4-1 TYP: Application

70. (Scenario 4-5) Several students defended advertising. One said, “Advertising isn’t so bad. It gives us easy access to all kinds of modern conveniences that solve everyday problems, it reduces human labor and housework, and it just make life easier.” Which of the following arguments in favor of advertising best supports this student’s comments? a. Advertising addresses a variety of human needs. b. Advertising is a source of fulfillment and liberation. c. Advertising reflects society's priorities. d. Advertisers are showing much more sensitivity. ANS: B DIF: Moderate REF: p. 130 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 4-1 TYP: Application

71. (Scenario 4-5) A student said, "Hey, like everybody, I don't like being interrupted by TV commercials, radio spots, or pages and pages of ads in magazines. But all that advertising gives us a whole world of information, news, and entertainment in so many formats. Without it, we’d be paying for TV shows and radio programs, and way more for newspapers and magazines.” On which of the following “pros” of advertising is this comment most likely based? a. Advertising lowers the cost of products. b. Advertising is a democratic art. c. Advertising reflects society's priorities. d. Advertising fosters a diverse and affordable mass media. ANS: D DIF: Moderate REF: p. 132 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 4-1 TYP: Application

72. (Scenario 4-5) One student stood up at the forum and said, "I bought a bike because the ads for this brand said it was ‘the best on the planet.’ I just don't think that is true. I've had quite a few problems with this bike compared to other brands that some of my friends own." The courts have ruled that when an advertiser uses absolute superlatives in ads like this, consumers a. are purposefully deceived. b. should understand that it is merely exaggerated language. c. should file complaints concerning unethical advertising practices. d. are unwitting victims of comparative advertising. ANS: B DIF: Moderate REF: p. 134 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 4-2 TYP: Application

73. (Scenario 4-5) Near the end of the forum, one student said, "I keep getting so much junk mail I can hardly keep up with it. I’ve gotten the same direct mail ad for some new kind of cell phone five or six times now. I tried calling the company but all they want to do is give me more sales pitches! Does anyone actually read these ads? I don’t. And I’m tired of getting them." Which agency should this student contact to have his name removed from direct mail lists? a. the Direct Mail Marketing Association b. the Direct Mail Preference Service c. the FTC’s Do Not Contact Registry d. the FCC’s Consumer Complaint Commission ANS: B DIF: Moderate REF: p. 148 NAT: AACSB Communication | CB&C Model Customer

OBJ: 4-4 TYP: Application

Scenario 4-6 In late 2010, renowned actress Rachel Leigh Cook spoke out against the entertainment industry and the way it portrays celebrities in advertising. Cook, who starred in the popular 90s hit She’s All That, claimed that the airbrushing of celebrities that often takes place before an advertisement is published is a clear case of false advertising. Cook told FoxNews.com, "It breaks my heart to be part of an industry and part of a machine that really pushes out these images and propagates these really terrible standards that are false." Cook went so far in her criticism to question how falsely editorializing is not considered a crime, and stating that so many young women struggle with identity issues in today’s society because they are striving to be something that does not exist. (John Dorian, “Rachel Leigh Cook Against Air Brushing, Calls it False Advertising.” International Business Times, October 25, 2010.) 74. (Scenario 4-6) Advocates of advertising argue that advertising informs consumers, which gives them more power in their purchase decisions. One of the main components of this argument is that a. advertisements point out all of the benefits of a product and not the downsides. b. advertising drastically reduces product search time, which ultimately reduces product

search costs. c. advertising creates superficial needs. d. advertisements make it nearly impossible for consumers to make decisions. ANS: B DIF: Easy REF: p. 122 NAT: AACSB Communication | CB&C Model Customer

OBJ: 4-1 TYP: Knowledge

75. (Scenario 4-6) While some argue that advertising promotes materialism, others argue that advertising addresses a number of basic human needs. An advertisement for a high-end clothing company would likely be appealing to which of these needs? a. physiological needs b. safety needs c. self-actualization needs d. esteem needs ANS: D DIF: Moderate REF: p. 126 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 4-1 TYP: Knowledge

76. (Scenario 4-6) Rachel Leigh Cook is active in a number of organizations that attempt to educate young Americans on some of the cons of the entertainment and advertising industries. One con often addressed in the advertising industry is advertising a. perpetuates a number of stereotypes. b. only reflects society’s priorities. c. addresses a number of basic human needs. d. informs the public on various products and issues. ANS: A DIF: Easy REF: p. 128 NAT: AACSB Diversity | CB&C Model Promotion

OBJ: 4-1 TYP: Application

77. (Scenario 4-6) One of the major issues regarding advertising to children is that a. children are inexperienced consumers and easy prey for the sophisticated persuasions of advertisers. b. advertising often brings parents and their children closer together. c. children are often encouraged to live healthier lifestyle because ads are often focused on healthy foods and exercise. d. exposure to advertising at a young age causes children to become knowledgeable about the motivations behind it, which negatively impacts businesses. ANS: A DIF: Easy REF: p. 134-135 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-2 TYP: Knowledge

78. (Scenario 4-6) There are three primary groups involved in the regulation of advertising. They are a. parents, children and schools. b. businesses, the government and athletes. c. educators, athletes and parents. d. consumers, industry organizations and governmental bodies. ANS: D DIF: Moderate REF: p. 138 NAT: AACSB Ethics | CB&C Model Strategy

OBJ: 4-3 TYP: Comprehension

ESSAY 1. How has the concept of "privacy" changed with the advent of the Internet? Discuss issues of privacy as they relate to online e-commerce, and as they have emerged as critical concerns for advertisers, regulators, and consumers. Explain how privacy issues are currently being addressed.

ANS: The very idea of “privacy” as we once knew it may be a thing of the past. It is now commonly accepted that “behavioral targeting”—the practice of placing online tracking markers on a Web user’s hard drive to track the user’s activities—is here to stay. But Congress and the FTC are carefully scrutinizing the ability of firms that would merge offline databases with individual Web searches and shopping patterns, which would create even more privacy invasion concerns. This is the most pressing issue facing those in direct marketing and e-commerce today. Responsible advertisers do place online privacy notices on websites, but the vast majority of consumers never read these notices. Consumers are becoming more concerned about the use of their private information, particularly the selling of that information by the company that collects it to other companies that want it. And as the text points out in the chapter introduction, social networking sites like Facebook want to sell personal profiles attached to individual’s pages and postings, including names and addresses. Beyond theses issues of privacy, consumers are also harassed with spam, phishing, and unsolicited email. Spam-filtering software is a common fixture on many home computers. Internet Server Providers including Yahoo!, AOL, and MSN have organized a coalition to fight spam, phishing, and fraud. Technology has increased the potential for immediate and widespread exchange of personal data. And along with that, technology has also created more ways to invade privacy, in the form of electronic tracking devices that monitor computers or keyboard strokes, and those that identify an individual’s location and whereabouts, such as GPS units. And there is more to come. Currently, cookies do not reveal a person’s name or address. But new technology will create the equivalent of a digital “calling card” wherever an Internet user goes online. DIF: Difficult REF: p. 120-121| p. 150-151 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 4-1| 4-5 TYP: Application

2. Today, fast food restaurants are geared toward enticing families with young children to drop in and buy a quick meal. Some also hand out small items to kids, like coloring books, crayons, and balloons. Beyond the fast food giants, other franchises and businesses have adopted this practice to attract children and assure parents that they are family-friendly establishments -- consider your local haircutters, car washes, shoe stores, etc. But in recent years, the corporate fast food franchises have offered giveaways like plastic figurines featuring characters from movies or television programs heavily targeted to young audiences. Outline the concerns that a critic of advertising would have about this practice. ANS: A local store owner handing a balloon or a coloring book to a small child seems quaint in today’s world of round-the-clock promotion and branded entertainment. Tying in the toy to a children’s television show or an animated film takes this friendly “giveaway” gesture several steps further into the marketing mix. Children are easy prey for advertisers. Ads targeted at children, and television shows based on advertisers’ products, often promote superficiality and materialistic values. Some television shows are based on toys and products, and while they are legal, they amount to nothing more than 30-minute commercials. Such programs and related ads can promote conflicts between children asking for products and parents having to say no. Due to extended viewing time and the vulnerability of children, heavy TV viewing by young children has also been associated with violent behavior, childhood obesity, and a breakdown of learning skills. Admittedly, fast food corporations may be easy targets in this regard, and some have at least made an effort to address the issue of cartoon figurines as premiums, as well as concerns over nutrition, children’s meals, and childhood obesity.

DIF: Moderate REF: p. 134-135 OBJ: 4-2 NAT: AACSB Analytic | CB&C Model Customer

TYP: Application

3. What are the three elements that declare an ad to be “deceptive”? What elements declare an ad to be “unfair”? How is “puffery” related to these concepts? ANS: While any instance of a possibly unethical advertising message can always be debated, the law is quite clear about deception, but it is much more vague regarding unfairness. An ad is considered deceptive if the following three elements are present, based on the FTC’s ruling: if it involves a representation, omission, or practice that may mislead the consumer; if this representation, omission, or practice is judged from the perspective of a consumer acting reasonably; and if the representation, omission, or practice is a material one that would affect the consumer’s conduct or decision making about the advertised product or service. Very broadly, deception is defined as the presence of false or misleading statements in an advertisement. An ad is considered unfair based on 1990s legislation that says it needs to cause substantial injury to consumers that is not avoidable by consumers, and is not outweighed by benefits to consumers or competitors. This allows the FTC to assess both the benefits and costs of advertising, and it rules out reckless behaviors on the part of consumers, before a ruling can be made calling an ad unfair. An ad includes puffery when superlatives or exaggerations are used that most reasonable people would understand as harmless claims or slogans. While such claims may not be technically “true” (“World’s Best Coffee!”), they are totally legal and are not considered to be either deceptive or unfair. DIF: Difficult REF: p. 134| p. 138-139 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 4-2| 4-3 TYP: Comprehension

4. What are the three broad areas of advertising that are affected by federal regulation? Briefly identify and explain each. ANS: The three areas affected by federal regulation involve deception and unfairness, competition, and children. Issues involving deception and unfairness have historically been difficult to identify and prove. While most people would agree that both of these elements are unacceptable, there will always be differences in opinion as to exactly what is considered deceptive and exactly what is considered unfair. By the 1990s, the FTC and Congress worked together to more adequately define these concepts and the criteria involved. Issues involving competition involve unfair practices among competitors, including cooperative advertising, comparison advertising, and monopoly power. Issues involving children involve the nature and content of ads aimed at children, the volume of advertising within children’s programming, and the limits and sensitivities involved in pitching products to those who are unsophisticated regarding consumption and are unaware of the power of persuasion. DIF: Moderate

REF: p. 138-141

OBJ: 4-3

NAT: AACSB Ethics | CB&C Model Promotion

TYP: Comprehension

5. What are the four types of rulings that the FTC might enact in response to claims of unfairness or deception in an advertisement? Name and briefly define as many as you can, beginning with the most lenient and moving on to the strongest response. ANS: The FTC has four options when it responds to claims of unfairness or deception in an advertisement: A consent order allows an advertiser to agree to stop running a questionable ad without having to admit guilt. It is the simplest and least serious of responses that the FTC can enact. A cease-and-desist order requires that the advertiser stop running the questionable ad, usually within 30 days so a hearing can be held to determine whether it is truly deceptive or unfair. If a product may have a direct effect on consumer’s health or safety, an immediate cease-and-desist order can be enacted. An affirmative disclosure requires that the advertiser add important information that had been missing from previous ads, information that might cause consumers to make false assumptions about the product. An order for corrective advertising requires that the advertiser run new ads that clarify misleading claims or that retract erroneous information that the consumer has been led to believe as true. This is the strongest and most extensive response that the FTC can enact. DIF: Moderate REF: p. 143 OBJ: 4-3 NAT: AACSB Ethics | CB&C Model Promotion

TYP: Comprehension

6. A complaint concerning an allegedly misleading advertising practice by a carpet-cleaning service in the Houston area is filed with the local Better Business Bureau. Apparently, homeowners are expecting the price shown on the company’s direct mailings and newspaper coupons (a price confirmed at the time the appointment is made) but are quoted a much higher fee once the crew arrives and “inspects” the carpets. The company’s ads promise the latest in “green” cleaning materials and industrial techniques, but the cleaning fluids and equipment used by the crew are also suspect. Outline the path the complaint would take if it were to eventually arrive at the FTC. Specifically, list the organizations it would pass through, and in general terms, the actions that would need to be taken by each organization for the complaint to be forwarded on to federal regulators. ANS: In a situation like this, the local BBB reviews the issue, often sent in the form of a complaint by consumers or competitors. It sends the complaint to the National Advertising Division (NAD) of the Council of Better Business Bureaus. If the NAD staff cannot resolve the complaint with the advertiser, in this case the carpet-cleaning service, it is passed along to the National Advertising Review Board (NARB). Its review panel hears the advertiser’s case, reviews other evidence, and deliberates. It may dismiss the case, or it may convince the cleaning service to change the wording in its advertising. If it does neither, it will then publicly identify the case, the advertiser, and its findings, and then forward the complaint to the FTC. DIF: Difficult REF: p. 146-147 OBJ: 4-4 NAT: AACSB Ethics | CB&C Model Promotion

TYP: Application

Chapter 5 - Advertising, Integrated Brand Promotion, and Consumer Behavior TRUE/FALSE 1. When researchers study consumer behavior, they study a process that begins with the product evaluation and ends with the perception of a need. ANS: F DIF: Easy REF: p. 167 NAT: AACSB Analytic | CB&C Model Research

OBJ: 5-1 TYP: Knowledge

2. Consumption episodes are based on the sequence of four stages: need recognition, information search and alternative evaluation, purchase, and postpurchase use and evaluation. ANS: T DIF: Easy REF: p. 167 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Knowledge

3. Advertising has never been able to point out or activate a need state, but it has been able to provide information on how to alleviate the discomfort of an existing unfulfilled need. ANS: F DIF: Moderate REF: p. 168 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-1 TYP: Comprehension

4. Functional benefits from a product or service are derived from the intangible characteristics of that product or service and are strong factors in purchase decisions. ANS: F DIF: Moderate REF: p. 168 NAT: AACSB Communication | CB&C Model Product

OBJ: 5-1 TYP: Comprehension

5. Advertising can influence both internal and external searches. ANS: T DIF: Easy REF: p. 169-170 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Knowledge

6. Evaluative criteria are universal traits or attributes that pertain to all product categories, used as rating factors when considering purchases and reviewing a consideration set. ANS: F DIF: Difficult REF: p. 171 NAT: AACSB Communication | CB&C Model Product

OBJ: 5-1 TYP: Knowledge

7. Shortly after Juan bought a Ford truck, he began to second-guess his decision, nervously questioning whether the Toyota or Chevy trucks were actually better deals. He wondered if he had really made the right purchase, going through a common experience called internal search. ANS: F DIF: Moderate REF: p. 172 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Application

8. When an individual feels a symbolic or self-expressive meaning about a brand, his or her involvement level tends to be lower within this product category. ANS: F DIF: Moderate REF: p. 173 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Comprehension

9. In the text, involvement and prior experience are combined to derive eight types of consumer decision making. ANS: F DIF: Easy REF: p. 174 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Knowledge

10. While purchases based on brand loyalty are often just consumption simplifiers, purchases based on habit are the result of strong commitment. ANS: F DIF: Easy REF: p. 176 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Comprehension

11. Jerome always buys Coke, and only Coke—not Pepsi or any other cola brand. Consumers like Jerome, who repeatedly purchase a single brand to fulfill a specific need, are demonstrating brand loyalty. ANS: T DIF: Easy REF: p. 176 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Application

12. Kia glances into her shopping cart and realizes she never tries a “new” brand, an “off” brand, or a “store” brand, but always seems to pick the traditional, well-known products that are practically “household” names—Crest, Tide, Cheerios, Kleenex. This preference for certain products is called brand attitude. ANS: T DIF: Difficult REF: p. 177-178 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-3 TYP: Application

13. Values are the accumulation of ideas and feelings—either factual or self-serving—that a person has about an object or an issue. ANS: F DIF: Easy REF: p. 178 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-3 TYP: Knowledge

14. MAAMs stands for Marketing Analysis of Attribute Models, and it is a framework used to identify four primary “attribute models” that make up consumer decision making. ANS: F DIF: Moderate REF: p. 179 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-3 TYP: Knowledge

15. Two major obstacles must be overcome for an ad message to be effective—consumer resistance to changing beliefs, and consumer exposure to massive volumes of ads. ANS: T DIF: Difficult REF: p. 181 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-3 TYP: Comprehension

16. Selective attention is essentially the greatest challenge to advertisers, because consumers commonly rely on this powerful perceptual defense to simply ignore ads that don’t interest them. ANS: T DIF: Moderate REF: p. 181 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-3 TYP: Comprehension

17. The elaboration likelihood model of information processing (ELM) identifies two unique paths to attitude change: the central route to persuasion and the peripheral route to persuasion. ANS: T

DIF: Difficult

REF: p. 183

OBJ: 5-3

NAT: AACSB Communication | CB&C Model Promotion

TYP: Knowledge

18. Viewing consumers as social beings who do more than just process information allows advertisers to focus on the attitudes they have toward brands, which are much more important than the meanings they associate with brands. ANS: F DIF: Moderate REF: p. 185 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-3 TYP: Comprehension

19. Advertisements that are not consistent with the values of a people, a society, or a culture are likely to stand out, demand attention, and be remembered and accepted. ANS: F DIF: Easy REF: p. 187 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-4 TYP: Comprehension

20. Rituals can take the form of ordinary things that are done in a certain way -- not randomly -- and are performed in the same way by people of all cultures. ANS: F DIF: Easy REF: p. 188 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-4 TYP: Knowledge

21. Social class, race, ethnicity, gender, life stage, and even knowledge are ways in which members of a culture are classified by systematic inequalities that affect their social standing, called intergenerational effect. ANS: F DIF: Moderate REF: p. 190 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-5 TYP: Knowledge

22. In past decades, advertisers realized that they could tell social class based on what people consumed and how they consumed, and vise versa, and this belief has remained an unchallenged foundation of marketing and promotion. ANS: F DIF: Difficult REF: p. 190 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 5-5 TYP: Comprehension

23. Celebrity is a unique sociological concept in which public images of prominent people are used by advertisers to provide a framework that brings people together with a sense of community, group sharing, and social commitment. ANS: F DIF: Difficult REF: p. 194 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-5 TYP: Comprehension

24. Race itself—a person’s pigmentation or skin color—has much to do with preferences for certain products and services, and purchasing of certain product categories and brands. ANS: F DIF: Easy REF: p. 194-195 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-5 TYP: Comprehension

25. In only a select few areas of the world do consumption and branding have a political connection or history, so politics tends to have little influence on global advertising. ANS: F DIF: Moderate REF: p. 196 OBJ: 5-5 NAT: AACSB Diversity | CB&C Model International Perspective TYP: Comprehension © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

26. The world of advertising “discovered” African Americans in the 1950s, Hispanics in the 1960s, gays and lesbians in the 1970s, and working women in the 1980s. ANS: F DIF: Moderate REF: p. 198 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-5 TYP: Comprehension

27. When today’s advertisers talk about identifying and reaching consumers through the powerful sociological concept of community, they are referring to various U.S. locations, geographic regions, and populated areas. ANS: F DIF: Moderate REF: p. 198 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-5 TYP: Application

28. Jamal manages a Chicago Jiffy Lube and Ted manages a Detroit Jiffy Lube. Though they have never met, but have only emailed through their franchise network, they experience a sense of connectedness by virtue of their common experience, called brand stratification. ANS: F DIF: Moderate REF: p. 200 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-5 TYP: Application

29. In many ways, advertisements of contemporary society don’t just exist in the sociocultural context of our time, they are the sociocultural context of our time. ANS: T DIF: Moderate REF: p. 203 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 5-6 TYP: Comprehension

MULTIPLE CHOICE 1. The text explores the concept of consumer behavior from two perspectives, or points of view. What are they? a. psychological and social b. formal and informal c. cultural and global d. economic and political ANS: A DIF: Easy REF: p. 167 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Knowledge

2. The concepts of need recognition, information search and alternative evaluation, purchase, and post purchase and evaluation represent the four stages of the a. creation of brands. b. belief system regarding goods and services. c. consumer decision-making process. d. stratification of consumers. ANS: C DIF: Easy REF: p. 167 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Knowledge

3. Which phenomenon is experienced when the consumer’s current situation is unsatisfactory, mental discomfort or anxiety are recognized, and the individual becomes motivated to take action? a. habit b. need state c. cognitive dissonance

d. involvement ANS: B DIF: Easy REF: p. 168 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Knowledge

4. When advertisers promote snowblowers in January, air conditioners in June, and school supplies in August, in essence they are actually a. activating need states. b. providing functional benefits. c. creating brand communities. d. offering peripheral cues. ANS: A DIF: Moderate REF: p. 168 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 5-1 TYP: Application

5. A consumer survey finds that many dog owners purchase a premium brand of dog food because of its functional benefits. Which of the following qualifies as a functional benefit? a. It is promoted in an emotional commercial showing an adorable sheepdog. b. It is allows them to feel less guilt about leaving their dog home alone all day. c. It has more nutrients and vitamins than any other dog food on the market. d. It makes them feel like responsible dog owners. ANS: C DIF: Moderate REF: p. 168 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Application

6. A well-known refrigerator manufacturer that has been around for decades, features the reliability, durability, and economy of its products. These features are appreciated by a consumer who is focusing on a. aesthetics and appearance. b. premiums and promotions. c. slogans and catch phrases. d. functional benefits and performance characteristics. ANS: D DIF: Moderate REF: p. 168 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Application

7. A young man tends to buy things that allow him to experience pleasure, avoid guilt, feel pride, or relieve fear. In doing so, he chooses products based on a. emotional benefits. b. rituals. c. external searches. d. consideration sets. ANS: A DIF: Moderate REF: p. 168-169 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Comprehension

8. Once they decide they need something, what is typically the first option for consumers to take, and sometimes all that is needed, as they begin to think about a product purchase? a. developing a consideration set b. conducting an internal search for information c. conducting an external search for beliefs d. determining evaluative criteria to use ANS: B DIF: Difficult REF: p. 169 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Comprehension

9. A new neighbor just moved in and asks you where to get good take-out food. Three places immediately come to mind, and you mention them. The short list of possibilities that you quickly created is called a(n) a. external set. b. evaluation set. c. evoked set. d. consideration set. ANS: C DIF: Difficult REF: p. 170 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Application

10. A magazine advertisement for a home entertainment system contains detailed copy, technical information, and a long list of product design features. In general, this ad would be most appropriate for someone who is a. doing an external search. b. in need of an internal search. c. looking for emotional benefits. d. trying to fulfill a basic need. ANS: A DIF: Difficult REF: p. 170 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 5-1 TYP: Application

11. Which of the following statements would be made by someone most likely experiencing cognitive dissonance? a. “I sure need a new lawn mower, but I'm too lazy to find out what's out there.” b. “I’d like to buy one of those new Toro lawn mowers, but they’re kind of expensive.” c. “I hear the new Toro lawn mowers are the best, but my neighbor says his is hard to start.” d. “I just bought a new Toro lawn mower, but now I realize the new John Deere might have been a better choice.” ANS: D DIF: Moderate REF: p. 172 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 5-1 TYP: Application

12. The concept of cognitive dissonance is more commonly referred to as a. brand loyalty. b. buyer’s remorse. c. customer satisfaction. d. false advertising. ANS: B DIF: Easy REF: p. 172 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Knowledge

13. The idea of involvement in the context of consumer decision making basically refers to how a. you will use the product or service. b. much the product or service means to you. c. your past experience with the product or service informs you. d. the product or service will fulfill one of your needs. ANS: B DIF: Moderate REF: p. 173 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Comprehension

14. A person may have a high degree of involvement with a consumption decision for many different reasons, such as when the item is a. on sale. b. bought on a regular basis.

c. inexpensive. d. associated with a risk. ANS: D DIF: Moderate REF: p. 173 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Comprehension

15. A young woman needs to buy a tent, sleeping bag, back pack, and hiking boots for a two-week camping trip in the mountains. She has never bought camping equipment in her life, so she has virtually no experience with these product categories. But she is very involved in these purchases, since they will be expensive and will need to last a long time. In this situation, she is engaging in a. extended problem solving. b. cognitive dissonance. c. limited problem solving. d. variety seeking. ANS: A DIF: Difficult REF: p. 174 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Application

16. In which decision-making mode is a consumer engaged when both experience and involvement are low? a. limited problem solving b. habit or variety seeking c. extended problem solving d. brand loyalty ANS: A DIF: Easy REF: p. 174 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Comprehension

17. A young mother consistently buys Oreos for a special treat, which her kids love. But now and then she buys Salerno Butter Cookies or Keebler Animals Crackers, just for a change. Which aspect of decision making does this demonstrate? a. habit b. variety seeking c. limited problem solving d. brand loyalty ANS: B DIF: Moderate REF: p. 175 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Application

18. When a consumer has a rich prior experience with a product, regularly purchases it, and has highly favorable attitudes toward it, which concept is demonstrated? a. brand loyalty b. brand recognition c. brand attitude d. brand consistency ANS: A DIF: Easy REF: p. 176 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Comprehension

19. A(n) _____ is a learned and simplified evaluation of any object, person, or issue, and it can vary from positive to negative along a continuum. a. habit b. attitude c. value d. belief

ANS: B DIF: Moderate REF: p. 177 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-3 TYP: Knowledge

20. A(n) ____ is a combination of knowledge and feelings accumulated about a object or issue. It is does not necessarily have to be “true” but it is “valid,” and it can be logical and factual, or biased and selfserving. a. perceptual defense b. cognitive response c. belief d. attitude ANS: C DIF: Difficult REF: p. 178 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-3 TYP: Knowledge

21. Multi-attribute attitude models (MAAMs) provide a framework and a set of research procedures for collecting information from consumers a. about how they establish benchmarks for repetitive integration. b. to determine the price they are willing to pay for a product. c. about whether they experience postpurchase anxiety. d. to assess their salient beliefs and attitudes about competitive brands. ANS: D DIF: Moderate REF: p. 179 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-3 TYP: Comprehension

22. Any MAAMs analysis will have four main components. What are they? a. extended problem solving, limited problem solving, habit and variety seeking, and brand loyalty b. internal search, external search, functional benefits, and emotional benefits c. evaluative criteria, importance weights, consideration set, and beliefs d. level of involvement, degree of information search, type of consumer benefit, and stage of the decision-making process ANS: C DIF: Moderate REF: p. 179 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 5-3 TYP: Knowledge

23. A firm is hired to market a high-performance sports car. Three of the elements below would be featured in its MAAMs analysis, but which one would not be included? a. attributes and performance characteristics b. strengths and weaknesses of competing cars c. importance and prioritization of various criteria in the evaluation d. suggested concepts for new ads and commercials ANS: D DIF: Difficult REF: p. 179 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 5-3 TYP: Application

24. Two main barriers must be overcome if advertising is to have its intended effect. One of them is the cognitive consistency impetus, which refers to the consumer tendency to a. convert new information into beliefs. b. want sameness among various products. c. hold onto existing belief systems. d. prefer buying things out of habit. ANS: C DIF: Moderate REF: p. 181 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 5-3 TYP: Comprehension

25. A young man wants to buy a Sony PlayStation because his friends have several versions of this technology and he has enjoyed playing games with them. However, he is distracted by the ads for other games and the pitches to spend his money. He is encountering a. lackluster inundation. b. overexposure. c. advertising clutter. d. commercialization. ANS: C DIF: Moderate REF: p. 181 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-3 TYP: Application

26. An elderly woman has always been happy with Ivory soap and has no reason to try anything else. Which type of major obstacle must be overcome for an ad message to reach her and be effective? a. a consumer who is not exposed to massive volumes of ads b. a consumer who doesn’t pay attention to the message c. a consumer who is resistant to changing beliefs d. a consumer who misinterprets the message with other thoughts ANS: C DIF: Moderate REF: p. 181 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-3 TYP: Application

27. While waiting for his wife to get ready to go out, Marcus picks up one of her decorating magazines and skims through the pages. Six ads are for flooring and carpeting, but he and his wife don’t need new flooring or carpeting, so he barely glances at these ads. This is an example of a. format conceptualization. b. post purchase evaluation. c. cognitive dissonance. d. selective attention. ANS: D DIF: Difficult REF: p. 181-182 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-3 TYP: Application

28. A bicyclist hears a radio commercial and suddenly realizes everything she believes about the best cycling system is coming into question and being challenged. These types of thoughts, occurring just as beliefs and attitudes are challenged by persuasive communication, are called a. brand beliefs. b. selective demand preferences. c. habitual purchase criteria. d. cognitive responses. ANS: D DIF: Difficult REF: p. 182 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-3 TYP: Application

29. Which model takes into account consumer involvement levels, information processing, cognitive responses, and attitude formation in a single framework? a. the multi-attribute attitude model b. the intergenerational model c. the elaboration likelihood model d. the social stratification model ANS: C DIF: Moderate REF: p. 182 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 5-3 TYP: Knowledge

30. Peripheral cues are best used as attention-getting tools for products when a. the advertising budget is small.

b. extensive decision making is required. c. brand loyalty is being challenged. d. cognitive responses are not expected. ANS: D DIF: Moderate REF: p. 184 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 5-3 TYP: Comprehension

31. One method of understanding how well the advertising message is being heard in the real world is the “consumer insights” approach, which operates on the premise that a. meanings are more important than attitudes. b. community defines quality. c. social class determines consumer behavior. d. culture underlies the art of advertising. ANS: A DIF: Moderate REF: p. 185 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-3 TYP: Knowledge

32. In the world of advertising, culture is seen as a group’s a. rules and regulations. b. total way of life. c. sense of morality. d. tastes and preferences. ANS: B DIF: Easy REF: p. 186 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-4 TYP: Knowledge

33. Cultural values are different from attitudes, because they a. are the solid foundation on which attitudes are built. b. cannot be influenced by advertising. c. can be shaped by a single ad. d. shift and change, while attitudes remain unchanged. ANS: A DIF: Moderate REF: p. 187 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-4 TYP: Comprehension

34. A commercial for hot dogs says it’s not the Fourth of July unless there is a cookout, and it’s not a cookout unless there is a grill full of hot dogs. This ad attempts to tie the product to a a. social attitude. b. purchasing habit. c. cultural ritual. d. social class. ANS: C DIF: Moderate REF: p. 188 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-4 TYP: Application

35. A person’s standing in a society is often based on social stratification, which reflects the systematic inequalities within that society regarding a. ethnicity, race, and cultural background. b. political influence, educational benefits, and intelligence. c. wealth, power, education, and status. d. religious beliefs, morals, and values. ANS: C DIF: Moderate REF: p. 190 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-5 TYP: Knowledge

36. One of the main reasons why social class may not be totally reliable in predicting the preferences and tastes of Americans is that it a. has little to do with demographics. b. is hierarchical and involves assigned membership. c. is difficult to pinpoint who belongs in which class, and why. d. is static, unchanging, and permanent. ANS: C DIF: Moderate REF: p. 190 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-5 TYP: Comprehension

37. Related to the way a consumer’s culture shapes his or her tastes and preferences is the concept of cultural capital, which is the a. value that a culture places on certain consumption practices and objects. b. particular pattern of consumption that depends on fiscal stability. c. financial investment needed to create a brand. d. financial value of cultural icons like animated characters. ANS: A DIF: Moderate REF: p. 192 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-5 TYP: Knowledge

38. A marketing group needs to predict which brands of laundry detergent college freshmen will buy after they leave home and move into dorms. Which question asked of them would probably give the most accurate answer? a. “Is laundry detergent a high-involvement purchase for you?” b. “What brand of laundry detergent do your parents use?” c. “What is the last ad for laundry detergent you remember seeing?” d. “How much money does your family make?” ANS: B DIF: Difficult REF: p. 193 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 5-5 TYP: Application

39. Celebrity is a unique sociological concept in marketing today. The current thinking is that the presence of celebrities in ads help contemporary consumers a. form values that transfer to buying power. b. legitimize the symbolic value of consumption. c. develop personal expressions of identity. d. reject conspicuous consumption behaviors. ANS: C DIF: Moderate REF: p. 194 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-5 TYP: Comprehension

40. When examining advertising in a societal context, it becomes apparent that gender must be related to at least some differences in consumption. Which of the following has been found regarding advertising and gender? a. Advertisers have been reluctant to communicate to men and women in different ways. b. Advertisers have no definitive list of such gender differences since the expression of gender often depends on situational and social circumstances. c. Advertisers often find gender issues too sensitive and tend to avoid them. d. Advertising researchers have found obvious differences and they pose no problems in creating effective ads for both men and women. ANS: B DIF: Difficult REF: p. 197 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-5 TYP: Application

41. Which of the following is true of community, within the context of marketing and advertising?

a. It is the quintessential economic domain in which all purchasing, financing, and banking take place. b. It refers largely to a geographic place. c. It can influence some minor purchasing issues but not embedded beliefs or attitudes. d. It identifies people who are similar in some important way, and different from those not in the community. ANS: D DIF: Moderate REF: p. 198 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-5 TYP: Comprehension

42. Advertisements—like books, movies, posters, and paintings—can act as sociocultural “texts” that are read and interpreted by consumers. In that case, advertising a. is an entity separate from mass media. b. relies largely on words rather than images. c. helps to transmit meaning within a culture. d. has its own hidden social and political agenda. ANS: C DIF: Moderate REF: p. 202 NAT: AACSB Diversity | CB&C Model Promotion

OBJ: 5-6 TYP: Comprehension

43. Effective ads turn mere products into actual brands by a. wrapping them with cultural meaning. b. keeping prices lower than those of competitors. c. describing in detail how they work. d. repeating the message in more than one medium. ANS: A DIF: Moderate REF: p. 202 NAT: AACSB Diversity | CB&C Model Promotion

OBJ: 5-6 TYP: Comprehension

44. Ads become part of our everyday landscape, language, and reality as a result of many people a. being bombarded with a clutter of taglines, slogans, jingles, mottos, and reminders. b. being highly involved in purchasing decisions. c. picking up and adopting their phrases, ideas, slogans, and agendas. d. buying only certain products based on trust and loyalty. ANS: C DIF: Moderate REF: p. 203 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-6 TYP: Comprehension

45. Which of the following demonstrates the way we pick up phrases or slogans from advertisements and commercials, then make them part of our everyday conversation, and ultimately part of our popular culture? a. “Make my day.” b. “Read my lips.” c. “Yes we can.” d. “Just do it.” ANS: D DIF: Easy REF: p. 203 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 5-6 TYP: Application

Scenario 5-1

As clothing and accessories retailer Gap, Inc. attempted to carry its brand to greater heights, executives felt that a great way to refresh the company’s logo would be to change it all together. However, perhaps even quicker than the initial decision to change the logo, the masses reacted so negatively to the change that the company went back on its decision. A number of consumers stated that the new logo looked “cheap, like a crummy PowerPoint presentation,” and that was all company executives needed to hear. Gap admitted that the idea of changing the company’s logo was probably not the right move nor was it the right time to do so. The company will look for other ways to develop the brand. Clearly, Gap’s reaction to consumer sentiments serves as proof that the company cares a great deal about consumer thoughts and opinions. (Iko Han, “Gap’s New Logo Proves the Company Knows How to Listen.” Cornerline News, October 13, 2010.) 46. (Scenario 5-1) Many consumers expressed very strong feelings against Gap changing its original logo, which has been around for over 20 years. These passionate consumers likely hold some level of a. brand loyalty. b. habitual spending. c. positive attitudes. d. cognitive consistency. ANS: A DIF: Difficult REF: p. 176 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-2 TYP: Application

47. (Scenario 5-1) Gap’s loyal customers generally believe the company’s products are high-end and sophisticated. Judging by the initial responses, consumers felt Gap’s new logo represented lower-end products, and would, therefore, appeal to a lower social class. This concept of differing social levels is called a. consumer separation. b. social ranking. c. stratification. d. income grouping. ANS: C DIF: Difficult REF: p. 190 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 5-4 TYP: Application

48. (Scenario 5-1) Facebook played a large role in Gap reversing its decision to change the company logo. Thousands of users created status updates expressing their distaste for the new logo, and company executives could not overlook the consensus feelings. In this instance, Gap apparently had a strong a. need state. b. brand community. c. set of beliefs. d. reaction to advertising clutter. ANS: B DIF: Moderate REF: p. 200 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-5 TYP: Application

Scenario 5-2

Since its introduction to the market in 2007, Apple Inc.’s iPhone dominated other smartphones in terms of units activated per year. However, several years later, Apple faces stiff competition from Google’s Android software and Research in Motion, the maker of the Blackberry. The problem for Apple is that its competition, primarily phones powered by Android operating systems, largely outnumber the iPhone in terms of available options. In the U.S. alone, there are over twenty smartphones that run on the Android operating system, compared to Apple’s one iPhone. Americans are now buying more Android phones than iPhones. Experts claim that if the trend continues, Android will have erased the iPhone's once enormous lead in the high-end smartphone market in a little over a year. Now more than ever, Apple, which insists on tight control of its devices, must find a way to win in an intensely competitive market against rivals that are openly licensing their software to scores of companies. 49. (Scenario 5-2) One reason the iPhone outsold other smartphones originally was the feeling of pride many consumers associated with owning one. This represents a. an emotional benefit. b. a functional benefit. c. a need state. d. cognitive consistency. ANS: A DIF: Moderate REF: p. 169 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Application

50. (Scenario 5-2) At an iPhone display, in one of Apple’s retail stores, an individual is overhead saying that the iPhone is too expensive, impractical, and only purchased by people who are trying to flaunt their wealth. These statements (whether factual or biased) concerning the product represent the person’s a. consideration set. b. importance weights of evaluative criteria. c. beliefs. d. cognitive responses. ANS: C DIF: Moderate REF: p. 178 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-3 TYP: Application

51. (Scenario 5-2) One individual looking to purchase a new smartphone has become fed up with all of the competing advertisements of late. She has seen so many smartphone commercials boasting various product benefits that she can no longer distinguish them from one another. This individual is likely suffering from a case of a. advertising clutter. b. advertising confusion. c. cognitive overload. d. variety seeking. ANS: A DIF: Difficult REF: p. 181 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 5-3 TYP: Application

52. (Scenario 5-2) A new movie is released, and the film’s main character is seen conversing on his iPhone throughout the film. If the actor portraying the character in the film is admired and consumers purchase the phone because they see him using it, the actor a. no longer serves as a peripheral cue for these viewers. b. has created an intergenerational effect for these viewers. c. is a member of these viewers’ celebrity influencers. d. is a part of these viewers' membership groups. ANS: C

DIF: Difficult

REF: p. 194

OBJ: 5-5

NAT: AACSB Analytic | CB&C Model Customer

TYP: Application

Scenario 5-3 A woman decides to prepare a tuna casserole for dinner. At the grocery store, she looks for Chicken of the Sea tuna and a box of Kraft macaroni and cheese. At first, she can’t find the Chicken of the Sea brand, only competitive brands. She begins to think she’ll make something else for dinner. Then she does see it on a higher shelf. She chooses the Chicken of the Sea tuna because she thinks it’s tastier than other brands, that the company uses nets that won’t harm dolphins, and she likes the talking tuna they use in their commercials. Plus, it’s the kind her mother always buys. She chooses Kraft macaroni and cheese, but really couldn’t tell you why. Interestingly enough, she has not purchased any other brands of tuna or macaroni and cheese over the past few years. 53. (Scenario 5-3) A psychologist and a sociologist would explain the woman's shopping behavior in different ways. Which statement regarding these different perspectives is true? a. The sociologist would consider the consumer as a systematic decision maker. b. Neither perspective can give a complete explanation of consumer behavior. c. Only the psychological perspective would attempt to explain why people buy certain brands. d. The two perspectives would look at the consumer and the behavior in very similar ways. ANS: B DIF: Moderate REF: p. 167 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-Intro TYP: Comprehension

54. (Scenario 5-3) The woman cannot explain why she buys Kraft macaroni and cheese. In fact, if the store was out of it, she would just buy the store brand. From this information, we can conclude that she repeatedly buys this brand a. but it is a low-involvement purchase. b. due to successful problem-solving episode long since forgotten. c. because it is a high involvement purchase. d. regardless of her social class. ANS: A DIF: Difficult REF: p. 173 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Application

55. (Scenario 5-3) At first, the woman can’t find the Chicken of the Sea tuna. All she can find are competitive brands. Her first thought is to change the dinner menu. Which of the following is probably true regarding her purchasing behavior regarding this product? a. It always causes her to go through an extended problem-solving mode. b. She shows brand loyalty toward it. c. It is a habit with her. d. She uses a limited problem-solving mode for it. ANS: B DIF: Moderate REF: p. 176 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Application

56. (Scenario 5-3) Chicken of the Sea was the kind of tuna her mother always bought when she was a child. She saw it around the house when she lived with her parents, and it was okay then, so it’s okay now. This is a demonstration of a. cultural consistency. b. brand community. c. the intergenerational effect. d. advertisements as social texts. ANS: C DIF: Moderate REF: p. 193 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-5 TYP: Application

Scenario 5-4 An American automobile company sees that the market share of one model has steadily declined. It seems that every percentage point drop is matched by a corresponding percentage point rise in the Japanese-made competition. In an effort to regain market share, the automobile company decides to promote its American-made heritage. In fact, every part of its car is manufactured in the United States. The advertising agency for the company comes up with the slogan “Right here. Right now. Your allAmerican car.” The advertising it creates is image oriented, and hopes to produce a delayed response. 57. (Scenario 5-4) Which of the following is not a functional benefit of the car? a. Your special-order model will be delivered quickly because no overseas shipping is involved. b. You are boosting our economy by buying American-made goods. c. You will never have to wait for replacement parts because the factory is local. d. You have the pride of knowing that you own a car made with American know-how. ANS: D DIF: Moderate REF: p. 168 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Application

58. (Scenario 5-4) By running delayed response advertising, the agency is hoping to a. establish brand loyalty for the car. b. avoid having to create favorable consumer attitudes toward the car. c. have the car show up in an internal search when the time comes to shop. d. create recognition of a need state. ANS: C DIF: Moderate REF: p. 170 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 5-1 TYP: Application

59. (Scenario 5-4) After running a MAAMs analysis, the advertising agency discovers that the made-inAmerica element is a consideration for consumers—in fact, most know where the car is made—but it’s a relatively minor consideration compared to other issues. The task that confronts the advertising agency now is to a. change the importance weight of the attribute. b. get the car included in a consideration set. c. change the evaluative criteria that consumers use. d. move the car into a limited problem-solving mode for consumers. ANS: A DIF: Moderate REF: p. 179 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 5-3 TYP: Application

60. (Scenario 5-4) It later becomes obvious to the ad agency that not all groups are responding to the “allAmerican” benefit the same way. People who are in blue-collar jobs react quite favorably to it, but white-collar office workers don’t seem to care one way or another. This situation is best attributed to differing a. intergenerational effects. b. social classes. c. cultural values. d. peripheral cues. ANS: B DIF: Easy REF: p. 190 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-5 TYP: Application

61. (Scenario 5-4) A marketing survey finds that people who respond to the “all-American” benefit also admire deceased actor John Wayne and see him as the prototypical all-American guy. So the agency combines old footage from John Wayne movies and new footage of the car as part of its TV campaign. In this case, the image of John Wayne serves several purposes, but not which of the following? a. John Wayne is a part of these consumers’ community. b. John Wayne is a part of these consumers’ aspirational group. c. John Wayne transfers meaning to the product. d. John Wayne’s meaning is socially constructed. ANS: A DIF: Moderate REF: p. 198 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 5-5 TYP: Application

Scenario 5-5 Jerome was preparing to host a graduation party for his friends and relatives when he suddenly realized that he did not have a blender to mix certain beverages that he knew his guests would like. Having never purchased a blender before, Jerome felt that he needed to shop carefully and enlist in the help of friends for advice. After visiting several stores and examining numerous models, Jerome settled on a Kitchen-Aid model that cost nearly $100. 62. (Scenario 5-5) The consumption process for the blender began when Jerome a. brought home a blender from the store. b. identified the criteria he would use to look for blenders. c. made a mental list of brands he would consider. d. realized he did not have a blender for the party. ANS: D DIF: Easy REF: p. 167 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-1 TYP: Application

63. (Scenario 5-5) Jerome said to a friend, “I don’t know much about buying blenders. Do you?” This is a pretty clear indication that he a. needs to start by defining his evaluative criteria. b. has poor brand attitudes about all brands in the market. c. holds few beliefs about home products. d. will need to engage in external search for information. ANS: D DIF: Moderate REF: p. 170 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-1 TYP: Application

64. (Scenario 5-5) Jerome jokes a bit with a friend about his “search for the perfect blender.” But then he explains his thoughts on this. “This party means everything to me. I’ve been waiting four years for this moment. I want it to be just right!” These comments likely indicate that a. he has not yet actually begun the consumer decision process. b. he is comfortable with his internal search for information. c. his consideration set will likely be very large. d. his level of involvement in this purchase is high. ANS: D DIF: Difficult REF: p. 173 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Application

65. (Scenario 5-5) Which of the following best describes Jerome's mode of consumer decision making toward buying a blender? a. limited problem solving b. brand loyalty c. extended problem solving d. variety seeking

ANS: C DIF: Moderate REF: p. 174 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Application

66. (Scenario 5-5) Jerome mentions to someone else shopping at the store that low-quality blenders are made of plastic and high-quality blenders have a stainless steel base. This comment represents Jerome’s a. beliefs. b. brand loyalty. c. brand attitude. d. habits. ANS: A DIF: Easy REF: p. 178 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-3 TYP: Application

Scenario 5-6 Voice-It Technologies produces inexpensive personal voice recording devices that serve as a substitute for message pads in the home or office. Their recording time is limited to 120 seconds and the devices sell for less than $20.00. Voice-It’s products are about the size of four credit cards stacked on one another and have a useful life of about one year. The slogan this firm uses on its packaging and advertising is “Don't Write It, Voice-It!” 67. (Scenario 5-6) Most consumers have no experience with Voice-It products and view the purchase of this product as low involvement. What mode of consumer decision making does this indicate? a. brand loyalty b. limited problem solving c. extended problem solving d. habit ANS: B DIF: Moderate REF: p. 174 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-2 TYP: Application

68. (Scenario 5-6) A consumer who purchased the product from Voice-It was heard to say, “It’s better than having pieces of paper all over. I thought the price was good too.” These statements reflect the consumer’s a. evaluative criteria. b. need state. c. external information. d. brand attitude. ANS: D DIF: Difficult REF: p. 178 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-3 TYP: Application

69. (Scenario 5-6) Voice-It hired a country singer to do a TV advertisement in which she merely sings, “Don't Write It, Voice-It!” in an up-tempo tone. In this ad, the singer is a. serving as a peripheral cue. b. attempting to generate a cognitive response. c. defining consumer values. d. creating a brand community. ANS: A DIF: Moderate REF: p. 184 NAT: AACSB Communication | CB&C Model Customer

OBJ: 5-3 TYP: Application

70. (Scenario 5-6) Bill Gates (CEO of Microsoft), Doug Ivester (former CEO of Coca-Cola), and Jack Welch (former CEO of General Electric) appeared together in a Voice-It ad. They each stated “I don't write it, I Voice-It!” These individuals are attempting to impact our consumption priorities by serving as a a. celebrity influencer group. b. membership reference group. c. dissociative reference group. d. self-expressive benefit group. ANS: A DIF: Moderate REF: p. 194 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 5-5 TYP: Application

ESSAY 1. A young woman makes a number of purchases over time, whether an ordinary bag of groceries at the local checkout, a pair of shoes at the discount retailer, a used car at the dealer lot, or a gift from an online florist. Regardless of the goods or services involved, four stages of consumer decision making are involved in the purchase, though at various levels and strengths depending on the item. What are these stages? List them and explain the processes involved in each, walking this consumer through the process. Then choose your own item and identify the details involved in each step as you purchase that item. ANS: The four stages of consumer decision making are need recognition, information search and alternative evaluation, purchase, and postpurchase use and evaluation. Need recognition. The consumer decision making process begins when the young woman recognizes that her desired state is different from her current state. She may experience a form of mental discomfort or anxiety, varying in strength and duration based on the importance of the need. Her needs can be affected by her level of affluence, but many other elements are involved. She may have fundamental needs for food and shelter, and more sophisticated needs for pleasure and achievement. Advertisers would like to think that many of these needs can be fulfilled through consumption, with the simple purchase of goods and services that will provide her with the desired functional benefits and/or emotional benefits. Information search and evaluation. She begins by drawing on personal experience, an internal search. Attitudes about past purchases may be well-established and often determine the nature of new purchases. For some purchases, she may have a mental list of possibilities, a consideration set. She then does an external search, visiting stores, asking friends, reading consumer information. Finally, she weighs the product attributes and characteristics—the evaluative criteria. Purchase. The consumer makes a decision and a sale is made. But it isn’t over yet. Postpurchase use and evaluation. She now owns the item. But will she buy this item again? Commit to it and develop a type of brand loyalty? Switch to another product? Advertising helps her evaluate the purchase and her own customer satisfaction. She may see the advertising after the purchase and allow it to confirm the whole process for her, to convince her that, yes, this was a smart decision and, yes, this is a great product. Advertising can also act to decrease any feelings of cognitive dissonance, also called buyer’s remorse. At this stage, shortly after the purchase, the advertiser is in a position to gain the attention of the consumer and therefore can wield great influence on the sense of satisfaction and the buying behavior in the future. DIF: Moderate

REF: p. 167-172

OBJ: 5-1

NAT: AACSB Reflective Thinking | CB&C Model Customer

TYP: Application

2. Select a product that you use at least once a week. Then describe three possible functional benefits and three possible emotional benefits that a person might receive from using the product. Be as specific as possible. ANS: The functional benefits described should derive from the more objective performance characteristics of the product. Functional benefits may include such things as convenience, reliability, nutrition, durability, energy efficiency, or economy. The emotional benefits described should be less tangible and more subjective. They may be perceived differently from consumer to consumer. Emotional benefits may include such things as pride, pleasure, status, avoidance of guilt, or reduction of fear. DIF: Difficult REF: p. 168-169 OBJ: 5-1 NAT: AACSB Reflective Thinking | CB&C Model Customer

TYP: Application

3. What level of involvement and prior experience is involved when a consumer engages in extended problem solving before purchasing a product? When a consumer only requires limited problem solving? When a consumer relies on habit or variety seeking, or wants to hold onto brand loyalties? ANS: First, a situation that calls for extended problem solving is characterized by high involvement and little prior knowledge. In this situation, an advertisement can provide a lot of information to a very interested consumer. It often involves big-ticket items and expensive goods. Second, a situation that only needs limited problem solving is defined by a low level of involvement as well as a low level of knowledge. Here, there is a basic problem to solve but it is not very engaging or critical. Consumers may just try several brands to see what works, and consumer memory is a huge factor, so ads and promotions such as trial sizes or discount coupons may attract their attention. Third, a situation involving habit or variety seeking occurs when a purchase isn’t very involving, and the consumer purchases from the same category over and over again. Habit is in play when the consumer buys a single brand repeatedly to solve a basic problem. It simplifies life and doesn’t require continual processing of new information. Variety seeking takes place when the consumer switches brands within a category in a seemingly random pattern, just for the sake of trying something different. This is often occurs when a sensory experience such as taste or smell is involved in the product use. Finally, a situation that involves brand loyalty is characterized by high involvement and rich prior knowledge. In this case, there is typically very little that even the best advertising can do to win this consumer over to another brand. DIF: Difficult REF: p. 174-176 OBJ: 5-2 NAT: AACSB Analytic | CB&C Model Customer

TYP: Application

4. How are attitudes and beliefs part of the key psychological processes involved in the advertising process? What is the difference between the two? Discuss these concepts as they relate to the efforts by advertisers to influence consumer behavior: attitudes, brand attitudes, beliefs, salient beliefs. ANS:

Attitudes are evaluations of any object, person, or issue that are defined along a continuum. They are usually learned and often held with great conviction. Attitudes make purchasing easier because we don’t have to start all over with searches and evaluations of new information for every purchase, but only need to refer to our attitudes and simply decide what is best. Brand attitudes are evaluations that reflect preferences for goods and services. The items in our grocery carts are direct reflections of our brand attitudes. Beliefs are the bits of knowledge and accumulated feelings a person has gathered and maintained about an object, issue, or concept, whether they are logical or emotional, objective or subjective, factual or erroneous. Beliefs often infer attitudes. Some beliefs have to be changed if a consumer is ever to add a certain product to his or her consideration set. Salient beliefs are more important than other beliefs. They are the small number of beliefs that create or underlie a brand attitude. They are stronger for some items and less important for others, so they vary among product categories. DIF: Moderate REF: p. 177-178 OBJ: 5-3 NAT: AACSB Analytic | CB&C Model Customer

TYP: Comprehension

5. Describe what you consider to be a cultural value (other than individualism) held by Americans, as well as the criteria by which you judge it to be a cultural value. Discuss the effects that advertising can have on shaping this value. Describe how advertising can use this value in selling a product. ANS: A cultural value must be of core importance to its society. It is an enduring expression of the culture, one that is shared by the masses, expressing what is held as good and true and important in life. In other words, it must be long-lasting and held dear by most, if not all, of a culture’s members. Some examples of American cultural values (besides individualism) that have been suggested over the years include patriotism, freedom, youth, leisure, family, health, and cleanliness. Values represent a form of cultural bedrock. They do not change easily, if ever. So advertising really cannot change a value except in the broadest, most long-term sense, and even that is questionable. However, advertisers can attempt to associate themselves with a value, or criticize a competitor for being out of step with one. An attitude, on the other hand, is influenced by values but is more flexible and subject to change. So it can much more easily be affected by advertising. DIF: Moderate REF: p. 186-187 OBJ: 5-4 NAT: AACSB Diversity | CB&C Model Customer

TYP: Application

6. Family is cited as being very critical in the consumer behavior mix. List some of the important types of primary families discussed in the book, and discuss how family as well as the intergenerational effect can influence purchase behavior. ANS: For years, researchers have tried to determine who in the traditional nuclear family made various purchase decisions. This was largely an exercise in futility. They found that a few purchases might be handled by a particular family member, while others might be based on gender, and still others might be influenced by the children in the household, often in subtle ways. But overall researchers found that many decisions seemed to “just get made” and no one knew who made them, or even when.

Today’s families are no longer characterized as Mom, Dad, two kids, and the family dog. A vast array of arrangements exist in today’s American households, including extended families, second families, single-parent families, same-sex families, grandparents living with families, etc. Different types of families have different needs, and therefore different buying habits. Knowing the makeup of the family, the size of the family, and the household income can shed some light on the likely purchase decisions a family might make, based on inferences of income level and purchase behavior. Tracking the family based on the age of the youngest child at home, called a life-stage variable, can be helpful to marketers. And the intergenerational effect is often in play, as it has been found that people tend to purchase the brands that their parents purchased. It makes buying decisions easy—if mom and dad bought it, it must be good—and it leads to life-long habits. This intergenerational effect has a very strong influence on overall consumer decision making and behavior, and is one of the best predictors of the brands that adults will ultimately use. DIF: Moderate REF: p. 193-194 OBJ: 5-5 NAT: AACSB Reflective Thinking | CB&C Model Customer

TYP: Application

Chapter 6 - Market Segmentation, Positioning, and the Value Proposition TRUE/FALSE 1. When a brand team defines the target market of consumers for their product, they may also identify many smaller subsets of consumers within their broad market. ANS: T DIF: Moderate REF: p. 211 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-1 TYP: Comprehension

2. In the world of advertising, markets are positioned, but products are segmented. ANS: F DIF: Easy REF: p. 212 NAT: AACSB Analytic | CB&C Model Product

OBJ: 6-1 TYP: Comprehension

3. STP marketing includes three factors—identifying, positioning, and informing. ANS: F DIF: Easy REF: p. 212 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-1 TYP: Knowledge

4. If General Mills decides to use the STP framework, it can divide its resources to reach a number of separate and distinct market segments. ANS: T DIF: Difficult REF: p. 212 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-1 TYP: Application

5. The success seen from applying the STP framework is often long-term. ANS: F DIF: Moderate REF: p. 213 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-1 TYP: Comprehension

6. Companies can do well by spending advertising dollars to target nonusers over other user groups, since they offer the highest level of opportunity. ANS: F DIF: Easy REF: p. 214-215 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Comprehension

7. Spending advertising dollars to get “switchers” to buy your brand may seem like a good idea, but it often results in only one-time or random purchases. ANS: T DIF: Moderate REF: p. 215 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Comprehension

8. Demographic segmentation is used in selecting target segments by focusing on consumers’ descriptors such as their values, beliefs, philosophies, and opinions. ANS: F DIF: Easy REF: p. 216 NAT: AACSB Communication | CB&C Model Customer

OBJ: 6-2 TYP: Knowledge

9. Demographics are rarely used to describe or profile target segments that have already been identified as prospects by other variables.

ANS: F DIF: Moderate REF: p. 216 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Comprehension

10. Psychographic segmentation focuses on the inner mindset of consumers rather than outer aspects of their lives such as activities, interests, and lifestyles. ANS: F DIF: Easy REF: p. 217 NAT: AACSB Communication | CB&C Model Customer

OBJ: 6-2 TYP: Application

11. Today, advertising tends to be used almost exclusively by businesses targeting consumer markets, and only in very rare circumstances by businesses trying to sell products to other businesses. ANS: F DIF: Moderate REF: p. 220 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-2 TYP: Comprehension

12. If an advertiser sees a large potential segment being served by a competitor with a big budget, it might consider identifying and targeting smaller groups within that large segment. ANS: T DIF: Moderate REF: p. 221 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-3 TYP: Application

13. One drawback of niche marketing is that a company often has to reduce the price of its product due to the smaller volume of sales it can expect. ANS: F DIF: Moderate REF: p. 222 NAT: AACSB Analytic | CB&C Model Pricing

OBJ: 6-3 TYP: Application

14. Any meaningful positioning strategy needs to include several broad elements in its message— including attention-getting, variety, flexibility, and complexity. ANS: F DIF: Moderate REF: p. 224 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-4 TYP: Knowledge

15. A gourmet ice cream franchise advertises itself as offering thick, creamy, gooey treats, calling them delectable, desirous, and decadent—the richest and sweetest desserts found anywhere in America. The owner of the local shop buys ads focusing on extended hours and friendly service. This is an example of internal consistency. ANS: F DIF: Difficult REF: p. 224 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 6-4 TYP: Application

16. State Farm’s “Like a Good Neighbor” ad campaign is an example of consistent positioning over time. ANS: T DIF: Easy REF: p. 225 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 6-4 TYP: Application

17. When formulating a positioning strategy, a multiple-benefits approach is strongly suggested to satisfy many markets at the same time, because it alerts consumers to a wide array of diverse functions and positive consequences related to the product. ANS: F DIF: Difficult REF: p. 226 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 6-4 TYP: Application

18. Functional benefit positioning does not really give any brand an edge in many well-established product categories, because they all offer the same or similar functional benefits. ANS: T DIF: Moderate REF: p. 226 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-4 TYP: Knowledge

19. When Tylenol's competitor, Excedrin, touted its benefit as providing pure headache relief unlike Tylenol's flu and cold symptom relief, Excedrin implemented user positioning. ANS: F DIF: Moderate REF: p. 227 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 6-4 TYP: Application

20. The ad for the Xootr adult motorized scooter is an example of choosing only one positioning strategy—user positioning—to simplify the message. ANS: F DIF: Difficult REF: p. 228-229 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 6-4 TYP: Application

21. One waste of advertising dollars is seen when a firm attempts to revive an ailing brand or boost a poor performance in a certain market by trying to reposition the brand in the consumer’s mind. ANS: F DIF: Difficult REF: p. 229 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-4 TYP: Application

22. A brand’s value proposition is a statement of the benefits of the brand that provide value to its target consumers and includes functional, emotional, and self-expressive benefits. ANS: T DIF: Moderate REF: p. 230 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-5 TYP: Knowledge

23. When ad agency professionals are creating a campaign for a huge global retail firm with complex value propositions, in all likelihood, no single ad can be expected to reflect all aspects of the brand’s value. ANS: T DIF: Moderate REF: p. 230 OBJ: 6-5 NAT: AACSB Reflective Thinking | CB&C Model International Perspective TYP: Application 24. The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the campaign’s segments, its value proposition, and its persuasion tools. ANS: T DIF: Moderate REF: p. 231-232 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-5 TYP: Comprehension

MULTIPLE CHOICE 1. Folgers launched a new brand initiative called “Happy Mornings: The Revenge of the Yellow People.” Using STP, the company changed its brand positioning as part of a strategy that a. addresses members of a new target group in terms that are relevant to their lifestyles. b. focuses on the happiness of the mornings by reinventing its traditional slogan. c. uses nostalgia from 1950s monster movies to remind boomers to drink their brand. d. brings color to the brand reputation.

ANS: A DIF: Moderate REF: p. 210-211 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-Intro TYP: Application

2. The Folgers brand team looked at the diverse market of all coffee drinkers, then broke it down by age. When the team chose to focus on just-graduated-20-somethings, it was a. benefit positioning. b. positioning. c. targeting. d. segmenting. ANS: C DIF: Easy REF: p. 211-212 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 6-1 TYP: Application

3. Overall, _____ marketing has been very effective for many firms and agencies because it leads to decisions about who to attract, what to propose to them, and how to reach them. a. business-to-business b. point-of-entry c. STP d. consumer ANS: C DIF: Easy REF: p. 212 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-1 TYP: Knowledge

4. What is the first step in STP marketing, as demonstrated in the Folgers campaign and explained in detail later in the chapter? a. market segmentation b. position strategy c. benefit positioning d. target marketing ANS: A OBJ: 6-1 TYP: Knowledge

DIF: Easy REF: p. 212| p. 214 NAT: AACSB Analytic | CB&C Model Promotion

5. The Folgers team aligned its marketing mix in a design that would represent a particular identity, showcasing certain themes and values, shaped to gain distinctive approval from the just-graduated20-somethings. This demonstrates a. differentiating. b. targeting. c. segmenting. d. positioning. ANS: D DIF: Moderate REF: p. 212 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 6-1 TYP: Application

6. What does the acronym STP mean? a. Sales, Target, Product b. Sell To People c. Segmenting, Targeting, Positioning d. Sell The Product ANS: C DIF: Easy REF: p. 212 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-1 TYP: Knowledge

7. The selection of key themes or concepts that the organization will feature when communicating with customers about their brand is known as a. market segmentation. b. marketing mix. c. positioning strategy. d. STP marketing. ANS: C DIF: Easy REF: p. 212 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-1 TYP: Knowledge

8. The STP approach is highly recommended when markets are characterized by strong elements of a. diversity. b. brand loyalty. c. a single demographic. d. habitual purchasing. ANS: A DIF: Moderate REF: p. 212 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-1 TYP: Comprehension

9. Even successful marketing strategies for well-known products need to be modified or reinvented because a. new advertising cannot sell old products. b. consumers are not influenced by messages heard over long periods of time. c. government regulation does not allow long-term strategies. d. changes are always occurring in dynamic and competitive markets. ANS: D DIF: Moderate REF: p. 213 NAT: AACSB Analytic | CB&C Model Product

OBJ: 6-1 TYP: Comprehension

10. The purpose behind all efforts at market segmentation is to identify the a. unique aspects of the product being offered. b. consumers with common characteristics that will lead to a positive response. c. largest market that might possibly be interested in the product. d. demographics of individuals already buying competitors’ products. ANS: B DIF: Moderate REF: p. 214 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Comprehension

11. For most products and services, the category of ____ accounts for the majority of product sales and for this reason becomes the preferred target segment among all potential consumers. a. switchers b. niche buyers c. heavy users d. variety seekers ANS: C DIF: Moderate REF: p. 214 NAT: AACSB Communication | CB&C Model Customer

OBJ: 6-2 TYP: Comprehension

12. As a segment, variety seekers tend to a. offer the smallest opportunity for a firm seeking regular buyers. b. buy brands based on sales, discount coupons, or other incentives. c. fall into certain predictable demographic patterns. d. be unusually enthusiastic and often excessive in their purchasing activities. ANS: B DIF: Moderate REF: p. 215 NAT: AACSB Communication | CB&C Model Customer

OBJ: 6-2 TYP: Comprehension

13. Which segment type of consumer specifically offers marketers an important opportunity to build future business by luring first-time buyers? a. switcher b. brand-loyal c. variety seeker d. emergent ANS: D DIF: Moderate REF: p. 215 NAT: AACSB Communication | CB&C Model Customer

OBJ: 6-2 TYP: Knowledge

14. The one key characteristic that all types of _____ share is that their brand preferences are still under development. a. variety seekers b. brand-loyal users c. heavy users d. emergent consumers ANS: D DIF: Easy REF: p. 215 NAT: AACSB Communication | CB&C Model Customer

OBJ: 6-2 TYP: Comprehension

15. A campaign is specifically designed to identify those who are emerging in its product market, for many reasons and under many circumstances, and then win them over as first-time users. This campaign is making use of a. competitive fields. b. geographic statistics. c. geographic segmentation. d. point-of-entry marketing. ANS: D DIF: Easy REF: p. 215 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-2 TYP: Application

16. Characteristics and traits such as age, gender, race, marital status, income, education, and occupation are widely used in ____ segmentation. a. geographic b. psychographic c. competitive d. demographic ANS: D DIF: Easy REF: p. 216 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 6-2 TYP: Knowledge

17. Though advertisers cannot predict the future, what is one key element that may influence their decisions in years to come concerning the demographic group called "woopies"? a. They are identified by free spirits in their 20s and 30s who have yet to commit to longterm careers, relationships, lifestyles, or even geographic locations. b. They represent the youngest demographic segment in the U.S., based on babies born in the past five years. c. They will make up one-third of the U.S. population by 2025, those age 50 and older. d. They consist of pre-teens and early adolescents, who will have great buying power within a few years. ANS: C DIF: Difficult REF: p. 216 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 6-2 TYP: Application

18. Climate, topography, community size, and national region have been found to make dramatic differences in consumption, including habits involving eating and food preparation, entertainment, and recreation.This is an example of ____ segmentation. a. psychographic b. behavioral c. geographic d. geodemographic ANS: C DIF: Easy REF: p. 217 NAT: AACSB Communication | CB&C Model Customer

OBJ: 6-2 TYP: Knowledge

19. Which system has identified 62 market segments based on zip codes and the personal characteristics of their residents, creating a well-known tool for geodemographic segmentation? a. Thorson and Moore’s model b. PRIZM c. SIC Codes d. VALS ANS: B DIF: Easy REF: p. 217 NAT: AACSB Communication | CB&C Model Customer

OBJ: 6-2 TYP: Knowledge

20. Psychographics emerged in the 1960s as a new research method, one that would better understand consumer’s a. PRIZMs. b. SICs. c. AIOs. d. STPs. ANS: C DIF: Moderate REF: p. 217 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Comprehension

21. An ad agency marketing a line of office products segments a consumer market using PRIZM data and then segments a business market using SIC data. These two systems have one thing in common, in that they both involve a. geographic locations of markets. b. target markets already categorized by gender and age. c. psychographic data. d. extensive consumer interviews. ANS: A DIF: Moderate REF: p. 217| p. 220 OBJ: 6-2 NAT: AACSB Analytic | CB&C Model Promotion TYP: Comprehension 22. Which company was highlighted in the text because it interviewed 3,000 consumers and created five distinct segments that it could then target in different ways, customizing lifestyle segmentation with a particular focus? a. Estée Lauder b. Folgers c. Mobil d. Pillsbury ANS: D DIF: Easy REF: p. 218 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Knowledge

23. “Careful Cooks,” “Down-Home Stokers,” and “Functional Feeders” are all segments identified by a major food company based on ____ segmentation. a. geopsychographic b. niche c. repositioned d. lifestyle ANS: D DIF: Moderate REF: p. 218 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Comprehension

24. One well-known research classification system is VALS, which has identified a number of segments a. based on entirely different traits beyond standard demographics. b. created largely by geographic location. c. to identify groups of consumers with different product usage rates. d. with no particular category as a focus. ANS: D DIF: Moderate REF: p. 218 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-2 TYP: Comprehension

25. A firm hires an agency to attract barbers, spas, and hair salons with its line of hair care products, grooming equipment, and professional tools. The agency will be specifically involved in a. psychographic research. b. business-to-business marketing. c. the competitive field d. lifestyle segmentation. ANS: B DIF: Moderate REF: p. 220 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-2 TYP: Application

26. Two fundamental questions must be asked by an advertiser when trying to determine which market segment to target. They are "What do members of the segment want in a product?" and a. "How much are they willing to pay for it?" b. "Is the segment currently growing?" c. "What are they willing to settle for?" d. "Can my company provide it?" ANS: D DIF: Moderate REF: p. 221 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-3 TYP: Application

27. A major criterion to consider during segment selection involves the companies that are vying for that segment’s business. What term is used to define this concept? a. ad clutter b. business market c. competitive field d. target market ANS: C DIF: Easy REF: p. 221 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-3 TYP: Knowledge

28. What is a market niche? a. A small group of consumers with unique needs and who typically are willing to pay a premium to have those needs met. b. A small segment that a firm tries to dominate but ultimately shares with many other competitors. c. A competitive position that has cost a firm in time and money but has shown little

profitability. d. Astrategy that positions the firm's brand as close to the market leader as possible. ANS: A DIF: Easy REF: p. 222 NAT: AACSB Communication | CB&C Model Customer

OBJ: 6-3 TYP: Knowledge

29. In Mobil’s positioning as the "Friendly Serve" station, it had many good reasons to select the particular target market that it did. But one issue that was NOT a factor was that the segment a. spent the largest amount of money at service stations. b. had the greatest number of consumers in sheer numbers. c. had potential for growth. d. bought little extras besides just gas. ANS: B DIF: Moderate REF: p. 222 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-3 TYP: Application

30. A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves all customers within 90 seconds. To maintain internal consistency, the firm might take all of the following steps below, EXCEPT for which one? a. expanding on its menu b. adding extra drive-up windows c. hiring more order-takers d. hanging up digital timers behind the counter ANS: A DIF: Moderate REF: p. 224 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 6-4 TYP: Application

31. Several essential characteristics have been found to be necessary to build an effective positioning strategy. In a nutshell, it should be a. bold, aggressive, and unique. b. broad, universal, and all-encompassing. c. meaningful, consistent, and simple. d. substantive, familiar, and flexible. ANS: C DIF: Moderate REF: p. 224 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-4 TYP: Knowledge

32. One big plus from a product position that stays consistent over time, like State Farm's “Good Neighbor” campaign, is that it a. is more likely to break through advertising clutter. b. successfully reaches nonusers. c. doesn’t need to target a particular segment. d. is easily repositioned. ANS: A DIF: Moderate REF: p. 225 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-4 TYP: Application

33. Which firm did the text highlight as one with a long-term, successful campaign that epitomizes “simplicity” in defining its distinctiveness, a critical ingredient in a good positioning strategy? a. Exedrin b. Jack Daniels c. Nike d. Tylenol ANS: B DIF: Easy REF: p. 225 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-4 TYP: Application

34. Benefit positioning is demonstrated in product campaigns that a. feature distinctive reasons for its purchase. b. announce new features and functions. c. build a customer base of new purchasers. d. revitalize an identity that has been lost in the market. ANS: A DIF: Moderate REF: p. 226 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-4 TYP: Comprehension

35. Why is benefit positioning often used by a firm when its competitors offer comparable products that basically do the same thing? a. to point out emotional benefits that differentiate its product from others b. to send new messages about its product’s identity c. to spell out functional benefits that its product offers d. to suggest new uses for its product ANS: A DIF: Difficult REF: p. 226 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 6-4 TYP: Application

36. The text mentions Avon Products as one of many corporations that has successfully added emotional benefits to its positioning, creating intense feelings regarding its products, by linking its brand to a. a celebrity endorsement. b. an important social cause. c. a YouTube video. d. a viral Internet promotion. ANS: B DIF: Easy REF: p. 226 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-4 TYP: Knowledge

37. “Micro-sponsorships” have become popular ways for firms with restricted budgets to attract socially conscious consumers because they connect their products to a. political causes. b. green efforts. c. healthy lifestyles. d. smaller charities. ANS: D DIF: Easy REF: p. 226 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-4 TYP: Knowledge

38. What are the three fundamental options that advertisers have when choosing a positioning theme? a. demographic, psychographic, or geographic b. benefit, user, or competitive c. STP, VALS, or SIC d. functional, emotional, or psychological ANS: B DIF: Easy REF: p. 226-227 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-4 TYP: Knowledge

39. Self-expressive benefits are promoted in ads to a. define a product that doesn't compete directly with any competitor. b. focus on benefit, user, and competitive positioning, rather than emotional differentiation. c. create distinctive images or personality traits and invite people into the brand community. d. identify groups of customers that share certain characteristics. ANS: C

DIF: Moderate

REF: p. 227

OBJ: 6-4

NAT: AACSB Communication | CB&C Model Customer

TYP: Comprehension

40. The American Pork Producers has been running a long-term campaign with the tagline "Pork. The other white meat." This is an example of a. lifestyle segmentation. b. demographic segmentation. c. benefit positioning. d. competitive positioning. ANS: D DIF: Moderate REF: p. 227-228 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 6-4 TYP: Application

41. What types of brands are commonly repositioned? a. those that are in a tightly competitive market b. those that are bought on a regular or habitual basis c. those that are big-ticket items d. those that are popular with one generation but fade with the next ANS: D DIF: Moderate REF: p. 228-229 NAT: AACSB Analytic | CB&C Model Product

OBJ: 6-4 TYP: Comprehension

42. To simplify a somewhat complex concept, a value proposition is of great importance to a company’s advertising success because it puts all its emphasis on one simple premise— a. who belongs in the target market. b. what the company should sell. c. how the customer benefits. d. why the brand is different from others. ANS: C DIF: Moderate REF: p. 230 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-5 TYP: Comprehension

43. A powerful value proposition in most situations today includes functional, emotional, and selfexpressive benefits, a. though only tangible product benefits are truly emphasized. b. though no single ad can reflect all three aspects. c. all of which must be included in a given advertising campaign. d. though children are excluded because their decision making is controlled by parents. ANS: B DIF: Difficult REF: p. 230 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-5 TYP: Comprehension

44. A firm finds that it has gained tremendous leverage by using STP marketing, largely because it combines a. client and agency efforts to fulfill customer needs. b. functional and emotional benefits as products enter the marketplace. c. mature and new product categories. d. user and competitive aspects of positioning. ANS: A DIF: Moderate REF: p. 231 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-5 TYP: Comprehension

45. The model designed by Esther Thorson and Jeri Moore features which element as the starting point to strategic advertising, located at its paramount apex? a. brand identity b. positioning theme

c. marketing approach d. target segment ANS: D DIF: Moderate REF: p. 232 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-5 TYP: Comprehension

Scenario 6-1 Headquartered in Boston, The Gillette Company is the world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high-performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women’s razor, with the tagline, “Reveal the Goddess in You.” According to its website, nearly 40 million women now use Venus products. (http://www.gillettevenus.com/en_US/products/index.jsp) 46. (Scenario 6-1) The position for any one market segment should a. also hold an appeal for those outside the segment. b. be identical to positions selected for other segments. c. change occasionally to break through advertising clutter. d. be easily communicated to consumers. ANS: D DIF: Moderate REF: p. 212 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-1 TYP: Comprehension

47. (Scenario 6-1) The original plan to sell new products to the female market a. could be considered an STP effort because Gillette is targeting multiple segments. b. may or may not have been an STP effort, depending on whether Gillette has created subsegments of these large segments. c. may or may not have been an STP effort, depending on whether all possible segments are being targeted by Gillette. d. fit all the criteria of an STP effort by Gillette. ANS: D DIF: Moderate REF: p. 211-212 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-1 TYP: Application

48. (Scenario 6-1) According to the information provided here, Gillette has identified market segments along _____ lines. a. benefit b. demographic c. geographic d. usage pattern ANS: B DIF: Easy REF: p. 216 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Application

49. (Scenario 6-1) It appears that the management at Gillette has performed the fundamental task behind effective segmentation. Gillette has matched what members of different segments want with a. the company's ability to provide it. b. a single appeal. c. an advertising message they will understand. d. a distinct demographic profile.

ANS: A DIF: Difficult REF: p. 221 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 6-3 TYP: Application

50. (Scenario 6-1) The philosophy behind Gillette's efforts is based on a. user positioning. b. market niche positioning. c. benefit positioning. d. competitive positioning. ANS: A DIF: Moderate REF: p. 227 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-4 TYP: Application

Scenario 6-2 El Sol sunglasses were designed by an avant-garde artist. She said there were no sunglasses out there that she would wear, so she had to design her own. Her sunglasses were worn by a whacked-out bad guy in a blockbuster movie and, because of this, have acquired a cult following among young teens. Print advertisements are visually sparse—nothing more than a still shot from the movie and a logo for the brand. Eyewake sunglasses were designed by an optician after he realized that conventional sunglasses allowed in certain types of light that promoted eye fatigue. He made 1,000 of his sunglasses and gave 100 of them away to friends and acquaintances. After trying them out for awhile, several of them told him that they really liked them when they had to drive for extended lengths of time. He placed an ad in the back of a tourism magazine, extolling the safety benefit of driving with eyes that weren't fatigued. He promptly sold all of his remaining glasses. Kushyspecs sunglasses were developed after research revealed that a small group of people didn't like wearing sunglasses because most sunglasses left pinch marks on their noses. The company that performed the research developed sunglasses with a soft, cushiony nose piece. Advertisements for Kushyspecs feature the headline "The mark of a good pair of sunglasses is no mark at all." 51. (Scenario 6-2) Which of these brands of sunglasses was positioned through a product differentiation strategy? a. El Sol b. Eyewake and Kushyspecs c. El Sol and Kushyspecs d. Eyewake and El Sol ANS: B DIF: Difficult REF: p. 213 NAT: AACSB Analytic | CB&C Model Product

OBJ: 6-1 TYP: Application

52. (Scenario 6-2) Which of these brands attempts to reach a market segment through product placement? a. El Sol and Eyewake b. Eyewake and Kushyspecs c. Kushyspecs d. El Sol ANS: D DIF: Easy REF: p. 214 NAT: AACSB Analytic | CB&C Model Product

OBJ: 6-2 TYP: Application

53. (Scenario 6-2) One element that all three of these ad campaigns have in common is that they are all a. employing repositioning. b. using geographic segmentation. c. relying on emotional differentiation.

d. targeting a market niche. ANS: D DIF: Difficult REF: p. 222 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 6-3 TYP: Application

54. (Scenario 6-2) Which of these brands of sunglasses uses benefit positioning in its advertisements? a. all three—El Sol, Eyewake, and Kushyspecs b. El Sol and Kushyspecs c. Kushyspecs d. Eyewake ANS: A DIF: Difficult REF: p. 226 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-4 TYP: Application

Scenario 6-3 Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds's advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces." 55. (Scenario 6-3) Instead of “mothers and daughters,” why didn’t Keds define its target segment simply as “women”? a. This concept already has a number of established companies targeting it. b. This is not based on a realistic approach to segmentation. c. This is based on demographic criteria for which media is difficult to define. d. This is poorly defined and provides no clear orientation or identity. ANS: D OBJ: 6-1 TYP: Application

DIF: Moderate REF: p. 211| p. 214 NAT: AACSB Reflective Thinking | CB&C Model Customer

56. (Scenario 6-3) Which of these segmentation techniques would provide the most insight for Keds's advertising agency in the creation of its advertisements? a. emergent b. lifestyle c. geographic d. usage pattern ANS: B DIF: Moderate REF: p. 217-218 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Application

57. (Scenario 6-3) The copy for this campaign features moms and daughters commenting on their close relationships, and Brandweek magazine said that the new Keds ads "really go for the heart." This points to the campaign’s focus on a. identifying emotional benefits. b. delivering its promise. c. targeting nonusers. d. using VALS data. ANS: A OBJ: 6-4

DIF: Moderate REF: p. 226| p. 230 NAT: AACSB Analytic | CB&C Model Customer

TYP: Application 58. (Scenario 6-3) The information provided says that Keds was trying to “turn around a long-term slide” in its shoe business, and that “for years, it had depended on its image as the women's no-frills summer shoe.” Obviously, things had changed. And what Keds needed was a change in its once-successful strategy and identity to meet new market conditions, called a. internal consistency. b. self-expressive marketing. c. repositioning. d. business-to-business marketing ANS: C DIF: Easy REF: p. 228 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-4 TYP: Application

Scenario 6-4 Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories, which they named The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 18-24. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The senior liked them because they became the focus of a hobby. The professionals did not buy them for any reason other than décor. 59. (Scenario 6-4) To attract the ____ in the market, the Plantatarium offers a punch card that rewards buyers with a $10 discount each time they have purchased $150 worth of plants and other goods from the store. a. emergent consumers b. demographic segment c. variety seekers d. heavy users ANS: D DIF: Moderate REF: p. 214-215 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Application

60. (Scenario 6-4) The Plantatarium sends out direct mail offers to consumers in a nearby zip code area who have household incomes of greater than $40,000 a year. This is an illustration of a _____ strategy. a. geographic segmentation b. demographic segmentation c. psychographic segmentation d. geodemographic segmentation ANS: D DIF: Moderate REF: p. 217 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 6-2 TYP: Application

61. (Scenario 6-4) The owners of this business have decided to carry a great deal of plants that flower throughout the year because most consumers have said they like them for the cheerful feeling they give. This suggests that The Plantatarium is focusing on what different consumers want from its offerings, that is, _____ segmentation. a. business-to-business b. psychographic c. benefit d. repositioning ANS: C

DIF: Moderate

REF: p. 220

OBJ: 6-2

NAT: AACSB Reflective Thinking | CB&C Model Customer

TYP: Application

62. (Scenario 6-4) Several customers have mentioned that they would like to browse through several varieties of cactus, so the Garretts decided to devote a small corner exclusively to cacti. These customers constitute an example of a. market niche. b. psychographic segmentation. c. brand loyalty. d. demographic segmentation. ANS: A DIF: Easy REF: p. 222 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 6-3 TYP: Application

63. (Scenario 6-4) The Plantatarium promotes itself in different media using the phrase "An out-of-thisworld selection of unique plants." This phrase is a reflection of the firm's a. positioning strategy. b. VALS profile. c. target market. d. demographics. ANS: A DIF: Easy REF: p. 224 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-4 TYP: Application

Scenario 6-5 Madison State University has a reputation for having a powerful intercollegiate coed bowling team. Seating in the campus bowling alley only allows for 400 fans to attend their matches. Long lines for seats have formed in the past, with many fans leaving disappointed because they could not get a ticket. As a result, the school's administrators decided to institute a "priority seating" plan in which fans would be given access to advance tickets based on the following schedule: • "Lanemaster Club" - $10,000 annual donation to the bowling program - guaranteed free box seats to any match (100 seats total) • "Strike Club" - $1,000 annual donation to the bowling program - guaranteed free bleacher seats to any match (100 seats total) • "Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for $10.00 to any match (100 seats total) • "Alleycat Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any match (100 seats total) 64. (Scenario 6-5) Based on the planned schedule described here, students who have maintained a 3.9 GPA would be described as one of the bowling team's a. nonuser groups. b. positioning strategies. c. target segments. d. diverse markets. ANS: C DIF: Easy REF: p. 211 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-1 TYP: Application

65. (Scenario 6-5) A group of about 30 students who are roommates and friends of the team members -many are casual bowlers themselves -- have attended every match for nearly three years. These students would best be described as a. competitive users. b. emergent consumers. c. heavy users. d. variety seekers.

ANS: C DIF: Easy REF: p. 214 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Application

66. (Scenario 6-5) Each summer, the MSU Athletic Director looks at the city map, chooses a different local neighborhood, and knocks on doors, encouraging residents to join one of the supporting clubs. He then keeps track of which neighborhoods are the strongest supporters, and which may need more prompting in the future. In this way he is using a ____ segmentation strategy. a. psychographic b. geodemographic c. geographic d. demographic ANS: C DIF: Moderate REF: p. 217 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Application

67. (Scenario 6-5) With the new plan, the bowling team is attempting to encourage local bowlers and other bowling aficionados to come watch the team in action. This is an example of ____ segmentation. a. emergent b. geographic c. lifestyle d. demographic ANS: C DIF: Moderate REF: p. 217 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 6-2 TYP: Application

68. (Scenario 6-5) In marketing materials created to target fans, the slogan "Two hours of wholesome fun for all ages" is used to attract ticket-buyers. This philosophy is an example of ____ segmentation. a. niche b. demographic c. geodemographic d. benefit ANS: D DIF: Moderate REF: p. 220 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 6-2 TYP: Application

ESSAY 1. Think about a product that you have used in the past week. Using this as an example, explain the differences between segmenting, targeting, and positioning in the STP approach to marketing. ANS: Student examples will vary. Depending on the product, their approach to marketing will vary also. Segmenting involves breaking down large, heterogeneous, and diverse markets into manageable submarkets, or customer segments. For segmenting to be useful, a marketer must be able to reach these resulting submarkets with its message. One of the most common ways to approach this task is by analyzing consumption patterns and commitment levels (heavy users, nonusers, brand-loyal users, variety seekers or switchers, emergent consumers). Other methods that are used include demographic, geographic, geodemographic, psychographic, and benefit segmentation.

Targeting involves choosing the specific subgroup—the target segment—as the focal point of the marketing efforts. Often, the largest segment is not chosen as the target, but rather, it is the particular segment made up of certain individuals with similar interests, needs, or lifestyles that may have a certain need or desire for the product. Positioning involves designing and representing a product so it will occupy a distinct and valuable space in the marketplace. Positioning strategy is created when a company selects key themes and concepts to feature regarding the product when communicating its distinctive qualities. Overall, markets are segmented, while products are positioned. DIF: Moderate REF: p. 211-220 OBJ: 6-1|6-2 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application

2. Brownsworth Brothers Coffee is a mail-order business run by two brothers directly from their Hawaiian plantation. They have targeted heavy users in the past, but they’re considering a new focus on college students. They are considering switching target segments even though this group is comprised largely of people who don’t drink coffee, or have just started to drink coffee and don't consume anywhere near as much as the heavy users. What are the disadvantages of the heavy-user strategy? What term is used to describe the college students the company is considering targeting? What are the advantages of targeting this new segment? ANS: Heavy users of Brownsworth Brothers Coffee may need no encouragement at all to keep consuming. A heavy-user focus by an advertiser takes attention and resources away from those who do need encouragement to purchase the marketer's brand. Perhaps most importantly, various heavy users may be significantly different in terms of their motivation to consume, their approach to the product, or their image of the product. The college students who may try Brownsworth Brothers Coffee are considered emergent consumers. Their preferences are still under development. This target audience may produce minimal profits in the short term. However, there is the strong opportunity for gains in the long-term if they begin their initial coffee drinking with this brand, like it, and get hooked on it. They may ultimately demonstrate brand preference, or possibly even brand loyalty, for Brownsworth. DIF: Difficult REF: p. 214-215 OBJ: 6-2 NAT: AACSB Reflective Thinking | CB&C Model Customer

TYP: Application

3. What is the difference between a consumer market and a business market? Give an example of each. Then describe how business markets are segmented, and use your example to explain your answer. ANS: Consumer markets are basically made up of individuals, or households—those markets for products and services that are purchased by people or their families and housemates to fulfill various personal needs. Business markets are made up of institutional and industrial buyers who purchase items, parts, equipment, supplies, or other materials to be used in the production of other goods and services, which are then resold to other businesses or directly to households.

Business markets can be segmented in some ways similar to the methods used for consumer markets, such as analyzing their usage rates and geographic locations. But some methods used for consumers— such as psychographic or lifestyle segmentation—normally do not translate well to business buyers. Instead, simple sales-related methods are often used, such as identifying business markets based on their stage in the purchase process. In this way, potential prospects, first-time buyers, or those new to the market or industry can be targeted differently than long-standing business customers, and can be specifically addressed by the company’s advertisements and promotions. DIF: Moderate REF: p. 220 OBJ: 6-2 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application

4. Describe the principle known as niche marketing. What are the competitive advantages of marketing to a niche? ANS: Niche marketing is based on the premise that smaller is often better when selecting target segments. By definition, large segments are usually established segments that many companies have identified and targeted previously. However, these large segments may be poorly defined. Niche marketing involves identifying and serving a relatively small group of consumers who have a unique set of needs. Typically, these consumers are willing to pay a premium price to the firm that specializes in meeting those needs. The small size of a market niche often means it would not be profitable for more than one organization to serve it. Thus, when a firm identifies and develops products for market niches, the threat of competitors developing imitative products to attack the niches is reduced. DIF: Moderate REF: p. 222 OBJ: 6-3 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application

5. What is a positioning strategy? What are the three main types of fundamental positioning themes? Also, what is repositioning? ANS: A positioning strategy involves the selection of key themes or concepts that the organization decides to feature to communicate the distinctiveness of its product. It helps the consumer understand what the product does. It must be simple and distinctive. Once the firm has segmented the market and selected its targets, the positioning strategy should come naturally. It can involve several themes: Benefit positioning. The focus is on a single functional, emotional, or self-expressive benefit to the customer. Firms often start with functional benefits, simply explaining what a product does for a consumer. In product categories where various brands are almost similar, firms focus on emotional or self-expressive benefits instead, often by linking the brand with aesthetic concepts or important causes that bring on intense feelings. User positioning. The focus is on a specific profile of the target user rather than any particular aspect of the brand, speaking to clearly identifiable user segments. Competitive positioning. The focus is on a specific competitor to compare and precisely define what a product can do, particularly in well-established categories with a lot of competition. This method is often used by smaller brands to carve out a space in a crowded marketplace. Repositioning. The focus is on a new identity or new way of looking at a product, a way to get current consumers to see it in a fresh light or to attract new target markets. Sometimes it attempts to maintain older and often loyal users while getting the attention of younger consumers who may not be familiar with the brand. This can take tremendous effort, however.

DIF: Moderate REF: p. 212| p. 224-228 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 6-1| 6-4 TYP: Comprehension

6. What is a value proposition? Explain why it is useful—even critical—to an organization, to its brand, to its team, and to its target audience. ANS: A value proposition is a statement of the functional, emotional, and self-expressive benefits offered by the brand. It acts as the basis for brand choice and customer loyalty, which is critical to the ongoing success of a firm. The value proposition offers a way to capture the full record of a brand and all of its characteristics and benefits. It also provides a foundation and structure that will maintain this information as new members join the team and work on new promotional efforts for the brand. It is basically a way to capture the brand strategy on paper. It makes things crystal clear about what is believed and known about the brand. That way, everyone on the team can share this clear set of values, benefits, and other pieces of information related to the brand. But more important, the value proposition is what keeps the brand consistent in the eyes of the target market. It consolidates all the customer benefits offered by a product, and reminds consumers of these benefits. Over time, different aspects can be built into the value proposition. Well-established benefits reinforce one another, and new benefits are added to current ones. Some brands -- national brands, and especially global brands -- are very involved and complex, with long histories and decades of marketing efforts. They may now involve branded entertainment, product placement, mobile marketing, online advertising, or other relatively new promotional formats. The value proposition for these products is even more important in order to keep all brand information clear and consistent throughout all promotional efforts. DIF: Moderate REF: p. 229-231 OBJ: 6-5 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Comprehension

Chapter 7 - Advertising and Promotion Research TRUE/FALSE 1. Products are just things, but brands have meaning. ANS: T DIF: Moderate REF: p. 238 NAT: AACSB Analytic | CB&C Model Product

OBJ: 7-Intro TYP: Comprehension

2. Although some advertising agencies have had research specialists or even departments for more than 100 years, their real growth occurred in the mid-20th century, with the 1950s being their heyday. ANS: T DIF: Moderate REF: p. 239 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-Intro TYP: Comprehension

3. There was keen interest as well as great ambivalence about science after World War II, so people were intrigued by “scientific advertising” but also cautious about its potential for harm or misuse. ANS: T DIF: Moderate REF: p. 239 NAT: AACSB Ethics | CB&C Model Research

OBJ: 7-Intro TYP: Comprehension

4. A belief in mind control, repressed thoughts, and mass persuasion formed the cornerstone of Cold War ideology, and advertising professionals during that time found it easy to persuade consumers to buy their brands. ANS: F DIF: Difficult REF: p. 240 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 7-Intro TYP: Comprehension

5. By the early 1980s, ad agencies began to openly voice their distrust of the sacred, all-encompassing reliance on scientific research methods established in the 1950s, and in-house research departments began to shrink or disappear. ANS: T DIF: Difficult REF: p. 240 NAT: AACSB Ethics | CB&C Model Research

OBJ: 7-Intro TYP: Comprehension

6. The text stresses that for research methods to be truly useful to the client, they need to be reliable, valid, trustworthy, and meaningful. ANS: T OBJ: 7-1| 7-3 TYP: Knowledge

DIF: Easy REF: p. 241| p. 253 NAT: AACSB Analytic | CB&C Model Research

7. A focus group involves blind taste tests of products. ANS: F DIF: Easy REF: p. 244 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Knowledge

8. In a testing situation, people are shown drawings depicting pairs of shoppers walking through grocery stores with empty dialogue balloons above them, and they are asked to fill in what the shoppers may be saying. This is an example of a concept test. ANS: F

DIF: Moderate

REF: p. 244

OBJ: 7-1

NAT: AACSB Communication | CB&C Model Research

TYP: Application

9. Focus groups are for generating statistics and making scientific generalizations, not for gaining any real understanding or insight. ANS: F DIF: Moderate REF: p. 244 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-1 TYP: Comprehension

10. ZMET is designed to draw out people’s buried thoughts and feelings about products and brands, based on their use of metaphors. ANS: T DIF: Moderate REF: p. 245 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Knowledge

11. A researcher is said to conduct "field work" when he or she joins in and actually takes part in the study, usually in a taste test or other form of product testing. ANS: F DIF: Easy REF: p. 246 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Knowledge

12. Google Groups and Facebook are good sources of secondary research data today. ANS: T DIF: Easy REF: p. 247 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-2 TYP: Application

13. Some of the most valuable data are available right within the ad agency itself, such as research reports, sales figures, warranty cards, consumer complaints, and customer letters. ANS: T DIF: Easy REF: p. 249-250 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-2 TYP: Knowledge

14. While this method of primary research is not strongly suggested by the text, internal company sources can sometimes reveal bits of preliminary information, though rarely much more than that. ANS: F DIF: Moderate REF: p. 249-250 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-2 TYP: Application

15. Due to years of budget cuts, the federal government publishes much less population, demographic, and lifestyle research than it once did, and almost all data that was once free now require a fee. ANS: F DIF: Easy REF: p. 249-251 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-2 TYP: Knowledge

16. One way to obtain information about marketing and advertising is to purchase data from commercial services such as Current Population Survey. ANS: F DIF: Moderate REF: p. 250-251 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-2 TYP: Knowledge

17. Direct response research, also called attitude research, is the kind that evaluates ads just as they are about finished—the kind people usually think of when someone says “advertising research.” ANS: F DIF: Moderate REF: p. 253 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

18. An agency staffer conducts a test to see how the message for her client's product, dishwasher detergent, compares to the way other ads in her product area have tested. In this way, she will gather qualitative test scores. ANS: F DIF: Difficult REF: p. 254 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Application

19. When the question is asked concerning what an agency really wants from advertising research, the answer often falls to the reality that it wants whatever the client wants. ANS: T DIF: Moderate REF: p. 254 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Application

20. Copy testing is rarely a good idea, particularly because the account executives, the creative team, and the client usually dislike it. ANS: F DIF: Easy REF: p. 254 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

21. A communication test simply explores whether the people “get” the ad—whether they understand the main point, get the joke, or see the connection. ANS: T DIF: Moderate REF: p. 255 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

22. Psychologists now believe that memory is more fluid than was once thought, and is more strongly influenced by motivation to remember, or not to remember. ANS: T DIF: Difficult REF: p. 256 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

23. Recognition tests are the industry standard for television ad testing. ANS: F DIF: Easy REF: p. 258 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

24. For print ads, recall testing is most commonly used. ANS: F DIF: Easy REF: p. 258 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

25. The Starch readership test measures readers of print materials who either noted the ad, associated the ad, or read most of the ad, then calculates these results into scores. ANS: T DIF: Difficult REF: p. 259 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

26. Overall, recall is easier, because people are shown a stimulus and answer yes or no about having seen it, whereas recognition is harder, because people have to deliberately search their memories for concept without any prompting or stimulus. ANS: F DIF: Difficult REF: p. 259 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

27. Many forms of pre-post attitude studies are becoming more popular than they once were due to a recent push to gather more rounded “before and after” data from potential consumers. ANS: F DIF: Moderate REF: p. 262 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

28. The old physiological approaches to measuring physical responses during ad viewing have been replaced by PT or MRI scans of brain activity, and these are commonly used in copy research today. ANS: T DIF: Moderate REF: p. 264-265 NAT: AACSB Technology | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

29. Eye-tracking technology systems basically measure how long a person gazes at a particular print ad or a particular part of the ad. ANS: T DIF: Easy REF: p. 265 NAT: AACSB Technology | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

30. It has been found that, overall, advertising has the greatest impact on sales early in the product life cycle, or soon after a new model or version of the product is released. ANS: T DIF: Difficult REF: p. 267 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 7-4 TYP: Comprehension

MULTIPLE CHOICE 1. What went wrong with the Coca-Cola campaign when it replaced “old Coke” with “New Coke”? a. It believed the results of a relatively small taste test. b. It put too much emphasis on the “Coke” name. c. It promoted a “new” flavor, but the incremental changes made were barely discernible. d. It confused the results of objective taste tests with the reality of cultural meaning. ANS: D DIF: Moderate REF: p. 238 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 7-Intro TYP: Comprehension

2. What primary lesson have corporate executives, account managers, and creative directors around the nation drawn from Coca-Cola’s doomed launch of “New Coke”? a. Regardless of what they may say, consumers really do not want new products. b. A brand should never be confused with a product. c. Even extensive testing does not give accurate product feedback. d. The word “new” added to the current brand name will only spell disaster. ANS: B DIF: Difficult REF: p. 238 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 7-Intro TYP: Comprehension

3. Though some forms of ad research have fallen out of favor over the decades, ____ research still provides helpful results, particularly when the researcher meets directly with the consumer. a. statistical b. qualitative c. normative d. quantitative ANS: B

DIF: Moderate

REF: p. 239| p. 243

OBJ: 7-1 TYP: Knowledge

NAT: AACSB Analytic | CB&C Model Research

4. In the 1950s, advertising research was popularized as a a. legitimate “science of persuasion.” b. product of “naturalistic observation” and personal interview. c. type of “account planning” more than a type of research. d. collection of “atmospheric” feelings and emotions. ANS: A DIF: Difficult REF: p. 240 NAT: AACSB Ethics | CB&C Model Research

OBJ: 7-Intro TYP: Comprehension

5. Developmental research looks at consumers’ identities, perceptions, wants, and habits early in the production process so these elements can influence the final ad before a lot of money is spent. This type of ad research is also called a. account planning. b. design thinking. c. consumer insight. d. scientific advertising. ANS: C DIF: Moderate REF: p. 241-242 NAT: AACSB Communication | CB&C Model Customer

OBJ: 7-1 TYP: Comprehension

6. Which new philosophy of advertising focuses on building a thought process that dismisses preconceived notions and instead attempts to create from scratch what a good or service should look like? a. Starch Readership Services b. activities, interests, and opinions c. design thinking d. Zaltman Metaphor Elicitation Technique ANS: C DIF: Moderate REF: p. 242 NAT: AACSB Communication | CB&C Model Product

OBJ: 7-1 TYP: Knowledge

7. When consumers act as the final “judge and jury” through their feedback on the quality of a new idea, they are taking part in a. a competitive field. b. a concept test. c. a direct response d. a tracking study. ANS: B DIF: Moderate REF: p. 242 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Knowledge

8. Identifying the activities, interests, and opinions of target audiences to help creatives produce better advertising is called a. lifestyle research. b. embedded description. c. story construction. d. normative research. ANS: A DIF: Easy REF: p. 243 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Knowledge

9. Projective techniques test ads for consumer response with

a. b. c. d.

in-depth, one-on-one, open-ended discussions. physiological techniques and brain scans. fragments of pictures or words that need to be completed. demographic profiles of market members.

ANS: C DIF: Easy REF: p. 244 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Knowledge

10. Dialogue balloons, story construction, and sentence and picture completion are all types of ____ techniques. a. quantitative b. predictive c. survey d. projective ANS: D DIF: Easy REF: p. 244-245 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Knowledge

11. A consumer is shown a picture of a man looking into the oven while a woman sits at desk nearby with her back to him. The consumer is then asked to suggest what is going on in the picture, and to fill in blanks such as “The man is . . . ” and “The woman is . . . ” This is method gathers consumer data through a. metaphors. b. sentence and picture completion. c. dialogue balloons. d. field work. ANS: B DIF: Easy REF: p. 245 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Application

12. What single elements act as powerful organizing structures and expressive channels of the human mind, now widely and successfully used in tapping information for advertisers? a. norms b. habits c. values d. metaphors ANS: D DIF: Moderate REF: p. 246 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Comprehension

13. Which research technique was employed to create the “Got Milk?” campaign, one that involves observation in real-life situations, and is now so popular that it’s hard to find a company that doesn’t use it? a. online netnography b. embedded field work c. geographic clustering d. consumer panel ANS: B DIF: Difficult REF: p. 246 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-1 TYP: Application

14. A detailed version of Internet research called _____ involves both gathering Web data as well as seeking unique information in online formats similar to that found in traditional face-to-face interviews. a. netnography

b. projecting c. thought listing d. frame-by-frame testing ANS: A DIF: Easy REF: p. 248 NAT: AACSB Technology | CB&C Model Research

OBJ: 7-2 TYP: Knowledge

15. Which data-gathering system is hoped to soon replace many aspects of traditional census surveys, including the so-called “long form”? a. American Demographics Survey b. Census of Population and Housing c. American Community Survey d. Current Population Survey ANS: C DIF: Moderate REF: p. 249 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-2 TYP: Knowledge

16. The text points out that an advantage offered by secondary data from government sources is that the information is a. less biased than that of other sources. b. always up-to-date. c. available even to small businesses with no research budget. d. gathered directly from consumers. ANS: C DIF: Moderate REF: p. 251 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-2 TYP: Comprehension

17. Some commercial firms specialize in gathering data based on geographic clustering, such as PRIZM, which works on the assumption that _____ are more alike than different regarding their consumer practices. a. most people within a certain household b. most people within certain professions or occupations c. most people within a given zip code d. most people with the same ethnic background. ANS: C DIF: Difficult REF: p. 251 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-2 TYP: Comprehension

18. When considering what is truly wanted from advertising research, the answer depends on whom you ask. If so, which of the following can be generally accepted as true? a. The ad agency wants numbers. b. The account team wants to know if the ad works. c. The client wants awards for creativity. d. The creatives want account planning. ANS: B DIF: Moderate REF: p. 254 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

19. What single element is often at the center of agency conflict, usually between account managers and their creative teams due to their widely differing views on this issue? a. copy research b. product description c. online data gathering d. account planning ANS: A

DIF: Moderate

REF: p. 254

OBJ: 7-3

NAT: AACSB Analytic | CB&C Model Research

TYP: Comprehension

20. A particular kind of research is done early on simply to prevent a major disaster—to avoid erroneous communications, unexpected interpretations, or unintended meanings in an ad, particularly in diverse or global markets. What is it? a. a communication test b. a recall test c. a normative test d. a subliminal test ANS: A DIF: Moderate REF: p. 255 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

21. Which of the following is an example of cognitive residue, as advertisers would define it? a. having certain flashes of thought when a brand name is presented to you b. having a certain brand name in mind, above all others, and making a point to buy only that brand c. vaguely remembering a slogan and a jingle for a product d. knowing that you want to buy a product but not being sure why ANS: C DIF: Moderate REF: p. 256 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Application

22. Which type of research tries to identify specific cognitions that occur during an individual's exposure to a specific ad by having the person jot his or her thoughts down on the spot? a. day-after recall b. attitude-change study c. communication test d. thought listing ANS: D DIF: Easy REF: p. 257 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

23. What has been found to be the single most common cognitive response when evaluating an ad or commercial? a. “I want that.” b. “I don’t know what’s going on.” c. “That’s not true.” d. “This is stupid.” ANS: C DIF: Moderate REF: p. 257 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 7-3 TYP: Comprehension

24. What test takes place over several days, usually with viewers watching a show at a particular time, then being called later and questioned about its commercials? a. DAR b. MRI c. AIO d. ZMET ANS: A DIF: Moderate REF: p. 258 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

25. What is the basic premise behind a recall test? a. For an ad to work, it has to be remembered.

b. To be effective, an ad has to be based on motivation. c. To activate the memory, ads need five repeat exposures. d. If people like the ad, they will buy the product. ANS: A DIF: Moderate REF: p. 258 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

26. When fictitious magazines are prepared with prototypes of new ads inserted and the magazines are then shown to consumers, researchers are trying to measure what is known as a. advertising breakthrough. b. print recognition. c. content reception. d. print recall. ANS: B DIF: Moderate REF: p. 258-259 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Application

27. Researchers are trying to determine which advertisements are the most effective for a cereal company that is running a number of commercial spots. After participating, viewers are asked if they saw a cereal commercial during a show; some require further prompting so are asked if they saw a Raisin Bran ad. These respondents would be documented as showing a. aided recall. b. unaided recall. c. claim-recall. d. related-recall. ANS: A DIF: Difficult REF: p. 258 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Application

28. Which concept is used when identifying and calculating the percentage of people who accurately recalled specific elements of an ad when tested? a. claim-recall b. related-recall c. unaided recall d. aided recall ANS: B DIF: Difficult REF: p. 258 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

29. The widely used recognition tests for print ads, with the Starch firm as the main supplier, have another name. What is it? a. copy tests b. cognitive residue measurements c. readership tests d. cognitive response analysis ANS: C DIF: Moderate REF: p. 259 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

30. A key advantage of using print recognition to test an ad is that it a. demonstrates whether or not a consumer will buy the brand being advertised. b. allows for comparison with the performance of other ads from past years. c. tells whether consumers will remember the brand when they are in the store. d. reassures the client that the ad agency knows what it is doing. ANS: B

DIF: Moderate

REF: p. 260

OBJ: 7-3

NAT: AACSB Analytic | CB&C Model Research

TYP: Comprehension

31. Recall measurements probably make the most sense when the goal is to a. visualize a picture or image of the brand. b. feel an emotion connected to the brand. c. remember the brand name. d. think of a time when the brand can be successfully used. ANS: C DIF: Moderate REF: p. 260 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

32. Which of the following is a tactic that might be used in an implicit memory measure? a. completing a brand name after being given only half of its letters b. filling in the blank to finish a sentence about the ad just seen c. visualizing the last time a particular commercial was seen on TV d. describing what you think may be happening in a picture ANS: A DIF: Moderate REF: p. 261 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Application

33. Explicit memory measures are those in which consumers are required to a. demonstrate their knowledge of a product. b. search their memories about a product by using word fragments or pictures. c. take part in testing that includes recall, recognition, and/or retained knowledge. d. recall their actual exposure to the test ad for a product. ANS: D DIF: Moderate REF: p. 261 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

34. A major problem associated with attitude tracking to evaluate advertising effectiveness is that although sometimes people’s attitudes toward a brand do change, a. they cannot be accurately measured with a test. b. they rely heavily on an artificial viewing experience. c. they only occur with repetitive exposures. d. they don’t always translate to sales increases. ANS: D DIF: Difficult REF: p. 262 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-4 TYP: Comprehension

35. Which of the following are properties of emotions that make them potentially more important than thoughts in assessing ad reactions? a. They are good predictors of thoughts. b. They are hard to understand but indicative of eventual purchase behavior. c. They are easy to define and describe. d. They are clear indicators of subliminal reactions. ANS: A DIF: Difficult REF: p. 263 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

36. Which method hopes to zero in on the emotional components of ads by having respondents turn dials to show their like or dislike while viewing commercials? a. single-source tracking b. eye-tracking system c. pre- and post-exposure attitude measurement d. frame-by-frame testing

ANS: D DIF: Moderate REF: p. 264 NAT: AACSB Technology | CB&C Model Research

OBJ: 7-3 TYP: Knowledge

37. The value of an inquiry/direct response posttest measure is that it is a. a straightforward measurement of ads designed to generate inquiries. b. cheaper than other forms of ad testing. c. versatile enough to be used for many different kinds of ads. d. available to consumers as they respond to the ad being tested. ANS: A DIF: Moderate REF: p. 266 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-4 TYP: Comprehension

38. Both advertising and promotion are used to build brands. For which of the two is it easier to measure effects that estimate contribution to sales, and why? a. advertising, because memory of ad imagery is simple to measure b. promotion, because statistical models can isolate the effect of the promotion c. advertising, because consumer recall of taglines is unusually high d. promotion, because responses can be specifically identified and tracked ANS: D DIF: Difficult REF: p. 266 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-4 TYP: Application

39. Which of the following is accurate in discussing account planning? a. It is taking the place of brand management. b. Its cost is less than that of relying on secondary sources. c. It eliminates the need for secondary research. d. It is replacing the research department in many highly regarded creative ad agencies. ANS: D DIF: Moderate REF: p. 268 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 7-4 TYP: Comprehension

40. The text indicates that no existing advertising research method is perfect. But it does recommend certain kinds of approaches for the future. What are they? a. more quantitative approaches b. more single-effectiveness measures c. fewer qualitative approaches d. more naturalistic methods ANS: D DIF: Moderate REF: p. 269 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 7-4 TYP: Comprehension

41. What recent trend in advertising indicates that new thinking on conducting ad research is needed? a. the increasingly younger consumer population in the United States b. the move to a more visual advertising style from largely verbal approaches c. the expansion of research departments within established agencies d. the popularity of scientific evaluation and statistical proof of consumer behavior ANS: B DIF: Moderate REF: p. 269 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 7-4 TYP: Comprehension

Scenario 7-1

Scheduled to be released in the first quarter of 2011, Nintendo’s portable 3DS gaming system will likely revolutionize the video game industry. The 3DS is the newest in a long line of portable gaming systems made by Nintendo, but will now boast a number of new features—including 3-dimensional technology that does not require the use of any special viewing goggles or glasses. The new system will also allow consumers to play classic games from older generations of Nintendo products, watch 3D movies, and create fictional “Mii” characters that were made famous by Nintendo’s Wii. Nintendo hopes its new gaming system will once again put Nintendo at the top of the video game industry, having lost some of its market share to Sony and Microsoft in recent years. 42. (Scenario 7-1) To determine which features to include in the 3DS, Nintendo did a large amount of research probing consumer opinions towards video games. To do so, Nintendo used a(n) ______ that allowed consumers to be the “judge and jury” in evaluating the quality of their new idea. a. concept test b. attitude study c. frame-by-frame test d. physiological assessment ANS: A DIF: Moderate REF: p. 242 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Knowledge

43. (Scenario 7-1) In order to gather secondary research to support the company’s own primary research, Nintendo visited a number of social media sites hoping to find online communities with knowledge of the video game industry. This intense Internet searching is referred to as a. Web mining. b. tracking software. c. commercial browsing. d. normative test scoring. ANS: A DIF: Moderate REF: p. 247 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 7-2 TYP: Knowledge

44. (Scenario 7-1) Before the 3DS was released, Nintendo created a series of television commercials and print ads to promote the product. The ads are shown to a group of study participants, and then the participants are asked to express how they felt about the advertisement. This is an example of a a. survey. b. recall test. c. communication test. d. thought listing. ANS: C DIF: Moderate REF: p. 255 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Application

Scenario 7-2 You have been appointed director of research for the Rhode Island Runners, a new minor league baseball team that will make its debut in about six months. There have been minor league franchises in the area in the past, but due to a lack of fan support they all have folded. The Runners’ upper management is convinced that past failures were the result of improper marketing of the teams. Therefore, management has committed a substantial amount of money to developing smart, effective advertising. Management has put you in charge of an intensive one-year program to guide and track the advertising. 45. (Scenario 7-2) In designing the new marketing campaign, developmental advertising research would be helpful in a number of areas. And when considering its marketing goals, the Rhode Island Runners staff should be aware that just about the most important service developmental research provides is a. statistical analysis.

b. product description. c. audience profiling. d. scientific evaluation. ANS: C DIF: Easy REF: p. 243 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-1 TYP: Comprehension

46. (Scenario 7-2) Your team has determined the main benefit that must be communicated in the advertising—that going to the ballpark is an affordable way to bring families closer together. Several print ads are in near-finished format. You want to directly measure the immediate and spontaneous responses of consumers, as ideas and reactions pop into their heads while viewing the ads and shortly afterwards. In this case, a good technique to use is a. physiological measurement. b. thought listing. c. copy testing. d. attitude study. ANS: B DIF: Difficult REF: p. 257 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Application

47. (Scenario 7-2) You have determined that the major competitors in the family leisure market are movies, theme parks, and outdoor festivals. You use a theater test to measure attitude change resulting from a TV commercial being tested for the Runners. The spot does not do very well in the test. Still, your gut instincts say that the commercial is a good one. When reporting the results to the team owners, you should point out that a. the commercial shouldn’t run as is, despite your own opinion of it. b. these measures don’t always predict actual sales. c. the identification of competitors may have been inaccurate. d. theater audiences are not considered scientifically reliable. ANS: B DIF: Difficult REF: p. 262 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Application

48. (Scenario 7-2) Tracking studies will be good tools for this campaign, since they follow the apparent effect of the advertising over time, and this type of follow-up is required throughout the first year of this baseball team’s campaign. Tracking studies are almost always done in which format? a. focus group b. survey c. projective test d. readership test ANS: B DIF: Easy REF: p. 266 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-4 TYP: Knowledge

49. (Scenario 7-2) All the Rhode Island Runners’ advertisements feature a phone number to get more information and to order tickets. This allows you to use ____ to assess advertising effectiveness. a. brand-talk b. split-cable and split-run testing c. inquiry/direct response d. single-source tracking ANS: C DIF: Moderate REF: p. 266 NAT: AACSB Technology | CB&C Model Research

OBJ: 7-4 TYP: Knowledge

Scenario 7-3

After filing for bankruptcy in 2009 and requiring nearly $58 billion in governmental funding simply to stay afloat, General Motors realized it had to undergo major changes in order to compete with more successful automakers. The company began designing questionnaires and focus groups in order to gain a better understanding of what its cars had been lacking, and perhaps probe for specific improvements consumers may have been looking for. The company recorded its research findings and began to apply them to its product line. A little over a year later, Consumer Reports stated that 83 percent of Chevrolets, GM’s top brand, had an average or better score in terms of predicted reliability, an increase from 50 percent the year before. Apparently, the company’s efforts have helped turn the company in the right direction. (“Consumer Reports: GM Reliability Makes Great Strides.” MSNBC.com, October 26, 2010.) 50. (Scenario 7-3) In its research, GM hoped to find why consumers liked certain features in their cars and disliked others. GM inquired about consumer wants and needs, and then looked to apply its findings to product development. This process is called a. developmental advertising. b. design thinking. c. concept testing. d. audience profiling. ANS: B DIF: Moderate REF: p. 242 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-1 TYP: Comprehension

51. (Scenario 7-3) GM relied heavily on focus groups to learn about some of its product shortfalls. Although focus groups may serve as a good source of qualitative information, many quickly downplay their overall effectiveness. One common criticism of focus groups is a. they provide a great deal of insight. b. they are never valid. c. they are very low in reliability. d. focus group members feel empowered and privileged. ANS: C DIF: Moderate REF: p. 244 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 7-1 TYP: Comprehension

52. (Scenario 7-3) One common technique used in focus groups involves the researcher presenting a scenario, and then the members of the group must complete a phrase or sentence. This technique is used in order to a. create confusion within the group. b. let the researcher establish a dominant presence. c. create opportunities for idea development. d. elicit honest and unedited thoughts and feelings. ANS: D DIF: Moderate REF: p. 245 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-1 TYP: Application

53. (Scenario 7-3) Allowing consumers to look at advertisements in a group can be a powerful indicator of their true feelings toward a particular ad. Peer influence can be observed, and hopefully, some level of post-test screening can be done to create increased validity. These elements are characteristic of what kind of studies? a. attitude studies b. cognitive response studies c. behavioral studies d. quantitative studies ANS: A

DIF: Moderate

REF: p. 262

OBJ: 7-3

NAT: AACSB Communication | CB&C Model Research

TYP: Knowledge

Scenario 7-4 You are the director of advertising research at a large Minneapolis ad agency. Due to employee turnover and budget cuts, you're currently staffed with too many entry-level research assistants and too few management-level research group leaders. To make matters worse, one of the group heads is on vacation and another is out sick. Of course, your clients still expect their research to be done in a timely, professional manner. Therefore, you have gathered your department together and announced that your door is always open if anyone has any questions about any phase of any project. As a result, your entire day has been filled with questions. 54. (Scenario 7-4) An assistant comes in and says she needs some advice. One of the smaller clients of the agency needs some market information done very quickly—and very inexpensively. You tell her a. to set up focus group interviews. b. to call a commercial service. c. to use direct mail surveys. d. to get on the Internet. ANS: D OBJ: 7-2 TYP: Application

DIF: Moderate REF: p. 247-248| p. 251 NAT: AACSB Technology | CB&C Model Online/Computer

55. (Scenario 7-4) An assistant comes in and says that she can find relevant secondary information about the U.S. quickly because the Internet is her best friend and she’s familiar with government sites, but she’s not sure about finding information from all over the world. You give her the Web address for a. Eurobarometer. b. the Census. c. International Social Survey Programme. d. Current Population Survey. ANS: C DIF: Moderate REF: p. 250 OBJ: 7-2 NAT: AACSB Diversity | CB&C Model International Perspective TYP: Application 56. (Scenario 7-4) One assistant comes in to show you the results of some recognition tests that have been run on a magazine advertisement. She is really excited by the high levels of recognition. You caution her not to get too excited, because high levels of recognition a. rarely be judged by normative data. b. don’t always correlate to higher product sales. c. can be inaccurate since respondents don't get to see the ad beforehand. d. calculate feelings about an ad rather than thoughts about an ad. ANS: B DIF: Moderate REF: p. 260 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

57. (Scenario 7-4) One research assistant is drafting a proposal for a research project. The client's primary objective is to find out whether the new ad rings true with consumers, or whether they think, “Yeah, I feel that way” when viewing the ad. The employee wants to know what test would specifically explore this aspect of the ad. You reply that ____ would be best. a. thought listing b. resonance testing c. recall testing d. recognition testing ANS: B

DIF: Difficult

REF: p. 263

OBJ: 7-3

NAT: AACSB Analytic | CB&C Model Research

TYP: Application

58. (Scenario 7-4) An assistant is working with a company that heard about using UPC data from packages to generate information on how households turn information from advertising into actual purchases. She’s never heard of it. What type of research is this? a. inquiry/direct response measures b. frame-by-frame testing c. single-source tracking d. split-transmission testing ANS: C DIF: Difficult REF: p. 267-268 NAT: AACSB Technology | CB&C Model Research

OBJ: 7-4 TYP: Application

Scenario 7-5 The Solutions Group is a combination of companies that help clients better understand their target markets through creative research approaches. It has learned that many people have become quite adept at filtering out advertising messages and therefore do not respond to traditional research instruments such as surveys. The Solutions Group says that there must be a "research revolution" based on true dialogues with consumers, not one-way monologues often seen in traditional surveys. 59. (Scenario 7-5) The Solutions Group likes to ask its clients’ potential customers a wide variety of questions so they can share their thoughts about themselves, their lives, and all the daily elements that are important to them. What type of research does this represent? a. dialogue balloon b. frame-by-frame c. projective d. activities, interests, and opinions ANS: D DIF: Easy REF: p. 243 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Application

60. (Scenario 7-5) Solutions Group executives may consider trying _____, the popular technique in which people’s buried thoughts about brands are drawn out by having them define their feelings creatively with other visual representations. a. ZMET b. ISSP c. AIO d. ACS ANS: A DIF: Moderate REF: p. 245 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Knowledge

61. (Scenario 7-5) The Solutions Group may want to center on field work as its primary research method because it is designed to measure “embedded” consumer practices, that is, a. those conducted on the spot in stores, malls, and on Internet retail sites. b. those tightly intertwined in the real lives of consumers. c. those previously subconscious thoughts or hidden feelings that are revealed. d. those habitual and almost automatic purchasing decisions. ANS: B DIF: Difficult REF: p. 246 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-1 TYP: Comprehension

62. (Scenario 7-5) Solutions Group managers suggest that clients consider doing a resonance test when designing advertising, because this will help understand target consumers regarding their a. recognition of the brand.

b. potential purchase of the brand. c. emotional connection to the brand. d. attitude changes about the brand. ANS: C DIF: Moderate REF: p. 263-264 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

63. (Scenario 7-5) A number of “revolutionary” techniques can be found by the Solutions Group in an attempt to unearth consumers’ true feelings and honest opinions about brands and ads. But it should be remembered that problems with validity most likely arise in studies when respondents are asked to a. taste products in blind taste tests. b. recall their memories about ads for a particular brand. c. share their thoughts and opinions about certain brands. d. do things they don’t normally do in real life when viewing ads. ANS: D DIF: Moderate REF: p. 264 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Comprehension

Scenario 7-6 Wood Carver Cabinet Makers recently developed a line of kitchen cabinets designed for new custom homes and kitchen remodeling jobs. The line of cabinets is to be called "Signature Hardwoods" and a new magazine advertising campaign is being tested. Each of the ads that is being tested has a photograph of a woodworker handcrafting some part of the cabinet. In addition, his or her signature is shown at the bottom of the page as an indicator that the cabinets are carefully hand made. 64. (Scenario 7-6) A marketing manager at Wood Carver said in a manager's meeting, "We have to get quick feedback on the overall quality and usefulness of these new ideas. We’ll just have to let the focus group make the final judgment on these ads.” Which research method is he considering? a. survey b. concept test c. direct response measure d. tracking study ANS: B DIF: Easy REF: p. 242 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Application

65. (Scenario 7-6) Wood Carver might consider testing the magazine ad by recruiting a group of potential consumers to take part in story construction. What would a story construction technique ask these respondents to do? a. provide a narrative about people depicted in a scene or picture b. identify the functional utility of a product c. fill in blanks in sentences that describe an ad d. think visually about how they would represent their experiences with a brand ANS: A DIF: Moderate REF: p. 244-245 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-1 TYP: Knowledge

66. (Scenario 7-6) To target new markets, Wood Carver is looking for up-to-date information—the latest available—on employment, occupation, and income throughout the country without having to pay a fee for commercial data. National data on consumers is gathered by the U.S. Census through a number of avenues, but one of its survey instruments publishes monthly statistics on just these topics. Which is it? a. Pew Center Survey b. Current Population Survey c. American Demographics Survey

d. International Social Survey ANS: B DIF: Difficult REF: p. 250 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-2 TYP: Knowledge

67. (Scenario 7-6) Wood Carver wants to know if readers remember having seen its print ads, and possibly its name. Unlike television ad testing, the standard test for magazine ads is the a. print recall test. b. tracking study. c. brand-talk search. d. recognition test. ANS: D DIF: Moderate REF: p. 258 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-3 TYP: Application

68. (Scenario 7-6) Wood Carver recruited a group of consumers who were thinking about remodeling their kitchens and asked them a series of questions about selecting new cabinets. A week later, Wood Carver showed the consumers several of its magazine ads and then asked them questions to measure their opinions towards the Wood Carver Cabinet products. What type of study did Wood Carver conduct? a. attitude change b. split-transmission c. thought listing d. physiological ANS: A DIF: Moderate REF: p. 262 NAT: AACSB Communication | CB&C Model Research

OBJ: 7-3 TYP: Application

ESSAY 1. Briefly trace the reasons for the rise of research—specifically, advertising and brand promotion research—after WWII. Why did agencies create large research departments? How did universities get involved? How did consumers feel about research? When was research at its height of popularity, and when did things change? You do not have to provide a lot of detail, just a brief sketch of these issues. ANS: After WWII, American business had great faith in what science could do, while at the same time American consumers felt an underlying concern about its manipulation for evil ends rather than for the public good. As for the industry, the 1950s was the heyday of marketing research. Some companies had already had research specialists for a hundred years, but now even the average firm felt the need to create an expansive research department for three basic reasons—the popularity of anything related to “science;” the birth of research departments at other agencies; and the real need to understand how ads worked. An economic boom, a focus on consumption, and a need to understand persuasion allowed agencies the luxury of demanding more psychological research, more motivational theories, more hidden meanings. Research became legitimatized and respected in the industry. As for universities, they embraced science and experimentation as the only way to understand persuasion, forming advertising departments and teaching courses during this time. And they began to turn out persuasion “experts” trained to advise the creatives on Madison Avenue.

For consumers, things were different. On the surface there was a public adoration for all things scientific and technological—even reflected in books, plays, and movies—but also a focus on repressed subconscious and Freudian analysis. WWII propaganda had proven that the “science of persuasion” existed and could be exploited. There was real concern about mind-control techniques, subliminal methods, and hidden forms of mass persuasion that could now be used by Madison Avenue. Consumers were scared by the Cold War, the advancement of communism, the very real possibility of nuclear attack. Advertisers took advantage of these fears, a lesson that still applies and still influences many forms of promotion today. If consumers feel an underlying anxiety or fear, advertisers will use that anxiety or fear to sell products. By the 1980s, agencies began to voice their mistrust in these long-held research methods.Too often, research had asked the wrong questions, used inappropriate methods, or misinterpreted findings. In the past decade, many agencies have considered research to be a luxury or an unnecessary element. Many have closed their departments, replacing them with account planning departments or contracting out research services only when needed. And now they are looking for qualitative information based on real-life use of the product, not quantitative data based on columns of numbers. Overall, quantitative research is seen as irrelevant or only rarely needed. And with the explosion of nontraditional sources of promotion and new forms of media, it is becoming even more rare. DIF: Moderate REF: p. 239-241 OBJ: 7-Intro NAT: AACSB Analytic | CB&C Model Research

TYP: Comprehension

2. What are the three broad forms of advertising research? Briefly describe each form, as well as when and how it is used. If you can, list some of the methods and techniques related to each. ANS: The three broad forms of advertising research are developmental advertising and promotion research (used before ads are made), copy research (used as ads are being finished), and results-oriented research (used after ads are launched and running). Developmental advertising research (also called consumer insight) attempts to generate ideas and create effective messages that will reach the target audience. It helps creatives and account teams to understand this audience—their identity, their history, their perceptions of needs and wants, and their expectations regarding product use. It provides this information while they are actually visualizing and drafting ads, improving on early versions, and imagining final creations. Since this research takes place early in the process, it influences the way the ads, promotions, forms of branded entertainment, or entire IBP campaigns are shaped before a lot of mistakes are made and a lot of money is spent. This is why it is often considered the most valuable kind of advertising research. The types of developmental research include design thinking, concept testing, audience profiling, focus groups, and projective techniques (dialogue balloons, story construction, picture and sentence completion, ZMET), and field work. Copy research acts as a report card that evaluates the actual text or design of the ads, finished or unfinished. Its name comes from the original focus on the copy, though today it also involves visuals. It can provide valid data, but asking the wrong questions can lead to faulty ratings, especially when pressured to supply the client with numbers—usually normative test scores, which rate the ad based on those of competitors. Though many ads defy measurement, having a good score at least says that they “test well.” Creatives tend to hate arbitrary scores that compare their unique productions against “average” ads, while account execs tend to demand them because the client wants them. So copy research is often the main source of tension in an agency. The types of copy research include communication tests, thought listings or cognitive response analyses, recall tests, recognition tests, implicit memory measures, surveys, attitude studies, resonance tests, frame-by-frame tests, and eyetracking systems.

Results-oriented research is conducted to see whether the ads out there are working. This can generate useful information, but the timing is the problem—the ad is already running, so the data is provided after the fact, after much time and money has been spent on producing and finalizing the ad and paying for media space. The types include tracking studies, inquiry/direct response measurements, sales estimates, or single-source data. DIF: Difficult REF: p. 241-246| p. 253-265| p. 266-268 NAT: AACSB Analytic | CB&C Model Research

OBJ: 7-1| 7-3| 7-4 TYP: Comprehension

3. When should a marketer use secondary data? What are the advantages of using such data and what cautions should be taken? Name and briefly describe the four broad areas that offer secondary data used by today’s marketers. ANS: Secondary data should be obtained before an advertiser begins primary research. Secondary data offer a low-cost and speedy method for gaining information about consumers’ lives and can lead to useful consumer insights. However, the data must be scrutinized for currency, the appropriateness of the measurement units for the marketer’s particular situation, the qualifications of the data collection organization, any special interests associated with the data generation effort, and, most importantly, relevance and meaning regarding products and brands. Data can be found through several broad channels: Internal company sources (annual reports, marketing plans, sales summaries, warranty cards, consumer letters, etc.) are usually the first places to look. Government sources (massive amounts of data on population, housing, transportation, recreation, and spending) Start with the U.S. Census Bureau, including its Census of Population and Housing (published every 10 years) and Current Population Survey (published annually) for the Bureau of Labor Statistics. Additionally, the National Archives and Records Administration offers a wide range of data on American culture. Global information can be found through Eurobarometer and the International Social Survey Program. Commercial sources specialize in geographic data-gathering, often at the household, neighborhood, or zip code level, as offered by such firms as PRIZM and the Pew Center. Internet sources have revolutionized developmental research, particularly for smaller firms and agencies. Common search engines allow access to enormous amounts of data, and human search costs have been slashed. Web-based interest groups, online communities, and social networking sites can be utilized. Advertisers can gain incredibly relevant data at virtually no cost if they are careful in their searches, though specialized engines can also be purchased. Additionally, the Web can be mined (through the relatively new practice of netnography) for answers to specific questions, to analyze chatter about products or competitors (brand-talk) by searching key words, or to conduct online surveys. DIF: Moderate REF: p. 247-253 OBJ: 7-2 NAT: AACSB Analytic | CB&C Model Research

TYP: Comprehension

4. What is a recall test? How is it conducted, and how are its respondents measured and labeled? What is a recognition test? How is it conducted, and why does it usually produce a higher percentage of positive answers? ANS:

Recall tests ask respondents what ads they remember having seen in a given vehicle, then ask for data about specific message content they remember. These tests are the most commonly employed, but the most controversial, since they are based on the idea that the ads that are most remembered are the ones that work best. Since they do not provide an ad as an example, recall tests require a great deal of actual memory. They are used the most in evaluating television commercials. The day-after-recall procedure involves phoning respondents after viewing the ad, prompting them based on their responses, and recording and transcribing their answers. Each individual may demonstrate one of two levels of recall: unaided (needing no prompting to remember the commercial and brand name) or aided (after prompting with the mention of the brand name). Aided recall can be further subdivided into two categories—claim recall (percent of respondents who claim they saw the ad), and related recall (percent who accurately relate elements of the ad). Recognition tests do provide a particular advertisement to evaluate. They show respondents an ad and ask if it looks familiar, or if they have seen it before.These tests require less actual memory, and have a higher percentage of positive answers than recall tests because the ad is in front of respondents and they are merely asked if they remember having seen it in a given vehicle at a previous time. They are used more often to evaluate print advertising. The big advantage is that firms can compare recognition scores to those of ads in the past. They are limited in that they often measure little more than exposure, often overestimating true effectiveness because respondents only need to answer that yes, they have seen the ad, even if they haven’t. A drawback of both types of test is that there is little evidence to prove that higher recall or recognition scores actually relate to higher sales. DIF: Difficult REF: p. 258-259 OBJ: 7-3 NAT: AACSB Analytic | CB&C Model Research

TYP: Comprehension

5. One of your advertising agency’s clients has asked for a description of how an attitude study is performed on a television commercial in a theater test setting. Describe this process in general terms. (It is not necessary to describe the measurement scale.) In your answer, include a summary of the reasons why you would do such a test and the advantages and disadvantages of this method of pretesting ads. ANS: The typical attitude study uses a before-and-after-ad-exposure design. People from the target market are recruited, and their pre-exposure attitudes toward the advertised brand as well as competitors' brands are taken. Then they are exposed to the test ad, along with some dummy ads. Following this exposure, their attitudes are measured again. The goal, of course, is to gauge the potential of specific versions of the ad to change brand attitudes before selecting the one most likely to do so for actual airing. The reliability of these procedures is fairly high. However, the meaning of the scores in terms of predicting changed brand perceptions is an issue, because the test is based on one or two advertising exposures in an unnatural viewing environment. Many advertisers believe that commercials don't even register their impact until after three or four exposures. DIF: Difficult REF: p. 262 OBJ: 7-3 NAT: AACSB Analytic | CB&C Model Research

TYP: Application

6. What is account planning? In what three ways does it differ from traditional advertising research? ANS: Account planning differs from traditional forms of marketing research in several ways.

First, agencies using this system assign an account planner to work closely with an account executive and gather needed data for a particular client’s business—an ad, campaign, or entire IBP effort. Unlike a research department with its occasional input on any given project, the account planner stays with the project from beginning to end. Second, this system puts research into a different but more prominent role. As researchers, account planners are more actively involved throughout the entire process, though they often make a big push up front, tending to do more developmental research and less evaluative research. Third, these researchers do more qualitative and natural research than traditional research departments. In some ways, appointing an account planner has also been used as a sly method for downsizing or totally eliminating a costly full-time research department. DIF: Moderate REF: p. 268 OBJ: 7-4 NAT: AACSB Technology | CB&C Model Marketing Plan

TYP: Comprehension

Chapter 8 - Planning Advertising and Integrated Brand Promotion TRUE/FALSE 1. An advertising plan should be a direct extension of a firm’s marketing plan. ANS: T DIF: Easy REF: p. 278 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Comprehension

2. An advertising plan is designed to create sales strategies for the client in a process that is totally separate from the overall marketing plan. ANS: F DIF: Moderate REF: p. 278 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 8-1 TYP: Knowledge

3. The initial section of the ad plan should be a budgeting section that directly states what it will cost to implement this plan. ANS: F DIF: Easy REF: p. 279 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Knowledge

4. The situation analysis of an advertising plan includes historical context as well as evaluation of the industry, the market, and the competition. ANS: T DIF: Moderate REF: p. 279 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Knowledge

5. Years spent in marketing or advertising often turn an individual’s cultural values into a type of inner comfort zone that zeros in on cultural nuances, thinks globally, and fights ethnocentrism. ANS: F DIF: Moderate REF: p. 280 NAT: AACSB Diversity | CB&C Model Promotion

OBJ: 8-1 TYP: Comprehension

6. It is tempting for both clients and agencies to rely on their own cultural attitudes and values as a subconscious guide in considering what other people want and need. Another name for this subconscious guide is bias. ANS: T DIF: Moderate REF: p. 280 NAT: AACSB Diversity | CB&C Model Promotion

OBJ: 8-1 TYP: Comprehension

7. A historical background is a key element in an advertising plan, one that should include the history of all main players, the industry, the brand, and the corporate culture. ANS: T DIF: Moderate REF: p. 281 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Comprehension

8. The competition’s strengths, weaknesses, tendencies, and any threats they pose are included in the competitor analysis. ANS: T DIF: Easy REF: p. 283 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Knowledge

9. Advertisers should set only one objective in an advertising plan. ANS: F DIF: Easy REF: p. 284 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-1| 8-2 TYP: Comprehension

10. Few companies use purchase intent as the criterion in setting ad objectives because it tends to be much less accurate in predicting sales than other factors, such as attitude. ANS: F DIF: Difficult REF: p. 285 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-1| 8-2 TYP: Comprehension

11. Some argue that sales should not be set as an objective for advertising, since advertising is only one variable in an entire marketing mix and cannot be solely responsible for selling the product. ANS: T DIF: Difficult REF: p. 285 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-2 TYP: Comprehension

12. Viewing advertising strictly from a communications perspective has its disadvantages. For example, it restricts marketers to a narrower range of advertising strategies. ANS: F DIF: Difficult REF: p. 286 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 8-2 TYP: Comprehension

13. Both clients and agencies can get mired in analyses, objectives, logistics, and other details. But in the background there is often a voice reminding them that there is only one rule—advertising must sell. ANS: T DIF: Easy REF: p. 286 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-2 TYP: Comprehension

14. Objectives for advertising are measurable only through quantifiable variables. ANS: T DIF: Moderate REF: p. 286 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-2 TYP: Knowledge

15. Well-stated objectives work best when they set a benchmark, specify a measurement method, and define a time frame. ANS: T DIF: Difficult REF: p. 286-287 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-2 TYP: Comprehension

16. When an ad agency is asked to recommend a budget to the client, it is usually the account executive who handles this. ANS: T DIF: Easy REF: p. 287 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Knowledge

17. Setting an advertising budget based on the percentage-of-sales approach sounds simple, but it is full of problems. ANS: T DIF: Moderate REF: p. 287-288 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

18. Share of voice, or share of market, is a method that bases an ad budget on whatever significant competitors are spending. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

ANS: T DIF: Moderate REF: p. 288 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Knowledge

19. Share of voice has its problems, but is most often used when launching new products. ANS: T DIF: Easy REF: p. 288 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

20. The method of budget setting that focuses on the relationship between spending and advertising objectives is the margin-analysis approach. ANS: F DIF: Moderate REF: p. 290 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Knowledge

21. Minor modifications are common, but every precaution should be taken to avoid having to radically alter a budget after it is submitted. ANS: T DIF: Moderate REF: p. 292 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

22. Based on information gathered during various types of analyses, the primary expectations and intentions for advertising are embodied in the process of setting objectives. ANS: T DIF: Moderate REF: p. 293 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

23. The copy strategy is one of two main parts you will consider when you are actually launching and conducting the overall advertising plan. ANS: T DIF: Easy REF: p. 293 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Knowledge

24. The one point where all the money is spent—and where much money can be saved—is when you are conducting the evaluation. ANS: F DIF: Moderate REF: p. 294 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

25. The many forms of brand promotion that will supplement the advertising effort do not need to be spelled out in the ad plan, since this would add too much length and detail. ANS: F DIF: Easy REF: p. 294 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 8-3 TYP: Comprehension

26. When devising the evaluation stage of ad planning, it is determined how much time the agency has, how it will be graded, and what criteria will be applied when judging its efforts. ANS: T DIF: Easy REF: p. 295 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Knowledge

27. The essence of agency-client teamwork is to answer the question concerning what brand should be promoted within the market.

ANS: F DIF: Easy REF: p. 295-296 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 8-4 TYP: Comprehension

28. An advertising agency may take an active role in helping the client formulate the marketing plan. ANS: T DIF: Easy REF: p. 296 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-4 TYP: Comprehension

29. In essence, what an agency reasonably expects from a client involves autonomy, total creative control, and an open-ended approach to the time and resources to be allocated. ANS: F DIF: Moderate REF: p. 296 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-4 TYP: Comprehension

MULTIPLE CHOICE 1. Apple used a wide array of options to create interest and communicate the value proposition for its brands like the iPad and iPhone. Which of the following was NOT included in Apple’s advertising plan? a. billboard ads b. manufacturing schedule c. product placement d. promotional events ANS: B DIF: Easy REF: p. 278 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Knowledge

2. It has recently been suggested that if you accept the philosophy that “____” is media, it will be much easier to surround the consumer with messages and connect the consumer to brands. a. society b. entertainment c. everything d. journalism ANS: C DIF: Moderate REF: p. 279 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Comprehension

3. The first element to appear in an advertising plan is the ____, and the last element is the ____. a. executive summary; execution b. introduction; evaluation c. history; strategy d. overview; competitor analysis ANS: B DIF: Moderate REF: p. 279 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Knowledge

4. In an advertising plan, the ____ is the section in which the client and the agency lay out the key factors that define the current conditions and then explain the importance of each factor. a. execution b. strategy c. situation analysis d. evaluation ANS: C

DIF: Easy

REF: p. 279

OBJ: 8-1

NAT: AACSB Communication | CB&C Model Marketing Plan

TYP: Knowledge

5. If a reader of an advertising plan remembers only one part, it should be the a. situation analysis. b. executive summary. c. strategy. d. objectives. ANS: B DIF: Moderate REF: p. 279 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Comprehension

6. An insurance company’s researchers spend a lot of time and money trying to understand various agerelated markets, from WWII veterans and baby boomers to Generations Y and Z. Based on their findings, the target markets that are ultimately chosen based on such demographics should be defined in the ____ section of the ad plan. a. situational analysis b. competitor analysis c. executive summary d. strategy ANS: A DIF: Difficult REF: p. 279-280 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 8-1 TYP: Application

7. A young man heads the marketing team for a national electronics retailer. He has before him the task of drafting the ad plan for the company. From a long list of situational factors, which is probably the single most important one for him to consider? a. projected industry growth b. advertising spending by competitors c. basic demographic trends d. economic and regulatory restrictions ANS: C DIF: Difficult REF: p. 280 OBJ: 8-1 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 8. A global jewelry retailer serving diverse markets is concerned that its agency is unaware of some cultural issues that may come up in its campaign, since none were addressed in the initial advertising plan. The client is worried that the agency staffers may be unconsciously relying only on their own personal values, experiences, and backgrounds to make promotional decisions, referring to a concept called a. ethnocentrism. b. international advertising. c. share of voice. d. self-reference criterion. ANS: D DIF: Difficult REF: p. 280-281 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 8-1 TYP: Application

9. The industry analysis and market analysis work together to form part of the overall situation analysis. The industry analysis focuses on ____ and the market analysis focuses on ____. a. consumers; competitors b. brand; product c. supply; demand d. objectives; tasks

ANS: C DIF: Difficult REF: p. 281-282 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Comprehension

10. Looking ahead to an expanding demand for burial plots as the huge population of baby boomers ages, the owner of a cemetery on the outskirts of a city hires an agency to create a sophisticated ad campaign. In knowing its current users and predicting its future users, the cemetery owner is identifying the factors on the demand side of the sales equation. In the advertising plan, this information a. should be explained in the industry analysis. b. can be listed as an objective. c. should be noted in the market analysis. d. belongs in the evaluation section. ANS: C DIF: Difficult REF: p. 282-283 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 8-1 TYP: Application

11. The ____ part of an overall situation analysis commonly begins by stating who the current users are and why they are current users. a. historical context b. industry analysis c. competitor analysis d. market analysis ANS: D DIF: Moderate REF: p. 283 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Knowledge

12. What does the objectives section of an advertising plan do? a. defines those who use the product b. notes possible barriers and problems c. estimates probable costs d. identifies concrete goals ANS: D DIF: Easy REF: p. 284 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1| 8-2 TYP: Knowledge

13. The account planner at an Indianapolis ad agency has done a survey and found that a significant percentage of people already recognize the name of the cold remedy his firm is about to advertise. When consumers know that a brand exists and recall its name to some degree, they are demonstrating a. brand loyalty. b. brand switching. c. brand awareness. d. top-of-the-mind awareness. ANS: C DIF: Moderate REF: p. 284 NAT: AACSB Communication | CB&C Model Customer

OBJ: 8-1| 8-2 TYP: Application

14. A fragrance manufacturer wants its target customers to demonstrate top-of-the-mind awareness regarding its long-standing perfume, Bouquet. This means that when they are asked to think of perfumes, they would a. include the name Bouquet somewhere on their list. b. realize that they want to purchase Bouquet. c. think of Bouquet first. d. only be able to think of Bouquet. ANS: C

DIF: Moderate

REF: p. 284

OBJ: 8-1| 8-2

NAT: AACSB Communication | CB&C Model Customer

TYP: Application

15. To determine the public’s knowledge of a product, a marketer asks consumers to name five breakfast cereals. Cheerios is the cereal most often listed first, so it is considered to show a. top-of-the-mind awareness. b. purchase intent. c. ethnocentrism. d. market awareness. ANS: A DIF: Moderate REF: p. 284 NAT: AACSB Communication | CB&C Model Customer

OBJ: 8-1| 8-2 TYP: Application

16. A common objective for many clients is to create, change, or reinforce attitudes. Sometimes a number of logical, well-written arguments can make a strong case and ultimately influence attitudes. What method does this represent? a. repeat purchase approach b. information-dense approach c. brand-switching approach d. visual imagery approach ANS: B DIF: Moderate REF: p. 284 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-1| 8-2 TYP: Comprehension

17. In theory, of the major options for advertising objectives, ____ asks the least of consumers and ____ demands the most. a. trial usage; brand awareness b. purchase intent; trial usage c. trial usage; repeat purchase d. brand awareness; brand switching ANS: D DIF: Difficult REF: p. 284-285 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1| 8-2 TYP: Comprehension

18. A frozen dessert manufacturer wants to see an increase in consumers who say they do plan on buying desserts at one of its outlets soon, so the manufacturer sets this as its objective in the ad plan. In doing so, the underlying assumption here is that purchase intent is a. synonymous with positive attitudes. b. accurately and reliably expressed by consumers. c. an easier goal to reach than most other objectives. d. a reliable indicator of repeat purchases. ANS: B DIF: Difficult REF: p. 285 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 8-1| 8-2 TYP: Application

19. The account executive in charge of promoting a new perfumed bath soap for women is not expecting a sudden attachment and loyalty to the product—though that would be nice—but realistically, she would like women to at least buy it once and see how they like it. What type of objective does she reflect? a. purchase intent b. trial usage c. repeat purchase d. build-up purchase ANS: B DIF: Moderate REF: p. 285 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1| 8-2 TYP: Application

20. Some analysts argue that ____ objectives are the only legitimate and reasonable goals for advertising, because advertising is only one variable in a complex market mix. a. sales b. market share c. profit d. communications ANS: D DIF: Easy REF: p. 285 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-2 TYP: Comprehension

21. Combining sales objectives with communications objectives a. will almost certainly spell disaster for an advertising plan. b. may seem effective on paper but may confuse consumers during the campaign. c. is the only way to identify truly quantitative benchmarks for the campaign. d. can be an excellent way to develop an advertising campaign. ANS: D DIF: Difficult REF: p. 286 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-2 TYP: Comprehension

22. Which element is essential to articulating a well-stated advertising objective? a. a time frame b. a budget c. an overview d. an evaluation ANS: A DIF: Easy REF: p. 287 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-2 TYP: Comprehension

23. What is probably the most agonizing task to be done during an advertising effort? a. setting the objective b. creating the budget c. summarizing the campaign d. writing the copy ANS: B DIF: Moderate REF: p. 287 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

24. The CEO of a small but growing sports equipment firm has just announced that sales went up significantly last year. The marketing director is happy because her budget will go up also. This indicates that the firm is using the ____ to set the advertising budget. a. objective-and-task approach b. share-of-market approach c. percentage-of-sales approach d. advertising response function ANS: C DIF: Moderate REF: p. 287 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

25. The percentage-of-sales approach to advertising budgeting a. is best used during times of declining sales. b. is difficult to understand and operationalize. c. often leads to overspending or underspending. d. relates advertising dollars to advertising objectives. ANS: C DIF: Moderate REF: p. 288 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

26. Which budgeting method monitors the amount spent by significant competitors and then allocates an equal or proportionate amount as its advertising dollars? a. share-of-voice approach b. objective-and-task approach c. advertising response function d. percentage-of-sales approach ANS: A DIF: Easy REF: p. 288 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Knowledge

27. A marketing manager has always used the share-of-voice budget method and probably always will. One big problem with marketers who rely on a share-of-voice budget plan is that they assume, often wrongly, that a. their competition doesn’t know how to allocate its advertising dollars. b. their sales figures should automatically dictate their advertising figures. c. they know how much competitors are really spending. d. their ad is distinct, unique, and superior among all others in the field. ANS: C DIF: Moderate REF: p. 289 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

28. An “advertising ____ function” is a mathematical relationship that associates the money spent on advertising with the sales generated. a. sales b. communications c. task d. response ANS: D DIF: Easy REF: p. 289 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Knowledge

29. Of all options for creating advertising budgets, the ____ relies most heavily on a marginal analysis involving the company's past sales, profits, and ad expenditures. a. objective-and-task method b. share-of-market method c. percentage-of-sales system d. advertising response function ANS: D DIF: Difficult REF: p. 289 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

30. Failing to address how the expenditures being proposed will actually meet the goals being pursued is a major downfall of the typical advertising budget. In fact, the only budgeting method that specifically relates spending to goals is the a. share-of-market approach. b. percentage-of-sales approach. c. objective-and-task approach. d. share-of-voice approach. ANS: C DIF: Moderate REF: p. 290 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

31. What is the first step in implementing the objective-and-task approach? a. identifying last year’s sales

b. determining costs based on a build-up analysis c. comparing expenditures against industry benchmarks d. calculating a marginal analysis ANS: B DIF: Easy REF: p. 291 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Knowledge

32. Within the advertising plan, what does a “build-up” analysis actually build up? a. the backlog of consumer profiles to be used b. the expenditure level for tasks to be done c. the sales expected to be seen d. the goals and objectives to be pursued ANS: B DIF: Moderate REF: p. 291 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

33. The strategy section of an advertising plan is the mechanism that states a. why the advertising is needed for this product or service. b. what goals need to be reached. c. how things will be done so that objectives are achieved. d. who will handle various promotional tasks. ANS: C DIF: Moderate REF: p. 293 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Knowledge

34. The ways in which the creative objectives will be accomplished are described in the a. copy strategy section. b. build-up analysis. c. objective-and-task method. d. media plan. ANS: A DIF: Moderate REF: p. 293 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Knowledge

35. Overall, the media plan specifies a. the objectives the advertiser intends to accomplish. b. exactly where ads will be placed and what strategy is behind their placement. c. the prediction of profits based on new advertising. d. the analysis of the market, industry, and competition. ANS: B DIF: Moderate REF: p. 293 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

36. John Wanamaker’s famous line, that “I know half my advertising is wasted, I just don’t know which half,” jokes about the difficulties associated with advertising a. execution. b. strategy. c. evaluation. d. objectives. ANS: C DIF: Moderate REF: p. 295 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Comprehension

37. A canned soup manufacturer and its agency are nailing down the responsibilities of each side as they begin their planning effort. In a nutshell, the agency will a. translate goals into strategies and create promotions and finished ads for the product.

b. provide input on the most important competition within the soup industry. c. identify the value that the product offers to customers. d. assess the external environment for potential soup purchases. ANS: A DIF: Moderate REF: p. 296 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-4 TYP: Application

38. Regarding the relationship between the client and agency, things will go most smoothly and efficiently when a. you see them as equal forces with equal power and responsibility. b. you can identify two distinct entities with clearly defined roles and tasks. c. you can tell that the agency does everything the client wants without question. d. you can’t tell where the work of one ends and the other begins. ANS: D DIF: Difficult REF: p. 296 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-4 TYP: Comprehension

39. Like many companies today, a young but growing electronics retailer knows it needs help. If it is like most clients, in what two areas does it need the most help from an ad agency? a. creating value for the product, and setting objectives b. integrating the brand within the media, and generating new ideas c. defining the product, and creating brand awareness d. creating the budget, and writing the copy ANS: B DIF: Difficult REF: p. 296 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-4 TYP: Comprehension

Scenario 8-1 You are owner of a 15-person advertising agency in a major market. You've been invited to pitch the Girl Powerz account, the largest female-only fitness center chain in the region, one that could quickly grow into a national franchise. If you land the account, it will be your biggest revenue producer by far. You'll be able to staff up, move to a nicer space, and buy some decent office furniture. It also will put you, personally, in a position to make a ton of money by selling out to a larger agency some day. Considering the importance of the pitch to Girl Powerz execs, you have decided to spearhead the pitch yourself. 40. (Scenario 8-1) You announce that you will write the part of the ad plan that contains the crucial information that Girl Powerz execs need to know, even if they remember nothing else. This means you will write the ____ section. a. situation analysis b. execution c. strategy d. executive summary ANS: D DIF: Moderate REF: p. 279 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Application

41. (Scenario 8-1) One of the main tasks will be to work with the marketing director at Girl Powerz to determine exactly what she wants from its new advertising campaign. Which elements identify the specific goals that you will ask her to provide, in concrete terms? a. strategies b. tactics c. objectives d. executions

ANS: C DIF: Easy REF: p. 284 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1| 8-2 TYP: Application

42. (Scenario 8-1) In the past, Girl Powerz has set sales objectives for its advertising. You feel that this doesn't take into account the overall complexities presented in the situation analysis. On the other hand, you don't want to risk alienating a potential client by totally rejecting its current practices. Therefore, you are recommending combining sales objectives with a. advertising objectives. b. marketing objectives. c. communications objectives. d. promotion objectives. ANS: C DIF: Moderate REF: p. 285-286 OBJ: 8-2 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 43. (Scenario 8-1) The folks at Girl Powerz initially consider using an advertising budgeting method that identifies a mathematical relationship associating ad dollars spent with sales generated. This would be the a. percentage-of-sales approach. b. ethnocentric method. c. advertising response function. d. share-of-voice approach. ANS: C DIF: Easy REF: p. 289 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

44. (Scenario 8-1) It is ultimately decided that the ad budget will base spending on what needs to be accomplished from a communications standpoint. This would be the a. objective-and-task approach. b. percentage-of-sales approach. c. share-of-voice approach. d. response model approach. ANS: A DIF: Moderate REF: p. 290 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

Scenario 8-2 Following the announcement that the world's largest e-tailer, Amazon.com, made a profit for the first time since it started business in the early 1990s, the company saw more than 90 percent of its market value disappear as part of the dot-com collapse. It is questionable whether or not Amazon figured out a profitable business model after changing its tune several times over those early years. Then it began circling back somewhat to an earlier focus on becoming the Walmart of the Internet. It said it wanted to sell huge volumes of merchandise cheaply, and in the process eke out enough of a profit to satisfy Wall Street. Although investors had to wait some time for the e-tailer to work out the kinks, and it's uncertain how much longer they'll remain patient, Amazon's mainstay retail business may see further improvements as it grows. As we all have now witnessed, unlike brick-and-mortar retailers who must build new stores, stock them, and hire people to staff them, Amazon has been able to open new stores with minimal additional cost. Some years ago, it reported turning over its inventory 17 times a year—close to double that of traditional retailers at the time. And on average, it reported having gotten paid 32 days before it must pay its suppliers—in essence, providing millions of dollars in cash flow. Information updated for 2011, based on the following initial articles:

(David Shook, "Can Amazon Turn Baby Steps Into Strides?," Businessweek Online, February 13, 2002.) (Rob Hof, “Why Amazon Could Keep Flowing,” Businessweek Online, January 5, 2005.) 45. (Scenario 8-2) Amazon.com began by facing a myriad of problems since its inception, with perhaps the biggest obstacle being the demise of hundreds of dot-com companies in the late 1990s and early 2000. Those dot-com companies that did survive initially had a difficult time making a profit, and over time a few began to face new competition. The issue as to who will supply online consumers has been continually evolving and changing since then. This type of information would most likely be noted in the ____ section of an ad plan. a. historical context b. industry analysis c. market analysis d. competitor analysis ANS: A DIF: Moderate REF: p. 281 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Application

46. (Scenario 8-2) In the early days of Internet shopping, people were skeptical about the idea of buying things over the computer, largely due to their worries about privacy issues combined with their habitual patterns of purchasing at retail outlets. Some concerns remain today. But many years after the shake-out of companies in the dot-com world, players that survived have come back stronger. And new players have come onto the scene. The demand is there, and this has instilled a feeling of trust in millions of customers who make purchases online. The concept of customers having enhanced trust in e-tailing would most likely be contained in the ____ section of the advertising plan. a. historical context b. market analysis c. industry analysis d. competitor analysis ANS: B DIF: Moderate REF: p. 282-283 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Application

47. (Scenario 8-2) Amazon was one of the first online retailers to launch advanced technology to track consumer visits and suggest products whenever they returned to the site. This ability to find out what customers have bought in the past, and project that they will buy similar items in the future, has been a key factor underlying Amazon's strategy and growth. When Amazon asks customers if they plan on buying certain products in the future, it is measuring a. share of market. b. brand awareness. c. share of voice. d. purchase intent. ANS: D DIF: Moderate REF: p. 285 NAT: AACSB Communication | CB&C Model Customer

OBJ: 8-2 TYP: Application

48. (Scenario 8-2) Like many firms, Amazon has refined its priorities over the years. Many firms begin by setting as their advertising objective something that is often disputed by communications-oriented marketers. They choose ____ as their primary advertising objective. a. stimulating trial use b. boosting sales c. establishing brand recall d. identifying purchase intent ANS: B

DIF: Moderate

REF: p. 285-286

OBJ: 8-2

NAT: AACSB Communication | CB&C Model Marketing Plan

TYP: Application

49. (Scenario 8-2) When dealing with its advertising agency, Amazon wants a strategy that maximizes media expenditures to target the appropriate markets. It is Amazon’s primary responsibility to bring forth a well-articulated statement of the brand's _____, a key concept in reaching and informing the customer through promotion. a. analysis b. awareness c. competition d. value ANS: D DIF: Difficult REF: p. 296 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-4 TYP: Application

Scenario 8-3 After working as an account executive in an advertising agency for 20 years, you've decided to chuck it all and be your own boss. You buy a neighborhood hardware store from a man who has owned and run the business for the past 52 years—Springfield Hardware. He sells the store and all the inventory, with one warning—he wasn't much on paperwork, so there won't be a lot of records to be found. You hand him a cashier's check, and he leaves without looking back. He heads to a vacation at a Club Med, and you head to an office that hasn't been cleaned in 52 years to create your ad plan. 50. (Scenario 8-3) Due to the lack of records, you have no way of knowing what Springfield Hardware has gone through over the years. You can only guess about the hardware needs of the local population, and the store’s target market and customer base. This will be a major hindrance in writing the ____ sections of your situation analysis. a. overview and executive summary b. industry analysis and historical context c. strategy and execution d. historical context and market analysis ANS: D DIF: Moderate REF: p. 281-283 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Application

51. (Scenario 8-3) There is one thing you’d like to see as a result of your ad campaign—you want local residents to not only know your name, but to think of it first when they need a hardware store. When you think of hardware, think of Springfield. Which concept defines this objective? a. top-of-the-mind awareness b. purchase intent c. trial usage d. repeat purchase ANS: A DIF: Moderate REF: p. 284 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1| 8-2 TYP: Application

52. (Scenario 8-3) Your goals are very important at this stage, and you want to avoid budgeting methods that neglect to consider goals. This means that you can cross off one approach that is notorious for failing to relate advertising dollars to advertising objectives. And since you have no past records, this method would be impossible to implement anyway. Which one is it? a. share-of-market approach b. share-of-voice approach c. percentage-of-sales approach d. objective-and-task approach ANS: C

DIF: Moderate

REF: p. 287

OBJ: 8-3

NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Application

53. (Scenario 8-3) You're currently deciding exactly where and when ads will be placed, and determining the strategy behind each placement. This takes a while—with the explosion of Internet sites, outdoor advertising, and innovative promotions, the options are almost unlimited. In this way, you are a. setting up account services. b. creating a media plan. c. devising a budgeting method. d. doing advertising research. ANS: B DIF: Easy REF: p. 293-294 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

54. (Scenario 8-3) You decide that as soon as you are financially able, you will hire an agency to put together an advertising plan for you. In fact, you never even want to think about one again. Unfortunately, reality sets in and you realize that even if you do hire an agency, you will still have to provide the agency with statements regarding a. the value proposition and the marketing mix. b. the budget recommendation and the ad strategy. c. the competition and the media plan. d. the ad design and ad placement. ANS: A DIF: Difficult REF: p. 296 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-4 TYP: Application

Scenario 8-4 American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. 55. (Scenario 8-4) Within various sections of the ____ portion of its advertising plan, American Express explains how and why Visa has been more successful at penetrating the small business market because of lower fees. a. evaluation b. execution c. strategy d. situation analysis ANS: D DIF: Moderate REF: p. 279 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-1 TYP: Application

56. (Scenario 8-4) Within the ____ portion of its advertising plan, American Express suggests that the most important outcome of the campaign will be for Visa customers to start to switch to American Express in this market segment. a. strategy b. execution c. situation analysis d. objectives ANS: D DIF: Moderate REF: p. 284 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-2 TYP: Application

57. (Scenario 8-4) American Express marketers say they do not use the ____ advertising budgeting method because if sales begin to decrease in this segment, so will their budget. a. share-of-market approach b. percentage-of-sales approach c. share-of-voice approach d. objective-and-task approach ANS: B DIF: Moderate REF: p. 287-288 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

58. (Scenario 8-4) The marketers are keenly aware that many budgeting methods fail to address the objectives originally set and relate these to the dollars to be spent. Which budgeting technique does American Express ultimately most likely decide to use, based on this awareness and the information in this scenario? a. share-of-market approach b. objective-and-task approach c. percentage-of-sales approach d. share-of-voice approach ANS: B DIF: Moderate REF: p. 290 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

59. (Scenario 8-4) American Express has decided to do a specific type of analysis that focuses on reach, frequency, time frame, production costs, media expenditures, and other specific elements. These factors are always included in a(n) _____ analysis. a. market b. situation c. build-up d. industry ANS: C DIF: Moderate REF: p. 291 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

Scenario 8-5 Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market in several months. In test marketing, many consumers liked the product but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands. Helene Curtis has always used an objective-and-task approach to develop advertising budgets. Due to these research results, the firm must now do a detailed build-up analysis. 60. (Scenario 8-5) Helene Curtis has once again decided to use objective-and-task budgeting to set the advertising expenditures.This is the only budgeting method that focuses specifically on advertising spending a. as leading to advertising sales. b. as calculated by a mathematical formula. c. as determined by percentage of gross profit. d. as related to advertising objectives. ANS: D DIF: Moderate REF: p. 290 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

61. (Scenario 8-5) The advertising agency for Helene Curtis is in the process of doing a build-up analysis. This means it is a. isolating the key costs in moving from awareness to preference to purchase of the

shampoo. b. determining the cost of building up awareness of the new shampoo to a predetermined level. c. adding up each cost associated with a task identified in the advertising plan for the shampoo. d. determining the approximate time frame that will be necessary to meet all advertising objectives in promoting the shampoo. ANS: C DIF: Difficult REF: p. 291 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

62. (Scenario 8-5) Which element of the build-up analysis will identify the demographic and geographic exposure that the advertising for the shampoo hopes to achieve? a. frequency b. media c. production d. reach ANS: D DIF: Moderate REF: p. 291 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

63. (Scenario 8-5) The build-up analysis will also address costs not listed elsewhere, particularly those associated with advertising to the trade and doing specialized research. Which factor does this involve? a. ancillary costs b. production costs c. media expenditures d. promotional costs ANS: A DIF: Difficult REF: p. 291 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

64. (Scenario 8-5) The number of exposures required to accomplish the advertising objectives for the shampoo, referred to as ____, will also be included in the build-up analysis for Helene Curtis. a. execution b. production c. frequency d. reach ANS: C DIF: Moderate REF: p. 291 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 8-3 TYP: Application

ESSAY 1. Describe the essential difference between an industry analysis and a market analysis. In what section of an ad plan are they typically included? What are the other considerations for an advertiser that should be part of this section? Where does the competitor analysis come in? ANS: An industry analysis focuses on developments and trends within an industry and on any other factors that may make a difference in how an advertiser proceeds with an advertising plan. An industry analysis should enumerate and discuss the most important aspects of a given industry, or the supply side of the supply-demand equation.

A market analysis is the flip side of an industry analysis. It describes the demand side of the supplydemand equation. An advertiser examines the factors that drive and determine the market of consumers for the firm's product or service. First, the advertiser needs to identify and define that market. An industry analysis and a market analysis are both part of a situation analysis. Advertisers should also include the historical context and a competitor analysis as part of this situation analysis. A competitor analysis, conducted after these initial analyses are completed, identifies the main competitors, their strengths and weaknesses, and any serious threats that they represent. DIF: Difficult REF: p. 279-283 OBJ: 8-1 NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Comprehension

2. There are a number of criteria for setting advertising objectives. Define these terms: brand awareness, top-of-the-mind awareness, purchase intent, trial usage, repeat purchase, and brand switching. Then choose two of these concepts and give real-life examples. ANS: Brand awareness is an indicator of consumer knowledge about the existence of a brand and the ease with which that knowledge can be retrieved from the consumer’s memory. Top-of-the-mind awareness is the condition that occurs when one brand comes up first in the consumer’s list of preferred or remembered brands. Purchase intent is the expression by the consumer to buy the brand at some time in the future, presumably indicating that the consumer is closer to actual behavior than merely having a positive attitude toward the brand. Trial usage is the actual behavior of a consumer in trying a new brand and hoping that it will live up to the expectations created by the advertising. This concept is commonly used as an advertising objective. Repeat purchase is the instance in which a consumer tries a new product and then buys it a second time (also called conversion). It is considered a great milestone toward gaining new regular users. Brand switching is the instance when a consumer discards one brand for another. It is a noble goal for advertisers, but reaching it can be a long and arduous task. DIF: Moderate REF: p. 284-285 OBJ: 8-2 NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Comprehension

3. Why is the objectives section of an advertising plan so important to an advertiser? Name at least three of the objectives described in the text. For each objective, list one important consideration for advertisers. ANS: Advertising objectives identify the goals of the advertiser in concrete terms. Without them, there would be no solid direction for the campaign. Brand awareness is a popular advertising objective. Creating or maintaining brand awareness is an indicator of consumer knowledge about the existence of the brand and the ease with which that knowledge can be retrieved from memory. Ease of retrieval from memory is important because for many consumer goods or services, it is predictive of market share.

Attitudes and beliefs can also be addressed in an advertising objective. This usually involves creating or changing attitudes and beliefs about the product. However, while attitudes may give a good indication of intentions and feelings about certain products, they do not necessarily predict actual buying behavior. Purchase intent is another popular criteria in objective setting. The appeal of influencing purchase intent is that, compared to consumer attitudes, consumer intentions are closer to actual behavior, and thus closer to the desired sale. Trial usage is an indicator of actual behavior and is commonly cited as an advertising objective. In the case of new products, stimulating trial use is critically important. Repeat purchase is aimed at the percentage of consumers who try a new product and then buy it a second time. The odds of long-term product success go way up when this percentage is high. Brand switching is a challenging advertising objective. Convincing consumers to permanently switch brands is a noble goal but it is not easy to accomplish—it can take a lot of time, effort, creativity, and money, and even then it may not be a successful venture. Sales is sometimes listed as an advertising objective, but it can be a controversial one. The idea that advertisements should directly increase product sales is often disputed by marketers, since advertising is only one element in a complex market mix, and many other factors can affect sales. DIF: Difficult REF: p. 284-285 OBJ: 8-2 NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Comprehension

4. A marketer at a large advertising agency has been assigned the task of developing advertising objectives for a nationally known brand of orange juice called Sweet Sunshine. What are the advantages of viewing the advertising effort from strictly a communications viewpoint, as opposed to a sales objectives viewpoint? Regardless of which viewpoint is ultimately adopted, what characteristics should the objectives display to allow the Sweet Sunshine client to make intelligent decisions about resource allocation? ANS: Many marketers would take the stance that communications objectives are the only legitimate objectives for advertising a brand like Sweet Sunshine. They would argue that it is not reasonable to set sales objectives for its advertising effort when other variables in the mix might undermine the advertising effort, or might be responsible for sales of Sweet Sunshine orange juice (or lack of sales) in the first place. In addition, viewing advertising as primarily a communications effort will allow the marketer to consider a broader range of ad strategies in promoting the Sweet Sunshine brand. Overall, communications objectives should create an awareness for the Sweet Sunshine brand, offer information about its features and benefits, and develop a favorable attitude toward the brand that may lead to consumer preference. These objectives have certain advantages over sales objectives—they consider a broader range of strategies, and they gain a greater appreciation for the overall communications process. But there is always the idea, even if it is in the background, that advertising must sell. So the marketer may use both types, as long as certain criteria are met. Any objectives that enable a firm to make intelligent decisions about resource allocation—whether based on communications or sales—must be stated in an advertising plan in terms specific to the organization. The objectives must establish a quantitative benchmark, specify measurement methods and criteria for success, and identify a time frame for the desired results to occur.

DIF: Difficult REF: p. 285-286 OBJ: 8-2 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 5. You are the marketing manager for an online merchandiser of a diverse line of casual sportswear, athletic clothing, and outerwear for both men and women. Write a brief memo to your advertising agency. In the memo, explain why you'd like the agency to abandon its recommendation for a shareof-market strategy in creating the budget. Give several reasons why this approach is unfavorable. Then explain why you want the agency to adopt an objective-and-task method. Also, there are four main steps that must be taken to implement this approach after advertising objectives are determined. List as many as you can. (It is not necessary to describe the steps in detail.) ANS: Share-of-market strategy. In the memo, you will want to explain that you can run into several problems associated with the share-of-market method of setting advertising objectives. First, it may be difficult to gain access to precise information about your competitors' expenditures. Second, there is no reason to believe that your competitors are spending their money wisely, or in a way even remotely related to what your firm wants to accomplish. Third, a likely outcome of budgeting in this fashion is that your firm will make little headway over the competition and but will simply maintain the status quo. Fourth, the flaw in logic behind this method is the presumption that every advertising effort has the same goals, is of the same quality, and will have the same effect from a creative execution standpoint. Objective-and-task strategy. Now your memo will address the preferred alternative. The objective-andtask approach will allow you to focus on the relationship between your spending and your advertising objectives. The budget is formulated by identifying the specific tasks necessary to achieve different aspects of the objectives. The four major steps that must be taken after advertising objectives have been set are (1) using a build-up analysis to determine costs; (2) comparing the costs against industry and corporate benchmarks; (3) reconciling and modifying the budget; and (4) determining the time frame for payout. DIF: Difficult REF: p. 288-292 OBJ: 8-3 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 6. A good advertising plan is the result of combining the knowledge and talents of both the advertising agency and the client. In heading up a team that is creating the marketing plan for a large cosmetics firm, an account manager needs to make sure all goals are met and all responsibilities are assigned. For what issues does the client take primary responsibility? For what elements does the agency take primary responsibility? ANS: The client’s role is to produce all necessary information on the firm, the brand, the product, and the market. It should identify the firm's basis for offering value to customers. The client should also clearly identify the external environment and the opportunities and challenges that can be addressed with advertising. In addition, it should include a well-articulated statement of the brand's competitive position and the marketing mix strategies designed to gain and sustain competitive advantage.

The agency's role is to use all that information and its own expertise to create finished ads. It should consider the conditions in the current market plus the firm’s marketing status and ad objectives, and then translate this information into promotional strategies and, ultimately, into finished advertisements. An agency best serves its client by taking charge of the preparation and placement stages. The agency needs to hammer out message strategies and tactics for the advertising effort and for the effective design and placement of ads—overall, it needs to manage the entire IBP process. DIF: Moderate REF: p. 295-296 OBJ: 8-4 NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Application

Chapter 9 - Managing Creativity in Advertising and IBP TRUE/FALSE 1. Creative advertising people and creative advertising organizations have to be willing to take risks, shake things up, and upset some people. ANS: T DIF: Moderate REF: p. 310 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-Intro TYP: Comprehension

2. Brands make emotional connections when they engage consumers with detailed knowledge, accurate information, and logical facts. ANS: F DIF: Moderate REF: p. 311 NAT: AACSB Analytic | CB&C Model Product

OBJ: 9-Intro TYP: Comprehension

3. Great brands don’t just get the attention of consumers, they make emotional connections with consumers. ANS: T DIF: Moderate REF: p. 311 NAT: AACSB Analytic | CB&C Model Brand

OBJ: 9-Intro TYP: Comprehension

4. There is absolutely no doubt that humor is the secret ingredient in great advertising. ANS: F DIF: Moderate REF: p. 311-312 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-Intro TYP: Comprehension

5. Creativity is very different depending on the domain in which it exists. ANS: F DIF: Moderate REF: p. 313 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Knowledge

6. Ideas that are born of true creativity reveal their own unique logic, so most people will respond by saying, “Wow, I don’t get it.” ANS: F DIF: Difficult REF: p. 313 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

7. Howard Gardner's selection of seven of the greatest creative minds of the 20th century, as discussed in the textbook, listed individuals from a variety of advertising and promotional fields. ANS: F DIF: Easy REF: p. 313 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Knowledge

8. In his analysis of some of the most creative people of the 20th century, Gardner found that they had little interest in social life, often neglected family members, and dismissed the idea of cultural conformity. ANS: T DIF: Moderate REF: p. 313 NAT: AACSB Diversity | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

9. A total commitment to one's creative work seems to be a positive trait with essentially no downside, according to Howard Gardner. ANS: F DIF: Moderate REF: p. 313 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

10. Gardner supports the contention that creative people have much less interest in playing by the rules, acting nice, and being socially acceptable compared to more ordinary people. ANS: T DIF: Moderate REF: p. 313-314 NAT: AACSB Diversity | CB&C Model Creativity

OBJ: 9-1 TYP: Knowledge

11. Gardner found that despite the passion for their work, widely recognized creative people are particularly shy about getting exposure for their work. ANS: F DIF: Difficult REF: p. 314 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

12. Creative thinkers demonstrate complex and mature thoughts, while ordinary people often have simple and childlike thoughts. ANS: F DIF: Moderate REF: p. 314 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

13. The creative person appears to strongly desire marginality—being an outsider—and this marginality provides the energy needed to push forward with innovative ideas. ANS: T DIF: Difficult REF: p. 314 NAT: AACSB Diversity | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

14. Based on the findings of Gardner and others, extreme levels of creativity seem to lead to a satisfying personal life and a carefree professional life. ANS: F DIF: Moderate REF: p. 314 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

15. Lee Clow, dubbed “The Dude Who Thought Different,” thought his real gift of creativity was not as an individual, but as a synthesizer for the creative efforts of others. ANS: T DIF: Moderate REF: p. 315 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

16. Creativity is viewed in the business world as a negative quality for employees because creative people are hard to work with. ANS: F DIF: Easy REF: p. 315 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

17. Though countless books and magazines give advice on being creative (and in fact, so does the text), it is almost impossible to truly learn to become more creative—basically, you either have it or you don’t. ANS: F DIF: Moderate REF: p. 315-316 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

18. Those who really understand creativity and the world of advertising know that good ideas can come from anywhere—the managers, the accountants, even the clients. ANS: T DIF: Moderate REF: p. 316 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

19. If you have a "creative" job, that means you are "creative." ANS: F DIF: Easy REF: p. 316 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

20. Creatives in ad agencies almost always have ideas just “come” to them, like magic. ANS: F DIF: Easy REF: p. 317 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-2 TYP: Comprehension

21. As a social process, advertising is marked by the struggles for control and power that occur within departments, between departments, and between the agency and its clients on a daily basis. ANS: T DIF: Moderate REF: p. 317 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-2 TYP: Application

22. It is a common situation in ad agencies that the account services department and the creative department do not agree on the ultimate goal for an advertisement. ANS: T DIF: Easy REF: p. 318 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-2 TYP: Knowledge

23. The kinds of ads that cause headaches for the account executive are the same kinds of ads that often win awards for the creative department. ANS: T DIF: Difficult REF: p. 319 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-2 TYP: Comprehension

24. The tension between an agency's accounts services department and research department is similar to the historical conflict between art and science. ANS: F DIF: Moderate REF: p. 320 NAT: AACSB Analytic | CB&C Model Research

OBJ: 9-2 TYP: Comprehension

25. In agencies, people in research departments are often put in the tough position of having to “judge” creative work. ANS: T DIF: Moderate REF: p. 320 NAT: AACSB Communication | CB&C Model Research

OBJ: 9-2 TYP: Comprehension

26. One of John Sweeney’s suggestions about creativity is that bad work is more a matter of talent than structure. ANS: F DIF: Moderate REF: p. 321 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-2 TYP: Knowledge

27. Executing an IBP campaign is like performing as a symphony orchestra—many individuals are simultaneously making unique contributions to create a final piece. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

ANS: T DIF: Easy REF: p. 323 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Application

28. Preparing and executing a breakthrough IBP campaign is rarely a people-intensive business—it usually hinges on the creative work and the business acumen of a few key individuals. ANS: F DIF: Moderate REF: p. 323 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

29. Unfortunately, effective teams are often incompatible with the “American way” of individualism—the personal contribution is often forgotten in the rush to form a cohesive group and build a consensus. ANS: F DIF: Moderate REF: p. 324 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

30. The creative brief is a small document with a big role—in essence, it gets everyone moving in the same direction. ANS: T DIF: Easy REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

31. The creative brief provides guidelines for the creative process, which unfortunately often defeats the purpose and ends up restricting creativity. ANS: F DIF: Moderate REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

32. By brainstorming, a group or team can quickly generate novel solutions to a problem. ANS: T DIF: Easy REF: p. 328 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

33. There is a right way and a wrong way to brainstorm. ANS: T DIF: Easy REF: p. 328 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

34. Robert Sternberg has found that to be more creative, you need to spend time gaining knowledge but also avoid getting mired in so much knowledge that creativity is stifled. ANS: T DIF: Moderate REF: p. 330 NAT: AACSB Reflective Thinking | CB&C Model Creativity

OBJ: 9-4 TYP: Application

35. Robert Sternberg’s suggestions for boosting creativity stress that you should learn to see problems the way other people see them. ANS: F DIF: Moderate REF: p. 330 NAT: AACSB Reflective Thinking | CB&C Model Creativity

OBJ: 9-4 TYP: Comprehension

MULTIPLE CHOICE 1. Research shows that the primary benefit of creative, award-winning ads is that they

a. b. c. d.

showcase an agency’s style, innovation, and originality. act as a sophisticated form of entertainment. get people to feel something. break through the clutter and get remembered.

ANS: D DIF: Easy REF: p. 310 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-Intro TYP: Comprehension

2. Looking back, the main problem with Burger King’s 2004 status in the eyes of the public was that consumers a. didn’t know what it served. b. were unaware of the name. c. thought it was boring and irrelevant. d. confused it with other fast food outlets. ANS: C DIF: Moderate REF: p. 310-311 NAT: AACSB Communication | CB&C Model Customer

OBJ: 9-Intro TYP: Comprehension

3. The following four people work at the cutting-edge Zanadu Agency. Based on the common personality traits and professional characteristics of the seven greatest creative minds of the 20th century as noted in the text, which one probably works in the creative department? a. Mia, who is quiet, calm, humble, conforming, and friendly to everyone in the room b. Simone, who is extroverted, personable, intelligent, fashionable, and a great partner to clients c. Jackson, who is self-confident, alert, unconventional, hard-working, and driven to the point of obsession d. Carlos, who is edgy, intense, goal-oriented, logical, and focused on the bottom line ANS: C DIF: Difficult REF: p. 313 NAT: AACSB Reflective Thinking | CB&C Model Creativity

OBJ: 9-1 TYP: Application

4. Though it is almost impossible to define, creativity is essentially the ability to a. build emotional bonds. b. make new connections. c. rebel against logic. d. make difficult decisions. ANS: B DIF: Easy REF: p. 313 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

5. A creative person tends to look at the world and think about the way things a. ought to be. b. could be. c. always are. d. have to be. ANS: B DIF: Moderate REF: p. 313 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

6. Socrates mused that creativity can be a divine gift from heaven, one received in the form of a. humor. b. intelligence. c. talent. d. madness. ANS: D

DIF: Moderate

REF: p. 313

OBJ: 9-1

NAT: AACSB Communication | CB&C Model Creativity

TYP: Comprehension

7. Which of the following would most likely be experienced by a highly creative person coming up with ideas for a new commercial? a. putting objects together that can be classified in the same way b. putting ideas together in an unusual way that makes its own kind of sense c. putting people together who seem like they should go together d. putting labels on things and places so they can be identified together ANS: B DIF: Difficult REF: p. 313 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

8. Howard Gardner discovered a number of positive traits that the greatest creative minds of the 20th century shared. But he found that these individuals were not necessarily a. self-confident. b. easygoing. c. hardworking. d. unconventional. ANS: B DIF: Moderate REF: p. 313 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

9. Which individuals did Howard Gardner highlight in his book, Creating Minds, in his pursuit of the most creative people of the past century? a. Edison, Einstein, Twain, Roosevelt, Gandhi, Disney, and Vonnegut b. Picasso, Bernstein, Van Gogh, Nureyev, Frost, Hemingway, and Einstein c. Eliot, Bradbury, Ellington, Graham, Churchill, Wright, and Edison d. Freud, Einstein, Picasso, Stravinsky, Eliot, Graham, and Gandhi ANS: D DIF: Moderate REF: p. 313 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

10. During Gardner’s work in identifying seven of the most creative people of the 20th century, he identified some negative sides to their lives. Which five characteristics did they all appear to have in common? a. egotistical, narcissistic, obsessed, socially isolated b. delusional, irrational, antisocial, psychotic c. inattentive, unfocused, impatient, hyperactive d. dysfunctional, clingy, codependent, impulsive ANS: A DIF: Moderate REF: p. 313-314 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

11. The textbook suggests that creativity almost always reflects a. social norms. b. high intelligence. c. childlike thinking. d. psychosis. ANS: C DIF: Moderate REF: p. 314 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Comprehension

12. The following comments were overheard at a huge party thrown by a well-known ad agency for its biggest corporate client. Based on points made in the text, which is the most accurate representation of the way the corporate world views creative people?

a. b. c. d.

“They’re way overrated—what has creativity ever done for business, anyway?” “Nobody wants a creative employee—it’s just not a valued trait anymore.” “We all need them—but nobody really knows who they are or how they do it.” “They’re simple to spot—the smiling ones who get along with everybody.”

ANS: C DIF: Difficult REF: p. 315 NAT: AACSB Reflective Thinking | CB&C Model Creativity

OBJ: 9-1 TYP: Application

13. Whose amusing take on creative departments was featured in the text, peppered with comments about spending time with feet up talking about movies, watching the clock tick and the deadline near, and staring at the partner’s shoes propped on the other desk? a. Carl Jung, psychologist and author b. Lee Clow, advertising mentor c. John Sweeney, advertising instructor d. Luke Sullivan, copywriter and author ANS: D DIF: Difficult REF: p. 316-317 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-2 TYP: Comprehension

14. Most research concerning the contentious environment in the world of advertising places the ____ in a central position as a focus of the conflict. a. account executive b. creative department c. client d. agency owner ANS: B DIF: Moderate REF: p. 317 NAT: AACSB Communication | CB&C Model Research

OBJ: 9-2 TYP: Comprehension

15. Various personnel see ads in various ways. For instance, people in the creative department tend to see an advertisement as a way to a. achieve a predetermined objective. b. showcase a personal ideology. c. grow the market share for the brand. d. reflect the client’s thinking. ANS: B DIF: Easy REF: p. 318 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-2 TYP: Knowledge

16. While members of the account management team may admit that the creative department is full of experts in expression and design, they also commonly feel that creatives a. do not share management’s goals. b. cannot meet deadlines. c. kill the innovative ideas that they claim to value. d. ignore the copy in favor of the visuals. ANS: A DIF: Moderate REF: p. 318 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-2 TYP: Comprehension

17. It is somewhat of a generalization, but the creative department of an agency is usually seen by potential clients as a. a pampered group of difficult artists that are best left alone. b. a subdivision of the powerful account services department. c. a nice addition but not really essential to an agency's strength. d. a key issue when selecting an agency.

ANS: D DIF: Easy REF: p. 318-319 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-2 TYP: Comprehension

18. According to the text, creativity in advertising is most often stifled by a. a firm's shareholders who know little about promotion and advertising. b. media buyers who choose the wrong channels for the ads. c. account managers who want nothing more than to play it safe. d. clients who don’t realize they are killing the very ideas they originally sought. ANS: D DIF: Easy REF: p. 319 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-2 TYP: Knowledge

19. Who is the liaison between the two main parties involved in promotion—the client and the agency? a. the agency owner b. the account services manager c. the creative director d. the account executive ANS: D DIF: Easy REF: p. 319 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 9-2 TYP: Knowledge

20. In economic recessions or in other situations requiring downsizing within an agency, which is one of the first positions to be cut? a. the account executive b. the creative director c. the budgeting manager d. the research director ANS: A DIF: Moderate REF: p. 319 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-2 TYP: Knowledge

21. One tip from John Sweeney, a former creative director, is that if you’re working with a pool of talented people, they’ll produce their best work if you a. hand them over to the account executive. b. keep them out of any conflicts that arise. c. give them some structure. d. just agree with them. ANS: C DIF: Moderate REF: p. 321 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-2 TYP: Comprehension

22. Without a leader, the many individuals on an IBP campaign are compared in the text to a. athletes exercising as they get ready for a game. b. symphony musicians making noise as they warm up. c. artists splashing paint on a wall. d. children arguing as they play in a sandbox. ANS: B DIF: Moderate REF: p. 323 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Application

23. Well-known innovator Lee Clow comments on his own creativity by saying that he was a much better ____ than a(n) ____. a. businessman; artist b. conductor; soloist c. follower; leader

d. player; coach ANS: B DIF: Moderate REF: p. 323 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

24. Advertising is a(n) a. solo occupation. b. individual competition. c. team sport. d. business rather than an art. ANS: C DIF: Easy REF: p. 323 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

25. Which of the following is true concerning teams? a. They try to blend diverse skills but are rarely successful. b. They have become the primary means for getting things done. c. They squash individuality and creativity all too often. d. They were popular in the 80s and 90s but are now considered a passing fad. ANS: B DIF: Moderate REF: p. 324 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

26. An old saying applies to the idea of individuality within teams in the world of advertising. It goes like this: “If you and I think alike . . .” a. “. . . then one of us is unnecessary.” b. “. . . then you must be right.” c. “. . . then we’ll make a good team.” d. “. . . then we’re probably both wrong.” ANS: A DIF: Moderate REF: p. 324 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

27. In their book, The Wisdom of Teams, Katzenbach and Smith offered a number of insights about teams. Which of the following was NOT included in the text? a. They operate on synergy. b. They avoid focusing on results. c. They promote personal growth. d. They are accountable for performance. ANS: B DIF: Moderate REF: p. 324-325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

28. Leadership over creative teams involves at least three main tasks, one of which is a. working closely with the client. b. allowing team members to work independently. c. contributing ideas without dominating the group. d. suggesting a list of advertising objectives. ANS: C DIF: Moderate REF: p. 324-325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

29. Juan has just been assigned the role of team leader of his creative group for a new ad campaign. What is Juan’s first job? a. to suppress any disagreements b. to meet with the client

c. to provide a list of his ideas d. to build consensus about goals ANS: D DIF: Moderate REF: p. 324-325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

30. Leaders of creative teams do many things, but one thing they should never do is to a. stick to the advertising plan. b. allow an individual to fail. c. jump in and do the real work. d. admit a team mistake. ANS: B DIF: Moderate REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

31. The text suggests that you think of an account team as a ____ with the team leader in the middle. a. football huddle b. game of tag c. string of pearls d. bicycle wheel ANS: D DIF: Moderate REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

32. All members of an account team are also a. employees of the client. b. assigned to the creative department. c. team leaders for their own groups of specialists. d. members of the accounts services department. ANS: C DIF: Easy REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

33. Which of the following is true about the creative brief? a. It tends to actually stifle any creative effort. b. It sets primary goals for the client. c. It allows plenty of room for creativity. d. It results from team brainstorming. ANS: C DIF: Moderate REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

34. In essence, a creative brief is a(n) a. informal contract depicting the responsibilities of the creative team. b. set of guidelines to get the creative group moving in the right direction. c. solution to the primary problem of the ad campaign. d. list of possible ideas to use in the ad campaign. ANS: B DIF: Moderate REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

35. Who prepares the creative brief? a. the client leader and the account executive b. the owner(s) of the agency c. the client brand manager and the head of the creative department d. the account executive assigned to the campaign

ANS: A DIF: Moderate REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

36. Teams are able to “liberate decision making” when members a. all think alike and agree with one another. b. allow the leader to make all the decisions. c. trust one another and feel it’s safe to contribute. d. just make suggestions but leave decisions to the client. ANS: C DIF: Difficult REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

37. There is quite a bit of evidence showing that account teams come up with ideas that are a. pleasing to clients but not award-winning. b. the most creative and the most useful. c. funny or memorable but not linked to the brand. d. the products of conformity and groupthink. ANS: B DIF: Easy REF: p. 325-326 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

38. Well-known psychologist Carl Jung identified three sets, or dimensions, of cognition. Which of the following pairs are included in these dimensions? a. sensing vs. intuiting, and thinking vs. feeling b. thinking vs. feeling, and seeing vs. hearing c. rational vs. emotional, and sensitive vs. intuitive d. extraverted vs. introverted, and creative vs. logical ANS: A DIF: Difficult REF: p. 327 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

39. The “stereotyped” view of the people who work in the world of promotion, which probably has some truth to it, says that a. creatives favor right-brain thinking. b. advertising experts rely on their left brain. c. business types use both sides of their brain. d. teams tend to come up with left-brain solutions. ANS: A DIF: Difficult REF: p. 327 NAT: AACSB Diversity | CB&C Model Promotion

OBJ: 9-3 TYP: Comprehension

40. What concept refers to the unique preference that each person has for thinking and solving problems in a particular way? a. creative abrasion b. creativity framework c. brainstorming d. cognitive style ANS: D DIF: Easy REF: p. 327 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

41. Which condition almost always has a very negative effect when found in teams? a. conflict b. creative abrasion c. cognitive style

d. interpersonal abrasion ANS: D DIF: Moderate REF: p. 328 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

42. New ideas and breakthrough solutions often result when there is just enough tension and just the right clash of ideas, called a. creative abrasion. b. interpersonal abrasion. c. team conflict. d. cognitive dissonance. ANS: A DIF: Moderate REF: p. 328 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

43. The term brainstorming can mean many things in today’s workplace, but in general it can be defined as an a. agreement on a concept for the good of the team objective. b. ongoing clash of ideas and decisions that result in chaos. c. interpersonal conflict by which new ideas emerge. d. organized approach to generating ideas. ANS: D DIF: Easy REF: p. 328 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

44. The text notes that tranquility and sameness can be deadly to the creative drive. It suggests shaking things up with a visit from an “alien,” meaning a person a. who will create interpersonal abrasion. b. from outside the department, the firm, or the advertising industry. c. with a global view and a universal sense of creativity. d. insulated from the outside world. ANS: B DIF: Moderate REF: p. 328-329 NAT: AACSB Diversity | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

45. Creativity evolves from teamwork as well as from individuals laboring on their own. Pulling together both levels of creativity is the responsibility of the a. client. b. account executive. c. creative director. d. team leader. ANS: C DIF: Easy REF: p. 329 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

46. Though individual achievement is important to foster, getting creative people to work as a team has its unique challenges. Which guidelines below were included in the list provided in the text for heading a creative team? a. Allow for plenty of room between teams and clients, and foster competition between team members. b. Communicate your own personal preferences, and stress the use of a particular cognitive style. c. Take care in making your team assignments, and rotate assignments over time. d. Foster creativity by giving your team members free reign, and judge each creative idea as it is suggested.

ANS: C DIF: Moderate REF: p. 329 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Comprehension

47. What do the three Ps stand for in the 3P’s creativity framework? a. Processes, Problems, and Perks b. Preparation, Pragmatism, and People c. Practicality, Problem-solving, and Production d. People, Process, and Place ANS: D DIF: Easy REF: p. 329-330 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-4 TYP: Knowledge

48. What does the text suggest you do if you want to objectively measure your own level of creativity? a. Brainstorm a list of creative ideas. b. Search for a creativity test on the Internet and take it. c. Model yourself after one of the seven great creative minds of the last century. d. Follow the 3P’s creative framework. ANS: B DIF: Easy REF: p. 330 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-4 TYP: Comprehension

49. The text gives a number of suggestions for advancing your own creativity, but which of the following is NOT one of them? a. Defy the safe solution. b. Learn to cherish ambiguity. c. Challenge your comfort zone. d. Avoid analyzing your own ideas. ANS: D DIF: Moderate REF: p. 330 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-4 TYP: Knowledge

50. In his studies of creativity and intelligence, Yale psychologist Robert Sternberg has found that when you suggest a really creative idea, you need to a. copyright it. b. be prepared for opposition to it. c. explain it to others. d. base it on an accepted standard. ANS: B DIF: Moderate REF: p. 330 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-4 TYP: Knowledge

51. Psychologist Robert Sternberg, expert on creativity and intelligence, advises that if you want to be more creative, a. do something you love. b. learn from the pros. c. expect to be disliked. d. head up a team. ANS: A DIF: Moderate REF: p. 330 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-4 TYP: Knowledge

Scenario 9-1

The Xcellent Agency specializes in developing advertising campaigns for smaller retail clients. Xcellent was hired by Shadowleaf Shoes, a small regional chain of six shoe stores, to develop a slogan and specific ads to be used in a three-month newspaper campaign. Shadowleaf's marketing director, Manuel Margolis, was adamant when meeting with the Xcellent account executive, Kia Chin, that the campaign must be catchy and modern to appeal to a target audience that has an active lifestyle and is between the ages of 18 and 35. More importantly, Margolis wanted the slogan to be memorable and unique. Kia Chin, representing Xcellent, developed a campaign and presented it to Margolis, based on the slogan, "Do What You Do in a Shadowleaf Shoe." Visuals included men’s legs—different sizes, skin colors, etc.—walking, jogging, dancing, and otherwise moving in all types of Shadowleaf shoes. She felt that this campaign would target young male consumers, but would also get the attention of others regarding its comfortable shoes and would raise awareness of the Shadowleaf brand. After running the ads, the Xcellent Agency won an advertising effectiveness award. It seemed that the surprising and appealing visuals gave the slogan unexpectedly positive social meaning for people of all ages, not just men aged 18 to 35. 52. (Scenario 9-1) When Manuel Margolis insists on a measuring stick for the creativity of the campaign, what will the Xcellent Agency tell him, if Kia Chin is smart? a. “The award alone proves that this ad is loaded with creativity.” b. “If people like the ad, they’ll buy the product.” c. “We met the technical standards for this advertising effort.” d. “Great brands do more than just get attention, they make emotional connections.” ANS: D DIF: Easy REF: p. 311 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Application

53. (Scenario 9-1) The Xcellent account manager, Kia Chin, explains to Margolis how they developed the slogan. “Before you can be believed, you have to be liked,” she says. “And what could be better than a new pair of shoes? Remember when you were little and you got a new pair of shoes? And when you learned to lace them up? No matter what their age, everybody likes putting on a new pair of shoes, right?” This creative description for the Shadowleaf slogan could have been drawn from which core characteristic of creative people? a. childlike thinking b. obsessive commitment c. self-confidence d. unconventional attitude ANS: A DIF: Moderate REF: p. 314 NAT: AACSB Reflective Thinking | CB&C Model Creativity

OBJ: 9-1 TYP: Application

54. (Scenario 9-1) Margolis has listened to all the explanations for the theme, and understands the nice ideas behind it, but he still isn’t sure this ad will sell shoes. Which department at Xcellent is most likely to be the source of conflict between agency and client? a. the media planning department b. the accounts services department c. the creative department d. the production department ANS: C DIF: Easy REF: p. 317-318 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-2 TYP: Application

55. (Scenario 9-1) Which individual at the Xcellent agency will be responsible for maintaining a good relationship with Margolis and the Shadowleaf organization? a. the research manager

b. the creative director c. the media planner d. the account executive ANS: D DIF: Easy REF: p. 319 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-2 TYP: Application

56. (Scenario 9-1) Looking back, who was responsible for creating the client brief, which should have informed Margolis and others of the creative endeavors behind the campaign? a. the owner of the Xcellent Agency b. the client leader and the account executive c. the research manager and the creative director d. the account executive assigned to the campaign ANS: B DIF: Moderate REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Knowledge

Scenario 9-2 The Optima Bike Company manufactures broad-tire, three-wheeled and two-wheeled bicycles mostly for the retirement market. Its primary market is seniors, usually those who live in retirement communities where there are clearly designated and safe bike paths. Seniors—and especially the younger baby boomers—like these recreational vehicles because they are easy and safe to ride. The company has had some early successes in Florida, Arizona, and California, where such communities began. Optima now wants to expand to other retirement enclaves. It has learned from two wellconducted consumer research studies that the main way that male retirees buy the Optima line is through the urging of wives who want to exercise in some way other than playing golf. Optima decides to engage an ad agency to capitalize on this consumer insight and promote its bikes to newer golf communities. It asks two agencies to pitch for its business and gives each a meeting in which it conveys the information above. Alpha Agency is based in Miami and insists that its creative team is best suited to promote Optima. Its managers tell the prospective client that this team is well versed in advanced animation techniques and can dramatize the features of Optima’s two- and three-wheeled bikes in a dynamic way. They’ll focus on how fast they can go and how they can “transform the ride” into an adventure—this has worked in other ads, and this will appeal to the male consumers who need to be lured away from the golf course. Following this initial display of product prowess, they suggest a campaign that demonstrates how the bikes can be customized to be more “comfortable and attractive for the ladies,” including pink seat options. They finish by asking whether the brand name can be changed to “something more exciting.” Beta Agency is based in Los Angeles and promises to serve as Optima’s branding partner. It asserts that its creative philosophy is centered on long-term brand building. Its managers propose that they will develop the right message by applying the research-based consumer insight that women want to use the bikes to entice their husbands to leave the golf course once in a while. They suggest that their successful work in building regional appreciation for brands, such as Sea-Doo water vehicles and SkiDoo snowmobiles, indicates their prowess in branding similar but not directly competitive brands. They emphasize the difference that Optima offers in the recreational-ride category, and the consumer targets that differ from other brands. They close by complimenting this prospective client on how appropriate the brand name is, given its customer base and likely target consumer. 57. (Scenario 9-2) Optima chooses the Beta Agency to create its campaign. What is likely the primary reason for this choice? a. Alpha Agency focused more on men than on women. b. Alpha Agency was in Florida, which covers a smaller region than California.

c. Beta Agency focused on making a brand connection to the consumer. d. Beta Agency was in Los Angeles, which is a more up-and-coming area regarding senior marketing trends. ANS: C DIF: Moderate REF: p. 310-312 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-1 TYP: Application

58. (Scenario 9-2) Which of the following is one critical item of information that Optima’s brand manager should expect to see on the final creative brief to diminish conflicts in the future? a. the creative team will avoid animation and cartoon graphics b. the ad should be likeable without pushing for a particular belief about the brand c. the music for the campaign should be oldies rock d. the goal is reaching wives of retirees who play golf ANS: D DIF: Difficult REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Application

59. (Scenario 9-2) Once Optima managers have engaged Beta Agency to do their IBP work, how will they ensure that their hopes for a great campaign—and partnership—will become reality? a. by writing specific creative team members into the contract b. by asking that Beta check daily with the brand manager for Optima c. by beginning work with the account executive at Beta to write a creative brief d. by setting up a dinner meeting for the CEO of Beta and the CEO of Optima ANS: C DIF: Moderate REF: p. 325 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 9-3 TYP: Application

60. (Scenario 9-2) As often happens in new client-agency relationships, Beta Agency and Optima Bike Company conduct a joint brainstorming session prior to finalizing the IBP campaign strategy. Sam Spokes, head engineer and designer for Optima, interrupts the session frequently, refuting agency staffers’ spontaneous suggestions that women love bikes, a bike is like a golf club, and the bike will sell itself. He also labels them as uninformed about various technical aspects of the bicycle mechanisms. How has the behavior of Spokes influenced the brainstorming session? a. positively, by winnowing out the bad campaign ideas from the good ones b. negatively, by diminishing its purpose in inhibiting others from offering ideas freely c. positively, by pointing out important aspects of product design and showing expertise d. neutrally, by making irrelevant and immaterial comments ANS: B DIF: Difficult REF: p. 328-329 NAT: AACSB Reflective Thinking | CB&C Model Creativity

OBJ: 9-3 TYP: Application

ESSAY 1. What are the core characteristics of great creative minds, as identified by Howard Gardner? List as many as you can. Then relate them to the positive and negative repercussions in the lives of people who demonstrate extreme levels of creativity. ANS: Gardner suggested that great creative minds share particular qualities—unending self-confidence, childlike simplicity, nonstop alertness, unconventionality, self-promotion, strong work ethic, and obsessive commitment to work. These traits, all of which he discovered when analyzing seven highly creative minds of the past century, can lead to a number of positive conditions. They foster fresh thinking, fascinating ideas, and innovative solutions to problems—not only invigorating and amazing the world, but also improving it.

Although these qualities—and their benefits to business and consumer lives—are very positive and desirable, there is a downside, largely based on the degree to which creatives show these traits. Selfconfidence, when out of balance, can degrade into narcissism and egotism. Childlike thinking, while leading to refreshing and compelling insights, can also lead to childish behaviors. Obsessive commitment to work can lead to a distressing hardships for an individual’s family, friends, and associates, who may be ignored or treated poorly while also being expected to cheerlead from the sidelines and compensate for the creative's shortcomings. DIF: Moderate REF: p. 313-314 OBJ: 9-1 NAT: AACSB Reflective Thinking | CB&C Model Creativity

TYP: Comprehension

2. Describe the tensions that are routinely found between creatives and managers within agencies. Give several examples. Be specific and concrete. Then discuss why these are so commonly found in the world of advertising. ANS: Tensions begin with the uncertain nature of the creative product. Although everybody understands that ads need to be “creative,” there is no hard and fast rule that identifies “creativity” when it appears. Moreover, some clients and agency managers have the perception that creatives spend a lot of time telling jokes, having fun, and “screwing around” as they let the creative wheels turn. But the other side may not be recognized—that creatives are continually pressed to come up with yet another totally “unique” and “original” concept, design, or slogan, often with little time and few resources. It is hard work to not only get the right creative idea but to convey it and produce it in a tangible form. The time and effort needed to do that is often dismissed or unseen by managers and clients. These types of misunderstandings aggravate client uncertainty, which in turn frustrates account executives and agency directors. By nature, many creatives are provocateurs—they take risks, push envelopes, and sometimes step over the lines of ethics and good taste. Managers, to a degree, dislike too much edginess in a creative execution and often seek to minimize it, but in doing so, they may end up micro-managing the team rather than letting the final product speak for itself. DIF: Difficult REF: p. 316-321 OBJ: 9-2 NAT: AACSB Reflective Thinking | CB&C Model Creativity

TYP: Application

3. Explain the importance of collaboration—creating teams and encouraging teamwork—in the creative advertising environment. Give three or four reasons why teams foster creativity in the real-life workplace of contemporary advertising. Consider the ideas featured in the text excerpted from The Wisdom of Teams by Katzenbach and Smith. ANS: Today, interpersonal skills are highly valued—and expected—in the workplace. And advertising has become a team sport. Coordination and collaboration are required in all phases of promotion and marketing nowadays. Teams have become the primary means—sometimes the only valid option—for getting things done. Teams bring many positive elements to the table. They can generate a synergy that makes the whole bigger than its parts. They allow people to focus on many individual tasks and then combine their talents in a unique way. They make the group rather than the individual accountable for performance, and they are expected to show results.

Teams can create and build campaigns more easily than individuals. They can simply handle the demands, time constraints, and quality requirements that are often beyond the scope of one person’s abilities. But effective teams also appreciate and utilize individual excellence. They allow people to bring unique talents and contributions to the job. Likewise, the people involved learn about their own cognitive styles, observe the work of others, and become better collaborators overall. DIF: Difficult REF: p. 323-327 OBJ: 9-3 NAT: AACSB Reflective Thinking | CB&C Model Creativity

TYP: Application

4. What is meant by the term cognitive style? How has it been stereotyped into two polar opposites in creative environments like ad agencies? Explain how cognitive styles affect creative teams. ANS: Cognitive style refers to the unique preference of every individual for perceiving, thinking, and solving problems. Some lean toward logical or analytical thinking, others prefer intuitive or visual thinking. Many versions have been suggested, beginning with the work of psychologist Carl Jung, who proposed three categories of opposing cognitive styles—sensing versus intuiting, thinking versus feeling, and extraversion versus introversion. The stereotypes often depicted in creative businesses like advertising and promotion have produced some familiar cultural stereotypes. It is easy to label the “business types” as left-brained thinkers— interested in numbers, tests, data, and reports. And to label the “creative types” as right-brained thinkers—focused on ideas, images, visuals, and abstractions. While these stereotypes are narrowly defined and force people into cookie-cutter “types,” they do point to the idea that people think about things, tackle projects, and carry out tasks in very different and individual ways. Overall, teams doing creative advertising work tend to benefit from a good mix of different cognitive styles. Different kinds of thinking lead to creative solutions. DIF: Easy REF: p. 327 OBJ: 9-3 NAT: AACSB Reflective Thinking | CB&C Model Creativity

TYP: Comprehension

5. Define the terms interpersonal abrasion and creative abrasion. Discuss the differences between the two, as well as the similarities. Give an example of each that might be found in the advertising workplace environment. ANS: The two concepts are similar in that they both refer to a level of tension, conflict, frustration, irritation, or disagreement that almost naturally occurs when highly motivated people work together to solve a problem or create a new idea. But there are great differences between the two. Interpersonal abrasion refers to the clash and friction between people, often in a very personal way. Communication breaks down, new ideas die, creativity shuts off. This type of conflict can be a destructive force in a workplace. Creative abrasion refers to the clash and friction between ideas, usually in a professional way. Opinions are expressed, arguments take place, voices are raised—but in the middle of all this, ideas pop, thoughts clarify, and breakthrough solutions evolve. So this type of conflict can be very productive in the workplace. In fact, some form of friction or tension needs to be present to stir things up and get the sparks flying.

Examples from the advertising workplace will vary among students, but will probably include in some form the common state of conflict between clients and agencies, or between account executives and creative directors. Either way, the creatives are usually at the center of the conflict. DIF: Moderate REF: p. 327-328 OBJ: 9-3 NAT: AACSB Communication | CB&C Model Creativity

TYP: Application

6. Psychologist Robert Sternberg has devoted his entire career to the study of creativity and intelligence. What advice does he give to those who want to boost their creativity? The text highlighted ten of his suggestions for becoming more creative. List as many you can. Then choose three and give a realistic example of how each might apply to the world of promotion. ANS: Sternberg said that to become more creative, you need to make certain decisions and follow through on them. The decisions listed in the book include the following (examples will vary among students): 1. Redefine problems to see them differently from other people. 2. Be the first to analyze and critique your own ideas, since we all have good ones and bad ones. 3. Be prepared for opposition whenever you have a really creative idea. 4. Recognize that it is impossible to be creative without adequate knowledge. 5. Recognize that too much knowledge can stifle creativity. 6. Find the standard or safe solution and then decide when you want to take a risk by defying it. 7. Keep growing and experiencing, challenging your own comfort zone. 8. Believe in yourself, especially when surrounded by doubters. 9. Learn to cherish ambiguity, because from it comes new ideas. 10. Remember that research has shown that people are most likely to be creative when doing something they love. DIF: Moderate REF: p. 330 OBJ: 9-4 NAT: AACSB Reflective Thinking | CB&C Model Creativity

TYP: Application

Chapter 10 - Creative Message Strategy TRUE/FALSE 1. The concept of message strategy refers to both objectives and methods—essentially, what you want to do, and how you want to plan it. ANS: T DIF: Easy REF: p. 336 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-Intro TYP: Knowledge

2. Of all the creative message strategy objectives depicted in the text, the persuasion objective features the greatest number of related methods, including testimonial, infomercial, comparison, demonstration, and others. ANS: T DIF: Moderate REF: p. 336 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-1 TYP: Comprehension

3. Advertisers have found that when a category is suggested, the very first brand remembered is often the one purchased. ANS: T DIF: Easy REF: p. 337 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-1 TYP: Knowledge

4. Two common methods for promoting recall are repetition and memory aids. ANS: T DIF: Easy REF: p. 337 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-2 TYP: Knowledge

5. "The night-time, sniffling, sneezing, coughing, aching, stuffy-head, fever, so-you-can-rest medicine" is an example of point-of purchase advertising. ANS: F DIF: Moderate REF: p. 338-339 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 10-2 TYP: Application

6. The unique selling proposition (USP) concept links the brand name with the removal of fear or anxiety. ANS: F DIF: Moderate REF: p. 339 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-1 TYP: Comprehension

7. Point-of-purchase methods have the strategic advantage of inherent credibility based on the idea that “seeing is believing.” ANS: F DIF: Moderate REF: p. 339 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-3 TYP: Comprehension

8. Compared to achieving a brand recall objective, achieving a persuasion objective typically requires less cognitive processing on the part of the consumer. ANS: F DIF: Moderate REF: p. 341 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-1 TYP: Comprehension

9. One drawback of reason-why ads is that they offer a concrete list of arguments that consumers may enjoy disputing. ANS: T DIF: Moderate REF: p. 341-342 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-3 TYP: Comprehension

10. Comparison ads are rarely seen outside the United States, usually due to cultural customs or legal restrictions of other nations. ANS: T DIF: Moderate REF: p. 344 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 10-3 TYP: Comprehension

11. Commercials that show ordinary people being stopped on the street to comment on a product are employing a type of average-user testimonial. ANS: T DIF: Moderate REF: p. 344-345 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-2 TYP: Application

12. An infomercial involves extended running time of an information or entertainment program that is, in essence, a really long commercial. ANS: T DIF: Easy REF: p. 346 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-2 TYP: Knowledge

13. An advertorial is an ad that is designed to look just like a newspaper article. ANS: T DIF: Easy REF: p. 346 NAT: AACSB Communication | CB&C Model Customer

OBJ: 10-2 TYP: Knowledge

14. Advertisers use feel-good advertising when all they want is for consumers to laugh. ANS: F DIF: Moderate REF: p. 346 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-2 TYP: Comprehension

15. Feel-good ads sometimes focus on certain aspects of a product in order to get consumers not to think about other things related to it. ANS: T DIF: Moderate REF: p. 347 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-2 TYP: Comprehension

16. There is evidence that as the media environment gets more cluttered, feeling-based ads may actually do better than thought-based ads. ANS: T DIF: Moderate REF: p. 347 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

17. Humorous versions of advertisements often prove to be more persuasive than nonhumorous versions of the same ad. ANS: F DIF: Moderate REF: p. 348 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

18. The goal of a humor ad is to make the consumer laugh, thereby promoting a positive image of the brand. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

ANS: F DIF: Moderate REF: p. 348 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-2 TYP: Comprehension

19. With few exceptions, it has been proven over and over that “sex sells.” ANS: F DIF: Moderate REF: p. 349-350 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

20. A big advantage of sex-appeal ads is that they get lots of attention. ANS: T DIF: Moderate REF: p. 350 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-3 TYP: Comprehension

21. Strategic implications of fear-appeal ads include the strong possibility that they will provide the consumer with a socially acceptable defense for buying the brand. ANS: F DIF: Moderate REF: p. 353 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-3 TYP: Knowledge

22. The main advantage of using an intense level of fear-appeal advertising is that, like it or not, it boosts recall and creates a positive attitude toward the brand. ANS: F DIF: Moderate REF: p. 353 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-3 TYP: Comprehension

23. One of the most effective types of advertising around involves messages that want you to change your behavior after worrying about something. ANS: T DIF: Moderate REF: p. 353 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-1 TYP: Comprehension

24. An ad that takes what has been dubbed the “P&G approach” relies on social anxiety to get people to buy products. ANS: T DIF: Moderate REF: p. 354 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 10-2 TYP: Knowledge

25. Social roles—mothers, fathers, romantic partners—and the consumer’s inadequacies and worries about fulfilling them, are often used in selling products. ANS: T DIF: Moderate REF: p. 354 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 10-2 TYP: Comprehension

26. A frequent criticism of social anxiety ads is that historically they have ignored an entire population— namely, women. ANS: F DIF: Moderate REF: p. 355 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 10-3 TYP: Comprehension

27. Image ads tend to generate fewer consumer counterarguments, when compared to other types of ads. ANS: T DIF: Moderate REF: p. 358 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-3 TYP: Comprehension

28. If you are ever going to understand advertising, you have to understand that objects have social meanings. ANS: T DIF: Easy REF: p. 358 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-1 TYP: Knowledge

29. A slice-of-life advertisement attempts to identify a cultural or social setting and have it rub off on a brand. ANS: T DIF: Difficult REF: p. 358 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 10-2 TYP: Application

30. One of the strategic implications of the slice-of-life advertising approach is the possibility that the brand may become a cultural icon—another Coca-Cola. ANS: T DIF: Moderate REF: p. 359 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-3 TYP: Knowledge

31. The transformational ad focuses on the risk of physical harm or negative social consequences if the consumer neglects to use a certain brand. ANS: F DIF: Easy REF: p. 365 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 10-2 TYP: Knowledge

32. The theory behind transformational advertising is that it can actually improve the consumption experience. ANS: T DIF: Moderate REF: p. 365 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-2 TYP: Comprehension

33. Transformational ads connect brands so closely to actual experiences that people automatically think of ad material in certain situations, incorporating these words and images into their long-term memories. ANS: T DIF: Moderate REF: p. 365-366 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-2 TYP: Comprehension

34. Scientific research has suggested that false memories—including false memories of products that don’t even exist—can actually be created in the minds of consumers. ANS: T DIF: Moderate REF: p. 366 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-2 TYP: Comprehension

MULTIPLE CHOICE 1. The component of advertising that defines the goals of the advertiser and how those goals will be achieved is known as a. marketing objective. b. advertising planning. c. creative strategy. d. message strategy.

ANS: D DIF: Easy REF: p. 336 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-Intro TYP: Knowledge

2. Some people assume a brand is the most popular, even superior, based on the fact that they happen to think of it first when the category is mentioned. So the ____ brand may be seen as the leading brand, even when it isn’t. a. evoked set b. point-of-purchase c. top-of-mind d. direct response ANS: C DIF: Difficult REF: p. 337 NAT: AACSB Communication | CB&C Model Product

OBJ: 10-1 TYP: Comprehension

3. Advertisers don’t just want their brand to be remembered. At the very least, they want their brand to make it onto a short list of products that come to mind when the main category is suggested. What concept does this involve? a. top-of-mind b. brand loyalty c. evoked set d. word-of-mouth ANS: C DIF: Easy REF: p. 337 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-1 TYP: Knowledge

4. Repetition advertising is a(n) ____ game that at least increases the odds of a name being recognized, a product being remembered, and hopefully a sale being made. a. subliminal b. probability c. cognitive d. emotional ANS: B DIF: Easy REF: p. 338 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Knowledge

5. Very simple strategies centering on _____ are popular on the Internet, where a familiar name is merely placed in so many locations that an online user will see it over and over again. a. transformation b. image c. demonstration d. repetition ANS: D DIF: Easy REF: p. 338 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Knowledge

6. A slogan is a(n) ____ linked to a brand in a memorable way. a. visual image b. linguistic device c. emotional meaning d. rhyming song ANS: B DIF: Easy REF: p. 338 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-2 TYP: Knowledge

7. It has been known for a long time that jingles and slogans are linked to a concept called ____, that is, people find them catchy and easy to repeat. a. rehearsal b. appreciation c. comparison d. visualization ANS: A DIF: Moderate REF: p. 338 NAT: AACSB Communication | CB&C Model Customer

OBJ: 10-2 TYP: Knowledge

8. According to the text, some research has indicated that ____ is the single most common response that people have to ads. a. creative resistance b. recall c. counterargument d. brand switching ANS: C DIF: Moderate REF: p. 341 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-1 TYP: Comprehension

9. The main objective of hard-sell messages is to a. create a sense of urgency so that consumers will act quickly. b. highlight a consumers inadequacy within the context of a social role. c. create in the consumer a pleasant and memorable association with the brand. d. highlight the risk of harm or negative consequences of not using the advertised brand. ANS: A DIF: Moderate REF: p. 342 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-2 TYP: Application

10. Which type of ads that are designed to persuade the consumer are most likely to actually confuse the consumer? a. comparison ads b. hard-sell ads c. reason-why ads d. information-only ads ANS: A DIF: Moderate REF: p. 342 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-2 TYP: Comprehension

11. Comparison ads are almost never used by ____, but are almost always generated by ____. a. agency creative departments; corporate marketing departments b. established market leaders; the underdog brand c. advertisers seeking recall; advertisers seeking image d. advertisers of new products; advertisers of traditional products ANS: B DIF: Difficult REF: p. 343 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

12. The value of the testimonial lies in the _____ behind the presentation of a brand’s attributes. a. truth b. authority c. anxiety d. information ANS: B DIF: Moderate REF: p. 344 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

13. The risk taken with the ____ testimonial is that the person may some day experience a fall from grace or a damaged reputation, thereby bringing negative aspects to the brand. a. infomercial b. demonstration c. expert d. celebrity ANS: D DIF: Easy REF: p. 344 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

14. A real-life nurse discussing the benefits of a home blood-pressure kit and a real-life librarian promoting the advantages of a children’s reading program are both a. acting as expert spokespeople. b. lending celebrity credibility. c. providing real-life demonstrations. d. delivering average-user testimonials. ANS: A DIF: Moderate REF: p. 344 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

15. Consumers often rely on opinions and testimonials from people they consider similar to themselves, more than on direct information or solid evidence about a product. This theory centers around the importance of a person’s a. consumer behavior. b. reference group. c. anxiety level. d. brand loyalty. ANS: B DIF: Difficult REF: p. 345 NAT: AACSB Communication | CB&C Model Customer

OBJ: 10-2 TYP: Application

16. An advertiser for bubble gum attempts to generate brand preference by getting consumers to simply like the product and associate it with fun and happiness. Which type of message is the advertiser sending? a. feel-good b. fear-appeal c. sex-appeal d. hard-sell ANS: A DIF: Easy REF: p. 346 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 10-2 TYP: Application

17. Which company, mentioned in the text, has for about 100 years consistently used powerful scenes filled with positive emotions to make it clear that its brand represents good memories? a. Kodak b. Ivory c. Campbell’s d. Kellogg’s ANS: A DIF: Moderate REF: p. 347 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

18. Recently, progress has been made in understanding the mechanisms involved in feel-good advertising and the relationship between thought and feelings. It is now believed that feelings are

a. b. c. d.

less powerful than thoughts. expressed in a more primitive way than thoughts. generated from the same system as thoughts. slower than thoughts.

ANS: B DIF: Difficult REF: p. 347 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-2 TYP: Comprehension

19. Humor ads are used most often to a. invoke a direct response to the brand within a set time period. b. create a pleasant and memorable association with the brand. c. connect the brand with a social or cultural setting. d. define the brand image. ANS: B DIF: Moderate REF: p. 348 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

20. A group of friends sitting in a bar talk and joke about various beer commercials. One of them describes an ad and they all laugh, and then someone says, “That is one great ad. Who was that for, anyway?” The text clearly makes the point that if someone is asking which product is behind an ad, it a. is not a great ad. b. has successfully used product recall. c. generates anxiety instead of humor. d. is not really a funny ad. ANS: A DIF: Moderate REF: p. 348 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-3 TYP: Application

21. There is one big difference between a successful and an unsuccessful humor ad—the joke or payoff in the successful one a. is funnier. b. can be run more often. c. is linked to the product. d. puts down the competition. ANS: C DIF: Moderate REF: p. 348-349 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-3 TYP: Comprehension

22. As noted in the text, Tom Reichert, a professor at the University of Georgia, attempted to summarize the traditional wisdom in the world of advertising by saying that the use of sex a. sells. b. has its risks but is worth it. c. requires too much thought and commitment. d. is desperate and amateurish. ANS: D DIF: Difficult REF: p. 350 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Application

23. Several ads for lingerie, jeans, and perfume in a sophisticated fashion magazine provide instances in which a sex-appeal message is successfully used. This occurs because the a. right model is chosen. b. product is appropriate. c. image approach is used. d. brand is bought for emotional reasons. ANS: B

DIF: Moderate

REF: p. 350

OBJ: 10-2

NAT: AACSB Reflective Thinking | CB&C Model Customer

TYP: Application

24. Which of the following is true about fear when it is used in an advertisement? a. Fear will get a consumer to pay attention but will rarely get a consumer to take action. b. Fear is best used at very low or almost unrecognizable levels. c. Fear works best when the consumer doesn’t think about the ad too much. d. Fear can work when it’s believable and the ad shows a clear way out. ANS: D DIF: Moderate REF: p. 352 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-2 TYP: Comprehension

25. A firm sells a medical-alert device that elderly people wear around their necks. If they fall or find themselves in an emergency situation, they can just press the button to signal an emergency crew. The company decides to create a fear-appeal ad for the device. A potential downside of this strategy is that a. fear of the situation is easily transferred to fear of the product. b. the use of too little or too much fear may do nothing. c. fear is not a strong enough emotion to get a consumer to act. d. no research has shown that fear is effective. ANS: B DIF: Difficult REF: p. 353 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 10-3 TYP: Application

26. When compared to fear, anxiety a. is not as effective in advertising. b. can last longer. c. is easier to identify. d. is used less often in ads. ANS: B DIF: Moderate REF: p. 353 NAT: AACSB Communication | CB&C Model Customer

OBJ: 10-1 TYP: Knowledge

27. A creative team is attempting to define a brand image by creating several image ads. It will most likely rely heavily on ____, since they allow for instant communication, clear differentiation, and universal recognition. a. visuals b. jingles c. slogans d. words ANS: A DIF: Moderate REF: p. 355-360 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-2 TYP: Application

28. Slice-of-life ads are typically produced when an advertiser wants to a. promote brand recall. b. change behavior by inducing anxiety. c. give the brand social meaning. d. gain recall through brand name repetition. ANS: C DIF: Moderate REF: p. 358 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

29. A TV commercial opens with young kids riding bikes in the summer heat, across empty baseball fields, on hot sidewalks, down dirt hills. They then run into the cool kitchen where mom is waiting. The grubby kids wipe their sweaty brows, and the youngest one says, “It’s hot out.” Mom whisks out a box from the freezer and hands out popsicles. Kids smile. Mom tousles their hair. This is an example of a(n) ____ ad that attempts to ____. a. transformational; change the consumption experience b. image; define a brand image c. slice-of-life; situate a brand socially d. demonstration; persuade the consumer ANS: C DIF: Difficult REF: p. 358-359 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 10-2 TYP: Application

30. Which term refers to the mix of advertising and entertainment, the umbrella covering the increasingly broad spectrum of integrated ads and nontraditional IBP? a. populist consumption b. unique selling proposition c. consumer integration d. Madison & Vine ANS: D DIF: Moderate REF: p. 359 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-1 TYP: Knowledge

31. Which companies, noted in the text, have seen enormous success by reflecting social issues at various points in history, creating sophisticated ads, and becoming unofficial brands of the counter-culture? a. Dial, Mountain Dew, and Snickers b. Marlboro, Virginia Slims, and Pepsi c. Red Bull, Geiko, and Allstate d. Kodak, PowerAde, and Procter & Gamble ANS: B DIF: Difficult REF: p. 364 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 10-1 TYP: Application

32. An advertiser of a line of luxury resorts wants to use a complex message strategy that fosters certain moods and emotions, so realistic and powerful that they actually become part of the interaction and create new memories about the brand. In this advertisement, the objective will be to a. establish the product in a social or cultural setting. b. transform the experience of using the product. c. recall the product name. d. create an image for the product. ANS: B DIF: Moderate REF: p. 364 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 10-1 TYP: Application

33. Which type of advertising is the most sophisticated, and though difficult to pull off, can powerfully weave ad images with real-life experiences? a. social/cultural movement b. image c. transformational d. product placement ANS: C DIF: Moderate REF: p. 364 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-1 TYP: Knowledge

Scenario 10-1

During tough economic times, many companies rely on memories of "the good old days" to help advertise their products. Looking for a bit of a jump-start itself, PepsiCo turned to nostalgia-heavy advertisements late in 2009, which were then carried into 2010. The company introduced "throwback" versions of a number of its soft drinks, and created an ad campaign that included new logos and a series of commercials intended to generate feelings of happiness from prior decades. The company had hoped that any warm, fuzzy feelings about the past would make people feel better about the company’s present and future. 34. (Scenario 10-1) Emotional appeals in advertising are usually most effective when time is an insignificant element in achieving an objective. Which method is most appropriate when the goal involves creating a sense of urgency to purchase? a. slice-of-life b. fear appeal c. hard-sell d. anxiety ANS: C DIF: Moderate REF: p. 342 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

35. (Scenario 10-1) Which type of ads do PepsiCo's throwback commercials represent? a. demonstration ads b. reason-why ads c. comparison ads d. feel-good ads ANS: D DIF: Moderate REF: p. 346 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

36. (Scenario 10-1) Nearly everyone in advertising understands the powerful role emotions can play in advertising, but in addition, emotions can a. be the only tool available when the objective is to persuade the consumer. b. become a product attribute linked to the brand c. be an excellent tool for use in repetition, slogans and jingles. d. never become part of the product. ANS: B DIF: Difficult REF: p. 347 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

37. (Scenario 10-1) For companies using feel-good ads, one of the difficulties is creating an ad that truly elicits fond memories. Another difficulty associated with feel-good ads is that they can a. create competing thoughts and emotions. b. cause consumers to recall great memories from their childhood. c. cause the consumer to favor the brand over another. d. cause the consumer not to think about bad memories. ANS: A DIF: Moderate REF: p. 347 NAT: AACSB Diversity | CB&C Model Customer

OBJ: 10-3 TYP: Comprehension

38. (Scenario 10-1) If PepsiCo wanted to depict an ideal usage situation for its brand, what would be the best choice of advertising for the company to use? a. reason-why ads b. slice-of-life ads c. testimonials d. social anxiety ads

ANS: B DIF: Moderate REF: p. 358 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Application

Scenario 10-2 National clothing retailer, Old Navy has been known for its creative ad campaigns for a number of years. In 2010, the company decided to tap into some Hollywood talent to help promote its brand. Actors Jaime Pressly, Bailey Chase, and Judy Greer were signed to support the company's Scream for Savings initiative, a campaign designed to reach consumers with comedic messages. Old Navy spent over $100 million in measured media through the first two-thirds of 2010, and annual ad spending has topped $175 million in recent years. (“Old Navy Taps Hollywood Talent for Halloween Spot” Brandweek Magazine, October 29, 2010) 39. (Scenario 10-2) It is strongly believed in advertising that repeated exposure to a particular stimulus will increase the chances of the stimulus being remembered in the future. This can be defined as a. recall. b. advertisement remembrance. c. strong memory. d. brand memory. ANS: A DIF: Easy REF: p. 337 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 10-1 TYP: Comprehension

40. (Scenario 10-2) Old Navy intends to air its comedic advertisements primarily on its website and various social media outlets. The company believes that because consumers spend so many hours using these forms of media, their ads will be seen over and over again. Repeated exposure to a particular advertisement is called a. over-advertising. b. repetition. c. brand exposure. d. brand recognition. ANS: B DIF: Moderate REF: p. 337-338 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 10-2 TYP: Application

41. (Scenario 10-2) When entering an Old Navy store, customers immediately see a display that was designed to spark memories of the company's new advertisements. The display features life-sized cutouts of the actors starring in the commercials as well as a sign that contains a popular line from the ad. The display is an example of a. a message strategy. b. top of mind advertising. c. unique selling proposition. d. point-of-purchase branding. ANS: D DIF: Difficult REF: p. 338-339 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 10-3 TYP: Application

42. (Scenario 10-2) Old Navy's newest advertisements, which feature comedic messages, are examples of a. feel-good ads. b. slice-of-life ads. c. fear ads. d. humorous ads. ANS: D DIF: Easy REF: p. 348 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

Scenario 10-3 Advertisers have a wide choice of objectives and methods when creating an ad for a product, no matter what the product category is. For example, both Taylor and Yamaha sell guitars. Both have created ads that have been recognized by the advertising industry as outstanding creative efforts. However, they have chosen different ways to use magazine advertising to sell guitars. A representative advertisement for Taylor features a photograph of a beautiful, lush, fog-shrouded green forest. The headline reads, "If a tree falls in the forest and you're not there to hear it, does it make a sound? Yes, it just might take 7 or 8 years." The copy is three sentences long and talks about the time and attention that Taylor takes in making quality guitars. Only the top couple inches of a guitar featuring the Taylor logo is shown. While the ad could be classified as exemplifying a number of approaches to meeting message objectives, it most closely fits the description of the USP method by linking a key attribute (quality) to the brand name (Taylor). The main visual in an ad for the Yamaha Pacifica is a bold shot of the guitar. The headline reads, "To survive, you need four things: Food. Sex. Shelter. Guitars. Make that two things." This ad also features characteristics of several approaches to meeting message objectives. However, the headline seems to define it as using the humor method to persuade consumers to prefer the brand. 43. (Scenario 10-3) Which of the following is an accurate description of the objective that the Taylor ad was trying to achieve? a. As a feel-good ad, it was trying to increase brand recall. b. As a USP ad, it was trying to connect a specific characteristic with the brand. c. As a feel-good ad, it was trying to transform a consumption experience. d. As a USP ad, it was trying to increase brand recall. ANS: B DIF: Moderate REF: p. 339 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-1 TYP: Application

44. (Scenario 10-3) Unique Selling Proposition ads, such as Taylor's, try to a. link attributes to a brand, either explicitly or implicitly. b. place brands in socially desirable environments. c. use comparisons to other brands to create an image. d. engage the consumer on a high cognitive level. ANS: A DIF: Moderate REF: p. 339 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-1 TYP: Comprehension

45. (Scenario 10-3) The Taylor ad focuses on the time it takes to produce a quality guitar. Based on the functions and strengths of USP, the ad would not have been as effective if the a. visual was more eye-appealing. b. copy attempted to address four or five desirable attributes. c. visual was a drawing rather than a photograph. d. copy focused on a different attribute, such as sound. ANS: B DIF: Difficult REF: p. 340 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 10-2 TYP: Application

46. (Scenario 10-3) Which of the following is an accurate description of the objective that the Yamaha ad was trying to achieve? a. As a humor ad, the Yamaha ad was trying to invoke a direct response. b. as an anxiety ad, the Yamaha ad was trying to create social meaning. c. As an anxiety ad, the Yamaha ad was trying to transform a consumption experience. d. As a humor ad, the Yamaha ad was trying to create a pleasant association with the brand.

ANS: D DIF: Difficult REF: p. 348 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Application

47. (Scenario 10-3) Yamaha has created quite a witty ad. Research suggests that this method increases in effectiveness when the a. ad is judged as funny by consumers. b. ad is understood by both children and adults. c. humor is directed at an unsuspecting consumer. d. payoff of the joke is linked to the brand. ANS: D DIF: Moderate REF: p. 348-349 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Comprehension

Scenario 10-4 In the "Chicago Shopping" section of the Chicago Tribune website, the following ads were listed: 1. An ad for the last day to save 10 percent on all purchases at Target.com. Readers are urged to act quickly because the deadline for the deal, which is boldly listed in red ink, is today. The ad also features a picture of a 40" LCD television showing the company's name and "bullseye" logo on the screen. 2. An ad for a pair of basketball shoes accompanied by a positive endorsement from a satisfied customer. The customer stated, "I have never had a shoe like this one. I jump higher and run faster, and I am able to play longer than I ever have in the past." The ad offers a $15 coupon for use at participating FootLocker stores. 3. An ad encouraging consumers to shop at Adidas because of its low sale prices. The ad reads, "Adidas brand apparel will increase your athletic performance. Give yourself the competitive advantage you've always wanted and shop our selection of running, soccer, basketball and golf apparel." 4. An ad listing a limited time offer for a pair of expensive brand-name jeans. The ad shows a fictional character being laughed at by an attractive female because of his old, raggedy jeans. The man being laughed at appears incredibly embarrassed. Marketers want consumers to feel more accepted in society when they wear this particular pair of jeans. (ChicagoTribune.com, October 26, 2010) 48. (Scenario 10-4) In ad #1, the company's name and logo are at the center of the advertisement. Apparently, marketers are trying to hammer the images into consumers' heads. Target likely created the ad based on which of the following accepted concepts concerning repetition? a. Repetition is a complex form of advertising. b. Repetition is best used during direct comparison with other brands. c. Repetition is a tried-and-true way of gaining easier retrieval of brand names from consumer’s memory. d. Repetition advertising works well when considering the purchase of parity products. ANS: C DIF: Moderate REF: p. 337 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Application

49. (Scenario 10-4) In ad #3, marketers list a number of product benefits intended to persuade consumers to buy Adidas products. This is an example of a. reason-why advertising. b. social anxiety advertising.

c. transformational advertising. d. top-of-mind advertising. ANS: A DIF: Moderate REF: p. 341 NAT: AACSB Communication | CB&C Model Customer

OBJ: 10-2 TYP: Comprehension

50. (Scenario 10-4) Ad #2 features a statement from a satisfied consumer. The company hopes this customer's opinion of the product will persuade others to buy its shoes. The customer has given a(n): a. affective association. b. testimonial. c. product demonstration. d. infomercial. ANS: B DIF: Easy REF: p. 344-345 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-2 TYP: Application

51. (Scenario 10-4) In ad #4, marketers are trying to appeal to consumers using which type of ad? a. anxiety ads b. humor ads c. fear ads d. sex-appeal ads ANS: A DIF: Moderate REF: p. 353-354 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Application

Scenario 10-5 In 2007, Michigan-based Ford Motor Company fell from second to third in U.S. annual vehicle sales for the first time in 56 years. Facing stiff competition from foreign automakers and brand indifference amongst U.S. consumers, Ford appeared to be headed towards turbulent times. However, when marketing and advertising guru Jim Farley joined Ford in November 2007, he brought a number of fresh ideas that helped turn the company in the right direction. Farley quickly found that Americans had become indifferent to the Ford brand, which in his opinion, was worse than disliking the brand. So Farley, along with the rest of the marketing team at Ford, created a campaign that used catchy songs and cheerful images to accompany its line of automobiles. The marketing team at Ford is now heavily utilizing the Internet to promote the new Ford Fiesta, which is the focus of a campaign that has greatly increased the awareness of the Ford Brand. The company has also been stressing the value of buying environmentally friendly cars, a move it hopes will improve the brand's image throughout the world. So far, the moves appear to be working—in late 2010, Ford was once again named the second leading automotive company in the United States, as well as fourth largest in the world. (“Ford Can Fiesta Again.” The Economist, October 28, 2010) 52. (Scenario 10-5) Ford is using a number of catchy songs in its advertisements. One advantage of using jingles in advertising is a. it gives consumers something fun to listen to. b. it promotes brand recall. c. it makes consumers think before purchasing a particular product. d. consumers respond better to sounds than they do to images. ANS: B DIF: Easy REF: p. 338 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Application

53. (Scenario 10-5) In addition to promoting environmentally friendly cars, Ford is now trying to market its cars as universal ones that can be used in markets throughout the world. The company is utilizing the phrase, "One Ford" in conjunction with the campaign and is hoping that consumers will begin to recognize Ford as the number one global automaker. Assuming this is an attempt at a unique selling proposition, which of the following is an implication of this type of method? a. It is often a short-term commitment. b. It is often very efficient once a clear link has been established. c. It is not resistant to competitive challenge. d. You can switch strategies often and they will continue to be effective. ANS: B DIF: Moderate REF: p. 340 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-3 TYP: Application

54. (Scenario 10-5) If the objective of Ford is to persuade consumers to buy its cars during a special limited-time offer, which of the following advertising methods should be used? a. hard-sell ads b. fear ads c. social anxiety ads d. repetition ads ANS: A DIF: Easy REF: p. 342 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Application

55. (Scenario 10-5) If the objective of Ford is to show that its newest line of cars is superior to that of a strong competitor, which of the following methods would be used? a. feel-good ads b. comparison ads c. repetition ads d. point-of-purchase ads ANS: B DIF: Moderate REF: p. 342 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Application

56. (Scenario 10-5) Assuming that Ford's intent behind promoting the use of environmentally friendly vehicles is to appeal to a broad social movement, which of the following methods should the company consider? a. feel-good ads b. image ads c. social/cultural movement ads d. society-friendly ads ANS: C DIF: Moderate REF: p. 364 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Application

Scenario 10-6 Facing stiff competition from Walmart and K-mart, executives for Target stores have decided to focus on reaching more affluent shoppers and luring them away from traditional department stores. They have already expanded the products and brands they offer to include reasonably priced items by modern design masters. Target hopes to draw more affluent shoppers into its stores through a series of advertising campaigns that are presently in the planning stages. Most of the advertising budget will be directed to ads in regional luxury magazines, which research shows are frequently read by affluent individuals. 57. (Scenario 10-6) What component of Target's advertising strategy defines its goals as an advertiser and how those goals will be achieved?

a. b. c. d.

marketing objective creative strategy message strategy advertising planning

ANS: C DIF: Easy REF: p. 336 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 10-Intro TYP: Comprehension

58. (Scenario 10-6) Which of the following methods would encourage Target's customers to recall the store's name first when they decide to go shopping? a. testimonial ads b. slice-of-life ads c. humor ads d. slogans and jingles ANS: D DIF: Easy REF: p. 338 NAT: AACSB Communication | CB&C Model Consumer

OBJ: 10-2 TYP: Knowledge

59. (Scenario 10-6) Target managers feel that their potential customers, who are now shopping in department stores, must be persuaded to visit Target stores by recognizing the unique image, positive significance, and social meaning for their brand. Several methods might be used, but which of the following would be least effective in accomplishing this objective? a. slice-of-life b. hard-sell c. branded entertainment d. image ANS: B DIF: Moderate REF: p. 342 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 10-2 TYP: Application

60. (Scenario 10-6) Target managers decide to run magazine ads with very few words, instead focusing on visuals of the Target logo (the recognizable red ball) and high-end goods sold in their stores. Target is attempting to use an efficient communication that sends a message at a glance, in the form of a. image ads. b. demonstration ads. c. point-of-purchase ads. d. comparison ads. ANS: A DIF: Difficult REF: p. 357 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 10-2 TYP: Application

61. (Scenario 10-6) Another magazine ad designed for Target's new campaign shows a well-dressed shopper pushing her loaded Target cart to her Jaguar, showing satisfaction in the parking lot as she spots another consumer loading Target shopping bags into her Jaguar.Which objective is this ad hoping to achieve? a. to instill brand preference b. to scare the consumer into action c. to situate the brand socially d. to change behavior by inducing anxiety ANS: C DIF: Difficult REF: p. 358 NAT: AACSB Reflective Thinking | CB&C Model Customer

OBJ: 10-1 TYP: Application

ESSAY

1. What is message strategy? How is it used in advertising and promotion? ANS: Message strategy involves the tactics used to determine the goals of the advertiser and to actually create the communications intended to reach and persuade the consumer. Message strategy consists of objectives (what you want to do) and methods (how you plan to do it). It identifies the goals of the advertiser, and then determines how those goals will be achieved. DIF: Moderate REF: p. 336 OBJ: 10-Intro NAT: AACSB Analytic | CB&C Model Strategy

TYP: Comprehension

2. The text identifies ten objectives of advertising message strategy. Name and briefly define as many as you can, as well as the methods used to reach them. Then choose two objectives and give a real-life example demonstrating each of them. ANS: The text refers to ten objectives of advertising message strategy, as follows: To promote brand recall. This is the simplest type of advertising in existence, with very clear goals— to get consumers to remember a brand name, and to remember it as one of their main alternatives. Its methods are repetition, slogans and jingles, and point-of-purchase branding. To link attributes to the brand name. This is the advertising process that simply brings together in the consumer’s mind certain desirable attributes and the brand name. The method involves the unique selling proposition (USP), that is, the idea that the brand emphasizes a unique quality or qualities. To persuade the consumer. This is high-engagement advertising, coming right out and proposing an argument, being direct with information and attributes, and attempting to logically convince the consumer of the superiority of a brand. Methods include reason-why ads, hard-sell ads, comparison ads, testimonials, demonstrations, and infomercials. To create affective association. This refers to the advertising that makes consumers feel good about an ad, a brand, and themselves. Methods include feel-good ads, humor ads, and sex-appeal ads. To scare the consumer into action. This approach uses a consumers personal fears to convince them that a product or service will alleviate these fears. The method used in this approach is fear-appeal ads. To change behavior by inducing anxiety. This approach include techniques that play on low-level anxieties to create a stronger level of anxiety and then introduce the answer to that problem with a product or service. Methods include anxiety ads and social anxiety ads. To define the brand image. These ads express the identity, emotional connection, or inner meaning of the brand in visual terms that can be quickly grasped. Image ads are the method used in this approach. To give the brand the desired social meaning. These ads attempt to promote the overwhelming idea that objects have social meaning and are not just things, and that certain objects carry with them a high degree of social status and meaning. Methods include slice-of life ads, branded entertainment, and product placement. To leverage social disruption and cultural contradictions. These are very sophisticated messages that manage to carry with them the idea that certain brands recognize where the social fabric is frayed, acknowledge this disconnect, and successfully work to bridge that gap. The method used in this approach involves tying brands to social/cultural movements.

To transform consumption experiences. This is the ultimate goal and the highest level of sophistication in advertising, involving ads that have that perfect mix of magic, timing, and social awareness to create an entirely new experience for the consumer. The method involves transformational ads. DIF: Difficult REF: p. 337-366 OBJ: 10-1| 10-2 NAT: AACSB Analytic | CB&C Model Strategy

TYP: Comprehension

3. What are the three primary methods of promoting brand recall? Name them, and describe in detail. Give an example of each from familiar ads or commercials. Finally, explain why brand recall is particularly relevant to the advertising of "low-involvement" goods and services. ANS: The text discusses three methods used to promote easy brand recall—repetition of the brand name, use of slogans and jingles, and point-of-purchase methods. Repetition ads play off the notion that things said more often will be remembered more easily than things said less frequently, and so the brand name is mentioned over and over again. Slogans and jingles rely on linguistic devices to enhance brand name retrieval, such as metaphors, similes, rhyme, meter, and (in the case of jingles) music. Point-of-purchase methods involve in-store displays that act as instant reminders for brands. These include eye-catching visual displays at the store entrances and within store aisles, or within the packaging itself. Low-involvement goods are often parity goods—such items as soap, laundry detergent, cereal, canned soup. Low-involvement services might include such ordinary transactions as film developing and dry cleaning. In the case of low-involvement goods, the first brand remembered is often the most likely brand to be purchased—just the recall of a name can drive the purchase decision. Consumers choose from among parity brands, not because of extensive deliberation, but because of name recall and habit. DIF: Moderate REF: p. 337-339 OBJ: 10-2 NAT: AACSB Reflective Thinking | CB&C Model Strategy

TYP: Application

4. How does the hard-sell approach aim to create immediate sales? How does it work? What objective is this method trying to achieve? ANS: The idea behind hard-sell ads is to create a sense of urgency so customers will act impulsively and immediately. Phrases like "act now" and "one-time-only" characterize this type of advertising. In most instances, however, consumers have learned to decode and discount these types of messages, which decreases their effectiveness. Despite their drawbacks, they are commonly used in newspaper advertising. The objective of hard-sell ads is to persuade. They want the customer to buy the brand— now. DIF: Easy REF: p. 342 OBJ: 10-2 NAT: AACSB Analytic | CB&C Model Strategy

TYP: Comprehension

5. In the past, research has suggested that advertisers should exert caution when attempting to use certain methods of advertising. List at least two of these methods and, for each method, describe two of the lessons that advertisers can learn from the research. ANS:

Humor ads: Research suggests that advertisers should use humor with caution. The goal of humor is to create a pleasant and memorable association with the product for the consumer. However, research shows that humorous messages may adversely affect comprehension and can actually interfere with memory processes: the consumer doesn’t remember what brand the ad was for. In addition, humor can attract attention without increasing the effectiveness or persuasive impact of the advertisement. Fear-appeal ads: Some research also indicates that intense fear appeals actually short-circuit persuasion and result in a negative attitude toward the advertised product. The research on this, however, is far from conclusive. The text suggests the use of a moderate level of fear is most successful. Whether or not a fear appeal is successful may also come down to how believable the fear is, and how clearly the escape from this fear is identified and explained. Comparison ads: Extensive research has been done on making comparisons. Among the findings are that (1) direct comparison by a low-share brand to a high-share brand increases the attention on the part of receivers and increases the purchase intention of the low-share brand; (2) direct comparison by a high-share brand to a low-share brand does not attract additional attention and increases awareness of the low-share brand; and (3) direct comparison is more effective if members of the target audience have not demonstrated clear brand preference in their product choices. For these reasons, established market leaders almost never use comparison ads. These ads are almost always used by the underdog brand, the brand that wishes to be seen in the company of the market leader. DIF: Difficult REF: p. 342-343| p. 348-349| p. 351-353 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 10-2 TYP: Application

6. How, and why, does anxiety work to sell things? Compile a list of goods that are likely to be promoted using ads that attempt to change behavior by inducing anxiety, including both generalized anxiety as well as social anxiety. Then make a list of services that might be promoted using anxiety tactics. ANS: Anxiety is uncomfortable and long-lasting. People routinely try to alleviate it or eliminate it with thoughts and behaviors. Advertisers make suggestions about something that should worry the consumer, then offer an immediate solution to the problem with their product. So people do end up buying any number of products and services due to conscious or unconscious levels of anxiety. Goods promoted through anxiety ads might include deodorant, mouthwash, anti-bacterial soap, acne medications, whitening toothpaste, condoms, dandruff shampoo, hair coloring, vitamins, prescription medications, or just about any other personal care product. Another category might include cleaning products or germ-fighting remedies—sprays, scrubs, and soaps, involving products like glass cleaner, furniture polish, toilet bowl tablets, and the newer antibacterial hand sanitizers available today. Other household products such as insect spray and air freshener are promoted this way. Even clothing, accessories, and footwear may be promoted this way, if the tactic involves implanting a personal worry or social concern. Services advertised through anxiety ads might include home security systems, car and home insurance, life insurance, weight loss programs, fitness center memberships, magazine or newspaper subscriptions, wardrobe consultants, cosmetic makeovers, hair care salons, and just about any personal service that may be seen as alleviating worry or avoiding social embarrassment. DIF: Moderate REF: p. 353-354 OBJ: 10-1| 10-2 NAT: AACSB Analytic | CB&C Model Strategy

TYP: Application

Chapter 11 - Executing the Creative TRUE/FALSE 1. Though at one time the creative team consisted of an art director and a single copywriter, today it is composed of art directors, copywriters, media planners, and account planners. ANS: T DIF: Easy REF: p. 371 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-1 TYP: Knowledge

2. The four main components of print copy are text, slogan, headline, and tagline. ANS: F DIF: Easy REF: p. 376 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-2 TYP: Knowledge

3. An ad for a microwave popcorn features the headline, "If you want a snack, have a wholesome snack." This straightforward headline has the purpose of selecting the audience. ANS: F DIF: Moderate REF: p. 377 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 11-2 TYP: Application

4. In very large print, centered at the top of the magazine page, is just the word “COAST.” A short block of copy and photo complete the ad for Coast bar soap. This one-word headline is designed simply to identify the brand and reinforce brand-name recognition. ANS: T DIF: Moderate REF: p. 378 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-2 TYP: Application

5. In a print ad, the subhead serves basically the same purpose as the headline. ANS: T DIF: Easy REF: p. 379 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-2 TYP: Knowledge

6. Grammar has an important role in body copy. It is best to employ the present tense rather than past tense, singular words rather than plural words, and active verbs rather than passive verbs. ANS: T DIF: Difficult REF: p. 380 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-2 TYP: Comprehension

7. Clichés and well-known phrases may reflect how people really talk, but in ad copy they send the signal that the product is bland, stale, old-fashioned, or offers nothing new. ANS: T DIF: Easy REF: p. 380 NAT: AACSB Communication | CB&C Model Product

OBJ: 11-2 TYP: Comprehension

8. In radio spots, the copy must dominate any musical pieces or jingles, otherwise the music can easily overwhelm the persuasive elements of these ads. ANS: T DIF: Moderate REF: p. 382 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-3 TYP: Comprehension

9. A radio commercial depicts two men jogging together. They joke about their aches and pains, and then laughingly agree on their need for Advil. This radio spot uses a testimonial format for its copy. ANS: F DIF: Moderate REF: p. 382 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-3 TYP: Application

10. Dialogue copy on radio may end up sounding dull and dry—just the background drone of normal conversation. To alleviate this, many advertisers use humor as an attention-getting device. ANS: T DIF: Easy REF: p. 382 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-3 TYP: Knowledge

11. A man turns on a spigot, splashes hot water into a sink, squirts Joy liquid into a dishpan full of glassware, swirls a cloth around, and brings out sparkling glasses. He then begins talking with someone off-camera about how good the glasses will look for tonight’s party and how great Joy works. The strong visual effect demonstrates that, on television, words do not stand alone. ANS: T DIF: Difficult REF: p. 384 NAT: AACSB Analytic | CB&C Model Product

OBJ: 11-3 TYP: Application

12. One reason that television is such an effective medium for ads is that there is the opportunity to present one message with the video and a second, entirely different, message with the audio. ANS: F DIF: Moderate REF: p. 384 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-3 TYP: Comprehension

13. The idea of audience is very different in digital and interactive media, because people often seek out these ads rather than the other way around, and are more active, more engaged, and more direct in their response. ANS: T DIF: Moderate REF: p. 385 NAT: AACSB Technology | CB&C Model Creativity

OBJ: 11-4 TYP: Comprehension

14. A slogan is a short identifying phrase written for multiple forms of media. It is repeated in print and broadcast ads, through salespeople and promotional events, and on company websites. ANS: T DIF: Easy REF: p. 387 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-4 TYP: Knowledge

15. The copy approval process usually begins with the advertiser’s senior executives. ANS: F DIF: Easy REF: p. 390 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-4 TYP: Knowledge

16. The three primary visual elements of a print advertisement are illustration, design, and layout. ANS: T DIF: Easy REF: p. 391 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Knowledge

17. A print ad for a new wood floor cleaner shows before-and-after shots of a long hallway that has been cleaned and polished. This is an example of communicating product features or benefits through illustration. ANS: T

DIF: Moderate

REF: p. 391-392

OBJ: 11-5

NAT: AACSB Communication | CB&C Model Product

TYP: Application

18. The overall visual impact through illustration relies on three broad factors -- size, color, and medium. ANS: T DIF: Easy REF: p. 394 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Knowledge

19. A Volkswagen print ad shows the headline, “Think Small,” and a grayscale photo of the round little car in one corner of the ad, surrounded by lots of white space. The overall look and placement of the photo depicting the brand demonstrates the concept of illustration format. ANS: T DIF: Difficult REF: p. 396 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-5 TYP: Application

20. Formal balance creates a mood of seriousness or directness. Informal balance actually creates an “imbalance,” a sense of unease and discomfort, or the feeling that something has gone wrong. ANS: F DIF: Moderate REF: p. 397-398 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Comprehension

21. An art designer realizes that she can strengthen the unity of her magazine ad in two ways—either by using three points to promote gaze motion, or by using two points reflected on opposite sides of the page. ANS: T DIF: Difficult REF: p. 399-400 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Application

22. Layout is the term used for the drawing or digital rendering of a proposed print ad that shows where all the elements will be positioned, allowing for various alternatives and options. ANS: T DIF: Easy REF: p. 401 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Knowledge

23. An agency is creating a new print ad for a whitening toothpaste. In thinking through the new layout, the art director would begin by asking his staff for several comps, just to see the placement of various elements and get an idea of the general presentation. ANS: F DIF: Moderate REF: p. 402 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-5 TYP: Application

24. An experienced artist is aware of the different functions of typefaces on the page. That’s why she saves serif type for headlines only, and uses sans serif type for body copy, since the eyes can read it for long stretches without tiring. ANS: F DIF: Difficult REF: p. 403 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Application

25. As in early TV commercials, early cyber ads merely imitated traditional formats and did not seem to understand the new medium or the ways that the audience would approach this new technology. ANS: T DIF: Moderate REF: p. 404 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 11-5 TYP: Comprehension

26. Consumer generated content (CGC) is produced when the creative team is given lists of suggestions and ideas for promoting the product that have been submitted by the public through emails, letters, or focus group transcripts. ANS: F DIF: Easy REF: p. 405 NAT: AACSB Technology | CB&C Model Customer

OBJ: 11-5 TYP: Comprehension

27. In a unique twist, some contemporary companies now ask customers for their advertising ideas and suggestions. This crowdsourcing is a dynamic way to energize the creative process and allow consumers to show that they “get” the brand. ANS: T DIF: Moderate REF: p. 405 NAT: AACSB Technology | CB&C Model Customer

OBJ: 11-5 TYP: Comprehension

28. Radio commercial production is unique in that the copywriter is relatively free to plan nearly all aspects of the ad, and beyond an assigned producer, other agency personnel are not involved. ANS: T DIF: Moderate REF: p. 405 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-5 TYP: Comprehension

29. A copywriter is creating a 30-second radio ad with no music or sound effects. This means that he can write about 120 to 125 words, based on an average word count for airtime. ANS: F DIF: Moderate REF: p. 406 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-3 TYP: Application

30. An agency decides to use a well-known radio announcer to avoid having to write a tightly scripted ad. The best choice would be the most loosely structured option for a radio commercial, one that allows an announcer to ad-lib, called a live script radio ad. ANS: F DIF: Difficult REF: p. 407 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-6 TYP: Application

31. In many ways, television was simply made for advertising—it is everywhere. But because of that presence, it often acts as mere background and tends to be ignored. ANS: T DIF: Moderate REF: p. 407 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-6 TYP: Comprehension

32. A script is a written version of the television commercial. It controls the flow, coordinates all audio and visual elements, and helps make decisions about location, cast, and schedule. ANS: T DIF: Easy REF: p. 411 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-6 TYP: Knowledge

33. Even with the best intentions and predictions, a “reasonable” production timetable for a television commercial is rarely achieved, but instead is often compromised. ANS: T DIF: Moderate REF: p. 413 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-6 TYP: Knowledge

34. Before the day of the shoot, prelight, blocking, and other production factors are checked and adjusted to avoid additional expense during actual filming with on-camera talent.

ANS: T DIF: Easy REF: p. 414 NAT: AACSB Technology | CB&C Model Creativity

OBJ: 11-6 TYP: Knowledge

35. A shoot has its own tempo and direction. Smart advertisers learn to accept the pace and the decisions made based on lighting, weather, and other factors that make TV production so unlike an assembly line. ANS: T DIF: Moderate REF: p. 415 NAT: AACSB Technology | CB&C Model Creativity

OBJ: 11-6 TYP: Knowledge

MULTIPLE CHOICE 1. The creative concept can be thought of as the a. “menu” of ingredients leading to recall and recognition of a brand. b. “game plan” behind an art director's choice of media placements. c. “roadmap” and direction for executing the creative campaign effort. d. “laundry list” of all possible promotional ideas. ANS: C DIF: Easy REF: p. 371 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-Intro TYP: Comprehension

2. An account planner has been added to many creative teams to a. handle media placement in an increasingly sophisticated market. b. gather research that gives the consumer a voice. c. watch the bottom line and monitor spending of advertising dollars. d. assist the account executive in connecting creatives to clients. ANS: B DIF: Easy REF: p. 371 NAT: AACSB Communication | CB&C Model Customer

OBJ: 11-1 TYP: Knowledge

3. Shortly after your agency agrees to create a new campaign for a well-known instant coffee, a creative brief needs to be put together. Why is a creative brief so important? a. It pulls together initial ideas for copy, visuals, media, and overall concept from various team members. b. It acts as the checkbook and the balance sheet to keep expenses on track. c. It gets the creative team started with a list of suggested ideas from the client. d. It is produced based on brainstorming by all agency and client staff involved in the campaign. ANS: A DIF: Moderate REF: p. 371-372 NAT: AACSB Analytic | CB&C Marketing Plan

OBJ: 11-1 TYP: Application

4. What is one of the main challenges of the copywriter early in the campaign process? a. combining texts and visuals to create a unified whole b. writing lively and colorful words about products that are often dull and lifeless c. extracting meaning from massive amounts of analytical data, product technology information, and market research d. creating the mood, tone, or humorous angle that gives the product real value ANS: C DIF: Difficult REF: p. 372-373 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-1 TYP: Comprehension

5. A copywriter is just starting on a print ad for a new brand of dishwasher detergent. What is the first step in developing copy for print?

a. b. c. d.

sketching an overall view of the finished ad meeting with the creative director to brainstorm a list of exciting words to be included deciding how to use, or not use, the three main components of print copy writing a few rough headlines and possibly subheads

ANS: C DIF: Difficult REF: p. 376 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-2 TYP: Application

6. No matter what other positive aspects it may possess, a headline does no good unless it a. makes a strong emotional appeal. b. conveys information not included in the body copy. c. restates the ideas found in the visuals. d. motivates readers to move on to the rest of the ad. ANS: D DIF: Easy REF: p. 376 NAT: AACSB Communication | CB&C Model Customer

OBJ: 11-2 TYP: Comprehension

7. An advertisement for a Michigan resort features the headline, "Endless Coast. Endless Sand. Endless Sunset. Endless Time. Lighthouse Harbor Lodge.” This headline has the primary purpose of a. identifying the brand. b. establishing a tone or emotion. c. selecting the audience. d. giving advice to the reader. ANS: B DIF: Moderate REF: p. 377 NAT: AACSB Analytic | CB&C Model Product

OBJ: 11-2 TYP: Application

8. A subhead for a Michigan resort ad reads, “Michigan’s Oldest Resort. In the Woods. On the Cliffs. At the Beach. Location, Location, Location. Best Location on the Lake for the Past 130 Years.” This copy fulfills the basic job of the subhead, which is to a. speak directly to readers with sound advice about the brand. b. target a specific demographic group to consider the brand. c. add key selling points about the brand. d. promote a good feeling about the brand. ANS: C DIF: Moderate REF: p. 378-379 NAT: AACSB Analytic | CB&C Model Product

OBJ: 11-2 TYP: Application

9. The whole purpose behind good body copy is to a. be clever, entertaining, or funny. b. pull together the headline, subhead, and visuals. c. give all the possible reasons to buy the brand. d. tell a more complete story of the brand. ANS: D DIF: Easy REF: p. 379 NAT: AACSB Communication | CB&C Model Product

OBJ: 11-2 TYP: Knowledge

10. Body copy based on the ____ approach delivers a series of statements about a brand, though this technique is rarely lively and can often result in a dull ad. a. straight-line b. direct response c. narrative d. dialogue ANS: C DIF: Moderate REF: p. 379 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-2 TYP: Knowledge

11. What are the five standard techniques used in preparing body copy? a. celebrity, narrative, slogan, straight-line, and teaser b. social, multicultural, response, evaluative, and dialogue c. straight-line, dialogue, testimonial, narrative, and direct response d. testimonial, narrative, evaluative, developmental, and thumbnail ANS: C DIF: Moderate REF: p. 379 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-2 TYP: Knowledge

12. A copywriter is deciding on the best approach for a magazine ad featuring a protein energy bar, and has narrowed down her options to two types—either testimonial or dialogue. What is one major difference between these two approaches? a. A testimonial approach is written by the spokesperson, while a dialogue approach is written by the copywriter. b. A testimonial approach is one-sided, while a dialogue approach can use two people conversing. c. A testimonial approach uses the hard-sell method to push the product, while a dialogue approach uses the image method to create a social setting. d. A testimonial approach emphasizes product benefits, while a dialogue approach emphasizes image. ANS: B DIF: Moderate REF: p. 379 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-2 TYP: Application

13. Which of the following is just about always avoided when writing body copy for an advertisement? a. varying the length of sentences b. relying on familiar words c. using passive verbs d. writing in the singular form ANS: C DIF: Easy REF: p. 380 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-2 TYP: Knowledge

14. Compared to print media, what effect does broadcast media have on the copywriting process? a. It actually has little difference in its effect. b. It offers more opportunities for creative copy. c. It provides unlimited options for visual elements but few for verbal elements. d. It has inherent limitations on time and space. ANS: D DIF: Moderate REF: p. 381 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-3 TYP: Comprehension

15. When writing copy for a(n)____ ad, a copywriter manages to successfully create images and moods for the audience that transcend those created in any other medium. In this way, he stimulates ____. a. Internet; online sales b. television; subliminal images c. radio; theater of the mind d. print; consumer interaction ANS: C DIF: Difficult REF: p. 381 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-3 TYP: Comprehension

16. What is meant by the term audio wallpaper? a. the incorrect choice of broadcast media for the message to be delivered

b. the spoken or musical formats commonly used in broadcast ads c. the use of radio as unobtrusive background or filler d. the creative plan for TV or radio that lacks any real creative thought ANS: C DIF: Moderate REF: p. 381 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-3 TYP: Knowledge

17. A snack advertiser’s main goal is to grab the attention of the radio audience and get people to remember the product name. Which radio format should definitely be incorporated, since it is most known for its ability to get attention, hold interest, and enhance recall? a. dialogue b. music c. announcement d. straight-line ANS: B DIF: Moderate REF: p. 382 NAT: AACSB Communication | CB&C Model Product

OBJ: 11-3 TYP: Application

18. A breakfast cereal advertiser wants a celebrity announcer to read its radio spot. Both agency and client should be aware that celebrity announcers on the radio usually a. act as both disc jockey and news announcer, fulfilling several roles. b. are chosen based on their own experience with the product, unlike the situation in most other media. c. are not as entertaining and attention-getting as they were in past decades. d. do not qualify as giving testimonials, since they do not express their personal satisfaction with a product. ANS: D DIF: Moderate REF: p. 383 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 11-3 TYP: Application

19. All of the factors below can maximize the effectiveness of radio ads. But which is necessary due to the fleeting impression that radio makes, particularly if the location of a business is included? a. music b. repetition c. imagination d. brevity ANS: B DIF: Easy REF: p. 383 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-3 TYP: Comprehension

20. A radio spot for a local shoe chain begins with the lines, “You walk the dog. You jog the trail. You chase the bus. You go, go, go. You need new shoes.” Which two guidelines for successful radio copywriting are used in this ad? a. Keep sentences short. Use common language. b. Use attention-getting sounds. Stimulate the imagination. c. Stimulate the imagination. Repeat the brand name. d. Select the audience. Give news about the brand. ANS: A DIF: Moderate REF: p. 383 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-3 TYP: Application

21. A creative director is working with several new interns, so she is putting together a brief set of copywriting tips for TV commercials. She realizes that a number of suggestions can be made, but which of the following would not be included on her list? a. Describe exactly what the audience is watching.

b. Sell the product plus entertain the audience. c. Tell the same story with the audio and the video. d. Write for specific airtime lengths. ANS: A DIF: Moderate REF: p. 384-385 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-3 TYP: Application

22. Recent history and research suggest that copywriting for promotions in the evolving media of cyberspace a. involves styles, feelings, and demands similar to that of other media. b. is often abstract and distant rather than user-directed and engaging. c. has been influenced by its background in techno-speak. d. tends to be static and unchanging. ANS: C DIF: Moderate REF: p. 385 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 11-4 TYP: Comprehension

23. The phrase creativity for creativity's sake in the world of advertising copywriting refers to ads that a. are so unique and innovative that they are not understood by the general public. b. result in the product being remembered through one technique or another. c. accomplish the primary goal of entertaining in a clever or amusing way. d. neglect the main responsibility of communicating the selling message. ANS: D DIF: Moderate REF: p. 389 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-2| 11-3| 11-4 TYP: Comprehension

24. Copywriters are not fond of ____, since it allows audiences to approve or disapprove of copy after the fact, once the ad has been produced, and then submit their “report card.” a. evaluative copy research b. copy approval c. postproduction review d. developmental copy research ANS: A DIF: Moderate REF: p. 390 NAT: AACSB Analytic | CB&C Model Research

OBJ: 11-2| 11-3| 11-4 TYP: Knowledge

25. Probably the most straightforward illustration is one that a. attracts the target audience. b. stimulates copy readership. c. creates a mood. d. communicates features or benefits. ANS: D DIF: Easy REF: p. 392 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-5 TYP: Comprehension

26. An ad for concentrated frozen orange juice dramatically highlights the product, using a combination of backlighting and low-angle shots to show the golden liquid being poured into the sparkling tumbler. What is the function of this illustration? a. the product set in a test situation b. the brand seen in a social context c. the brand portrayed as a hero d. the product used by a typical consumer ANS: C DIF: Moderate REF: p. 392 NAT: AACSB Analytic | CB&C Model Product

OBJ: 11-5 TYP: Application

27. In the broadest sense, color is often effectively used in advertising illustrations to a. attract a reader's attention. b. create a mood. c. prevent scrutiny of a product’s functions. d. get a universally recognized reaction. ANS: A DIF: Moderate REF: p. 395 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-5 TYP: Comprehension

28. Which element of advertising involves “the structure itself and the plan behind the structure”? a. layout b. design c. copy d. illustration ANS: B DIF: Easy REF: p. 396 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-5 TYP: Comprehension

29. An art director is conducting an orientation with two new artists and stresses that this agency does, in fact, consistently incorporate the generally accepted principles of design in its creative work. In his brief summary of these principles, which of the following would not be included? a. The ad should give equal emphasis to all elements. b. The proportion within an ad should be pleasing to the viewer. c. There should be a unifying force within the ad. d. The elements in the ad should have a directional pattern. ANS: A DIF: Difficult REF: p. 397 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-5 TYP: Application

30. A person picks up a magazine and flips through the pages, stopping at a full-page ad. Which of the following is one of several natural tendencies of eye movement that occur when a person views a print advertisement? a. from light to dark b. from right to left c. from white to color d. from small to large ANS: A DIF: Moderate REF: p. 398 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Application

31. Which is considered the most crucial of all design elements, because when used effectively it brings harmony to all components on the page? a. order b. unity c. balance d. color ANS: B DIF: Moderate REF: p. 399 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Knowledge

32. What term identifies the visual line, real or imagined, that runs through an ad and organizes all elements? a. serif b. axis c. thumbnail

d. gaze motion ANS: B DIF: Easy REF: p. 399 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Knowledge

33. An ad layout typically progresses through several standard stages during its development. In what order does this occur? a. rough draft, comp, thumbnail, final mechanical b. thumbnail, rough layout, comp, final digital c. mechanical, rough draft, thumbnail, final comp d. thumbnail, illustration layout, rough layout, final mechanical ANS: B DIF: Easy REF: p. 401-402 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Knowledge

34. A print ad being developed for a women’s clothing line shows the headline font, the images, and the actual body copy, to allow the client to imagine the ad and give approval. This is considered the a. thumbnail. b. comp. c. sans serif layout. d. rough layout. ANS: B DIF: Moderate REF: p. 402 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Application

35. Type fonts are seen in six basic typeface groups, all with different personalities. For instance, ____ is ornate and formal, while ____ is cursive and elegant. a. nonserif; serif b. roman; pica c. serif; nonserif d. blackletter; script ANS: D DIF: Easy REF: p. 402-403 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Knowledge

36. When analyzing the various elements of type, the ____ refers to the size of the type in height, and the ____ refers to the size of lines in width. a. typeface; serif b. font; point c. point; pica d. serif; point ANS: C DIF: Moderate REF: p. 403 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Knowledge

37. Art production for advertising to appear in cyberspace—particularly those composed of headline, body copy, and illustration—most closely resembles production of advertising for a. radio. b. television. c. packaging. d. print. ANS: D DIF: Moderate REF: p. 404 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 11-5 TYP: Comprehension

38. The text points out that like no other media advertising, Web ads have the ability to ____, because consumers expect and even demand this and it ensures continued interest. a. display visuals b. use both copy and picture c. change almost instantly d. create a following ANS: C DIF: Difficult REF: p. 404 NAT: AACSB Technology | CB&C Model Customer

OBJ: 11-5 TYP: Comprehension

39. The most important function of the first few seconds of a television commercial is to a. stress the audio—then the viewer will follow up with the visual. b. get the name out—so the viewer can establish recall at the outset. c. establish the benefit—otherwise the viewer will quickly lose interest. d. get attention—grab the viewer immediately or the spot will probably fail. ANS: D DIF: Moderate REF: p. 408 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-6 TYP: Comprehension

40. What is the best guideline for working with both audio and visual elements during the production of a television spot? a. Emphasize the visual but reinforce it with the audio. b. Don't use the audio when showing a key visual. c. Let the audio tell the full brand story. d. Allow the visual to establish the tone and the audio to sell the benefits. ANS: A DIF: Moderate REF: p. 409 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-6 TYP: Application

41. A television commercial for a high-speed mountain bike is in the middle of production. One person appears to be responsible for handling the script, interpreting the storyboard, managing the talent, plus dealing with the cameras, lighting, and set. Who is this? a. the director b. the producer c. the media planner d. the account executive ANS: A DIF: Moderate REF: p. 412 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-6 TYP: Application

42. A day’s shooting expenses for just an average television production, including director’s fees, can range from about a. $20,000 to $50,000. b. $60,000 to $70,000. c. $80,000 to $120,000. d. $140,000 to $180,000. ANS: C DIF: Moderate REF: p. 415 NAT: AACSB Technology | CB&C Model Marketing Plan

OBJ: 11-6 TYP: Comprehension

43. The production costs of a television commercial prepared for a national advertiser are running into the upper ranges. It is probably a commercial for the ____ product category, because this typically requires the highest production quality and carries the highest costs. a. beer and soft drink b. electronic and digital device

c. household cleaner d. fast food ANS: A DIF: Moderate REF: p. 415 NAT: AACSB Technology | CB&C Model Marketing Plan

OBJ: 11-6 TYP: Comprehension

44. A young woman has just launched her own company to promote several unique but inexpensive kitchen gadgets. She wants to get her message out to massive TV audiences, but she doesn’t have a large budget. Taking this into consideration, the agency will probably propose a television commercial that a. uses a testimonial approach. b. has a series of vignettes. c. features animation. d. focuses on functional features. ANS: D DIF: Difficult REF: p. 415 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 11-6 TYP: Application

45. At the end of production for a TV ad, the final assembly of the video is done through a computerized system. The spot has on-camera talent, so the audio goes together first, then the video is matched. What process does this represent? a. director’s rough cut b. audio edit c. digital edit d. master and dub ANS: C DIF: Moderate REF: p. 416 NAT: AACSB Technology | CB&C Model Creativity

OBJ: 11-6 TYP: Application

Scenario 11-1 After a series of public relations setbacks, Japanese automaker Toyota unveiled a new company slogan in 2010. The slogan read, "Drive a Toyota. You'll never stop." The company hopes the new slogan can once again instill confidence into a number of consumers who grew weary of the brand after a number of massive recalls in recent years. The company chose to go with the slogan after turning down a number of others, including, "Toyota Puts the Pedal to the Metal. And keeps it there," and "Toyota. The Last Car You'll Ever Drive." The new slogan will be featured in all of the company's future advertisements. (Andy Borowitz, “Toyota Unveils New Slogan: ‘Drive a Toyota. You’ll Never Stop’.” The Huffington Post, February 6, 2010.) 46. (Scenario 11-1) To create ads featuring the new company slogan, Toyota assembles a creative team of individuals who will focus solely on designing the new advertisements. Toyota realizes that it will need to have a strong Internet and social media presence. In order to effectively utilize these outlets, Toyota should consider hiring a(n) a. production coordinator. b. media planner. c. advertising guru. d. copywriter. ANS: B DIF: Difficult REF: p. 371 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-1 TYP: Application

47. (Scenario 11-1) To create successful advertisements for interactive media, Toyota must understand the differences between interactive media and traditional one-way (non-interactive) media. Which of the following implications is true of interactive media? a. The audience in interactive media often seek out ads or other IBP material online, rather than having it forced on them as it is through traditional media. b. Forms of interactive media have lower rates of recall than traditional forms. c. Copywriting of interactive media is of higher quality than that of traditional media. d. There is often less incentive to read interactive forms of media than traditional print media. ANS: A DIF: Moderate REF: p. 385 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-4 TYP: Application

48. (Scenario 11-1) A slogan can be an integral part of a brand’s image and personality, but it can serve other purposes as well. One of these other purposes can be a. develops the idea presented in the headline. b. entices the audience to look at the visual. c. provides continuity to an entire campaign. d. closes the sale. ANS: C DIF: Easy REF: p. 387 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-4 TYP: Comprehension

49. (Scenario 11-1) As Toyota designs its new ad campaign, it will need to do in-depth copywriting along the way. One of the most common mistakes in copywriting is a. using generalizations and imprecise words. b. failing to use cliches and superlatives. c. communicating value to consumers. d. avoiding sexist, racist, and offensive language. ANS: A DIF: Moderate REF: p. 389 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-2| 11-3| 11-4 TYP: Comprehension

50. (Scenario 11-1) The account executive for a campaign such as this is adamant that the copy be tested before he even submits it to the client. He is looking for audience reaction and interpretation of the proposed copy, known as ____ copy research. a. illustrative b. developmental c. continuity d. balanced ANS: B DIF: Easy REF: p. 390 NAT: AACSB Communication | CB&C Model Research

OBJ: 11-2| 11-3| 11-4 TYP: Application

Scenario 11-2 You are the creative director at a Milwaukee ad agency. Today, your copywriters are presenting you with their ideas for several 30-second radio spots for the City of Milwaukee Tourism Bureau, which wants to feature its own information center and tours, as well as city museums, art galleries, concerts, festivals, and special events. When they are ready, the best ideas will be taken to the marketing director at the City of Milwaukee for review and approval. 51. (Scenario 11-2) Before the copywriters present, you want to familiarize yourself with the details of the campaign once again. You review a copy of the creative brief, because you know it a. contains the best ideas used by competitors of the client. b. is the channel that will carry the ad campaign’s message to the public.

c. represents the unique thought behind the ad campaign. d. lists the rules, restrictions, and limitations for the ad campaign as dictated by the client. ANS: C DIF: Moderate REF: p. 371 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-1 TYP: Comprehension

52. (Scenario 11-2) Last week, you met with your copywriters and reminded them of the various options they had in writing for radio. What are the four basic formats available to them in creating a radio ad? a. announcement, testimonial, reason-why, and hard-sell formats b. sound effect, jingle, slogan, and disc jockey formats c. music, dialogue, announcement, and celebrity formats d. information, entertainment, persuasion, and testimonial formats ANS: C DIF: Moderate REF: p. 383 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-3 TYP: Application

53. (Scenario 11-2) One copywriter shows you an idea that involves an announcer reading a “top ten” list of cool reasons to visit Milwaukee. What basic guidelines of radio copywriting does this technique address? a. Repeat the brand name. b. Stress the main selling points. c. Stimulate the imagination. d. Tailor copy to a time, place, and audience. ANS: B DIF: Moderate REF: p. 383 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-3 TYP: Application

54. (Scenario 11-2) One copywriter presents a spot that is funny, delivers the key selling points, and uses opening music as well as sound effects representing various elements of the city. You need to get it recorded before sending it to the client. You send it with the young copywriter to a trusted recording studio with the caution to "use SFX with care." By this, you mean a. keep any added music to a minimum to avoid irritating the audience. b. make sure the sound effects don't overwhelm the copy. c. don't expect to build a musical picture in the listener's mind. d. don't mix both sound effects and music. ANS: B DIF: Difficult REF: p. 406 NAT: AACSB Technology | CB&C Model Creativity

OBJ: 11-3 TYP: Application

Scenario 11-3 A 30-second TV spot begins with a strip of yellow litmus paper being lowered into a bottle of household cleaner. Music plays in the background. The words "You Probably Know This. Litmus Paper Measures Alkalinity" are superimposed on the bottom of the screen. The litmus paper is removed, and it has turned a dark blue-green color. "You Probably Know This. The Darker, The Harsher" is then superimposed. A series of cuts reveals litmus paper being lowered onto different bars of wet soap. In each case, the strip turns a dark color. The brand name of each bar of soap is superimposed underneath. Finally, litmus paper is lowered onto a bar of Ivory soap. The paper remains yellow. Three superimpositions appear in succession: "Ivory," "Ivory is the mildest," and "Bar none." 55. (Scenario 11-3) A copywriter came up with the idea to superimpose the words, "You Probably Know This. Litmus Paper Measures Alkalinity" and "You Probably Know This. The Darker, The Harsher." Considering the nature of this ad, which general guideline for television copywriting does this follow? a. using active words b. providing support for the unbelievable c. involving the reader

d. using familiar words ANS: B DIF: Difficult REF: p. 380 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-2| 11-3 TYP: Application

56. (Scenario 11-3) Which guideline for copywriting is most strongly demonstrated by this spot overall, one that is also important in radio copy and digital/interactive copy? a. emphasizing the brand name b. making the slogan a major component of the ad c. using dialogue to gain interest d. keeping the wording short and to the point ANS: D DIF: Moderate REF: p. 383 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-3 TYP: Application

57. (Scenario 11-3) To make sure that all the words and visuals of this TV spot work together, the creative team would have begun this campaign by preparing a(n) a. working script. b. storyboard. c. fact sheet. d. thumbnail. ANS: B DIF: Easy REF: p. 384 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-3 TYP: Knowledge

58. (Scenario 11-3) The superimposed words that end the spot -- "Ivory is Mildest. Bar none" -- could be considered Ivory's slogan. What is an important function of a slogan such as this? a. to provide unity and order to the ad b. to motivate the viewer to buy c. to increase memorability of the key benefit of the brand d. to entertain or amuse the viewer ANS: C DIF: Moderate REF: p. 387 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-4 TYP: Application

Scenario 11-4 You are a production assistant working on a 30-second television spot for Happy Heart Hound, an allnatural gourmet dog food for puppies and young dogs. The client wants to emphasize the healthful ingredients as well as the “happy and fun-loving” nature of the product. 59. (Scenario 11-4) This television shoot involves a lot of people and is a complex, collaborative effort. Though not everybody likes the idea, which person will be in charge of the set? a. the film director b. the account executive c. the chief creative d. the agency producer ANS: C DIF: Moderate REF: p. 407 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-6 TYP: Application

60. (Scenario 11-4) An idea had been suggested in an early brainstorming session to start the Happy Heart Hound commercial with a quick series of adorable, playful puppies wearing heart-shaped sunglasses. Which guideline for effective television advertising does this hope to demonstrate? a. Show the brand. b. Persuade as well as entertain.

c. Use an attention-getting opening. d. Emphasize the audio. ANS: C DIF: Easy REF: p. 408 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-6 TYP: Application

61. (Scenario 11-4) The first cut of the ad is attractive, touching, cute, and just humorous enough. When an audience tests it, most viewers really like the dogs, the visuals, and the music—but they don’t remember the product. Which creative guideline for television was forgotten? a. Persuade as well as entertain. b. Avoid humor whenever possible. c. Maintain a feeling of continuity. d. Show the brand. ANS: D DIF: Easy REF: p. 410 NAT: AACSB Technology | CB&C Model Creativity

OBJ: 11-6 TYP: Application

62. (Scenario 11-4) Which of the following roles has your boss—the producer—been involved with during the preproduction process for this commercial? a. approving the storyboard and script, and soliciting bids from production houses b. coordinating the camera operators, and handling the cast during shooting c. conducting research, and informing all concerned about consumer preferences d. acting as liaison between client and agency, and buying television airtime ANS: A DIF: Moderate REF: p. 411 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-6 TYP: Application

63. (Scenario 11-4) Your production team is ready to show the client shots from the unfinished project to give an idea of what the commercial will look like. These shots do not include transitions, special effects, or audio, but are merely selections from the first step in postproduction. This means these excerpts are from the a. director’s rough cut. b. digital editing. c. audio edit. d. master copy. ANS: A DIF: Moderate REF: p. 416 NAT: AACSB Technology | CB&C Model Creativity

OBJ: 11-6 TYP: Application

Scenario 11-5 A hospital is attempting to change its image. In the past, the hospital has been perceived as having a high degree of expertise across all medical services, but also as having a cold and unfeeling atmosphere. This has resulted in the hospital losing business in situations where patients feel that a procedure is simple enough that any hospital can perform it equally well. The decision is made to hire a local advertising agency. The agency’s creative director meets with the hospital marketing director to develop a creative brief. It focuses on print ads for local newspapers and regional magazines, and states that the advertising for the hospital must create feelings of caring and warmth, without explicitly stating that the hospital “cares”—a tactic that has been used again and again by other medical institutions. 64. (Scenario 11-5) The art director for this campaign needs to convey a particular mood, a feeling of warmth and serenity, in this ad illustration. While all of the elements below may have some impact on the illustration, she should pay particular attention to the a. size of the illustration within the layout. b. lighting, color, tone, and texture of the illustration.

c. space taken by the body copy. d. magazine and newspaper vehicles in which the ad will run. ANS: B DIF: Moderate REF: p. 393 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 11-5 TYP: Application

65. (Scenario 11-5) The art director thinks about the layout and reminds herself of a widely held belief in the world of art production—that a larger size in an ad illustration typically means a. greater reader attention. b. higher brand sales. c. less brand importance. d. weaker copy. ANS: A DIF: Easy REF: p. 394 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Application

66. (Scenario 11-5) One thing that the art director has learned is that ads should lead the reader’s gaze in a logical path that includes the brand name. Which element of design does this involve? a. order b. proportion c. balance d. unity ANS: A DIF: Moderate REF: p. 398 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Application

67. (Scenario 11-5) Once she has a rough draft, the art director has to admit it's a really great-looking ad. All the elements hang together and work with each other, and the overall feel is harmonious and peaceful. She clearly understands the principle of a. balance. b. unity. c. order. d. proportion. ANS: B DIF: Moderate REF: p. 399 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Application

68. (Scenario 11-5) One last thing that she recommends to the client involves her choice of a particular element from among hundreds of options. She admits she has agonized over her selection on this, because it affects not only readability but also sets the mood and tone of the overall visual impression. She is most likely talking about a. illustration format. b. layout. c. typeface. d. color. ANS: C DIF: Easy REF: p. 402-403 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 11-5 TYP: Application

ESSAY 1. Who are the main members of an advertising agency's creative team? List as many as possible. Consider how they are assigned tasks in producing written, audio, and visual elements of ads, and briefly describe these roles and responsibilities. Then identify several key people—from both inside and outside the agency—who are involved in TV production.

ANS: Copywriting and Art Production: Creative director (CD). The creative director manages the creative process for the client. The main role of the CD is to oversee the creative product of an agency across all clients. Art director (AD). The art director and the copywriter work together to develop the concept for a broadcast or digital/interactive ad. Art directors, with their specialized skills and training, coordinate the design and illustration components of the ad. The AD either oversees the production of the television storyboards or actually constructs the storyboards. In addition, the AD works with the film director who shoots the commercial to develop the overall look of the spot. The AD sometimes makes recommendations on choice of director, casting, and editing facility. Copywriter. The copywriter is responsible for the words and phrases used in an ad, whether it is print, broadcast, or digital/interactive in format. In print, these words appear on the page as headline, subhead, body copy, and slogan/tagline. In television and radio advertising, these words and phrases appear as a script from which the film director, creative director, and art director work during the production process. Media planner. The media planner keeps up with the latest technological advances in digital and interactive media, as well as all other forms. The media planner makes sure what is done for television is consistent with that done for other media within the campaign. This person often focuses on pinpointing and understanding the latest media formats available, such as social networks, mobile markets, brandscapes, etc. Account planner. The account planner is often a research expert who knows how to seek out information, obtain data, do surveys, and use secondary sources to understand target markets. This person makes sure the consumer’s values and interests are represented, and brings the consumer voice to the table. Television Production: Of course, art directors and copywriters are involved in the early creation of the television commercial. But by the time production rolls around, others are needed. The creative team rarely gives up control during production, though not everyone agrees with this. Chief creative. The head creative is in charge of the entire set. This person oversees the creative effort and makes sure the main idea doesn’t get lost in the many detailed tasks needed to film a spot. Producer. The producer supervises and coordinates all the activities related to a broadcast production. The producer reviews storyboards and the overall creative effort. This person then screens director reels, sends out production bid forms, reviews bids, and recommends the production house to be used. The producer also participates in choosing locations, sets, and talent. Normally, the producer will be on the set throughout the production and in the editing room during postproduction, representing agency and client interests. Film director. The director may be one of many available, all with specialties and areas of expertise. Some may have reputations for great special effects, sensitive and emotional ads, children’s commercials, fantastic animation, or product shots. The director makes all the decisions regarding the actual shoot and production—scheduling, lighting, casting, and actual filming. DIF: Difficult

REF: p. 371-376| p. 387| p. 391| p. 407-412

OBJ: 11-1| 11-5| 11-6 NAT: AACSB Reflective Thinking | CB&C Model Creativity

TYP: Application

2. What are the differences between writing advertising copy for print media and for broadcast media? What unique challenges does writing for broadcast hold? How does writing for interactive or digital media fit into all this? ANS: Writing for print is quite straightforward. The copywriter must review components of the creative plan so as to take advantage of and follow through on the marketing and advertising strategies specified and integral to the brand's market potential. In preparing copy for a print ad, the copywriter must decide how to use (or not use) the three separate components of print copy: the headline, the subhead, and the body copy. Writing copy for broadcast media should begin in the same way that writing copy for print media begins. Writing for broadcast ads does have its differences, however. The audio and audiovisual capabilities of radio and television provide different opportunities for the copywriter. On radio, the use of sound effects, musical pieces, and voices offer many creative possibilities. On television, the ability to combine copy with color and motion provides vast and exciting creative options. In either medium, the copywriter must be cautious not to use these effects in a way that could distract the listener or viewer from the copy of the advertisement. Also, broadcast media, as opposed to print media, do not provide the opportunity to communicate long, complex messages about brand features. Unlike print materials that can be read at leisure and viewed again and again, broadcast media, particularly radio, work in short exposure time frames. Writing for digital or interactive ads is somewhat similar to writing for print. However, there are differences. Audiences approach these ads in a much different way—they seek out the ads, at least to a point, rather than having ads presented to them. There is no time restriction for viewing the ads, similar to print, and very much unlike broadcast. DIF: Difficult REF: p. 376| p. 381-385 NAT: AACSB Reflective Thinking | CB&C Model Creativity

OBJ: 11-2| 11-3| 11-4 TYP: Comprehension

3. Some analysts have said that radio ads can be so bland they’re considered audio wallpaper. On the other hand, the text points out the unique freedom that radio offers a copywriter. What are the main types of radio advertising formats? Describe how a copywriter can grab a listener's attention in this seemingly unobtrusive medium. ANS: The copywriter focused on radio has to acknowledge its unique characteristics. First, radio adds sound to basic copywriting, and sound can become a primary tool. Second, radio conjures up images in the mind unlike any other medium. So the copywriter should strive to use the unique elements of radio to stimulate the listener’s imagination. Radio ads are seen in several formats: A music format in a radio spot can do much to attract a listener's attention and enhance recall. It might involve songs, jingles, or vocals, all of which can do much to set a mood and capture a listener’s attention. Jingles can be wonderfully memorable or annoying and silly. This is why professional songwriters are often hired to create them. Music can also be used to introduce an ad or to play in the background while copy is being read. A dialogue format is not inherently attention getting, particularly in a short time frame, so copywriters often use humorous dialogue to avoid listener boredom.

Similarly, an announcement format may be dull, so sound effects or music can be added to increase its attention-getting abilities. A celebrity announcer format can increase attention to an ad, due to the celebrity’s recognizable voice and expert delivery of copy. DIF: Moderate REF: p. 381-383 OBJ: 11-3 NAT: AACSB Technology | CB&C Model Creativity

TYP: Comprehension

4. Define and explain the three main visual elements of print (and often digital/interactive) advertisements. What is the primary purpose of each? ANS: The three primary visual elements used in ads are illustration, design, and layout. Illustration involves drawings, paintings, photos, or computer-generated art. It has six purposes—to attract the attention of the target audience, make the brand heroic, highlight features or benefits, encourage a mood or image, stimulate reading of the body copy, or create a social context for the brand. Design is "the structure itself and the plan behind that structure" for the aesthetic and stylistic aspects of a print advertisement. The goal of design is to arrange all the components of an advertisement—the illustration, headline, body copy, slogan, and any other features—so that the ad is easy to read and visually pleasing. Layout is the mechanical aspect of design. It is a drawing of a proposed advertisement showing where all the elements will be positioned. A layout can be thought of as the tool the designer uses to achieve a good design. As the production process progresses, layouts move from thumbnails to rough layouts to comps and then to finalized digital ads ready for the printer or Internet site. DIF: Moderate REF: p. 391-402 OBJ: 11-5 NAT: AACSB Reflective Thinking | CB&C Model Creativity

TYP: Comprehension

5. What are the five principles of design? See if you can name all five. Then choose two of the principles and discuss the considerations involved in each. Then give an example of each. ANS: The five principles of design as discussed in the text are balance, proportion, order, unity, and emphasis. Student examples will vary. Balance evokes orderliness and compatibility within an ad. It can be formal or informal. Formal balance emphasizes symmetrical presentation and creates a mood of seriousness and directness. It is orderly and easy to follow. Informal balance emphasizes asymmetry—the optical weighing of different sizes and shapes. Components of different size, shape, and color are precisely arranged in a more complex relationship. Proportion has to do with the size and tonal relationships between different elements in an advertisement. Proportional considerations include: the width of an ad in relation to its depth; the width of each element in the ad in relation to the depth of each element; the size of one element relative to the size of every other element; the space between two elements and the relationship of that space and a third element; and the amount of light area as opposed to the amount of dark area. Ideally, factors of proportion vary so as to avoid monotony in an ad.

Order in an advertisement is also referred to as sequence or, in terms of its effects on the reader, “gaze motion.” In focusing on order, the designer's goal is to establish a relationship among elements that leads the reader through the ad in some controlled fashion. The essential contribution of this component is to establish a visual format that results in a focus or several focuses. Unity attempts to ensure that the elements of an advertisement are tied together and appear to be related. Unity results in harmony among the diverse components of print advertising—headline, subhead, body copy, illustration, and any other elements. Several design techniques contribute to unity, including the use of a border and white space. The axis or axes of the ad also contribute to unity. Other considerations of unity are whether the design uses a three-point structure or a parallel layout structure. Emphasis is the result of a decision as to which major component of an advertisement will be stressed. The key to good design relative to emphasis is that one item is the primary focus, but not the only focus, in an ad. Usually, if one element is emphasized to the total exclusion of the others, then a poor design has been achieved, and ultimately a poor communication will result. DIF: Difficult REF: p. 397-400 OBJ: 11-5 NAT: AACSB Reflective Thinking | CB&C Model Creativity

TYP: Application

6. Explain why producing a television commercial is an extremely expensive undertaking. Then describe a television commercial that you have seen recently. Analyze it in terms of how it meets (or fails to meet) two of the five primary creative guidelines for television ad production as noted in the text. Then discuss what decisions may have been made about this commercial based on budgeting factors. ANS: The number of people involved in the making of a television commercial is very large, and many of them are highly skilled. A production crew may charge anywhere from $5,000 to $10,000 per day. Equipment fees also figure into the often staggering cost of producing a spot. Travel, lodging, casting, and overtime costs, often within short timetables, increase the price of production. Specific examples of commercials will vary, of course, depending on the television spot described. However, the student’s answer should touch on some of the issues noted above regarding expenses, and should outline the extent to which the commercial meets at least two of the following guidelines: First, does it use an attention-getting and relevant opening? Second, does it emphasize the visual? Third, does it coordinate the audio with the visual? Fourth, does it persuade as well as entertain? Fifth, does it do a good job of showing the product? DIF: Difficult REF: p. 407-410| p. 412-415 NAT: AACSB Technology | CB&C Model Creativity

OBJ: 11-6 TYP: Application

Chapter 12 - Media Planning Essentials TRUE/FALSE 1. Back in the old days of advertising, agencies made their money by keeping the 5 percent discount at which they purchased media, after charging clients full price. ANS: F DIF: Easy REF: p. 428 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-1 TYP: Knowledge

2. Internet media, cross-promotions, product placements, buzz and viral marketing, and movies as feature-length commercials are all forms of new media. ANS: T DIF: Moderate REF: p. 429 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 12-1 TYP: Comprehension

3. BBC, Al Jazeera and CNN are no longer considered global media. ANS: F DIF: Easy REF: p. 430 OBJ: 12-1 NAT: AACSB Analytic | CB&C Model International Perspective TYP: Knowledge 4. Perhaps the single biggest change in the media world is the high cost for consumers who purchase or use today’s media. ANS: F DIF: Moderate REF: p. 431 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-1 TYP: Comprehension

5. Today’s expanding matrix of media options requires attention to detail, creativity, and strategic thinking if the result is to be a media plan that effectively specifies how the message will reach the target audience. ANS: T DIF: Moderate REF: p. 434 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Comprehension

6. A media vehicle is a particular option for placement within a media class. ANS: T DIF: Easy REF: p. 435 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

7. The expansion of media placement beyond certain regions or national borders, and into diverse cultures and global markets, is called geo-targeting. ANS: F DIF: Easy REF: p. 437 OBJ: 12-2 NAT: AACSB Communication | CB&C Model International Perspective TYP: Knowledge 8. The measurement of how many times a person or household had an opportunity to see an advertisement, not how many times a person or someone in the household actually saw it, is called reach. ANS: F

DIF: Moderate

REF: p. 437

OBJ: 12-2

NAT: AACSB Communication | CB&C Model Marketing Plan

TYP: Knowledge

9. The number of people or households that will be exposed to a media vehicle at least one time during a particular period is referred to as frequency. ANS: F DIF: Easy REF: p. 438 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

10. The term message impressions refers to exposures to the ads themselves. ANS: T DIF: Moderate REF: p. 438 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Comprehension

11. If between-vehicle duplication and within-vehicle duplication are added to gross impressions, the total is the measure known as reach. ANS: F DIF: Moderate REF: p. 439 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

12. A retailer selling artificial Christmas trees runs its spots the first week of October, the first week of November, and Thanksgiving week. This retailer is using a between-vehicle media strategy. ANS: F DIF: Moderate REF: p. 439 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

13. A pulsing media-scheduling strategy is used when a client needs to run regular advertising over a significant period of time, with some increments carrying a much heavier schedule. ANS: T DIF: Easy REF: p. 440 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

14. The forgetting function, based on recent psychological research and cutting-edge technology, disputes past ideas about standard functions of memory and explains the random and unique nature of each individual’s memory. ANS: F DIF: Moderate REF: p. 440-441 NAT: AACSB Communication | CB&C Model Research

OBJ: 12-2 TYP: Comprehension

15. CPM (cost per million) is a measure of the dollar cost of reaching a million audience members with a particular medium, often used for widespread promotions in television and magazine advertising. ANS: F DIF: Easy REF: p. 443 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

16. To compare the relative efficiency of two media options within the same media class, or between two media classes, CPM is often used. ANS: T DIF: Easy REF: p. 443 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Comprehension

17. Significant research has determined, to the relief of advertisers, that if consumers spend more time with interactive media, they do not necessarily spend less time watching TV or reading newspapers. ANS: F

DIF: Moderate

REF: p. 445

OBJ: 12-2

NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Comprehension

18. The unique thing about Really Simple Syndication, or RSS, is that this type of channel or feed from blogs, podcasts, and other Internet content not only acts as interactive media, but does so based on the consumer’s choice rather than the advertiser’s. ANS: T DIF: Difficult REF: p. 445 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Comprehension

19. Madison & Vine is a term defining today’s blending of entertainment media and advertising, but referring to a concept that has actually been around since the 1920s. ANS: T DIF: Easy REF: p. 448 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-3 TYP: Knowledge

20. A common problem in media planning—but one that gets little attention in textbooks and in the real world—is GIGO, otherwise known as the problem of poor scheduling. ANS: F DIF: Moderate REF: p. 449 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-4 TYP: Knowledge

21. An old, but still very appropriate rule in computer data management is the acronym GIGO—standing for “garbage in, garbage out.” ANS: T DIF: Easy REF: p. 449 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-4 TYP: Knowledge

22. With the advent of Internet access, the explosion of websites, and the massive amount of information now available, media planners no longer have to rely on commercial databases, sophisticated software, or computer models to assist with media-planning efforts. ANS: F DIF: Moderate REF: p. 450 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 12-5 TYP: Comprehension

23. Computerization and modeling allow for the assessment of a wide range of possibilities before making costly media decisions, but they will never be a substitute for solid planning and judgment. ANS: T DIF: Easy REF: p. 452 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-5 TYP: Comprehension

24. Media buying involves securing electronic media time as well as print media space, as depicted in a schedule. ANS: T DIF: Moderate REF: p. 452 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-5 TYP: Knowledge

25. Despite the new types of advertising that have emerged, traditional forms of advertising are not dead. ANS: T DIF: Easy REF: p. 453 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-6 TYP: Comprehension

MULTIPLE CHOICE

1. In the midst of an evolutionary explosion of media options and promotional techniques, which of the following statements does the text indicate is true? a. Ad agencies are much less specialized. b. The Web is now the number one advertising tool. c. Advertising is alive. d. Television advertising is dying. ANS: C DIF: Moderate REF: p. 428 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 12-Intro TYP: Comprehension

2. Until recently, what was the traditional amount of commission paid to advertising agencies by the media purchased? a. 5 percent b. 10 percent c. 15 percent d. 25 percent ANS: C DIF: Easy REF: p. 428 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-1 TYP: Knowledge

3. A young media planner has been hired by your agency, and you are asked to review with him the current state of affairs in the industry and the way these issues affect your clients. You can name a number of major changes in recent years that continue to challenge today’s media planners, but which of the following issues would not be on your list? a. globalization and multicultural media b. consumer power and more media c. higher compensation and narrower choices d. hyperclutter and free content ANS: C DIF: Difficult REF: p. 428-433 OBJ: 12-1 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 4. Many news outlets are willing to run news “stories” supplied by advertisers about their brands, which qualify as a. earned media. b. mixed media. c. paid media. d. measured media. ANS: A DIF: Moderate REF: p. 429 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-1 TYP: Comprehension

5. A Los Angeles ad agency goes public, and before long it is being pressured to show more profit. What are the two quickest routes to the short-term profits demanded by shareholders of publicly traded ad agencies? a. cutting production expenses, and downsizing executive personnel b. firing staff, and making money from fees and media buys c. soliciting funds from investors, and handling more costly ad productions d. increasing creativity to win industry awards, and charging higher rates ANS: B DIF: Difficult REF: p. 429 OBJ: 12-1 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application

6. The acronym BRIC stands for the massive emerging consumer markets of a. Brazil, Russia, Indonesia, and Colombia. b. Britain, Republic of Korea, India, and China. c. Brazil, Russia, India, and China. d. Burma, Republic of Philippines, Iraq, and Canada. ANS: C DIF: Moderate REF: p. 430 OBJ: 12-2 NAT: AACSB Communication | CB&C Model International Perspective TYP: Knowledge 7. E-commerce has revolutionized the way consumers shop, offering massive amounts of product details and pricing structures that have led to an increase in two widespread movements that have greatly affected both advertisers and ad agencies. What are they? a. earned media and unmeasured media b. deal-proneness and price/cost transparency c. globalization and multicultural media d. net promoter score and brand-chat volume ANS: B DIF: Moderate REF: p. 432 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Comprehension

8. Today, as more firms launch innovative new combinations of IBP and branded entertainment, media planners will be greatly impacted. For example, they will have to a. live with a less critical and interesting role in the future. b. accept that television is no longer a viable avenue for advertising. c. learn how to deal with media that are much less targeted. d. regularly factor in both measured and unmeasured media. ANS: D DIF: Difficult REF: p. 433 OBJ: 12-2 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 9. Media planning has traditionally been a job of numbers, schedules, deadlines, and a. great amounts of creativity. b. a sense of celebrity and glamour. c. relatively low salaries. d. status as a highly valued position. ANS: C DIF: Moderate REF: p. 434 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Comprehension

10. A retailer decides to use newspaper ads to support the marketing effort behind its selection of men’s and women’s swimwear. In the media planning process, newspaper is referred to as a(n) a. interactive media. b. media class. c. media vehicle. d. media objective. ANS: B DIF: Moderate REF: p. 435 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

11. The ____ specifies the media in which advertising messages will be placed to reach the desired target audience. a. media class b. media plan

c. media vehicle d. media mix ANS: B DIF: Easy REF: p. 435 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

12. A media planner is working with a yogurt manufacturer in the placement of print ads highlighting new flavors and healthful benefits. Within the media ____ of magazines, she decides on the media ____ of Rolling Stone, Yoga Journal, and In Touch. a. plan; frequencies b. class; vehicles c. mix; earned media d. vehicle; classes ANS: B DIF: Difficult REF: p. 435 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

13. The blend of different media that will be used to effectively reach the target audience is referred to as a. media mix. b. media objective. c. route weight. d. media reach. ANS: A DIF: Easy REF: p. 435 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

14. Before he can make final decisions on where to place ads and how to display promotions for a new bottled water, a media planner has to decide which broad categories to use—television, radio, magazines, newspapers, Internet sites, etc. When he zeroes in on using both television and the Internet he has chosen his a. unmeasured media. b. media classes. c. supplemental media. d. media vehicles. ANS: B DIF: Moderate REF: p. 435 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 12-2 TYP: Application

15. What is probably the most obvious media objective? a. to keep client costs down b. to reach the target audience c. to support the creative work d. to integrate new media ANS: B DIF: Easy REF: p. 435 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Comprehension

16. You are working on a new media plan. You remind yourself that the true power of a media plan rests on the ____, that is, knowing what you are trying to do with your media, and matching those objectives with your ultimate choices. a. share of voice b. context effect c. media continuity d. media strategy ANS: D

DIF: Moderate

REF: p. 435

OBJ: 12-2

NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Application

17. Your agency is pressed for time, and you are suddenly called into a meeting to make a media recommendation. The account exec and the client are sure you can figure out how to reach their narrowly defined target audience. You are given electronic files and stacks of paperwork provided by Nielsen, Simmons, and MRI and are asked for an answer ASAP, based solely on these data. Your problem, seen industry wide, is that these research services a. do not measure elements that influence consumer behavior. b. cannot provide a measurement system for assessing television audiences. c. have no way to generate data on very narrow audience characteristics and related media preferences. d. can provide information on age and gender but not on geographic breakdowns. ANS: C DIF: Difficult REF: p. 435-436 NAT: AACSB Reflective Thinking | CB&C Model Research

OBJ: 12-2 TYP: Application

18. Media research services that compile data on demographics and brand purchase characteristics of consumers, as well as media exposure are called a. market research bureaus. b. media-buying services. c. agencies of record. d. single-source tracking services. ANS: D DIF: Moderate REF: p. 436 NAT: AACSB Analytic | CB&C Model Research

OBJ: 12-2 TYP: Knowledge

19. A media planner contacts both Simmons Market Research Bureau (SMRB) and Mediamark Research (MRI) to supply data that will assist her in placing ads for a new women’s fragrance. What information will SMRB and MRI most likely furnish? a. demographic information correlated with product usage data b. reach and frequency rates for competing products c. fees and scheduling information for media vehicles d. details on consumer behavior, media correlates, and lifestyle issues ANS: A DIF: Difficult REF: p. 436-437 NAT: AACSB Analytic | CB&C Model Research

OBJ: 12-2 TYP: Application

20. A media planner is making placement decisions for a new line of wildly colored lipsticks, neon eye shadows, and glittered nail polishes. She focuses on certain regions of the country as well as certain urban areas where young women are known to favor these types of products. In this way, her media buys will be a. geo-targeted. b. based on mixed media. c. below-the-line promotions. d. above-the-line promotions. ANS: A DIF: Moderate REF: p. 437 NAT: AACSB Analytic | CB&C Model Product

OBJ: 12-2 TYP: Application

21. An owner of a city-wide grocery chain is given the figure of 10 percent and is told that this represents the people or households in his target audience that will be exposed to the chosen media vehicle—in this case, the city newspaper—at least one time during the campaign period. The client has just been given a measure based on a. reach. b. frequency.

c. gross rating points. d. measured media. ANS: A DIF: Moderate REF: p. 437 OBJ: 12-2 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 22. The ____ refer to the sum of the exposures to the entire media placement in a media plan. a. gross impressions b. vehicle weights c. between-vehicles duplications d. within-vehicles duplications ANS: A DIF: Moderate REF: p. 438 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

23. The message weight of a media plan is used as a simple measure of the a. density or penetration of words as they appear in print, radio, or television copy. b. gross number of advertising messages delivered by the vehicles in a schedule. c. demographics of buyers or users of particular media vehicles. d. gross number of potential buyers within a media class. ANS: B DIF: Moderate REF: p. 438 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

24. A media buyer places an ad for a California champagne in four magazines. The first magazine provides roughly 3,600,000 exposures, the second magazine provides about 950,000 exposures, and the third and fourth provide 100,000 exposures each. The buyer now can inform the client at the California winery of the ____ expected for the ad, that is, 4,750,000 exposures. a. continuous schedules b. geo-targets c. vehicle duplications d. gross impressions ANS: D DIF: Difficult REF: p. 438 NAT: AACSB Analytic | CB&C Model Product

OBJ: 12-2 TYP: Application

25. What concept refers to the measure of intensity of one media plan versus another, which takes into consideration both reach and frequency? a. unmeasured media b. gross rating points c. share of voice d. cost per thousand ANS: B DIF: Difficult REF: p. 439 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

26. You are looking at figures and trying to understand overall media weight for your client’s shaving cream ads. You remind yourself that some people who watched TV program A also saw TV program B and also read magazine 1. This is called a. between-vehicle duplication. b. above-the-line promotion. c. within-vehicle duplication. d. below-the-line promotion. ANS: A

DIF: Difficult

REF: p. 439

OBJ: 12-2

NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Application

27. A media planner needs to evaluate the relative intensity of three different media plans for an orange juice advertiser. The planner decides to multiply the reach times frequency of each plan to promote the orange juice, in order to compare a. CPRPs. b. BRICITs. c. CPMs. d. GRPs. ANS: D DIF: Moderate REF: p. 439 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

28. A client agrees to launch a new line of flavored mouthwashes by running heavy advertising for two weeks, followed by no advertising at all for a while, and then another two-week period of heavy advertising. What kind of media-scheduling strategy is this? a. upfront b. flighting c. continuity d. pulsing ANS: B DIF: Moderate REF: p. 440 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

29. A children’s apparel manufacturer promotes its clothes on a regular basis, but needs a stronger message in August for back-to-school shopping, in December for holiday shopping, and in May for summer shopping. What type of scheduling strategy will run the clothing ads continuously, but will also have three periods of much heavier scheduling? a. pulsing b. continuous c. flighting d. measured ANS: A DIF: Moderate REF: p. 440 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

30. The forgetting function is based on a well-known concept and compelling research showing that things that are remembered, including ad messages, a. can be remembered almost indefinitely. b. are forgotten almost immediately and removed from short-term memory. c. begin to fade from people’s memories at certain mathematically calculated points. d. are retained only if the individual wants to remember them. ANS: C DIF: Moderate REF: p. 440-441 NAT: AACSB Analytic | CB&C Model Research

OBJ: 12-2 TYP: Comprehension

31. You are a media planner for a growing ad agency. The marketing manager for a peanut butter manufacturer wants more information on ad placement costs and the state of the national market before she commits. You begin by calculating share of voice, which allows you to compare the a. client’s potential expenditures with the entire industry’s expenditures. b. gross rating points of your media plan with that of the competition. c. reach of several media vehicles that you are considering. d. cost of placing an ad in one media class to that of another. ANS: A

DIF: Moderate

REF: p. 442

OBJ: 12-2

NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 32. The husband-and-wife owners of a St. Louis hot dog production plant have recently expanded their operations and now sell hot dogs to grocery chains nationwide. They want to evaluate the share of voice commanded by their firm. To do that, they must first know the a. total advertising expenditures within the hot dog category. b. reach and frequency of their media schedule for hot dog ads. c. GRPs of their competition within the hot dog category. d. national sales figures for the entire hot dog industry. ANS: A DIF: Difficult REF: p. 442 NAT: AACSB Reflective Thinking | CB&C Model Product

OBJ: 12-2 TYP: Comprehension

33. In the world of advertising and promotion, what does the “M” in the acronym CPM represent? a. the “media” in media planning b. the Roman numeral for one million c. the “market” in target market d. the Roman numeral for one thousand ANS: D DIF: Easy REF: p. 443 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

34. A manufacturer of high-end hiking boots, rugged walking sandals, and specialized athletic shoes has hired your agency to run a print campaign. You tell him that a full-page, black-and-white ad in Hiking and Biking magazine will cost him $1,650 to run once. You also remind him that the circulation of the magazine is 42,000. To give this client the cost per thousand for this media buy, which formula would you use? a. Take 42,000 divided by 1,650 times 1,000. b. Take 1,650 multiplied by 1,000 divided by 42,000. c. Take 1,650 times 42,000 divided by 1,000. d. Take 42,000 divided by 1,000 plus 1,650. ANS: B DIF: Difficult REF: p. 443 OBJ: 12-2 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 35. Like CPM, the CPRP calculation a. formulates per-person linkages for commercials. b. compares the relative efficiency between media options. c. totals a view of linked media. d. provides a directory of rating suppliers. ANS: B DIF: Moderate REF: p. 444 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

36. An established electronics business has reinvented itself and come up with some novel new products. The owners want to go beyond the same old ads and commercials to promote these innovations. As a well-informed media planner, you suggest a merger of advertising and entertainment, including promotions in video games, on cell phones, in malls and retail stores, and at movie theaters. This mix is known in the industry as a. Madison & Vine. b. Really Simple Syndication. c. Integrated Brand Promotion. d. Unique Selling Proposition.

ANS: A DIF: Moderate REF: p. 448 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 12-3 TYP: Application

37. Overall, computer media-planning models a. have taken the place of solid planning and sound judgment. b. now provide standardized reports that are comparable across media categories. c. lean toward high-end media options that result in costly media buys. d. assess a wide range of possibilities and save advertisers a lot of money. ANS: D DIF: Difficult REF: p. 452 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-5 TYP: Comprehension

38. Murray & Murray is considered the agency of record for all the brewing products of a Wisconsin beer manufacturer. This means that Murray & Murray has been chosen by the client to a. create all media plans and contract out all other services. b. handle all creative services and production issues. c. negotiate all contracts and purchase all time and space. d. act as an independent contractor to sell media options. ANS: C DIF: Moderate REF: p. 452 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-5 TYP: Application

39. Which of the following is projected in the text concerning the future of traditional advertising? a. It will not only compete with but will dominate branded entertainment and nontraditional media. b. It will not have to change its view of promotion and advertising as much as was once thought. c. It will continue to deliver to truly mass audiences. d. It will quickly lose its ability to build brands ANS: C DIF: Moderate REF: p. 453 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-6 TYP: Comprehension

Scenario 12-1 Appleberry Farm Organic Jam has remained No. 1 one in the jam and jelly food category for several years. Although still a distant No. 2 in this category, Blackberry Valley Organic Jam is gaining on Appleberry. Appleberry had $39,466,000 in sales last year, while Blackberry had only $16,301,000, but that was 11 percent higher than its 2008 sales. Organic jams and jellies are important to marketers because they appeal to health-conscious consumers and have a fresh taste that many consider superior to traditional fruit spreads. Appleberry Farm has been put on notice. Blackberry Valley Jam's move up came despite lower ad spending than Appleberry Farm Jam. The Blackberry brand spent about $972,000 in measured media during 2010, compared to $1,553,000 for Appleberry. Blackberry also underwent an aggressive relaunch last year with reformulated flavors, revamped packaging, new ads, and additional media. Approximate 2010 Jam and Jelly category advertising spending, by brand: Appleberry Farm Jam $ 1,553,000 Blackberry Valley Jam $ 972,000 total for product category $ 3,714,000 Approximate 2010 Jam and Jelly category sales, by brand: Appleberry Farm Jam $ 39,466,000

Blackberry Valley Jam total for product category

$ 16,301,000 $ 81,732,000

40. (Scenario 12-1) Although Blackberry Valley is gaining share on Appleberry Farm, it still must continue to answer the same fundamental question concerning its media decisions. What is that question? a. What is the least expensive way to reach the greatest number of people? b. Can new media be integrated into the IBP? c. What media vehicles best support the needs of the creative execution? d. How can media be used to reach the target market effectively and efficiently? ANS: D DIF: Difficult REF: p. 433 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

41. (Scenario 12-1) A new line of Blackberry Valley jams is being launched soon. Its agency’s media planner calls two companies—Mediamark Research and Information Resources’ BehaviorScan—and orders data before placing ads for the new products. Surpassing the capabilities of Mediamark and most other consumer research firms, BehaviorScan will be able to furnish additional information on consumer data such as a. demographics correlated with product usage data. b. brand preferences, desired benefits, purchasing habits, and media exposure. c. age, gender, race/ethnicity, and education level. d. geographic scope, effective reach, and effective frequency. ANS: B DIF: Difficult REF: p. 436 OBJ: 12-2 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 42. (Scenario 12-1) Though at first it seems unbelievable for this product category, Blackberry’s new cutting-edge ad agency has come up with a series of sexy ads with suggestive copy -- humorous, tongue-in-cheek, but a little racy -- to run in several men’s adult content magazines. Blackberry’s CEO likes the ads but is having second thoughts. She’s afraid this might create a negative impression of the brand among women who are offended by their favorite wholesome, homespun product appearing in “girly” magazines. The CEO is concerned about a. gross impression. b. forgetting function. c. message weight. d. context effect. ANS: D DIF: Moderate REF: p. 442 NAT: AACSB Reflective Thinking | CB&C Model Product

OBJ: 12-2 TYP: Application

43. (Scenario 12-1) The Blackberry CEO needs to know her company’s share of voice. What is Blackberry Valley’s share of voice, based on the figures provided? a. 4 percent b. 19 percent c. 26 percent d. 41 percent ANS: C DIF: Difficult REF: p. 442 NAT: AACSB Analytic | CB&C Model Product

OBJ: 12-2 TYP: Application

44. (Scenario 12-1) The CEO also wants to compare her firm’s share of voice with that of her main competitor. What is the share of voice for Appleberry Farm, based on the figures provided? a. 3 percent

b. 6 percent c. 41 percent d. 48 percent ANS: C DIF: Difficult REF: p. 442 NAT: AACSB Analytic | CB&C Model Product

OBJ: 12-2 TYP: Application

Scenario 12-2 When advertisers consider running ads in American Life magazine, they have the option of buying geographic and demographic editions as well as the national edition. For instance, they can choose from editions targeted at professionals and managers, homeowners, working women, and people aged 50 and older. In addition, they are offered editions for 8 geographical regions and for the top 20 metropolitan areas. American Life also offers multiple-page discounts for advertisers buying four or more consecutive pages in any one edition, as well as other volume discounts. The basic rate to reach 2,847,600 readers in its national edition with a full-page, four-color advertisement is $91,300. The basic rate to reach the same 2,847,600 nationwide readers with a singlecolumn, black-and-white ad is $31,300. 45. (Scenario 12-2) A media planner working for a high-end clothing retailer looks at its figures and discovers that a vast majority of its sales are in large cities. So she decides to buy space in American Life editions that reach the top 10 metropolitan markets. This media strategy is referred to as a. geo-targeting. b. flighting. c. pulsing. d. multi-way communicating. ANS: A DIF: Moderate REF: p. 437 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

46. (Scenario 12-2) The brothers who own the oak furniture company also want to understand more about consumer exposure to the ad. Which element should the media planner share with them—one that identifies the number of people or households in a target audience that will be exposed to a media vehicle or schedule at least one time during a given period of time? a. reach b. media c. production d. frequency ANS: A DIF: Moderate REF: p. 437 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

47. (Scenario 12-2) An oak furniture manufacturer is considering buying an ad in American Life. The brothers who own the firm want to know more about the number of people who will see the ad, beyond just circulation figures. Their media planner talks about the average number of times an individual or household within a target audience will be exposed to the ad in American Life in a given period of time, a concept called a. placement. b. frequency. c. reach. d. continuity. ANS: B DIF: Easy REF: p. 438 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

48. (Scenario 12-2) Each medium under consideration in a media plan must be scrutinized for the efficiency with which it performs. In other words, an advertiser might select American Life because it delivers the largest target audiences at the lowest cost. What is the term to describe this? a. cost per rating point b. price/cost transparency c. cost per thousand d. net promoter score ANS: C DIF: Easy REF: p. 443 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Comprehension

49. (Scenario 12-2) Based on the figures provided, what is the CPM of a single-page, full-color advertisement in American Life's national edition? a. $ 10.99 b. $ 31.19 c. $ 32.06 d. $ 90.98 ANS: C DIF: Difficult REF: p. 443 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

Scenario 12-3 Champion Chocolate sells handmade specialty chocolate candies in a Midwest city with an adult population of 850,000. The entire adult population of the city is considered Champion Chocolate's target market. Media planners look at sales and decide to pursue a media strategy that runs throughout the year but uses heavier scheduling in the two weeks preceding Valentine’s Day, Easter Sunday, Mother’s Day, Thanksgiving Day, and Christmas Day. The media classes selected are local television, magazine, and newspaper. Champion Chocolate selects three specific vehicles to carry its message: Six spots will run on a local TV news show. The show has a rating of 30. Eight ads will run in the regional edition of a magazine. The magazine has reach of 10. Twelve ads will run in the local newspaper. The paper has a reach of 40. 50. (Scenario 12-3) As part of its media planning process, Champion Chocolate is searching for data on the city’s adult consumers regarding such issues as purchase frequency, brand loyalty, and media exposure, as well as standard demographics. This type of detailed information on consumer behavior can only be obtained from a(n) a. single-source tracking service. b. media-planning model. c. agency of record. d. media-buying service. ANS: A DIF: Moderate REF: p. 436 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

51. (Scenario 12-3) To arrive at this schedule, Champion Chocolate has to deal with the concept of effective frequency. This refers to the number of times a. the ad will need to run for a continuous schedule within a given campaign period. b. the ad should be placed so the target market will be exposed to the message at least once. c. the city media vehicle must carry the ad message to break through the advertising clutter. d. the target audience must be exposed to the ad message before the objectives of the advertiser are met.

ANS: D DIF: Moderate REF: p. 438 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

52. (Scenario 12-3) To figure the accurate reach of this media plan over a year, a media planner begins with gross impressions, and needs to a. subtract both between-vehicle and within-vehicle duplication. b. multiply this figure by percent of household reached. c. add the gross rating points. d. divide this figure by the number of people in the target market. ANS: A DIF: Difficult REF: p. 438-439 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

53. (Scenario 12-3) What is the GRP of the media plan for Champion Chocolate? a. 740 b. 576 c. 461 d. 106 ANS: A DIF: Difficult REF: p. 439 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

54. (Scenario 12-3) Considering the holidays that Champion Chocolate wants to particularly target, it will be advertising based on a ____ media schedule. a. net promoting b. continuity c. pulsing d. flighting ANS: C DIF: Moderate REF: p. 440 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

Scenario 12-4 You scan the ads for Dallas on craigslist.com and find what may be your dream job. The posting reads, "Entry-level position in media." You click on it, and the ad says, "Motivated individual sought to aid in media planning and buying at established advertising agency. Must have general knowledge of media and be aware of current and future challenges facing media buyers. Salary negotiable." You email your resume and cover letter to the contact person in the ad, and the reply sets you up for an interview next week. 55. (Scenario 12-4) The interviewer welcomes you and allows for initial introductions, then starts the interview. "I’d like to begin by getting your opinion on something. What do you think is the most important challenge facing media planners today?" You realize you can come up with a number of valid replies, but which answer should you not give? a. “Keeping up with all the new media options, including branded entertainment.” b. “Making solid media decisions based on research data that is all too often insufficient is sometimes inaccurate.” c. “Accepting the fact that advertising on the Internet will soon replace advertising in traditional classes.” d. “Understanding the cultural issues involved in global and multicultural ads.” ANS: C OBJ: 12-1| 12-6 TYP: Application

DIF: Moderate REF: p. 428-433| p. 453 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan

56. (Scenario 12-4) The interviewer says the position will involve working with both measured and unmeasured media. Then she asks what you know about these two types of media. You should answer by saying, a. "In the early days of advertising, all media were unmeasured. Currently, however, only advertising on the Internet is considered unmeasured." b. "Measured media include Internet, television, radio, magazine, newspaper, and outdoor markets. Unmeasured media include everything else, such as events, product placements, and coupons." c. "Measured media account for about 85 percent of the money spent on media. Unmeasured media account for the other 15 percent." d. "Measured media are directed at households and individuals. Unmeasured media are directed at businesses and members of trade channels." ANS: B DIF: Moderate REF: p. 433 OBJ: 12-2 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 57. (Scenario 12-4) The interviewer says one job duty will be to provide audience measures of every local TV vehicle in a market, so clients can be informed as to which television programs will reach the largest numbers in their target markets. You think to yourself, a. "Boy, am I glad she asked about TV and not Internet, because nobody measures clickthroughs anymore." b. "Sounds like I can pull that right out of the local Chamber of Commerce databook." c. "Simmons or MRI should be able to come up with that right away." d. "I can get that by putting in a call to a single-source tracking service like BehaviorScan." ANS: D DIF: Difficult REF: p. 436 OBJ: 12-2 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 58. (Scenario 12-4) The interviewer says, "Around here, for most classes we generally use cost per thousand to determine which media deliver the largest audience at the lowest cost. And of course with television, we use a very similar calculation." If you’re smart, you will smile knowingly and respond, a. "Oh really? Might that be RSS?" b. "Oh really? Might that be GRP?" c. "Oh really? Might that be CPRP?" d. "Oh really? Might that be CPM?" ANS: C DIF: Moderate REF: p. 444 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

59. (Scenario 12-4) The interviewer says that it's nice to interview people straight out of school because they seem to have knowledge of the current advertising world. She asks you whether the CPRP is a good indicator of advertising effectiveness for a campaign, since clients often press them for some indicator of ROI. What should you reply? a. “No, because CPRP says nothing about the quality of the advertising itself.” b. “Not alone, because such indicators need to be compared to stated objectives.” c. “Yes, and I know how much good numbers can reassure clients.” d. “Yes, if you reference SOV numbers to highlight your performance vs. competition.” ANS: A DIF: Difficult REF: p. 444 OBJ: 12-2 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application

Scenario 12-5 MidSouth Media Company (MMC) is a media placement firm serving small- and mid-sized firms in several Midwest and Southern states. It specializes in working with new businesses, many of which have owners and managers with little advertising media experience. MMC asks all new clients to complete a brief survey to better determine their exposure needs and their level of knowledge about media decisions. Some questions from the latest MMC survey are included below. Please complete the missing part of each item, based on your study of the chapter. 60. (Scenario 12-5) “Which media ____, such as television, radio, newspaper, magazine, or Internet, do you think would best communicate with your potential customers?” a. plan b. class c. vehicle d. program ANS: B DIF: Easy REF: p. 435 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

61. (Scenario 12-5) “Is there a national media ____, such as USA Today, Time, or the Wall Street Journal, that you would like to consider using to communicate with your customers?” a. vehicle b. class c. reach d. mix ANS: A DIF: Easy REF: p. 435 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

62. (Scenario 12-5) “Did you have a rough figure in mind concerning your ____, that is, the number of people or households that you’d like to see exposed to the chosen media at least once during the campaign?” a. geographic scope b. gross impressions c. reach d. continuity ANS: C DIF: Moderate REF: p. 438 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

63. (Scenario 12-5) “Are smaller print ads okay? Or are you a firm believer of the ____, that is, increased size means increased recognition?” a. square root law b. net promoter score c. forgetting function d. message weight ANS: A DIF: Difficult REF: p. 441 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Application

64. (Scenario 12-5) “Do you want to restrict your television buying to ____, meaning you’ll pay premium pricing charged in advance of the fall season? Or are you willing to wait and see what is still available later in the season, meaning you’ll pay less?” a. gross impressions b. measured media c. upfronts

d. context effects ANS: C DIF: Moderate REF: p. 452 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-5 TYP: Application

Scenario 12-6 Taylor, Frenz, and Hynes have recently published a short booklet entitled Media Choices: Efficiency and Competitive Assessment. This is a tool that advertising agencies and media planners can offer to clients so they can understand how to better determine their media mix. Included below are several short excerpts from the booklet. Please complete the missing part of each excerpt, based on your study of the chapter. 65. (Scenario 12-6) “When a firm compares its brand advertising expenditures in a medium to the total product category advertising expenditures in a medium, it is able to determine the a. cost per thousand.” b. share of voice.” c. cost per rating point.” d. reach and frequency.” ANS: B DIF: Easy REF: p. 442 NAT: AACSB Communication | CB&C Model Product

OBJ: 12-2 TYP: Application

66. (Scenario 12-6) “Which media deliver the largest audiences at the lowest cost? This is determined by examining the ratio of the cost of the media buy to the total audience and then multiplying it by 1,000. This is known as a. share of voice.” b. media cost.” c. cost per rating point.” d. cost per thousand.” ANS: D DIF: Moderate REF: p. 443 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

67. (Scenario 12-6) “The calculation known as ____ compares the relative efficiency between media options by examining the ratio of an ad's placement costs on a program to the program's ratings.” a. cost per thousand b. net promoter score c. cost per rating point d. square root law ANS: C DIF: Moderate REF: p. 444 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-2 TYP: Knowledge

68. (Scenario 12-6) “Among advertising agencies, the client’s agency of record is the one chosen by the client specifically to a. gather all data necessary to measure media exposure.” b. correlate creative efforts with media budgets.” c. purchase all time and space.” d. keep records of all ongoing research efforts.” ANS: C DIF: Easy REF: p. 452 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 12-5 TYP: Knowledge

ESSAY

1. Think about the major shifts that have taken place in the advertising industry overall and in the role of media planners in particular. The text discusses eight issues that continue to affect and reshape the world of brand media vehicles. List at least three of these, and discuss their implications for media planners. Then give a simple example of each. Examples do not have to be detailed. ANS: The eight issues that have changed—and continue to change—the world of brand media vehicles are as follows: (1) agency compensation, (2) more media, (3) going public, (4) globalization, (5) free content, (6) consumers in charge, (7) hyperclutter and ad avoidance, and (8) multicultural media. Answers will vary as to implications and examples for the issues chosen. Overall, media planners are dealing with changes in the way agencies are owned and operated (with the introduction of public corporations that are beholden to shareholders) as well as the way agencies are compensated and media discounts are calculated. They are seeing an explosion of new media, often related to advances in digital technology and increased use of unmeasured media and earned media. Media vehicles have become more multicultural and more global. Branded entertainment—new combinations of advertising and entertainment—offers innovative options for ad display, product placement, and unique promotions. One result of all this new media has been an increase in ad clutter, as well as the creation of new technology to help avoid ads—but also more free editorial content online as newspaper and magazine vehicles go digital. And due to massive advances in Internet technology, consumers now have more information on products and pricing, more ways to purchase items, more interaction with advertisers— and most important, more power to choose which ads to seek out (pull), rather than having ads thrust upon them (push). DIF: Difficult REF: p. 428-430| p. 448 OBJ: 12-1 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 2. Discuss the differences among the following concepts: effective reach, message weight, gross impressions, and gross rating points. ANS: Effective reach is the number of people or households in a target audience that are exposed to a media vehicle for a minimum number of times within a given time. It is most often expressed as a percentage. Message weight is the total mass of advertising delivered, the gross number of advertising messages or exposure opportunities delivered by a particular vehicle in a schedule. Gross impressions represent the sum of all exposures across all media in a media plan. (In this case, the term exposure refers to the opportunity to be exposed, not to actual exposures.) Gross rating points is a relative measure of the intensity of one media plan versus another. It is calculated by multiplying reach by frequency. DIF: Moderate REF: p. 438-439 OBJ: 12-2 NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Comprehension

3. A global corporation has manufactured chocolate chips for more than 60 years. Sales for 12-oz. packages of both milk chocolate and dark chocolate are strong in the U.S. throughout the year, but peak from Thanksgiving through New Years, with November and December often producing sales almost four times that of the “average” month. Describe the three choices concerning media continuity that the corporation would consider when deciding on advertising scheduling. Recommend the option most appropriate for the company to adopt. ANS: The three choices for the chocolate chips manufacturer are continuous scheduling, flighting, and pulsing. Continuous scheduling involves placing ads at a steady rate over a period of time, with little need for fluctuations. Flighting is achieved by scheduling heavy advertising over a period of time, then stopping it for a period, then coming back with another period of heavy advertising. It is often used to support seasonal products. Pulsing involves continuous scheduling supplemented by periods of heavy activity. Pulsing is most appropriate for companies that have steady sales throughout the year but also have seasonal requirements. So the best choice for the chocolate chip producer is most likely a pulsing schedule. DIF: Moderate REF: p. 440 OBJ: 12-2 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 4. What is meant by the term Madison & Vine? Describe the source of this term and the nature of this phenomenon in the world of advertising. ANS: Madison & Vine is a term coined by Scott Donaton, of Advertising Age, in his book of the same title. It refers to innovative and meaningful combinations of advertising and entertainment to promote goods and services. Also called branded entertainment, it sounds like a relatively new phenomenon, but it is actually based on a concept first noted in the 1920s and 1930s, when product placement was first seen in movies (and later radio, and then television). But it really escalated in the 1980s. It offers innovative channels for product information, display, promotion, and placement. The options are almost unlimited—television, movies, video games, cell phones, mobile devices, outdoor advertising, and even retail settings (called brandscapes). With the explosion of Internet sites, interactive electronics, and mobile technology, new vehicles continue to arise. DIF: Moderate REF: p. 448 OBJ: 12-3 NAT: AACSB Reflective Thinking | CB&C Model Promotion

TYP: Comprehension

5. What are the three primary approaches often used in implementing branded entertainment? List, briefly define, and give an example of each. ANS: The three primary approaches often seen in the area of branded entertainment are product placement, storyline integration, and original content.

Product placement is the most straightforward and the least expensive. It involves the appearance or use of a branded product in a television production or film. Storyline integration involves the characters or objects associated with the product appearing at entertainment events or festivals. Original content is the most expensive way to go, involving the production of short online film clips featuring products or their related promotional characters. DIF: Moderate REF: p. 448-449 OBJ: 12-3 NAT: AACSB Reflective Thinking | CB&C Model Promotion

TYP: Comprehension

6. What does GIGO stand for, and what is meant by this acronym as it pertains to the world of advertising media? How does it relate to the reality of exposure to ads? Discuss this problem within the realm of media measurement, and give a common example related to this issue. ANS: GIGO is an acronym used in advertising that stands for “garbage in, garbage out.” It was borrowed from early computer programmers who were pointing out the fact that bad information put into the system will result in bad information coming out of the system, no matter how much you process or interpret that final data. It comes from our cultural hang-up with numbers and statistics—they can seem scientific, accurate, and meaningful, but they are often pure illusion. GIGO represents a common problem in media planning, but one that gets little attention in textbooks and in the real world, and that is the widespread existence of poor data. Exposure, when measured and reported with such data, can be deceiving. What it means to truly be “exposed” to an advertisement is not adequately addressed in most media exposure data. Examples will vary among students. But a common example involves television. In many households, the TV may be running with no one watching, may be used as background noise, may be on in the kitchen while cooking or cleaning, may be half-watched while reading the newspaper, may be viewed through TiVo so commercials can be flipped through quickly, etc. Now, a commercial comes on. In all these instances, are people in the household “exposed” to the ad? Similar scenarios can be offered when a newspaper or magazine is delivered to a home. Do exposure numbers reflect true awareness of a print ad that appears in these publications? Perhaps data in the future will be able to measure true levels of exposure, but not yet. DIF: Difficult REF: p. 449-450 OBJ: 12-4 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application

Chapter 13 - Media Planning: Newspapers, Magazines, Television, and Radio TRUE/FALSE 1. Advertisers are turning to digital media—particularly Internet ads—to reach target markets, though they are finding that they really aren’t very different or very cost-effective. ANS: F DIF: Easy REF: p. 458 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 13-1 TYP: Comprehension

2. Newspapers have been especially hard hit by the growth of digital media, and television is now feeling the pinch as well. ANS: T DIF: Easy REF: p. 458 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 13-1 TYP: Comprehension

3. Even with the rapid growth of new media, the majority of all advertising dollars in the U.S still go to traditional print, radio, and television media. ANS: T DIF: Moderate REF: p. 459 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-1 TYP: Knowledge

4. At one time, the Absolut vodka brand was on the verge of extinction, claiming less than a single percentage point of the U.S. market share. Then the TBWA advertising agency totally revamped the brand’s image with print advertising alone. ANS: T DIF: Difficult REF: p. 460 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 13-1 TYP: Application

5. Since television supplies a far broader depth of news coverage than newspapers can nowadays, the percentage of adults reading daily newspapers has seen a slight decline. ANS: F DIF: Moderate REF: p. 461 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 13-2 TYP: Comprehension

6. Their expansion into digital media has led to a broader and more global audience for newspapers, but this still hasn’t offset the overall decline of newspaper readership. ANS: T DIF: Moderate REF: p. 462 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 13-2 TYP: Comprehension

7. Today’s newspapers have virtually lost their ability to offer the unique advantages to advertisers that they once did, such as geographic selectivity and timeliness. ANS: F DIF: Easy REF: p. 462-463 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 13-2 TYP: Comprehension

8. Creative options offered by the newspaper page do not match those of broadcast media, but there are still creative things that advertisers can do in newspapers. ANS: T DIF: Easy REF: p. 463 NAT: AACSB Analytic | CB&C Model Creativity

OBJ: 13-2 TYP: Comprehension

9. An advertiser for a local retail chain wants to know the costs, closing times, and special features of the city newspaper selected as its main vehicle. The advertiser can find all of this by consulting the newspaper’s paid advertising model. ANS: F DIF: Moderate REF: p. 466 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Application

10. Public elementary schools in a Midwest city receive a stack of free copies of the city newspaper Monday through Friday. This distribution is based on run-of-press circulation, that is, the circulation measure indicating the number of copies given away free. ANS: F DIF: Moderate REF: p. 466 NAT: AACSB Communication | CB&C Model Research

OBJ: 13-2 TYP: Application

11. Paid circulation is the total number of newspapers sold through subscriptions as well as through newsstand and retail store sales. ANS: T DIF: Easy REF: p. 466 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 13-2 TYP: Knowledge

12. The text points out that magazines can still successfully attract audiences because of content, and some big advertisers prefer magazine advertising to television advertising. ANS: T DIF: Easy REF: p. 467 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 13-3 TYP: Comprehension

13. The main advantage of magazines as a media choice is their tremendous selectivity, which can be based on demographics, lifestyle, or special interests. ANS: T DIF: Moderate REF: p. 469 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Comprehension

14. A confections manufacturer decides to create special holiday candies and needs to get its promotions out to the public in a hurry. For this reason, magazines are one medium that will not be considered. ANS: T DIF: Easy REF: p. 471 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Application

15. What is called a space order at some magazine publishers is called an insertion order at others. ANS: T DIF: Moderate REF: p. 472 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Application

16. Most magazines base their advertising rates on a measurement referred to as controlled circulation. ANS: F DIF: Easy REF: p. 472 NAT: AACSB Communication | CB&C Model Pricing

OBJ: 13-3 TYP: Knowledge

17. In the late 1990s, more than 250 magazines rushed to publish online. Despite the advantages they claimed to offer, the initial experience with these so-called “digizines” wasn’t very successful. ANS: T DIF: Difficult REF: p. 473 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 13-3 TYP: Comprehension

18. The future of magazine advertising will be influenced not only by new digital and mobile media formats, but also by big advertisers creating their own media companies that will in turn create their own media formats. ANS: T DIF: Difficult REF: p. 473-474 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 13-3 TYP: Comprehension

19. Television offers advertisers two extraordinary opportunities— outstanding creative expression, and amazing geographic selectivity. ANS: F DIF: Moderate REF: p. 475 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Comprehension

20. Cable television can be distinguished from network television in at least two ways—it is developing tracking systems to send different commercials to different viewers, and it is seeing the potential for high revenue from video on demand. ANS: T DIF: Difficult REF: p. 476-477 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 13-4 TYP: Comprehension

21. The term off-network syndication refers to television shows that have been developed specifically for sale to individual stations. ANS: F DIF: Moderate REF: p. 477 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Knowledge

22. Taken together, television’s broad coverage, extraordinary reach, and opportunity for repetition offer advertisers a strong advantage virtually unmatched in other media. ANS: T DIF: Moderate REF: p. 479 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Comprehension

23. The frequent intrusion of commercials has made television advertising the most distrusted form of advertising by consumers. ANS: T DIF: Easy REF: p. 480 NAT: AACSB Communication | CB&C Model Customer

OBJ: 13-4 TYP: Comprehension

24. Local advertisers like car dealers or furniture stores still reach television audiences primarily through spot advertising, but national advertisers have been dropping this format in favor of other media options. ANS: T DIF: Difficult REF: p. 482 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Comprehension

25. Since almost 90 percent of all U.S. households now own a television, the total number of television households is just a bit less than the total number of American households, about 11 million. ANS: F DIF: Moderate REF: p. 483 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Knowledge

26. To get the rating for a new television show, a research firm takes the number of TV households watching the show and divides that by the number of total TV households in the market. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

ANS: T DIF: Difficult REF: p. 483 NAT: AACSB Analytic | CB&C Model Research

OBJ: 13-4 TYP: Application

27. A ratings point indicates that 100 television households in a given area were tuned to the program being measured. ANS: F DIF: Moderate REF: p. 483 NAT: AACSB Analytic | CB&C Model Research

OBJ: 13-4 TYP: Knowledge

28. Nielsen Media has had to contend with disputes over its rating data, primarily because numbers tuning into a program do not automatically translate to numbers viewing a commercial. ANS: T DIF: Moderate REF: p. 484 NAT: AACSB Technology | CB&C Model Research

OBJ: 13-4 TYP: Comprehension

29. New technologies are predicted to play large roles in revolutionizing the way television is transmitted and viewed in the future—including digital interactive, mobile, broadband, and other transmissionbased processes. ANS: T DIF: Easy REF: p. 484 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 13-4 TYP: Comprehension

30. On the basis of both per-contact cost as well as absolute cost, radio is less cost-effective for advertisers than most other forms of media. ANS: F DIF: Moderate REF: p. 487 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-5 TYP: Knowledge

31. Though it is limited to a one-dimensional presentation, radio is a medium with a setting for true creativity, often described as the theater of the mind. ANS: T DIF: Easy REF: p. 488 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-5 TYP: Knowledge

32. A nationally distributed line of frozen dinners is to be promoted on radio. The client finds out, however, that the buying process for a national radio ad campaign is what the text calls “sheer chaos.” This is because stations have no standard fees for various spot lengths. ANS: F DIF: Moderate REF: p. 488 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-5 TYP: Application

33. To find accurate measures of radio audiences, media planners and clients often consult two published sources—Arbitron Ratings/Radio and Radio Usage and Network Radio Audiences. ANS: T DIF: Easy REF: p. 488-489 NAT: AACSB Communication | CB&C Model Research

OBJ: 13-5 TYP: Knowledge

34. A potential advertiser wants to understand a radio station’s reach before committing to spot placements. The best way to do this is to look up the radio station’s cume, or cumulative audience. ANS: T DIF: Moderate REF: p. 489 NAT: AACSB Analytic | CB&C Model Research

OBJ: 13-5 TYP: Application

MULTIPLE CHOICE 1. The last decade has known unprecedented change in advertising spending. Digital/interactive advertising is now a $ ____ industry, which is about ____ percent of U.S. spending on advertising and promotion. a. 80 billion; 44 b. 30 billion; 14 c. 10 billion; 28 d. 4 billion; 11 ANS: B DIF: Moderate REF: p. 458 NAT: AACSB Technology | CB&C Model Marketing Plan

OBJ: 13-1 TYP: Knowledge

2. One example of dwindling ad sales for traditional media is seen in ____, which once claimed 23 percent of all U.S. ad spending but now account for only 16 percent, indicating a loss of billions of dollars. a. network television stations b. local radio stations c. magazines d. newspapers ANS: D DIF: Moderate REF: p. 458 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-1 TYP: Comprehension

3. How is CBS, one of the three original television networks, dealing with ongoing changes in media and advertising? a. by slashing expenditures, downsizing staff, and running a smaller company b. by campaigning hard about the innovation, reach, and cost-effectiveness of its network broadcasting c. by developing interactive media sites to get ad revenue from as many sources as possible d. by cutting rates for commercial time and attracting many new advertisers ANS: C DIF: Difficult REF: p. 458 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 13-1 TYP: Comprehension

4. In the midst of a nationwide scramble to get new media up and running as well as new media companies in place, traditional media a. have been cut back to unheard-of proportions. b. are keeping afloat though they may be sinking soon. c. still command the majority of all ad dollars. d. are losing ad revenue at a rapid pace. ANS: C DIF: Moderate REF: p. 459 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-1 TYP: Comprehension

5. In today's marketplace, annual spending for newspaper advertising is roughly the same as that for ____ advertising. a. radio b. magazine c. Internet d. television ANS: C DIF: Moderate REF: p. 461 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Knowledge

6. Zoned editions demonstrate one of newspaper’s biggest advantages for advertisers. What is it? a. long lifespan b. high credibility c. strong timeliness d. high geographic selectivity ANS: D DIF: Easy REF: p. 462 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Knowledge

7. Despite recent troubles, newspaper is still an excellent medium for a. corporate conglomerates wanting to reach national audiences. b. retailers targeting local geographic markets. c. manufacturers selling to businesses. d. companies targeting highly selective audiences. ANS: B DIF: Moderate REF: p. 462 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Comprehension

8. What are two of the main disadvantages of newspaper as an advertising medium? a. creative constraints and cluttered environment b. time lags and geographic restrictions c. lack of credibility and minimal reach d. short life and few local opportunities ANS: A DIF: Moderate REF: p. 464 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Comprehension

9. For which of these potential advertisers is newspaper an excellent choice? a. one that requires excellent reproduction quality for its illustrations b. one that seeks to create images and moods with the theater of the mind c. one that wants to reach a local audience in a timely manner d. one that hopes to target a mass audience with strong visuals ANS: C DIF: Moderate REF: p. 465 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Application

10. What are the three broad categories of newspaper advertising? a. display, insert, and classified b. co-op, classified, and controlled c. page, column, and insert d. preprinted insert, free-standing, and special-interest ANS: A DIF: Easy REF: p. 465 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Knowledge

11. A shoe manufacturer pays part of the media bill when a local shoe store features the manufacturer's brand in its advertising. What kind of advertising is this? a. segmented b. syndicated c. co-op d. preferred ANS: C DIF: Moderate REF: p. 465 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Application

12. A grocery chain delivers a pallet of ads that are ready to be tucked into the Sunday newspapers before delivery. The grocery chain is using a. display advertising. b. a preprinted insert. c. co-op advertising. d. a free-standing insert. ANS: B DIF: Easy REF: p. 465 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Application

13. The owners of Kelly & Kallihan Funeral Home want their ads to appear alongside the obituary notices in the newspaper. What kind of space should they buy? a. run-of-paper b. preferred position c. run-of-press d. full position ANS: B DIF: Moderate REF: p. 466 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 13-2 TYP: Application

14. Which independent service verifies the figures that indicate the reach for both newspapers and magazines? a. All Dimension Audience Research b. Audit Bureau of Circulations c. Nielsen Media d. Arbitron ANS: B OBJ: 13-2| 13-3 TYP: Knowledge

DIF: Moderate REF: p. 466| p. 473 NAT: AACSB Communication | CB&C Model Research

15. In light of declining circulation figures, newspapers will have to do a number of things to remain a viable advertising medium in the future. One way is to exploit their strongest role. This means taking advantage of a concept called a. preferred position. b. narrowcasting. c. pass-along readership. d. hyper-localism. ANS: D DIF: Difficult REF: p. 467 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 13-2 TYP: Comprehension

16. The overwhelming advantage that magazines have over every other medium is their a. timeliness. b. reach. c. frequency. d. audience selectivity. ANS: D DIF: Easy REF: p. 469 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Comprehension

17. Probably more than any other form of media, magazines attract consumers because of a. their local flavor. b. their content. c. their timeliness.

d. their low price. ANS: B DIF: Easy REF: p. 469 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Comprehension

18. Unlike other media classes, except perhaps newspapers now and then, magazines carry ads that often benefit from an extended life due to a concept called a. pass-along readership. b. hyper-localism. c. pay-for-inquiry. d. first-run syndication. ANS: A OBJ: 13-3 TYP: Knowledge

DIF: Moderate REF: p. 470| p. 473 NAT: AACSB Communication | CB&C Model Marketing Plan

19. A well-known producer of frozen turkeys wants to run ads in several monthly magazines for two issues prior to Thanksgiving. The rough layouts presented to the client are rejected, so the agency has to go back to square one and start all over. Even if everything goes well, the creative team may have a very tight schedule. That’s because magazine deadlines for ads can be as much as ____ in advance of publication. a. 3 weeks b. 45 days c. 90 days d. 6 months ANS: C DIF: Moderate REF: p. 471 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Application

20. What is one of the main disadvantages of magazines as a media choice for advertisers? a. low reproduction quality b. long lead time c. short life d. lack of selectivity ANS: B DIF: Moderate REF: p. 471 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Comprehension

21. A sophisticated fashion magazine is charging a premium for an extravagant, extra-wide ad being placed by a designer fragrance. This type of ad format is often located on the inside cover of upscale magazines. What is this called? a. gatefold ad b. preprinted insert c. space contract d. bleed page ANS: A DIF: Easy REF: p. 472 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Application

22. A large computer hardware manufacturer has decided to advertise in several well-known digital technology magazines beginning next year. Each magazine has a different ____ in September or October, that is, the date when production-ready ads must be delivered to the publisher. a. circulation date b. closing date c. on-sale date

d. cover date ANS: B DIF: Moderate REF: p. 472 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Application

23. A deep forest green makes up the background color of a magazine ad dominated by a photo of a lush forest. The green color runs to the edge of the page and replaces the standard white border for most ads. This is a a. bleed page. b. run-of-press ad. c. gatefold ad. d. double-page spread. ANS: A DIF: Easy REF: p. 472 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Application

24. Your favorite monthly magazine arrives in your mailbox, with the April date printed on the front, called the ____ date. But it is only the first week of March. The April issue is actually sent to newsstands and mailed to subscribers on March 1, called the ____ date. a. placement; closing b. closing; cover c. on-sale; publication d. cover; on-sale ANS: D DIF: Difficult REF: p. 473 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Application

25. Though they come with significant drawbacks, ____ offer magazine publishers the chance for subscription increase and a dynamic environment to attract advertisers. a. preprinted inserts b. double-page spreads c. tablet readers d. pay-for-inquiry models ANS: C DIF: Moderate REF: p. 473-474 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 13-3 TYP: Comprehension

26. The multisensory stimulation of ____ makes it a very powerful medium for advertising—in fact, for many people, it defines advertising. a. television b. direct mail c. radio d. magazine ANS: A DIF: Easy REF: p. 474-475 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Comprehension

27. It’s easy to think of television as a single medium, but for most viewers there are four basic categories. These include a. network, local, cable, and paid. b. national, regional, city, and satellite. c. network, cable, syndicated, and local. d. commercial, public, cable, and syndicated. ANS: C DIF: Moderate REF: p. 475 NAT: AACSB Technology | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Knowledge

28. What type of television transmission broadcasts programming over airwaves to affiliate stations under a contract agreement? a. satellite b. syndicated c. network d. cable ANS: C DIF: Moderate REF: p. 477 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Knowledge

29. A manufacturer of high-end fountain pens has consulted with its agency and decided to advertise on a television news program, This Week at the White House. This program is considered ____ because it was developed specifically for sale to individual stations. a. off-network syndication b. first-run syndication c. barter syndication d. local syndication ANS: B DIF: Difficult REF: p. 477 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 13-4 TYP: Application

30. The new technology that is now transmitting television programs and ads on websites, digital tablets, and smartphones is dramatically changing our long-held ideas about TV viewing. This new category is referred to as a. “closed-circuit TV.” b. “narrowcasting.” c. “channel grazing.” d. “TV everywhere.” ANS: D DIF: Moderate REF: p. 478 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 13-4 TYP: Knowledge

31. Clearly, the greatest advantage of television as an advertising medium has always been its ability to a. make up for its limited reach. b. promote ongoing repetition. c. send a message through sight and sound. d. select narrow audiences by geographic location. ANS: C DIF: Easy REF: p. 478 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Comprehension

32. When a Bahamas resort runs its exciting and exotic commercials on TV, it gets two extraordinary advantages that cannot be matched by radio or print. What are they? a. lasting message and frequent repetition b. low absolute cost and high audience attentiveness c. highly selective geographic targeting and little clutter d. creative expression and huge reach for low cost-per-contact ANS: D DIF: Moderate REF: p. 478-479 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Application

33. A media planner is comparing the relative advantages and disadvantages of television versus magazines as advertising vehicles for her client. She needs to keep in mind that when comparing the two, television has a

a. b. c. d.

lower absolute cost. higher degree of audience selectivity. much lower cost per contact. higher degree of audience attentiveness.

ANS: C DIF: Moderate REF: p. 479 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Application

34. Compared to past decades, television is doing a better job at reaching people through ____, that is, the development and delivery of specialized programming for a particular audience. a. display advertising b. narrowcasting c. spot advertising d. syndicating ANS: B DIF: Moderate REF: p. 480 NAT: AACSB Technology | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Knowledge

35. A company imports exotic herbs and spices for cooking and wants to use television to reach a narrowly defined target market of people interested in the culinary arts. The company would be best advised to use a. cable television. b. network television. c. off-network syndicated television. d. first-run syndicated television. ANS: A DIF: Moderate REF: p. 480 NAT: AACSB Technology | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Application

36. Which form of television technology can block advertisements based on the program rating system, originally developed so parents could prevent their children from seeing inappropriate shows? a. narrowcasting b. V-chip c. video on demand d. closed-circuit ANS: B DIF: Moderate REF: p. 481 NAT: AACSB Technology | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Knowledge

37. After an extensive customer research effort, a nationwide real estate company finds that it needs to adjust its message by region. Apparently, in some markets its personal customer service is most appreciated, but in other markets its reputation for quick sales is valued. Due to this discrepancy, if the company is to advertise on network television, it should inquire about the availability of a. broadband syndication. b. smartphone advertising. c. barter syndication. d. spot advertising. ANS: D DIF: Difficult REF: p. 482 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 13-4 TYP: Application

38. A new animated comedy show, American Family, is set in Houston. A potential advertiser wants to know how popular the show is in Houston, as well as across the U.S. Research indicates that the show is being watched by 16,400,000 nationwide. It also indicates the show is being watched by 759,000 households each week in Houston’s big-city market, which has 3,300,000 households with televisions. What is the rating for American Family within the Houston market? a. 4.3 b. 20 c. 23 d. 46 ANS: C DIF: Difficult REF: p. 483 NAT: AACSB Analytic | CB&C Model Research

OBJ: 13-4 TYP: Application

39. What is the difference between ratings point and share of audience when measuring television audiences? a. Ratings point is used to measure televisions tuned to a program for its entire time period. Share of audience is used to measure televisions that remain on a network for a particular time period. b. Ratings point is used to measure audience for network shows. Share of audience is used to measure audience for local shows. c. Ratings point is based on viewership by daypart. Share of audience is based on viewership across all dayparts. d. Ratings point is based on the total of TV households in the market. Share of audience is based on the total of TV households that are using their televisions. ANS: D DIF: Difficult REF: p. 483-484 NAT: AACSB Communication | CB&C Model Research

OBJ: 13-4 TYP: Knowledge

40. Media research shows that there are 48,500,000 households watching TV during the time that the quasi-news show, Celebrity Newsertainment, is broadcast. The audience for this program averages 8,730,000 each week. This means that the share of audience measure for the program is a ____ share. a. 3.9 b. 5.5 c. 18 d. 39.9 ANS: C DIF: Difficult REF: p. 483-484 NAT: AACSB Analytic | CB&C Model Research

OBJ: 13-4 TYP: Application

41. Some analysts feel that due to its unique format, television on the Internet will a. have viewers that tolerate increased advertising. b. be negatively impacted by competition with other interactive technologies. c. not be able to sustain heavy loads of advertising. d. not grow quickly due to the declining popularity of broadband. ANS: C DIF: Difficult REF: p. 484 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 13-4 TYP: Comprehension

42. ____ is a delivery system by which television and radio programs are sent directly into homes, giving households access to hundreds of different broadcast channels. a. DBS b. HUT c. RADAR d. VOD

ANS: A DIF: Moderate REF: p. 485 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 13-4| 13-5 TYP: Knowledge

43. In many ways, what has been the “salvation” of AM radio? a. satellite radio b. sports radio c. talk radio d. syndicated radio ANS: C DIF: Moderate REF: p. 486 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 13-5 TYP: Comprehension

44. Which statement most accurately summarizes the current status and future prospects of Internet radio? a. It is already becoming somewhat obsolete due to satellite radio. b. It will grow virtually as fast as the Internet does. c. It may not be free for long as broadband providers start charging for access. d. It will stay alive by finding a small but sustainable niche of music specialists. ANS: C DIF: Difficult REF: p. 486-487 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 13-5 TYP: Comprehension

45. The CEO of a nationwide amusement park chain has instructed his marketing director to finalize this season’s radio advertising plan and report back to him. The marketing director still needs to decide between two types of radio advertising. What is the difference between local spot radio advertising and national spot radio advertising? a. clients making decisions on running ads, versus agencies making decisions on running ads b. taking any spots in the schedule where an ad can fit, versus selecting spots in the schedule where an ad is preferred c. supplying scripts for broadcast, versus hiring announcers to ad-lib from a list of points during broadcast d. placing ads directly with local stations, versus placing ads within nationally syndicated programming ANS: D DIF: Difficult REF: p. 487 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 13-5 TYP: Application

46. When comparing the cost of radio and television advertising, which of the following is true? a. Radio comes with a greater risk for unexpected production costs. b. Television provides a low cost-per-contact well beyond radio. c. Radio offers a low absolute cost that television can't match. d. Neither one really offers low costs compared to other media. ANS: C DIF: Moderate REF: p. 487 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 13-5 TYP: Comprehension

47. Radio offers potential advertisers the ____ of all media. a. simplest buying system b. most well-defined audience segments c. widest exposure d. strongest audience attentiveness ANS: C DIF: Easy REF: p. 487 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 13-5 TYP: Knowledge

48. A manufacturer of high-priced gourmet cookware is discussing media alternatives with his agency, and is strongly considering radio. The media planner at the agency reminds his client that a major limitation of radio involves its a. lack of creative possibilities. b. relatively high cost. c. fragmented audiences. d. geographic limitations. ANS: C DIF: Difficult REF: p. 488 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 13-5 TYP: Application

49. The key issue concerning new forms of radio technology, such as satellite radio, is whether listeners will a. be willing to pay for an entertainment medium that has always been free. b. be affected by ongoing moves toward corporate conglomeration. c. decrease their overall radio listening time. d. even notice the improved sound quality offered. ANS: A DIF: Difficult REF: p. 489 NAT: AACSB Technology | CB&C Model Marketing Plan

OBJ: 13-5 TYP: Comprehension

Scenario 13-1 A media buyer is glancing through the latest edition of the industry trade publication, Advertising Age, and notices an ad targeted at media buyers. The ad encourages the purchase of space in a fast-growing magazine that reaches 12- to 18-year-olds girls. It invites media buyers to contact the sales department at the teen-oriented magazine for more information. She considers this, as she has a cosmetics manufacturer as a client who may benefit from this type of ad placement. 50. (Scenario 13-1) The media buyer is trying to decide whether to run ads in the teen magazine or in special sections of newspapers attempting to target young people. What disadvantage of newspapers should prompt her to consider the teen magazine? a. their visual rather than verbal strengths b. their relative cost c. their tendency toward pass-along readership d. their limited ability to segment target audiences ANS: D DIF: Moderate REF: p. 464 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Application

51. (Scenario 13-1) The media planner explains that this teen-oriented magazine will have one big advantage that magazines have over other print media as well as broadcast media. It will offer this client a. an opportunity for high frequency. b. a high degree of audience selectivity. c. the lowest cost per contact of all major media. d. reduced clutter. ANS: B DIF: Moderate REF: p. 469 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 13-3 TYP: Application

52. (Scenario 13-1) The media planner talks to her client about this possibility. The client is interested in placing an ad in the teen magazine, and cites several logical reasons as well as one that doesn’t make sense (listed below). Which of the following would not be a good reason for this placement? a. to reach a narrowly defined audience based on demographic characteristics b. to take advantage of longer life when readers hold onto their issues

c. to attract readers looking for the latest news stories and the most timely messages d. to get extremely high-quality color reproduction for illustrations ANS: C DIF: Moderate REF: p. 471 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 13-3 TYP: Application

53. (Scenario 13-1) The agency has designed an ad using a high-quality illustration, so the client agrees to buy a full-page ad that uses the entire page, not just the space within the white border. The media planner should request the rate for a. a run-of-press ad. b. a fourth-cover page. c. a gatefold ad. d. a bleed page. ANS: D DIF: Moderate REF: p. 472 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 13-3 TYP: Application

54. (Scenario 13-1) The cosmetics client is still concerned about paying a lot of money for an ad in a fairly new magazine that hasn’t yet proven its popularity. The best way for the client to make sure that the advertisement will meet its minimum exposure goals is to ask about the magazine’s a. newsstand circulation. b. subscription base. c. pass-along readership. d. guaranteed circulation. ANS: D DIF: Difficult REF: p. 473 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Application

Scenario 13-2 A national radio broadcasters association hosts an annual convention that attracts station owners and program managers as well as ad agencies and media planners. As a media planner, you take part in forums on the current status of traditional radio, the competition between AM and FM formats, the growth of satellite and Internet radio, and the rise of new technologies. During one forum, a professor of broadcasting sparks discussion by posing a number of questions based on real-life situations that he has encountered over the years. 55. (Scenario 13-2) The long-time owner of an FM radio station in a mid-size West Coast city is closely monitoring the ups and downs of satellite radio companies. Traditional radio station owners like him, as well as their advertisers, are concerned about the rise of satellite radio mainly because it a. offers superior sound reproduction at no cost. b. is more local than local radio. c. has no advertising. d. is the most popular format with today’s listeners. ANS: C DIF: Moderate REF: p. 486 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 13-5 TYP: Application

56. (Scenario 13-2) An owner of a large restaurant/lounge wants to run a spot on a radio station that covers the Dallas/Ft. Worth metropolitan area and plays country-western music. FM stations will be the best choice because AM stations are more likely to a. have a news or talk radio focus. b. feature a classical music or religious music format. c. broadcast to a smaller geographic area. d. target teenagers rather than adults.

ANS: A DIF: Moderate REF: p. 486 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 13-5 TYP: Application

57. (Scenario 13-2) A Midwest sports equipment retailer has its agency set up 60-second commercials on stations in Chicago, Indianapolis, St. Louis, and Milwaukee that regularly cover sports events. In this way, the retailer is buying a. network radio advertising, which generates about $600 million annually. b. national syndicated radio advertising, which dominates radio advertising because it offers 10,000 individual radio stations. c. local spot radio advertising, which accounts for 80 percent of all radio ad dollars. d. national spot radio advertising, through nationally syndicated radio programs. ANS: C DIF: Difficult REF: p. 487 NAT: AACSB Technology | CB&C Model Marketing Plan

OBJ: 13-5 TYP: Application

58. (Scenario 13-2) A nationwide fast-food chain is considering next year’s media plan and is reviewing the pros and cons of various media options. Radio advertising has its disadvantages, and many are being addressed at this convention. Which of the following represents one of those disadvantages? a. the short closing periods for ad placement b. the absolute and contact cost c. the reach and frequency d. the chaotic buying procedures ANS: D DIF: Moderate REF: p. 488 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-5 TYP: Application

59. (Scenario 13-2) A young man takes over his grandfather’s barbershop in a Midwest city. He is new to radio wants to know his local station’s true reach before he places spots for the barbershop. What is the best estimate of his local radio station’s reach? a. cumulative audience b. average quarter-hour share c. average quarter-hour rating d. share of audience ANS: A DIF: Moderate REF: p. 489 NAT: AACSB Communication | CB&C Model Research

OBJ: 13-5 TYP: Application

Scenario 13-3 You are a media planner at a large advertising agency in Chicago. You are currently assigned to five accounts—a used car dealer in the northern suburbs of the city, a guitar/drum retailer on the south side of the city, a nationally distributed orange juice, a quick grits hot breakfast cereal sold nationwide but with strongest sales in large Southern cities, and a ski equipment manufacturer. Each account has requested some type of information from you regarding next year’s media buy. 60. (Scenario 13-3) To keep costs down, the used car dealership decides that it doesn't care where the ads run in the local newspaper. It just wants to make sure that there are auto ads in the Wednesday and Sunday editions. You will be ordering ____ ads. a. free-standing b. run-of-paper c. classified d. full position ANS: B DIF: Easy REF: p. 466 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Application

61. (Scenario 13-3) You recommend that the manufacturer of ski equipment place ads in several magazines devoted entirely to skiing. Your main reason for this is the strength of magazines regarding their a. targeting of audiences with content. b. high levels of reach. c. reduced ad clutter. d. short lead times. ANS: A DIF: Moderate REF: p. 469 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Application

62. (Scenario 13-3) Your orange juice client believes that the appeal of its product cuts across just about every demographic and psychographic breakdown imaginable. So, one objective for your media plan is to achieve the widest reach possible. This would suggest the use of a. television. b. magazines. c. national spot radio. d. newspapers. ANS: A DIF: Moderate REF: p. 479 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-4 TYP: Application

63. (Scenario 13-3) The marketing director for the instant grits cereal wants to supplement the company’s national media schedule with extra ads in his strongest markets, large Southern cities. However, he has a limited budget for this additional advertising, so you need to find the medium with the greatest potential for a low absolute cost and a low cost-per-contact. You should recommend a. cable television. b. regional editions of magazines. c. radio. d. local television. ANS: C DIF: Difficult REF: p. 487 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-5 TYP: Application

64. (Scenario 13-3) The guitar retailer has never advertised much. The owner now wants a highly creative, cutting-edge campaign that shows the excitement of guitar playing and gets the attention of both younger and older musicians. He asks for a quick overview on the creative opportunities offered by various major media. You tell him that, in general, a. newspapers offer a wide range of high-quality visual reproductive capabilities. b. magazines have short lead times that can kill creative ideas. c. television has strong visual and audio components but is a dying medium. d. radio offers creative avenues and is especially geared toward musical spots. ANS: D DIF: Moderate REF: p. 488 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-5 TYP: Application

Scenario 13-4

Considering the slow economy and the new focus on simple home decor, a greenhouse located in a central business district, Gretta's Garden, decides to sign up "garden club" members to get discounts on flowers, shrubs, vegetable plants, houseplants, and all related accessories. Members may also attend free lectures and hands-on workshops run by local horticulturists, or relax with a glass of tea or wine in the lushly landscaped courtyard. Gretta has ordered some basic market research and found that most customers live no more than three miles away, are in blue-collar as well as white-collar jobs, and represent a diverse range of ethnic and lifestyle types, as is seen in this community. It also supports her observation that her customer base is not strongly female, as one might expect, but is about 40 percent male. 65. (Scenario 13-4) Gretta's research suggests that besides being able to afford plants for their homes and gardens, the only thing most customers have in common is that they live within the immediate geographic area. In this case, which of the following would be the best media choice for advertising? a. radio b. magazines c. newspapers d. television ANS: C DIF: Moderate REF: p. 462 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Application

66. (Scenario 13-4) Gretta plans to use this advertising to announce a new addition—the full line from Holland Hothouse, including award-winning tulip bulbs and rose bushes. Holland and Gretta’s will split the cost. What type of advertising are they considering? a. sponsored b. display c. classified d. co-op ANS: D DIF: Moderate REF: p. 465 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Application

67. (Scenario 13-4) After she places her first simple ad in the local paper, Gretta realizes she didn’t ask a couple of questions. She calls the sales department and asks how many people can be expected to view the new ad and what figure the paper uses to determine its advertising rate. What number does she need? a. controlled circulation b. guaranteed circulation c. paid circulation d. readership ANS: D DIF: Moderate REF: p. 466 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-2 TYP: Application

68. (Scenario 13-4) Gretta also consults with a media outlet about advertising Gretta's and the Holland brand. The salesperson with this firm tells her that considering her growing/planting season, she will need to decide soon, because ads must be submitted 60 days before they run. Which media type is this salesperson most likely talking about? a. television b. radio c. newspaper d. magazine ANS: D DIF: Easy REF: p. 471 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Application

69. (Scenario 13-4) Gretta decides to run a more sophisticated ad in an issue of a regional publication, City Garden magazine. The ad includes a fold out with photo showing a wide view of Gretta's Garden, including the beautiful courtyard. What type of ad did she choose? a. first cover page b. second cover page c. space contract d. gatefold ANS: D DIF: Moderate REF: p. 472 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 13-3 TYP: Application

ESSAY 1. What are the four major classes or broad types of traditional media? Select two of these classes and describe both the advantages and disadvantages for creative advertising work associated with each. ANS: The four major classes of traditional media are newspapers, magazines, television, and radio. Newspapers offer a large and relatively inexpensive format, so there is the opportunity to provide a lot of information to the target audience at relatively low cost. This is important for products or services with extensive or complex features that may need lengthy and detailed copy. However, poor reproduction quality does not enhance the look of products. Also, newspapers lack sound and action, which affects the promotion of products that need a broad creative execution. Magazines offer a wide range of creative opportunities. Advertisers can vary the size of an ad, use color, use white space, and appeal to special interests of the audience. Paper quality is often high, which leads to excellent color reproduction. Magazines also allow for advanced techniques like pop-up ads, scratch-off ads with fragrances, and even ads with computer chips that have flashing lights and play music. However, long lead times and relatively high costs are potential drawbacks. Television offers the ability to send a message using both sight and sound. Technological advances provide brilliantly clear visuals and stereo-enhanced audio. In addition, special effects perfected for films are now making their way into advertising prepared for television, enabling TV to dramatize the meaning of a brand like no other medium. For the right products, with the most clever and memorable commercials, the dollars spent can pay off in catching the attention of massive audiences. But very high production costs and absolute placement costs deter many potential advertisers. Also, commercials have cluttered the airwaves over the years and are often ignored or distrusted by viewers. Radio has enough creative capability to be described as “theater of the mind.” Folksy, eccentric, or whimsical ads featuring unique voices, sounds, and musical pieces can have a tremendous impact on the listener's attitude toward a brand. Music formats within commercials do especially well on radio. However, radio offers audio only, which means that an advertiser whose product depends on demonstration or visual impact will be at a disadvantage. Also, a radio message creates a fleeting impression that is often gone in an instant. DIF: Difficult REF: p. 463-464| p. 470-471| p. 478-481| p. 488 OBJ: 13-2| 13-3| 13-4| 13-5 NAT: AACSB Analytic | CB&C Model Marketing Plan TYP: Comprehension 2. Describe the options available to a media planner trying to achieve a high level of geographic selectivity. Consider each of the four major areas of media that make up print and broadcast media.

ANS: Daily newspapers in cities and towns across the United States, like the Los Angeles Times and the Miami Herald, offer advertisers an opportunity to reach a well-defined geographic area. Zoned editions of newspapers can narrow the geographic dispersion of an advertisement even further. Magazines like Chicago and Southern Living have a built-in geographic selectivity. Also, largecirculation magazines often have regional editions to facilitate geographic targeting. Television networks, starting with the “Big Three” (CBS. NBC, and ABC), have no strength in geographic selectivity at all, and even affiliate stations (like those in major and mid-size cities) do not do a particularly good job of providing geographic selectivity. Spot advertising is the best tool available, but often even that coverage is too broad. Radio stations, like those seen all over the country, in large metropolitan areas, mid-size cities, small towns, and rural areas, are able to reach a relatively selective geographic audience. Traditional radio, by definition, is local (unlike satellite radio and Internet radio). Local radio stations can pinpoint select geographic areas with its broadcasting area and reach. DIF: Moderate REF: p. 462| p. 469| p. 480| p. 482| p. 487 OBJ: 13-2| 13-3| 13-4| 13-5 NAT: AACSB Analytic | CB&C Model Marketing Plan TYP: Knowledge 3. As a newly hired media planner with a list of clients who benefit from timely local advertising, you need to become very familiar with the advertising format options that your metropolitan and suburban newspapers offer. Name and briefly define the three broad types of newspaper ads, and any sub-types if possible. Then identify the three types of positions offered to advertisers as they decide where they want their ads to appear within the paper. ANS: In general, newspapers communicate their fees for advertising through rate cards, which contain information on costs, deadlines or “closing times,” specifications, any special pages or features, and sets of circulation figures. The three broad types of newspaper ads are display advertising, inserts, and classified advertising. Display advertising is placed within the body of the paper and contains the standard elements of print ads—headline, subhead, body copy, illustration—to attract attention and set the ad apart from editorial content. Co-op advertising is a form of display advertising that involves a local retailer or merchant featuring a particular brand, with the cost shared by the local merchant and the manufacturer. Inserts do not appear within the body of the newspaper but are separate printouts that are folded into the paper before delivery. There are two types—preprinted inserts are supplied as fully printed pages that are ready for insertion, while free-standing inserts are sets of cents-off coupons for a number of manufacturers and products, usually delivered with Sunday newspapers. Classified advertising appears as all-copy messages, often in their own section, under categories such as real estate, auto sales, household goods, personals, etc. They once were virtually the only local options for placing help-wanted ads, but many of those job classification ads are now online. The three types of positions offered to advertisers are run of paper (or run of press), in which the ad may appear anywhere in the paper; preferred position, in which the ad appears in a certain section; and full position, in which the ad appears at the top of a page or in the middle of editorial material.

DIF: Moderate REF: p. 465-466 OBJ: 13-2 NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Application

4. How do media organizations measure their audiences to obtain an accurate account of their readers or viewers? Choose two of the major classes of traditional media, then list and briefly explain at least two methods of audience measurement used for each format. If you can, note the companies that provide these measurement services. ANS: Newspaper audiences are measured along the following dimensions: (1) circulation, which is the number of newspapers distributed each day (for daily newspapers) or each week (for weekly publications); (2) paid circulation, which is the number of copies sold through subscription or newsstand distribution; (3) controlled circulation, which is the number of copies given away free; and (4) readership, which is the circulation multiplied by the average number of readers per copy. The Audit Bureau of Circulation is an independent organization that verifies the official circulation numbers of newspapers nationwide. Magazine audiences are measured along the following dimensions: (1) guaranteed circulation, which is a stated minimum number of copies of an issue that will be delivered to readers; (2) pass-along readership, which is the number of people beyond the original reader who will see a publication; (3) subscriber circulation; and (4) newsstand circulation. The Audit Bureau of Circulation, which verifies newspaper circulation numbers, also confirms magazine circulation figures. Television audiences are measured along the following dimensions: (1) television households, which is an estimate of the number of households in a market that own a television; (2) households using television, which is the number of households with a television on during a particular time period; (3) program rating, which is the percentage of television households tuned to a particular program; and (4) share of audience, which is the percentage of households using television tuned to a particular show. Nielsen Media is the primary provider of television ratings. Radio audiences are measured along the following dimensions: (1) average quarter-hour persons, which is the average number of listeners tuned to a station during a specified 15-minute segment of a daypart; (2) average quarter-hour share, which is the percentage of the total radio audience that was listening to a radio station during a specified quarter-hour daypart; (3) average quarter-hour rating, which is the audience during a quarter-hour daypart expressed as a percentage of the population of the measurement area; and (4) cumulative audience (or cume), which is the total number of different people who listen to a station for at least five minutes in a quarter-hour period within a specified daypart. Two services publish estimates of radio listeners—Arbitron gives audience estimates by time period and selected demographic characteristics, and RADAR collects audience data twice a year based on interviews with radio listeners. DIF: Difficult REF: p. 466| p. 473| p. 483-484| p. 488-489 OBJ: 13-2| 13-3| 13-4| 3-5 NAT: AACSB Analytic | CB&C Model Marketing Plan TYP: Comprehension 5. An ad agency has just won a new account that wants to begin by focusing on television commercials, and then later possibly branch into print and Internet ads. The agency’s account executive, media planner, and account planner meet with the advertisers’ team to review advertising options offered by various television formats. What are the four categories of basic television (excluding new and emerging formats such as Web TV and interactive TV)? What kinds of options does each offer an advertiser? ANS: The four categories of basic television are network, cable, syndicated, and local formats.

Network television broadcasts programs via the airwaves (and then through cable, satellite, and mobile formats) to affiliate stations across the country under various contract agreements. Its fees are high but it delivers a massive audiences. It is considered to reach more than 90 percent of American households, and it offers advertisers hundreds of markets. Despite predictions of its demise, network television continues to flourish largely due to innovation programming that has captured the public interest, such as reality shows and talent contests for singers, dancers, comics, models, and other performers. Cable television has become a worldwide phenomenon, transmitting through wires rather than airwaves. It offers a wide range of programs on hundreds of stations, currently attracting about 60 million subscribers in the U.S., or about 58 percent of all households. It differs in several ways from network TV: (1) it has more channels and therefore more programs; (2) it offers very specific target audiences and niches; (3) it is now investing in original programming; (4) it is developing software that allows for customized ad delivery as well as tracking services, and (5) it has the potential for huge revenue from video on demand. Syndicated television involves either programming that is originally created or programming that once appeared on network television. It is then rebroadcast on either network or cable stations. It offers advertisers programs with well-defined audiences. It includes several sub-types: off-network syndication, first-run syndication, and barter syndication. Local television is the programming that independent stations and network affiliates offer to their local audiences, beyond the network programs that they may carry. Independent stations usually run sitcoms, old movies, or children’s shows. Network affiliates run about 90 hours of network programming, as well as their own news shows, syndicated programs, and community-interest shows. DIF: Moderate REF: p. 475-477 OBJ: 13-4 NAT: AACSB Technology | CB&C Model Promotion

TYP: Application

6. You are selling advertising space for a local radio station. However, many of your potential advertisers use television extensively because of its creative opportunities. What advantages would your radio station offer potential advertisers that television advertising cannot match? ANS: Radio advertising offers a low absolute cost in reaching potential customers. It also offers far better geographic selectivity than television can. And while television availability is beginning to expand through smartphones and mobile devices, this is still in limited form, while virtually everybody has access to free radio through inexpensive equipment. Even customers without the latest technologically advanced gadgets can listen to the radio at home, at work, in the car, in the backyard, and professional offices, in retail outlets and malls, and in other public places. Finally, some might argue that the ability of radio’s “theatre of the mind” is advantageous in attracting and holding consumer attention, making radio superior to TV for brands that do not require demonstrations to convey value. DIF: Moderate REF: p. 487-488 OBJ: 13-5 NAT: AACSB Technology | CB&C Model Promotion

TYP: Application

Chapter 14 - Media Planning: Advertising and IBP in Digital/Interactive Media TRUE/FALSE 1. When Web media is combined with traditional media, the broad goal is to have the Web generation seek out and pay attention to messages on the Web more than those sent through traditional media. ANS: T DIF: Easy REF: p. 496 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-Intro TYP: Comprehension

2. An example of IBP via digital/interactive media is seen on a popular social media site. Potential customers go to this site voluntarily, based on a personal interest, and a brand exposure just happens to show up on the site in a “natural” way. ANS: T DIF: Moderate REF: p. 496 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-Intro TYP: Comprehension

3. Overall, the Internet has now finally become the advertising option that it was expected it to be. ANS: T DIF: Easy REF: p. 497 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 14-Intro TYP: Comprehension

4. Companies are now spending more than $10 billion annually to advertise on digital/interactive media, with “paid search” in the lead at $3 billion. ANS: F DIF: Moderate REF: p. 497 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-Intro TYP: Knowledge

5. Despite its massive growth and popularity, the Internet will not replace all other forms of advertising, and, most likely, will not become the main method of advertising for the world’s biggest spenders. ANS: T DIF: Easy REF: p. 498 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 14-1 TYP: Comprehension

6. Currently, the Internet is being accessed worldwide by about 1.7 billion users. ANS: T DIF: Moderate REF: p. 500 OBJ: 14-1 NAT: AACSB Technology | CB&C Model International Perspective TYP: Knowledge 7. The Internet is essentially a young person’s medium as well as target market, since the population of daily users aged 65 and older is quite small: less than 1 million. ANS: F DIF: Moderate REF: p. 500 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-1 TYP: Knowledge

8. The two main forms of digital/interactive media used by consumers are email and the World Wide Web. ANS: T DIF: Easy REF: p. 500 OBJ: 14-1 NAT: AACSB Communication | CB&C Model Online/Computer TYP: Knowledge

9. It may seem strange to think of our own email or a website we visit as “media,” but they are ways to reach us as consumers, so that’s how advertisers view them. ANS: T DIF: Moderate REF: p. 500-501 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-1 TYP: Comprehension

10. Uninvited commercial messages sent to electronic mailing lists, Usenet groups, and other combinations of email addresses are known as spam. ANS: T DIF: Easy REF: p. 501 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Knowledge

11. Almost 45 percent of Americans now use the World Wide Web. ANS: F DIF: Easy REF: p. 502 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-1 TYP: Knowledge

12. A search engine allows an Internet user to surf the Web by typing in key words and be given a list of all websites containing those key words. ANS: T DIF: Easy REF: p. 502 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Knowledge

13. Of all options available for Internet advertisers, the World Wide Web, or WWW, provides the widest and most diverse range of opportunities. ANS: T DIF: Easy REF: p. 501-502 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Comprehension

14. A website is a collection of Web pages, images, videos, and other digital content hosted on a Web server. ANS: T DIF: Easy REF: p. 502-503 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Knowledge

15. Digital/interactive media advertising on the Web has finally emerged as a legitimate option due, in part, to strong selectivity, tracking, deliverability, flexibility, and reach, among other reasons. ANS: T DIF: Moderate REF: p. 505 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-2 TYP: Comprehension

16. A big advantage for advertisers using online advertising, mobile marketing, or website content is that these messages are delivered seven days a week, around the clock, whenever the receiver is logged on and active. ANS: T DIF: Moderate REF: p. 506 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-2 TYP: Comprehension

17. Display/banner ads and websites allow advertisers to measure with some accuracy the actual individual responses to an ad, something that is unattainable in current forms of traditional media. ANS: T DIF: Moderate REF: p. 506 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-2 TYP: Comprehension

18. The reach of the Internet, that is, the use of this medium by audiences, is larger than all other media except for television. ANS: F DIF: Moderate REF: p. 506 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-2 TYP: Knowledge

19. A click-through is the number of page elements, or hyperlinks, that have actually been requested as the user moves from a display/banner ad to the related link at the corporate/brand home page. ANS: T DIF: Moderate REF: p. 506-507 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-2 TYP: Knowledge

20. Not long ago you could prepare and buy relatively inexpensive banner ads, but in recent years the cost of Internet advertising has skyrocketed. ANS: T DIF: Moderate REF: p. 508 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-2 TYP: Comprehension

21. The Internet may provide segmented audiences to a point, but it is not really a suitable format for niche marketing. ANS: F DIF: Moderate REF: p. 508 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-3 TYP: Comprehension

22. An ad for microwave popcorn appears next to your email messages. This is a banner ad, and there is a good chance you won’t click on it because click-through rates for banner ads are now only 0.1 percent. ANS: T DIF: Moderate REF: p. 510 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-3 TYP: Application

23. Pop-up ads have never been popular, but they seem to be more irritating than ever, with 80 percent of respondents in a recent survey saying they were annoying. ANS: T DIF: Moderate REF: p. 510 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-3 TYP: Knowledge

24. One big advantage of rich media/video and audio is that it can lead to click-through rates that are hundreds of times greater than those for display/banner ads. ANS: T DIF: Moderate REF: p. 511 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-3 TYP: Comprehension

25. A relatively new technology that has advertising potential is the widget, a module of software that accesses a “featured store” with specials or sales, available to consumers via a simple click-through. ANS: F DIF: Moderate REF: p. 512 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-3 TYP: Knowledge

26. Second Life is a website that perfectly demonstrates the concept of viral marketing, allowing visitors to sample videos and pass them on to others. ANS: F DIF: Easy REF: p. 512 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-3 TYP: Application

27. A person fills out an online form and gives his permission to a bookstore retailer to send messages about new books, sales, and special incentives to his email address. This is referred to as viral marketing. ANS: F DIF: Moderate REF: p. 515 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-4 TYP: Application

28. The newest venue for viral campaigns involves online videos of television commercials or their followup ads. ANS: T DIF: Easy REF: p. 515 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-4 TYP: Comprehension

29. Though commercial websites can cost millions to develop, launch, and maintain, such big dollars are not absolutely necessary to have a successful site. ANS: T DIF: Moderate REF: p. 519 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-4 TYP: Comprehension

30. Though some sites have been successful with this, attempts at requiring registration have been largely rejected by consumers due to privacy concerns. ANS: T DIF: Moderate REF: p. 520 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-4 TYP: Comprehension

31. A hit rate doesn’t really reflect the number of consumers interested in a site. ANS: T DIF: Moderate REF: p. 520 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-4 TYP: Knowledge

32. Page views measure how many pages, or html files, have been sent to someone’s computer, but they don’t indicate how many visitors the website has had. ANS: T DIF: Moderate REF: p. 520-521 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-4 TYP: Knowledge

33. Hits are the number of occasions in which user X has interacted with website Y during time period Z. ANS: F DIF: Moderate REF: p. 520-521 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-4 TYP: Knowledge

34. Web analytic software not only tracks traffic to a site, but tracks traffic within the site as well. ANS: T DIF: Easy REF: p. 521 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-4 TYP: Knowledge

35. Many companies offer measurement services for interactive media, but there is no real industry standard for measuring the effectiveness of one interactive ad placement compared to another. ANS: T DIF: Moderate REF: p. 521 NAT: AACSB Technology | CB&C Model Research

OBJ: 14-4 TYP: Comprehension

36. Click fraud is a crime, one that is being monitored and detected by Google and Yahoo! by watching for repeated clicks or unusual visit patterns from anonymous servers. ANS: T DIF: Moderate REF: p. 522-523 NAT: AACSB Ethics | CB&C Model Online/Computer

OBJ: 14-4 TYP: Comprehension

37. The social aspect of the Internet is one of the most important reasons for its success. ANS: T DIF: Easy REF: p. 524 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-4 TYP: Comprehension

38. Online brand communities behave much like communities in the traditional sense, complete with their own cultures, rituals, and traditions. ANS: T DIF: Moderate REF: p. 524 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-4 TYP: Comprehension

39. From a technological standpoint, it appears that two technologies related to digital/interactive media will have the biggest impact on the future of IBP—Internet TV and Internet radio. ANS: F DIF: Moderate REF: p. 524 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 14-5 TYP: Comprehension

40. Digital/interactive media advertising and promotion will not likely become the “lead tool” in IBP campaigns very soon, especially when measured by dollars spent. ANS: T DIF: Moderate REF: p. 526 NAT: AACSB Technology | CB&C Marketing Plan

OBJ: 14-5 TYP: Comprehension

MULTIPLE CHOICE 1. The Internet’s e-commerce is growing at an astounding rate, with annual consumer transactions now close to ____ and business-to-business interactions exceeding ____. a. $30 billion; $800 billion b. $800 billion; $400 billion c. $100 billion; $1 trillion d. $300 billion; $4 trillion ANS: D DIF: Moderate REF: p. 497 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-Intro TYP: Comprehension

2. We are on the brink of a new technological revolution that is going to make even ____ seem oldfashioned. a. Web pages b. WiFi c. cell phones d. broadband ANS: B DIF: Moderate REF: p. 497 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-Intro TYP: Comprehension

3. For all that the Internet fundamentally is—a depository for almost limitless information, an email delivery system, an entertainment medium—it has exploded and become so much more in the last few years. One word tells us why. What is that word?

a. b. c. d.

broadband spam e-commerce wireless

ANS: D DIF: Difficult REF: p. 497 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-Intro TYP: Comprehension

4. Which up-and-coming technology offers a consumer “private hot spots” of wireless access virtually anywhere? a. Mi-Fi b. WiFi c. WiMax d. Ultrabroadband ANS: A DIF: Difficult REF: p. 498 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-Intro TYP: Knowledge

5. What companies became the first Internet service providers in 1994, with the idea of sending standard TV commercials in a new way? a. Mosaic and Foxfire b. Yahoo! and Google c. Netscape and Internet Explorer d. Prodigy and CompuServe ANS: D DIF: Difficult REF: p. 499 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Knowledge

6. The truly revolutionary feature related to the growth of the Internet has been its ability to a. replace traditional forms of advertising. b. grow beyond the $1 billion annually spent over the past few years. c. alter the nature of communication within a commercial channel. d. become the ultimate medium of today’s young people. ANS: C DIF: Moderate REF: p. 499 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Comprehension

7. Email sent by advertisers to consumers with their consent is a marketing approach called a. opt-in. b. click-through. c. mash-up. d. page-view. ANS: A DIF: Moderate REF: p. 501 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-1 TYP: Knowledge

8. Estimates suggest that more than ____ spam emails are sent every day worldwide, representing about ____ of all email traffic. a. 14 billion; 45 percent b. 6 billion; 65 percent c. 2 billion; 15 percent d. 400 million; 25 percent ANS: A DIF: Moderate REF: p. 501 OBJ: 14-1 NAT: AACSB Technology | CB&C Model International Perspective TYP: Knowledge

9. Mass emailings that arrive as a form of marketing can get a 3 to 5 percent response compared with a 1 to 3 percent for offline direct marketing efforts. What term is used to describe these mass emailings? a. pop-ups b. widgets c. spam d. opt-ins ANS: C DIF: Moderate REF: p. 501 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 14-1 TYP: Comprehension

10. The terms Internet and World Wide Web are often used interchangeably. Which of the following is accurate regarding these media elements? a. The Internet provides the greatest possibilities among all options available to World Wide Web advertisers. b. The World Wide Web is a web of information available to most Internet users. c. The Internet is a massive search engine available to most users of the World Wide Web. d. The two terms essentially refer to the same aspect of digital technology. ANS: B DIF: Moderate REF: p. 501-502 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Comprehension

11. What applications of the Internet are most frequently used by American consumers today? a. using email and accessing news or information b. viewing videos and taking part in social networking c. making online purchases and accessing email d. paying bills and doing online comparison shopping ANS: A DIF: Difficult REF: p. 502 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-1 TYP: Comprehension

12. ____ are the starting points for Internet exploring and searching. a. Websites b. Portals c. Email addresses d. Home pages ANS: B DIF: Moderate REF: p. 502 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Knowledge

13. Portals come in many forms—they can be a. search engines, home pages, or websites. b. general, vertical, horizontal, or community-based. c. corporate, sponsored, branded, or not-for-profit. d. websites, mash-ups, or page views. ANS: B DIF: Moderate REF: p. 502 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Knowledge

14. A mash-up is a combination of a. conflicting digital interactions when a website crashes during high consumer traffic. b. several websites into a single site to provide additional information or opportunities. c. pop-up and pop-under ads that act as a single unit. d. for-profit and not-for-profit organizations on a site to benefit a charity. ANS: B

DIF: Moderate

REF: p. 503

OBJ: 14-1

NAT: AACSB Technology | CB&C Model Online/Computer

TYP: Knowledge

15. Which of the following is an example of a mash-up? a. LuckySurf.com, which runs online contests in an attempt to gain loyal visitors b. Dogpile.com, which combines the results of several search engines at once c. Yahoo.com, which offers a massive search index containing millions of pages d. Chicagocrime.org, which provides crime statistics and then pinpoints locations with GoogleMaps ANS: D DIF: Moderate REF: p. 503 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Application

16. A young man graduates with both journalism and communications degrees and finally has time to get his message out to the world. The digital/interactive media format he is considering has as its essential characteristics its informal style and its journal format. What is he interested in doing? a. joining a social network b. building a website c. writing a blog d. creating a corporate/brand home page ANS: C DIF: Moderate REF: p. 504 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Application

17. A marketing director for a snack producer is trying to convince corporate executives to consider advertising on several blogs. One thing that he should remember about blogs is that they a. do not generate a lot of trust among consumers. b. are read by more than 80 percent of all Internet users. c. can contain product pitches or messages without revealing any affiliations with the companies behind them. d. provide the strongest reach of all formats on the Internet. ANS: A DIF: Difficult REF: p. 504-505 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-1 TYP: Application

18. One big advantage for advertisers using the Internet as their medium is that a. it is much less expensive than traditional forms of media. b. consumers don’t consider commercial messages via Internet to be “ads.” c. the format is unique and uncluttered because few commercial organizations use it. d. it is a precise way to target particular markets and narrow segments. ANS: D DIF: Moderate REF: p. 505 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-2 TYP: Comprehension

19. An important thing to remember about the reach of the Internet as an IBP medium is that a. its reach varies dramatically, based on ever-changing levels of Internet traffic. b. only about half of U.S. households have access, so reach is quite limited. c. its reach seems large, but it doesn’t allow for access to geographically diverse locations. d. after TV and radio, no other medium has comparable reach. ANS: D DIF: Moderate REF: p. 506 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-2 TYP: Comprehension

20. Many consumers access social media on the Internet while also using another form of media, providing a seamless interface. Which IBP tool do they use? a. radio

b. direct mail c. television d. magazines ANS: C DIF: Moderate REF: p. 507 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-2 TYP: Comprehension

21. On a cost-per-thousand (CPM) basis, the process of running Web ads a. is virtually nonexistent because there is no charge for most ads. b. is much less expensive than ads placed in traditional media. c. compares favorably with ads placed in traditional media. d. becomes a great deal more expensive than ads placed in traditional media. ANS: C DIF: Moderate REF: p. 508 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-2 TYP: Comprehension

22. Which type of Internet advertising is now the most prominent? a. sponsorship b. email messaging c. display/banner d. paid search ANS: D DIF: Moderate REF: p. 509 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-3 TYP: Knowledge

23. An advertiser for a weight-loss product decides to use paid search. This means that it a. pays websites and portals to place ads in or near certain lists of search results. b. offers the same content materials a consumer would normally pay for using traditional media. c. pays consumers a small amount to have them click on particular websites. d. promotes itself at the portal or other entry place to the Web. ANS: A DIF: Moderate REF: p. 509 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-3 TYP: Application

24. An Internet user goes to a large portal, types in a few key words, then receives a list of websites that may be of interest. Generally, the higher a site appears on the list, the more likely the user will visit that sight, so advertisers want to be affiliated with those sites that show up first. Which concept does this describe? a. click fraud b. ultrabroadband c. viral marketing d. search engine optimization ANS: D DIF: Moderate REF: p. 509 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-3 TYP: Application

25. A soft drink advertiser decides to runs banner ads to direct preteens to its interactive home page. Its agency places these ads on websites related to teen magazines, action gaming, and extreme sports, among others, because this tactic a. links the banner with the home page. b. targets specific market niches. c. offers high-volume traffic rather than low-volume traffic for the same price. d. has been shown by academic research to boost online sales. ANS: B

DIF: Difficult

REF: p. 510

OBJ: 14-3

NAT: AACSB Technology | CB&C Model Marketing Plan

TYP: Application

26. An Internet user wants to move from one website to a related one. She requests the new page by clicking on a link, but then an ad message flashes in front of her while she waits for the page to be loaded. What type of advertising is this? a. splash screen b. display/banner c. pop-under d. widget ANS: A DIF: Moderate REF: p. 511 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-3 TYP: Application

27. How are rich media/video and audio different from other Internet technology used for advertising? a. by allowing for two-way interaction between consumer and advertiser b. by incorporating visual and auditory elements on a corporate website c. by streaming video or audio when the user’s mouse passes over the ad d. by launching virtual marketing emails that contain video and/or audio components ANS: C DIF: Difficult REF: p. 511 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-3 TYP: Comprehension

28. Academic research indicates that adding animation to an online ad increases the level of click-through, recall, and favorability. This is particularly good news for which type of digital/interactive media? a. rich media/video and audio b. display/banner c. corporate/brand home page d. splash screen ANS: A DIF: Difficult REF: p. 511 NAT: AACSB Technology | CB&C Model Research

OBJ: 14-3 TYP: Comprehension

29. On its website, the Crayola company has managed to avoid the biggest failing of corporate sites. This is because it a. has combined with not-for-profit organizations to create an educational experience. b. provides massive amounts of information about the firm and its brands. c. links to other sites involving art materials for children. d. takes advantage of the Web’s interactive capabilities with added content and activities. ANS: D DIF: Moderate REF: p. 511 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-3 TYP: Application

30. A ____ provides information about an organization and its products or services in detail, often acting as a virtual brochure. a. consumer blog b. search engine optimizer c. corporate/brand home page d. virtual mall ANS: C DIF: Easy REF: p. 511 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-3 TYP: Knowledge

31. Widgets are software modules that allow users to a. drag and drop brand information into their personal blogs. b. automatically access a corporate/brand home page.

c. customize the consumer information they want to receive on a regular basis. d. click on multiple retail links to compare features and pricing. ANS: C DIF: Moderate REF: p. 512 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-3 TYP: Knowledge

32. About 68 percent of American households take part in these forms of digital/interactive media on computers as well as on mobile devices, and the average user is 35 years old. What are they? a. social networks b. virtual worlds c. video games d. virtual malls ANS: C DIF: Moderate REF: p. 513 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-3 TYP: Comprehension

33. Through ____, the Internet is currently the only mass medium capable of customizing a message for thousands or millions of receivers. a. virtual worlds b. email addresses c. pop-ups d. social networks ANS: B DIF: Moderate REF: p. 515 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-4 TYP: Comprehension

34. You are the marketing manager of a small corporate airline that handles business flights for executives and celebrities, but also specializes in group charters to major sporting events, concerts, and festivals. To reach businesspeople as well as affluent fans on the Internet, you will have to avoid the usual fare because these two target audiences ignore most advertising and hate distractions. However, they do tend to take note of online videos. So where should you put your advertising money? a. viral marketing b. email distribution c. banners and displays d. gaming sites ANS: A DIF: Difficult REF: p. 515 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-4 TYP: Application

35. With the increase of digital telecommunications devices, mobile marketing can take many forms. One interesting finding is that IBP communications through mobile devices a. are more annoying to consumers than pop-up ads. b. have the strongest appeal in television formats. c. have managed to circumvent the need for permission marketing. d. show surprisingly high recall. ANS: D DIF: Difficult REF: p. 515-516 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-4 TYP: Comprehension

36. A number of local retailers have set up their websites inside a virtual mall. This type of site is developed for a user to a. stream video and audio from multiple corporate sites. b. view multiple displays of point-of-purchase advertising. c. find sites based on product categories. d. search for sites by entering key words and scanning a list.

ANS: C DIF: Moderate REF: p. 516 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-4 TYP: Comprehension

37. In all of its forms, e-commerce is actually a. branded entertainment. b. product distribution. c. point-of-purchase advertising. d. direct marketing. ANS: D DIF: Difficult REF: p. 516 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-4 TYP: Comprehension

38. The annual numbers show very clearly that ____ account for the overwhelming majority of ecommerce sales transactions. a. the Internet’s three biggest retailers b. business-to-business deals c. paid searches d. consumer purchases ANS: B DIF: Moderate REF: p. 516 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-4 TYP: Knowledge

39. Social media offer unique opportunities for advertisers who understand their demographics. For instance, the largest demographic group using ____ is made up of 35- to 54-year-olds, and the fastest growing group is made up of those aged 55 and older. a. Twitter b. Facebook c. MySpace d. YouTube ANS: B DIF: Moderate REF: p. 517 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-4 TYP: Comprehension

40. Which social media website has taken an active role in welcoming advertisers by offering a media kit for setting up and launching an advertising brand location? a. YouTube b. LinkedIn c. Google d. Facebook ANS: A DIF: Moderate REF: p. 518 NAT: AACSB Technology | CB&C Model Strategy

OBJ: 14-4 TYP: Comprehension

41. You have designed an exciting line of products and are starting a business out of your home. You want to create a website, assuming "If you build it, they will come." You find that there’s a little more to it than that. An attractive consumer site can cost quite a bit, particularly due to the expense of specialized personnel who a. register the site with search engines. b. design and constantly update the site. c. offer hosting services for the site. d. contract with portals for the site. ANS: B DIF: Difficult REF: p. 519 OBJ: 14-4 NAT: AACSB Communication | CB&C Model Online/Computer TYP: Application

42. An effective company website should allow for human-messaging and/or human-human interaction. This is because research shows that such approaches a. promote easier navigation and user-friendly purchase procedures. b. personalize the coldness of digital technology. c. create bonds that build social pressure to buy the brand. d. lead to more positive attitudes and stronger purchase intentions. ANS: D DIF: Difficult REF: p. 520 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-4 TYP: Comprehension

43. A savvy Internet marketer has tried a number of measurement methods over the years, finding many to be inaccurate or misleading. He has now found the best way to measure the effectiveness of his clients’ Web ads. He is probably relying on a. click-throughs. b. page views. c. hits. d. unique visitors. ANS: A DIF: Moderate REF: p. 520 NAT: AACSB Technology | CB&C Model Research

OBJ: 14-4 TYP: Application

44. A surfboard manufacturer advertises its boards via banner ads on various blogs and magazine sites featuring extreme sports and water adventures. Its marketing manager sees that the ads may be working, because one site is getting a very high hit rate. He also understands that hit rates a. count the number of users who click on the banner ad, not the site. b. provide information on user traffic within the site. c. count visitors to the site. d. represent the number of elements requested from a given page. ANS: D DIF: Moderate REF: p. 520 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-4 TYP: Application

45. The measurement of Web audience that is easily exaggerated and therefore the least accurate involves totaling a. visits. b. pages. c. hits. d. click-throughs. ANS: C DIF: Moderate REF: p. 520 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-4 TYP: Comprehension

46. A marketer can track where users go on her company’s commercial website. She can find out what information is viewed, when it is viewed, and how often it is viewed. This is all possible due to her access to a. hits and page views. b. search engine optimization. c. Web analytic software. d. research measurement firms. ANS: C DIF: Moderate REF: p. 521 NAT: AACSB Technology | CB&C Model Research

OBJ: 14-4 TYP: Application

47. You have created a new website promoting a fruit-flavored power drink for a beverage producer. The site is targeting college students and appears to be getting a decent amount of traffic, but it is still in the development stage. You want to give the client feedback on where and how users spend their time on the site. You would do best to a. get accurate user data from Web analytic software. b. do a search engine access analysis. c. compare your hits to those of competitors. d. review measurement data from a media research firm. ANS: A DIF: Moderate REF: p. 521 NAT: AACSB Technology | CB&C Model Research

OBJ: 14-4 TYP: Application

48. Which company, while providing measurement and evaluation services for digital/interactive media, also calculates the top 1 million most-visited websites, all for free? a. ForresterResearch b. Nielsen/NetRatings c. eMarketer d. Ranking.com ANS: D DIF: Difficult REF: p. 522 NAT: AACSB Technology | CB&C Model Research

OBJ: 14-4 TYP: Knowledge

49. Which of the following is accurate concerning click fraud? a. It involves the illegal generation of clicks on ads that have nothing to do with consumer interest. b. It has been reported by more than 70 percent of Web advertisers. c. It occurs when the advertiser negotiates for a flat fee with the site provider. d. It is annoying and costly, but it is not yet illegal in the U.S. ANS: A DIF: Moderate REF: p. 522-523 NAT: AACSB Ethics | CB&C Model Online/Computer

OBJ: 14-4 TYP: Comprehension

50. Creating an e-community for a brand capitalizes on the Internet’s ability to a. provide product informative that cannot be found elsewhere. b. legitimize brands that claim to be technologically advanced. c. offer consumers a unique and efficient way to communicate with each other. d. evolve and change the same ways that strong brands do. ANS: C DIF: Difficult REF: p. 524 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-4 TYP: Comprehension

51. As more complex forms of data become available—including video, audio, and television formats— they will be able to be streamed to Web users who only need to have a. access to broadband. b. Mi-Fi. c. mobile devices. d. rich media/video and audio software. ANS: A DIF: Difficult REF: p. 526 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-5 TYP: Comprehension

52. In the ever-changing world of digital/interactive media, the next evolution looming on the horizon is a. rich streaming podcasting. b. virtual shopping. c. website sponsorship.

d. Internet television. ANS: D DIF: Moderate REF: p. 526 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-5 TYP: Comprehension

53. ____ is an innovative company that already has the technology and services in place for advertisers to beam messages to an individual’s mobile device when passing a restaurant, entering a mall, or walking by a retail store. a. Lyris Inc. b. Foursquare c. iStrategyLabs d. DoubleClick ANS: B DIF: Difficult REF: p. 526 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-5 TYP: Knowledge

Scenario 14-1 When the social networking/gaming website Foursquare launched in 2009, it was only accessible to residents in 100 U.S. cities. One year later, an updated version of the service allows check-ins from locations all over the world and has over 500,000 users internationally. The site, which allows registered users to connect with friends and update their location, receives over one million check-ins per week. When users visit a particular store, their profile is automatically updated and they can share feelings about favorable experiences (or unfavorable ones). The site now holds partnerships with over 800 establishments worldwide, and high-profile partnerships with the Bravo Network and The New York Times have greatly increased the site’s popularity. 54. (Scenario 14-1) A search on Bing using the phrase “foursquare social media” results in thousands of matches. These multiple matches occur because sites like Bing a. accept multiple registrations from a single website. b. use search engine technology to optimize results that direct users to lists of possible sites. c. accept payment from businesses in exchange for repeated mention on lists of search results. d. reflect the number of people actually performing a search on a particular phrase at any one time. ANS: B DIF: Easy REF: p. 502 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-1 TYP: Comprehension

55. (Scenario 14-1) One way to find this site as well as related businesses is to go to Bing and look under “social networking sites.” Technically, Bing is a(n) a. analytical software system that allows e-commerce. b. mash-up that features multiple widgets. c. portal with search engine technology. d. website that acts as a corporate/brand home page. ANS: C DIF: Moderate REF: p. 502 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-1 TYP: Application

56. (Scenario 14-1) One of Foursquare’s strengths is that it offers a very interactive experience to its users. Tracking brand interactivity over the Internet can be done in ways that are not possible for methods of traditional advertising. One way this can be done is the Internet a. allows advertisers to track how users interact with their brands and learn what interests current and potential customers. b. allows users to inform companies as to what sites they have visited and when. c. is cheaper for companies to operate, so they can spend more money on tracking software.

d. is regulated by an entity that records every consumers’ habits and search history. ANS: A DIF: Moderate REF: p. 506 NAT: AACSB Analytic | CB&C Model Online/Computer

OBJ: 14-2 TYP: Application

57. (Scenario 14-1) As the number of Foursquare users increases, so do the efforts made by marketers to appeal to visitors to the site. Many of the site’s users access it via their cell phone or PDA, so many companies are now creating advertisements to fit these media channels. These advertisements are examples of a. intrusive marketing. b. mobile marketing. c. e-commerce. d. splash marketing. ANS: B DIF: Easy REF: p. 515 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-4 TYP: Application

58. (Scenario 14-1) Foursquare has been getting over two million visits per week on its site. If 25,000 of its users are responsible for all 2 million visits, these users make up all of the site’s a. unique visitors. b. avid fans. c. target market. d. site followers. ANS: A DIF: Moderate REF: p. 521 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-4 TYP: Application

Scenario 14-2 You open up your laptop to begin writing a term paper for your English literature class. You do a quick Google search on a few key phrases involving Shakespeare, Dickens, and Hemingway. But before you go further, you play a few video games, check your email, visit a couple music websites, take a cybertour of a new sports stadium, go to a coupon site, solve a murder mystery, go back to Google to check out a big name in the news, submit a slogan for a new local restaurant, and read a couple editorials on a magazine site. Then, you figure it’s time to get down to work. 59. (Scenario 14-2) In running keyword searches using Google, you took part in a common practice. In one month, Americans conduct more than ____ such searches, and ____ of those are conducted on Google. a. 30 billion; 75 percent b. 15 billion; 65 percent c. 5 billion; 45 percent d. 1 billion; 85 percent ANS: B DIF: Difficult REF: p. 509 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-3 TYP: Application

60. (Scenario 14-2) When you were reading the editorials on the magazine site, you were so glad you were no longer interrupted by annoying ads. Due to widespread annoyance with these online distractions, many service providers like yours now offer blockers that greatly reduce an advertiser’s ability to get ____ onto a user’s screen. a. paid search advertising b. pop-up ads c. rich media/video and audio d. opt-in messages

ANS: B DIF: Moderate REF: p. 510 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-3 TYP: Application

61. (Scenario 14-2) When you clicked off the coupon site, an ad remained on the screen, with bright colors, large lettering, and a $2 coupon for a frozen pizza. What kind of ad appeared? a. direct email b. pop-under c. pop-up d. splash screen ANS: B DIF: Moderate REF: p. 511 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-3 TYP: Application

62. (Scenario 14-2) The site where you solved a murder mystery is sponsored by a company that specializes in publishing mystery novels. Part of the site is devoted to a full catalog listing all of the company's titles currently in print, and other parts offer interactive activities, musings of well-known writers, and mysteries to solve. This is an example of a a. mash-up. b. direct response site. c. blog. d. corporate home page. ANS: D DIF: Easy REF: p. 511 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-3 TYP: Application

63. (Scenario 14-2) When you visited the restaurant site, the marketers were able to collect some information about you and your buying habits. How were they doing this? a. by counting the number of hits you made on the site b. by using software to monitor your activity on the site c. by considering you a unique visitor determined by your email registration at the site d. by counting keystrokes as you moved through the site ANS: B DIF: Difficult REF: p. 521 NAT: AACSB Analytic | CB&C Model Online/Computer

OBJ: 14-4 TYP: Application

Scenario 14-3 With social media websites such as Facebook and Twitter garnering so much attention from consumers and businesses alike, it is hard to believe that only 20 percent of small businesses are utilizing the sites to help promote their products and services. But that figure is precisely what was reported in a 2009 study conducted by MerchantCircle, a social network for small businesses. Once the survey results were released in 2010, experts were not surprised to see the percentage of social media users increase to nearly 50 percent; according to Darren Waddell, vice president of marketing at MerchantCircle, companies are turning to social media for advertising because it is relevant and inexpensive way to reach targeted consumers. Rather than pouring large sums of money into traditional marketing, business owners are starting to find more creative ways of promoting their brand. One of the more common practices for small business owners utilizing social media is including URLs on business cards—of all sites, Facebook (no surprise) was the most common site to make it onto business cards. (Jon Swartz, “More Small Businesses Use Facebook, Twitter to Promote.” USA Today, July 21, 2010.) 64. (Scenario 14-3) A new business owner is looking into various forms of advertising. Of all the different methods, he seems to be most excited about the idea of advertising through interactive media. Perhaps this is because

a. b. c. d.

consumers no longer pay attention to traditional forms of advertising. interactive media is better for small business owners. traditional forms of advertising do not provide enough information for consumers. the increase in wireless technology allows businesses to reach consumers at all hours of the day, regardless of location.

ANS: D DIF: Difficult REF: p. 506 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-2 TYP: Application

65. (Scenario 14-3) The owner of a new athletic-training facility decided to pay to have its ads in or near relevant search results from Google. This can be described as a. sponsorship. b. paid search. c. pop up/under ads. d. corporate home page. ANS: B DIF: Easy REF: p. 509 NAT: AACSB Analytic | CB&C Model Online/Computer

OBJ: 14-3 TYP: Application

66. (Scenario 14-3) Two young women decided to open a new comedy club and chose YouTube as the main outlet for their advertising. The two put together a five minute clip of an improvisation routine they had written and posted it on the site—soon after, the two noticed that the total number of views for the video had skyrocketed to 25,000. It turns out the video was being sent all over the country via email and Facebook messages. This short video apparently became a form of a. mobile marketing. b. online retailing. c. interactive advertising. d. viral marketing. ANS: D DIF: Moderate REF: p. 515 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-4 TYP: Application

67. (Scenario 14-3) One entrepreneur decided to test potential interest in her small start-up venture by paying an agency to track the number of weekly hits on the company’s website. Initially, the website was receiving thousands of views per day. However, the entrepreneur soon discovered that many of the hits originated from phony locations, not search engines such as Google. This unfortunate entrepreneur is apparently a victim of a. search engine fraud. b. click fraud. c. faulty Internet measuring. d. reckless Web surfing. ANS: B DIF: Moderate REF: p. 522 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-4 TYP: Application

68. (Scenario 14-3) One small business owner found that when he started using Facebook, he began establishing stronger relationships with some of his less consistent customers. Eventually, one of his customers started a group on the site that other users could join to discuss various aspects of his business. Others joined the group, and it slowly grew over time. This group of Internet followers is an example of a. an e-community. b. social media followers. c. loyal customers. d. a brand following.

ANS: A DIF: Easy REF: p. 523-524 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-4 TYP: Knowledge

Scenario 14-4 Optima Artistic Tools has manufactured art supplies in the Boston area for almost 100 years and is a strong competitor in the market, selling to art stores around the nation. Optima produces materials for all varieties of media—paints, pencils, charcoals, clays, brushes, papers, canvases—as well as equipment such as palettes, easels, drawing tables, etc. Optima is ready to market these products online and has just hired an Internet advertising consultant, Visualizers Inc. Optima has set a goal of 9 percent from Internet sales by the end of next year. 69. (Scenario 14-4) Managers at Optima want to better understand the cost implications of advertising on the Internet. Visualizers' media researchers prepare a presentation using four traditional media placements to compare. While the banner ad CPM falls somewhere below the cost of the top 10 market newspapers and magazines but higher than television, Visualizers points out the immeasurable advantage offered by the banner ad is its a. capacity for blanketing the world of online consumers with the Optima brand. b. ability to deliver highly desirable, segmentable, and motivated audiences. c. quick-change options if the marketing team changes its mind about the creative. d. ability to insert itself into interactive situations where consumers don’t expect to see it. ANS: B DIF: Difficult REF: p. 509-510 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-2 TYP: Application

70. (Scenario 14-4) The marketers at Visualizers talk to Optima about banner ads that have created problems in the online marketplace. They point to a common problem when banner ads are placed on other firms' websites. What is it? a. They are easily imitated by competitors. b. They are ignored by Internet users. c. They decrease Web page load times. d. They cannot be measured or tracked. ANS: B DIF: Difficult REF: p. 510 NAT: AACSB Technology | CB&C Model Customer

OBJ: 14-3 TYP: Application

71. (Scenario 14-4) Visualizers tells Optima managers that the first step in fostering Internet sales is to publish extensive product data, specifications, prices, and nationwide retail outlets carrying its products. This most likely means that Optima should set up a a. corporate home page. b. virtual mall. c. search engine. d. portal. ANS: A DIF: Easy REF: p. 511 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-3 TYP: Application

72. (Scenario 14-4) Visualizers informs Optima that ____ represent the number of elements requested from a given page, ____ refer to the number of html files sent to the requesting user, and ____ are the number of different “people” visiting the site over a specified time period. a. visits; hits; reach b. reach; frequency; circulation c. pages; visits; hits d. hits; page views; unique visitors ANS: D

DIF: Difficult

REF: p. 520-521

OBJ: 14-4

NAT: AACSB Technology | CB&C Model Research

TYP: Application

73. (Scenario 14-4) Visualizers's researchers determine that many art supply stores and galleries have websites for local customers to learn more about creating art through various media. They suggest that Optima provide free tips and demonstrations related to producing art that would encourage potential buyers and current customers to check this out, try new techniques, and add their own suggestions. Generating this type of social interaction around Optima products will involve creating a(n) a. Internet presence. b. paid search. c. mobile marketing plan. d. brand community. ANS: D DIF: Moderate REF: p. 524 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 14-4 TYP: Application

ESSAY 1. What are the two major types of media used by businesses and other organizations to communicate with consumers on the Internet? Summarize the ways that product information is conveyed through each online medium. ANS: Two primary types of media are now used by organizations to communicate with consumers on the Internet—email and the World Wide Web. Email allows marketers to communicate their messages much as they do using standard mail. Unfortunately, this type of direct marketing on the Internet is equal to spamming -- sending those unsolicited emails that are sure to turn off consumers. Widespread email advertising took some time to materialize due to significant consumer resistance to marketers' direct mailings to personal email addresses. Marketers have addressed this concern by turning to opt-in email, by which they obtain the individual’s consent before adding an email address to their databases. In this way, they can collect addresses and profiles that will allow advertisers to direct email to narrowly defined groups. So email allows ad messages to be tailored and customized in very specific ways, unlike other media formats. The World Wide Web is a universal database of information available to most Internet users, and its graphical environment makes navigation simple and exciting. Of all the options available for Internet advertisers, the Web holds the greatest potential. It allows for detailed and full-color graphics, audio transmission, delivery of in-depth messages, 24-hour availability, and two-way information exchanges between the advertiser and customer. There is one great difference between the Web and other cyber advertising vehicles—it is the consumer who actively searches for the advertiser's home page. DIF: Moderate REF: p. 500-502 OBJ: 14-1 NAT: AACSB Technology | CB&C Model Online/Computer

TYP: Comprehension

2. The unique characteristics of the Web have given advertisers who use it a definite edge over their competitors. What are some of the advantages of the new digital/interactive media that are beginning to be used in advertising today? The text lists five broad categories of advantages. Name and define as many as you can. Then think of a product or service that has successfully demonstrated one or more of these elements in its digital/mobile advertising. ANS: There are five major advantages of digital/interactive media:

Target market selectivity allows marketers to find and communicate with very precisely defined markets like never before. By connecting with search engine results or posting ads on sites, they can specifically draw the attention of people with certain demographics, psychographics, lifestyles, interests, hobbies, or even specific personal beliefs or social involvements. The Internet also allows them to target based on geographic region, time of day, computer platform, or browser. GPS devices allow them to pinpoint individuals as they approach shopping or entertainment areas. Tracking allows advertisers to see how users interact with their product, and to better understand users’ interests in the brand. Display/banner ads and home pages allow them to measure hits, something that cannot be done in traditional media. Deliverability, flexibility, and reach speak to the very nature of digital/interactive media. Online ads, mobile messages, and website content are delivered 24-hours a day, 7 days a week, with no need for breaks or interruptions. Their format is so flexible that content can be updated or replaced almost instantly, a dramatic difference from the abilities of traditional media with their scheduling and production restrictions. And, other than through television and radio, the reach and accessibility of the Internet cannot be matched, and mobile devices are only expanding that coverage. Interactivity is one of those lofty goals of advertisers that could never have been truly accomplished with traditional media, but is sometimes achieved through digital/interactive media. Ads in traditional media may have allowed consumers to clip coupons, enter contests, or write testimonial letters. But the new media are designed for all forms of interactivity—chats, blogs, comments, forums, activities, games, etc. A click-through allows the user to click on an ad and get a virtual tour, visit a home page, read product specifications, enter a discussion about a brand—or, most importantly, purchase the product right now, right here, online. Integration refers to the ability of advertisers to include their home page URL—as well as the online address of special promotions, contests, or related sites—on virtually all of their other forms of advertising and promotion. This allows them many avenues by which they can direct consumers to their online marketing efforts and brand promotions. DIF: Difficult REF: p. 505 OBJ: 14-2 NAT: AACSB Technology | CB&C Model Online/Computer

TYP: Comprehension

3. What is meant by the terms paid search and search engine optimization? How are they similar? How are they different? Discuss the possibilities for each, and provide an example of each to illustrate your answer. ANS: Both terms refer to ways that advertisers get their company or organization name on or near a list of results when a user does a Web search. In general, a paid search comes from the actions of advertisers on the Web, but search engine optimization comes from the behavior of consumers on the Web. Paid search is a process by which advertisers pay a fee to a portal or search engine site to place ads in or near relevant search results based on key words. For example, if you Google “baby toys” you will find ads for Internet toy retailers within or next to the list of search results. Paid search can also finetune a Web user’s search to focus on relevant and specific sites. For example, when an astronomy buff who has done many Google searches on astronomy terminology enters the word “Saturn,” the search results will be for the planet, not the car.

Search engine optimization (SEO) refers to the process by which the volume and quality of traffic from search engines is improved based on surfers’ profiles. This affects the location of the site on a search results list. The higher the site is shown on a list, the more likely the user will visit the site -but the more it will cost. For example, when a user types a key word in a Google search, some of the most “popular” sites currently being accessed will come up first. DIF: Moderate REF: p. 509 OBJ: 14-3 NAT: AACSB Technology | CB&C Model Online/Computer

TYP: Comprehension

4. As an advertiser, what tools can you use to make your home page as popular as possible? ANS: You can run display/banner ads at high-traffic sites. This will offer a relatively high level of exposure to an advertising message that can then send the surfer to your site. You can place display/banner ads on sites that attract specific market niches relevant to your brand to encourage travel to your site. You can register your site with an online search engine, selecting keywords so that your website address and a click-through connection will appear when users type in any of these keywords during a search. You can opt for a paid search with this engine to have ads for your site placed next to search results. You can offer widgets that allow users to customize the information they’d like to regularly receive from you. Finally, you can use traditional media as effective ways to raise interest and communicate how to get to your site. DIF: Moderate REF: p. 509-510| p. 512 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 14-3 TYP: Application

5. Why is it difficult to talk about the future of digital/interactive media in advertising? Though it is impossible to know for sure, which two types of technology are likely to be big players in the near future? What advances can we hope to see? ANS: Today we are experiencing the rapid pace of technology like never before. We are witnessing the ongoing creation and launch of new communication modes, interactive processes, online advances, and mobile gadgets. So it is difficult to talk about the future of digital/interactive media, or pin down the ways they may impact advertising and promotion, because they are changing right before our eyes. What was introduced as new and cool a year or two ago is now considered just part of the interesting mix offered by the mainstream. There is a good chance that two technologies related to digital/interactive media will have a big impact on the future of IBP -- wireless communication (especially mobile access), and Web-launched video and audio (expanding on today’s rich media/video and audio). A conglomerate of Internet companies already exists that can sell one another’s products, and a wave of acquisitions, mergers, and partnerships are creating companies that can better track consumers’ interests and intentions. Expanded broadband will allow more consumers access to the latest digital promotions, and will expose them to the latest tracking and data mining processes. Agencies and advertisers are preparing for their new roles in the future reality of the “broadcast Web” including “Internet television.” And location-based mobile marketers will continue to improve their technologies so that ads can be customized toward certain targets, then can find and reach preferred customers anyplace, anytime. Success may be based on the ability to deliver the message as close as possible to the point of sale.

Finally, both for-profit businesses and non-profit organizations will most likely continue to find new ways to “engage” consumers, to allow for meaningful conversations with them, and encourage them to become actively involved with their goods, services, and brands. Though it is impossible to predict, new media formats have the potential to change advertising in dramatic ways. They will allow advertisers even more ways to track, segment, target, and reach consumers. But they will also allow consumers even more power over retailers and merchandisers, and more control over what promotional messages they hear, read, and see. DIF: Difficult REF: p. 524 OBJ: 14-5 NAT: AACSB Technology | CB&C Model Online/Computer

TYP: Comprehension

Chapter 15 - Sales Promotion, Point-of-Purchase Advertising, and Support Media TRUE/FALSE 1. Sales promotion is the use of incentive techniques that create a perception of greater brand value among consumers, the trade, and business buyers. ANS: T DIF: Easy REF: p. 538 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-1 TYP: Knowledge

2. Sales promotion can provide an affiliation value for a brand, meaning that the consumer wants to, or is able to, identify with the brand. ANS: T DIF: Moderate REF: p. 540 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-1 TYP: Comprehension

3. One drawback of sales promotions is that the results are difficult to document. ANS: F DIF: Easy REF: p. 541 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-1 TYP: Comprehension

4. One advantage of sales promotion is that it breaks through the media clutter. ANS: T DIF: Easy REF: p. 543-544 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 15-1 TYP: Comprehension

5. Historically, more money has always been budgeted for mass media advertising than for sales promotion. ANS: T DIF: Moderate REF: p. 544 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-1 TYP: Knowledge

6. Friendly Car Wash offers a deal in which customers who have bought nine car washes over the last year get the tenth one free. This is an example of a sampling program to stimulate repeat purchases. ANS: F DIF: Moderate REF: p. 544 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Application

7. Sales promotion can attract attention and motivate trial purchase, so it is often used to introduce new brands to the public. ANS: T DIF: Moderate REF: p. 545 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Comprehension

8. Coupons are one of the newer forms of sales promotion, introduced in the 1950s by cake mix manufacturers. ANS: F DIF: Moderate REF: p. 545 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Comprehension

9. Today’s marketers use a number of sales promotion techniques aimed at consumers, including coupons, price-off deals, premiums, contests and sweepstakes, samples and trial offers, phone and gift cards, rebates, and frequency programs. ANS: T DIF: Moderate REF: p. 545 NAT: AACSB Communication | CB&C Model Customer

OBJ: 15-2 TYP: Comprehension

10. One advantage of using sweepstakes and contests is that they can quickly and easily communicate the brand message through the game. ANS: F DIF: Moderate REF: p. 548 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-2 TYP: Comprehension

11. A manufacturer of dental care products sets up a new promotion by attaching one of its toothbrushes to its boxes of toothpaste. This is an example of a mobile sampling technique. ANS: F DIF: Moderate REF: p. 549 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-2 TYP: Application

12. Retailers often run trade promotions simultaneously along with consumer promotions. ANS: T DIF: Moderate REF: p. 552 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Comprehension

13. One objective for promotions in the trade channel is to increase store traffic, which benefits both manufacturers and retailers. ANS: T DIF: Easy REF: p. 553 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-3 TYP: Comprehension

14. The fight for space on grocers' shelves has become very competitive, so manufacturers will do anything they can to get store chains to stock their items—except paying a fee, which is now illegal. ANS: F DIF: Difficult REF: p. 554 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Comprehension

15. A manufacturer helps out a retailer by sharing the cost of local advertising, allowing the manufacturer to have some control over the process and the retailer to advertise for less. They are taking part in a form of business-market sales promotion. ANS: F DIF: Difficult REF: p. 554 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Application

16. It is estimated that almost one-fourth of corporate America gives business gifts as a type of businessmarket promotional technique. ANS: F DIF: Moderate REF: p. 555 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Knowledge

17. Sales promotions have an advantage over advertising in that they offer great rewards with little or no risk. ANS: F DIF: Easy REF: p. 556 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-4 TYP: Comprehension

18. Sales promotion is generally used as a long-term tactic and widespread strategy to promote an image for the brand and create emotional connections with the consumer. ANS: F DIF: Moderate REF: p. 556 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 15-4 TYP: Comprehension

19. The great thing about sales promotion is that it is so inexpensive and so simple. In almost all instances, it’s neither costly nor time-consuming. ANS: F DIF: Moderate REF: p. 557 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-4 TYP: Comprehension

20. The only medium that places the advertising, the product, and the consumer together in the same place at the same time is P-O-P advertising. ANS: T DIF: Moderate REF: p. 557 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 15-5 TYP: Knowledge

21. Materials used in the retail setting to attract shoppers’ attention to a product, convey primary product benefits, or highlight pricing information, are referred to as point-of-purchase advertising. ANS: T DIF: Easy REF: p. 558 NAT: AACSB Communication | CB&C Model Product

OBJ: 15-5 TYP: Knowledge

22. A display rack that stocks cigarettes is placed above the cash register, so the cashier can reach the product for the consumer. The rack has signage on the front advertising the cigarette brand. This is called an overhead merchandiser. ANS: T DIF: Moderate REF: p. 560 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-5 TYP: Application

23. P-O-P promotion can aid manufacturers not only by attracting consumers, but also by securing relationships within trade and business markets. For instance, it can encourage buyers to support their brand over another with more exposure and shelf space. ANS: T DIF: Moderate REF: p. 560-561 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-5 TYP: Comprehension

24. Support media are used to introduce a new message beyond the one being delivered by other advertising vehicles, marketing plans, and promotional techniques. ANS: F DIF: Easy REF: p. 561 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-6 TYP: Knowledge

25. Billboards have evolved from outdoor signs and posters, which represent one of the oldest forms of marketing, dating back to the early promotional tools of the 1800s. ANS: T DIF: Moderate REF: p. 562 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-6 TYP: Knowledge

26. Out-of-home media describes various advertising venues that reach local audiences while they are out in public.

ANS: T DIF: Easy REF: p. 564 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-6 TYP: Knowledge

27. Today’s forms of out-of-home media can target specific demographic segments by neighborhood, using customized messages via wireless Internet. ANS: T DIF: Moderate REF: p. 565 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 15-6 TYP: Knowledge

28. Transit advertising works well in small towns, rural areas, and farm communities due to their lack of ad clutter. ANS: F DIF: Moderate REF: p. 565 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 15-6 TYP: Comprehension

29. A phone directory like the Yellow Book provides a strong link to consumer buying, allowing people to follow through on their decisions to buy in a practical way. ANS: T DIF: Moderate REF: p. 566 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 15-6 TYP: Comprehension

MULTIPLE CHOICE 1. What are the three basic forms of sales promotion? a. at-home, in-store, and out-of-home b. short-term, long-term, and point-of-purchase c. indoor, outdoor, and mobile d. consumer-market, trade-market, and business-market ANS: D DIF: Easy REF: p. 538-539 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-1 TYP: Knowledge

2. Compared to advertising, sales promotion is a. more long-term. b. more immediate. c. more sophisticated. d. harder to document. ANS: B DIF: Easy REF: p. 540 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-1 TYP: Knowledge

3. The primary role for consumer sales promotion is to a. encourage long-term purchasing of a brand. b. enhance the image of a brand. c. elicit a purchase from a customer. d. boost name recognition for a brand. ANS: C DIF: Moderate REF: p. 540 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-1 TYP: Comprehension

4. Full-service advertising agencies specialize in a number of both traditional and innovative services, but typically do not provide ____ for their clients. a. media placement b. creative marketing techniques

c. brand management d. sales promotion materials ANS: D DIF: Easy REF: p. 541 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-1 TYP: Comprehension

5. In recent years, the time spent on sales promotion has shifted. Today, about ____ of brand management time is spent designing, implementing, and overseeing sales promotions. a. 65 percent b. 45 percent c. 30 percent d. 15 percent ANS: C DIF: Moderate REF: p. 541 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 15-1 TYP: Comprehension

6. Several factors have affected sales promotion in recent years. Pressure from stockholders to produce high quarterly revenue, marketing plans based on quick results, and a bottom-line mentality have all contributed to a ____ in many organizations today. a. focus on brand image b. short-term orientation c. sense of creative innovation d. strong consumer bond ANS: B DIF: Difficult REF: p. 541 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 15-1 TYP: Comprehension

7. A retailer is trying to target the “precision shopper,” who expects extra value in every single purchase. According to your text, which promotion techniques would be best to increase the value of a brand in these shopper’ minds? a. trial offers and samples b. contests and sweepstakes c. frequency programs and rebates d. coupons and price-off deals ANS: D DIF: Moderate REF: p. 542 NAT: AACSB Analytic | CB&C Model Consumer

OBJ: 15-1| 15-2 TYP: Application

8. Which of the following helps explain why marketers have shifted more of their budgets to sales promotion in recent years? a. increased media clutter and ads that target all the same consumers b. fewer brands on the market and a greater need to attract consumers' attention c. more long-term perspective on marketing and longer wait for results d. more powerful suppliers and more ways to control retail stores ANS: A DIF: Difficult REF: p. 541-543 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 15-1 TYP: Comprehension

9. In the world of promotion today, payments in the form of slotting fees, cash allowances, and incentives are becoming more popular, largely due to the growing power of a. retailers. b. manufacturers. c. consumers. d. wholesale distributors. ANS: A

DIF: Moderate

REF: p. 543

OBJ: 15-1

NAT: AACSB Analytic | CB&C Model Promotion

TYP: Comprehension

10. During the 1970s, sales promotion expenditures by marketers of consumer goods were about ____ percent of their budgets, while today they are about ____ percent. a. 10; 40 b. 30; 75 c. 50; 35 d. 70; 45 ANS: B DIF: Moderate REF: p. 544 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-1 TYP: Comprehension

11. Sales promotion tools can accomplish several objectives. For example, when a firm wants to make a push to ____, these tools can reduce the consumer's risk of trying something new. a. change the IBP b. stimulate repeat purchases c. combat competitors' strategies d. stimulate trial purchases ANS: D DIF: Moderate REF: p. 544 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 15-2 TYP: Comprehension

12. Shampoo manufacturers sometimes run a promotion in which they shrink-wrap two plastic bottles of shampoo for the price of one. They most often use this buy-one-get-one-free tactic when they want to a. stimulate repeat purchases and add to their loyal customer base. b. build a better brand image and create emotional bonds with consumers. c. introduce a new brand and gain new buyers. d. stimulate larger purchases of a product and reduce inventory. ANS: D DIF: Difficult REF: p. 545 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 15-2 TYP: Application

13. A mother purchases a Happy Meal box and her son immediately picks up the little toy that accompanies it. The little boy’s new toy is an example of a a. self-liquidating premium. b. sampling technique. c. free premium. d. trial offer. ANS: C DIF: Moderate REF: p. 547 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Application

14. A distinguishing feature of a self-liquidating premium is that it requires that the consumer a. mail in the premium to get reimbursed. b. pay most of the cost of the item received. c. buy two other items at regular price. d. already be loyal to the brand. ANS: B DIF: Moderate REF: p. 547 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-2 TYP: Comprehension

15. The biggest difference between contests and sweepstakes is that a. contests can require an entry fee, and sweepstakes cannot. b. contests generate long-term interest in a brand, and sweepstakes generate immediate interest.

c. contests require skill, and sweepstakes require luck. d. contests focus on the game, and sweepstakes focus on the brand. ANS: C DIF: Moderate REF: p. 548 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Comprehension

16. A national merchandising company is a major distributor of grocery and beauty products and uses many tactics to get samples into the hands of consumers. The most popular type of sampling for food and cosmetics products is ____ sampling. a. on-package b. door-to-door c. mail d. in-store ANS: D DIF: Moderate REF: p. 549 NAT: AACSB Communication | CB&C Model Product

OBJ: 15-2 TYP: Application

17. Trial offers have the same goal as samples, except that trial offers a. usually promote low-priced convenience goods. b. are handed out in malls, retail stores, and other public places. c. involve more expensive items. d. arrive through mail or newspaper delivery. ANS: C DIF: Moderate REF: p. 550 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Comprehension

18. A consumer buys a printer for her computer, and receives a money-back offer. To get the premium, she has to mail in a form requesting the money back from the manufacturer, rather than the retailer. What kind of premium is this? a. rebate b. self-liquidating premium c. coupon d. free premium ANS: A DIF: Easy REF: p. 550 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Application

19. Businesses like to promote their products with rebates because they a. build brand loyalty. b. often don’t get cashed in. c. are more popular with consumers than coupons. d. require no maintenance. ANS: B DIF: Easy REF: p. 551 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Comprehension

20. The marketers at Kraft are currently focusing on building brand loyalty and considering a number of consumer-market sales promotion techniques. Which would work best at encouraging brand loyalty toward Kraft Macaroni and Cheese? a. offering a 50-cent rebate on the purchase of a box of Kraft Macaroni and Cheese b. offering a free case of Kraft Macaroni and Cheese with the proof-of-purchase for 15 boxes c. having George Clooney eat Kraft Macaroni and Cheese in his next movie d. placing a $1 off coupon for Kraft Macaroni and Cheese in Redbook magazine ANS: B DIF: Difficult REF: p. 551 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 15-2 TYP: Application

21. A regional office supply store wants to understand and serve its customers better and compete with nationwide giants. It is looking for the most effective way to encourage repeat visits and build longterm loyalty in its customers, both individuals as well as businesses. What form of promotion would work best? a. a mail sampling b. a free premium c. a newspaper coupon d. a frequency program ANS: D OBJ: 15-2| 15-3 TYP: Application

DIF: Easy REF: p. 551| p. 556 NAT: AACSB Analytic | CB&C Model Customer

22. Home Depot is a powerful retailer with a high-volume, low-price position. Therefore, Home Depot can exert pressure on manufacturers and suppliers to offer its staff various forms of trade-market promotions. These come in four major types: a. couponing, cash allowances, incentives, and slotting fees. b. incentives, allowances, training programs, and cooperative advertising. c. case allowances, sweepstakes, couponing, and training programs. d. slotting fees, point-of-purchase displays, consumer rebates, and merchandise allowances. ANS: B DIF: Difficult REF: p. 553 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Application

23. You work for a well-known company that manufactures mattresses. To move your product during the Presidents’ Day sales events held nationwide, you offer $200 to any retail salesperson who can sell ten mattresses throughout the second weekend of February. You also offer a case of sports drinks for each mattress sold. These are examples of trade-market sales promotion techniques in the form of a. sweepstakes. b. incentives. c. allowances. d. slotting fees. ANS: B DIF: Moderate REF: p. 553 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Application

24. A kitchen appliance manufacturer devises a program to encourage members of the trade to purchase its brand. It offers salespeople an extra $75 for selling one of its refrigerators, $50 for selling one of its ovens, and $40 for selling one of its dishwashers. What specific promotional concept for the trade channel does this involve? a. push money b. merchandise allowance c. slotting fee d. frequency program ANS: A DIF: Moderate REF: p. 553 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Application

25. This type of promotion technique, often seen in the trade channel, comes in four different versions: merchandise, slotting, bill-back, and off-invoice formats. What is it? a. the display b. the premium c. the allowance d. the incentive

ANS: C DIF: Easy REF: p. 553-554 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Knowledge

26. A discount retailer has been doing very well over the years, and can now expect to get cash payments from manufacturers and suppliers if they want their products on the retailer’s shelves. So it regularly receives these payments, known as a. bill-back allowances. b. slotting fees. c. merchandise allowances. d. off-invoice fees. ANS: B DIF: Moderate REF: p. 554 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Application

27. What is the difference between advertising specialties and business gifts? a. Specialties have the sponsor’s logo on them, while business gifts do not. b. Specialties promote brand awareness, while business gifts promote close working relationships. c. Specialties are quite expensive, while business gifts are very inexpensive. d. Specialties are given on a selective basis, while business gifts are distributed to all. ANS: B DIF: Difficult REF: p. 555 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Knowledge

28. For an item to be defined as an advertising specialty, it must a. be rewarded for meeting a goal or sales quota. b. contain no promotional message. c. be construed as a way of “buying business.” d. contain the sponsor's brand name or slogan. ANS: D DIF: Easy REF: p. 555 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Knowledge

29. The CEO of a software manufacturer that sells to large insurance firms wants to look at all possible forms of business-market promotions in a new push to gain and maintain lucrative customers. He meets with his marketing director and they review the five main areas of promotion techniques aimed at business buyers. They are a. trade shows, business gifts, premiums and advertising specialties, trial offers, and frequency programs. b. incentives, allowances, training programs, cooperative advertising, and sampling. c. merchandise allowances, cash allowances, trade shows, training programs, and incentives. d. premiums and advertising specialties, frequency programs, incentives, allowances, and cooperative advertising. ANS: A DIF: Difficult REF: p. 555-556 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-3 TYP: Application

30. Which of the following sales promotion tactics runs the greatest risk of eroding a brand image or value? a. a frequency program b. a price incentive c. a training program d. a contest ANS: B

DIF: Moderate

REF: p. 556

OBJ: 15-4

NAT: AACSB Analytic | CB&C Model Pricing

TYP: Application

31. Some airlines have run into big trouble when they have tried to up the mileage levels needed to earn awards in their frequent-flyer programs. Which of the common risks associated with promotions have their actions demonstrated? a. the risk of devaluing the product b. the risk of alienating customers c. the risk of putting in too much time and expense d. the risk of facing legal action ANS: B DIF: Moderate REF: p. 557 NAT: AACSB Analytic | CB&C Model Pricing

OBJ: 15-4 TYP: Application

32. Advertisers are warned that they may face legal problems if they are not careful while conducting promotional activities. This is especially important with which types of consumer-market promotion techniques? a. in-store sampling and door-to-door sampling b. price-off deals and rebates c. mail sampling and newspaper sampling d. sweepstakes and contests ANS: D DIF: Moderate REF: p. 557 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-4 TYP: Comprehension

33. A company that spends big promotional dollars on creating and distributing P-O-P displays can run into problems, as the text notes Gillette once did, if its marketing department is unaware that a. few consumers notice them. b. many retailers ignore them or throw them out. c. they rarely get shipped to stores. d. they are poorly constructed and often unusable. ANS: B DIF: Difficult REF: p. 558 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-5 TYP: Comprehension

34. What are the two broad categories of P-O-P materials? a. retail promotions and mobile promotions b. in-store merchandising formats and out-of-store promotional formats c. product containers and product signage d. short-term promotional displays and long-term permanent displays ANS: D DIF: Easy REF: p. 559 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-5 TYP: Knowledge

35. Which of the following is not a form of P-O-P advertising? a. billboards at the entrances of all parking lots b. computer kiosks at all stores to dispense recipes and product information c. lighted outdoor signs at all stores to promote various brands d. ads on all shopping carts ANS: A DIF: Moderate REF: p. 559-560 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-5 TYP: Application

36. P-O-P displays have historically served several purposes for store owners. What do today’s retailers increasingly expect P-O-P displays to do for them? a. to provide ambience and differentiate their store from others

b. to minimize the costs of stocking shelves and replenishing merchandise c. to improve the orderliness and structure of the store environment d. to reduce inventory overhead ANS: A DIF: Difficult REF: p. 560 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-5 TYP: Comprehension

37. Support media are given that name because they a. are supported and financed solely by business-market expenditures. b. reinforce or support a message delivered by other media. c. must be supported or upheld by physical structures. d. support and enhance P-O-P within the retail environment. ANS: B DIF: Moderate REF: p. 561 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-6 TYP: Comprehension

38. What format seen today represents perhaps the oldest form of advertising and promotion? a. the coupon b. the premium c. the directory d. the billboard ANS: D DIF: Easy REF: p. 562 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-6 TYP: Knowledge

39. As noted in the text, some advertising experts suggest that billboard copy should not exceed ____ words. a. fifteen b. ten c. six d. three ANS: C DIF: Moderate REF: p. 563 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-6 TYP: Knowledge

40. Billboards offer several strong advantages, but they are most effective as a promotional medium when they are in a location that a. sends a message to a national market. b. incorporates specialized lighting. c. relates to an immediate need or desire. d. offers around-the-clock exposure. ANS: C DIF: Moderate REF: p. 563 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-6 TYP: Comprehension

41. The combination of transit, aerial, and cinema advertising is commonly called ____ media advertising. a. P-O-P b. out-of-home c. trade-channel d. business-market ANS: B DIF: Easy REF: p. 564-565 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-6 TYP: Knowledge

42. An automobile insurance company has noted an increase in its competitors’ television and radio spots, so it considers transit advertising as a unique promotional vehicle. Its marketing team is aware that this works best in a. informing consumer purchasing decisions. b. building or maintaining brand awareness. c. delivering complex messages. d. promoting short-term exposure and immediate action. ANS: B DIF: Moderate REF: p. 565 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-6 TYP: Application

43. Though there appears to be some strong resistance, market research has indicated that more than 60 percent of consumers don’t mind a. transit advertising. b. aerial advertising. c. billboard advertising. d. cinema advertising. ANS: D DIF: Moderate REF: p. 565 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 15-6 TYP: Comprehension

44. Of all types of support media, directory advertising offers a unique advantage by a. offering technologically advanced and innovative options. b. enhancing brand awareness and recall. c. allowing for repeat exposures of the same message. d. helping consumers follow through on purchases. ANS: D DIF: Moderate REF: p. 566 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-6 TYP: Comprehension

45. From the consumer’s viewpoint, directories like the Yellow Book have some disadvantages as promotional tools. For one thing, they cause a particular problem with a. getting lost in the massive volume of media clutter. b. having long lead times that result in outdated information. c. annoying rather than informing potential buyers. d. being unable to offer detailed information. ANS: B DIF: Easy REF: p. 566 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-6 TYP: Knowledge

46. In a classic quote, what has been considered “the last five seconds of marketing”? a. price b. P-O-P c. packaging d. nutritional labeling ANS: C DIF: Moderate REF: p. 566 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 15-6 TYP: Knowledge

Scenario 15-1

One of the nation’s most popular times for sales promotions was a great deal longer than usual in 2010. Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November. Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move. Executives from a number of companies began to realize that consumers respond to the word “sale,” regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran. Companies designed new sale flyers and circulars, and began to promote the various sales on their websites. Other companies such as Target were also implementing a similar strategy—by emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season. (Stephanie Clifford, “Stores Push Black Friday Into October.” The New York Times, October 28, 2010.) 47. (Scenario 15-1) On one of the company’s websites, a sweepstakes was designed to award one lucky customer after he or she provided feedback on a number of planned sales promotions for the holidays. One characteristic of a sweepstakes is a. winners can only be awarded with monetary prizes. b. winners are determined purely by chance. c. there can only be one winner per sweepstakes. d. there is a complex system for determining a winner. ANS: B DIF: Moderate REF: p. 548 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-2 TYP: Application

48. (Scenario 15-1) Implementing contests and sweepstakes can be a challenging task. One of the difficulties in implementing an effective sweepstakes is a. generating interest in the brand, not just the contest or sweepstakes itself. b. choosing a winner in a manner which keeps everyone happy. c. getting the word out. d. notifying the winner when the sweepstakes is over. ANS: A DIF: Moderate REF: p. 548 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-2 TYP: Application

49. (Scenario 15-1) Because companies realize consumers will be visiting stores more frequently during the holiday season, several toy manufacturers are paying direct cash to retailers in exchange for placing their brand in the most visible locations. These cash payments are known as a. bribes. b. improper gifts. c. allowances. d. slotting fees. ANS: D DIF: Easy REF: p. 554 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 15-3 TYP: Comprehension

50. (Scenario 15-1) In order to prepare for the holiday season, large retailers often take additional measures to ensure their sales personnel are ready to handle any number of unique situations they may encounter. Classes that feature product information and demonstrations are often implemented to educate employees. These efforts are called a. employee enhancement activities. b. cooperative advertising. c. sales-training programs. d. frequency programs.

ANS: C DIF: Moderate REF: p. 554 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 15-3 TYP: Application

Scenario 15-2 The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon. Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash. The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands. 51. (Scenario 15-2) Sounds Good has placed a small catalog inside each compact disc. The catalog features a variety of Planet Moon items that can be ordered—the band’s music video as well as Tshirts, ball caps, and travel mugs. These items are considered self-liquidating premiums because the consumer a. does not directly receive them within the packaging of a product. b. is unknowingly helping to liquidate unwanted product inventory. c. has the chance to buy them only by purchasing the CD. d. pays most of the cost for them. ANS: D DIF: Moderate REF: p. 547 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Application

52. (Scenario 15-2) The displays commissioned by Sounds Good need to be set up and maintained. Any record store that agrees to do this gets several copies of Planet Moon CDs and past releases from Sound Goods for free. This is known as a(n) a. incentive. b. merchandise allowance. c. maintenance exchange. d. off-invoice allowance. ANS: B DIF: Moderate REF: p. 554 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Application

53. (Scenario 15-2) Sounds Good knows that the release cannot succeed without gaining distribution in large record store chains. However, many of these chains are refusing to carry the product, saying that shelf space is too precious to be used for an unknown band like Planet Moon. However, buyers for these chains say that they might be willing to carry the product if Sounds Good makes a direct cash payment to the chain, known in the trade channel as a(n) a. cooperative advertising fee. b. merchandise allowance. c. slotting fee. d. in-store allowance. ANS: C DIF: Moderate REF: p. 554 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-3 TYP: Application

54. (Scenario 15-2) MusicMixers, a manufacturer of recording equipment, speakers, and microphones based in Baltimore, is a supplier for Sounds Good. The owners of Sounds Good have purchased most of their studio equipment from MusicMixers. Now MusicMixers is apparently running a promotion of its own. When the sales rep visits, he drops off two expensive-looking leather jackets with a small MusicMixers logo on one sleeve. The jackets are considered ____ and are part of a ____ sales promotion. a. advertising specialties; consumer-market b. business gifts; business-market c. premiums; trade-market

d. merchandise allowances; retail-market ANS: B DIF: Difficult REF: p. 555 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-3 TYP: Application

55. (Scenario 15-2) Sounds Good commissions the design of 50 cardboard displays for record stores. The displays will hold 144 compact discs, with headphones for patrons to listen to selections off each disc. This type of promotion is known as ____ advertising. a. point-of-purchase b. on-package c. in-store d. business-market ANS: A DIF: Easy REF: p. 558 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-5 TYP: Application

Scenario 15-3 It's time to take your weekly trip to the grocery store. You bring a coupon good for 50¢ off a national brand of coffee. As you walk the aisles, a woman asks if you'd like to try a slice of pizza. After you taste it, she points out where the brand is kept in the freezer display. When you get to your favorite brand of toothpaste, you're delighted to find that a toothbrush with the same brand name is attached to the box at no charge. You turn the corner and run into a cardboard cutout of one of the stars from a leading medical drama on TV. This display has a medical kit full of a new brand of pain reliever built into it. Your last stop is the cereal aisle, where you notice that one brand offers a chance to buy a Tshirt with a picture of the brand’s cartoon character for $4.95. 56. (Scenario 15-3) Which of the several possible objectives of promotion did all these activities have in common? a. to highlight a particular product attribute b. to build an image for a product c. to elicit an immediate purchase of a product d. to create loyalty toward a product ANS: C DIF: Difficult REF: p. 540 NAT: AACSB Communication | CB&C Model Customer

OBJ: 15-1 TYP: Application

57. (Scenario 15-3) Your toothpaste purchase involved an example of a. on-package sampling. b. new product sampling. c. mobile sampling. d. in-store sampling. ANS: A DIF: Easy REF: p. 549 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Application

58. (Scenario 15-3) Which promotional concept was demonstrated by the company that hired a woman to hand out slices of pizza? a. trial offer b. in-store sampling c. premium d. advertising speciality ANS: B DIF: Easy REF: p. 549 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Application

59. (Scenario 15-3) You realize later that getting the free toothbrush is nice, but wonder whether it will lead you to buy that brand next time you need one. Some critics point out that sampling is probably not a particularly effective technique for the manufacturer if the item is a. new to the market. b. highly superior to competitors. c. targeted at current customers. d. perceived as a convenience good. ANS: D DIF: Difficult REF: p. 550 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Application

60. (Scenario 15-3) Of all the products with sales promotions that you encountered in the store, which one involved point-of purchase advertising, which probably cost the manufacturer a few pennies? a. the pain medicine b. the frozen pizza c. the coffee d. the cereal ANS: A DIF: Moderate REF: p. 558-559 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-5 TYP: Application

Scenario 15-4 General Mills brand breakfast cereals face strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. Still, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. 61. (Scenario 15-4) The marketers at General Mills have learned that they, along with Kellogg's and Quaker Oats, often target the same customers with their advertising. This problem of customers receiving too many messages from too many firms has been addressed with sales promotion tactics featured in advertising, such as coupons included in magazine ads, or rebate offers mentioned in TV commercials. This is an example of ____ driving growth in sales promotion. a. short-term orientation b. media clutter c. demand for greater accountability d. increased power of retailers ANS: B DIF: Difficult REF: p. 543-544 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-1 TYP: Application

62. (Scenario 15-4) General Mills has experimented with selling cereal in the form of a "two pack." These are two standard-size boxes of cereal shrink-wrapped together and offered at a special price. What is most likely the objective for this type of consumer-market sales promotion technique? a. to disrupt a competitor’s strategy b. to encourage a repeat purchase c. to introduce a new brand d. to stimulate a larger purchase ANS: D DIF: Moderate REF: p. 545 NAT: AACSB Analytic | CB&C Model Pricing

OBJ: 15-2 TYP: Application

63. (Scenario 15-4) General Mills inserts a sheet of coupons in Sunday newspapers in major markets. This is a form of ____ sales promotion. a. consumer-market b. in-store c. trade-market d. bill-back ANS: A DIF: Moderate REF: p. 545 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 15-2 TYP: Application

64. (Scenario 15-4) On the back of its Cheerios boxes, General Mills has printed a form to fill out for a cookbook offer. The booklet, entitled Healthy Snacks and Appetizers with Cheerios, is available to consumers for a nominal charge of $3.00 plus a $1.00 shipping and handling charge. This is an example of a. a self-liquidating premium. b. an on-package sample. c. an advertising specialty. d. a trial offer. ANS: A DIF: Moderate REF: p. 547 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-2 TYP: Application

65. (Scenario 15-4) General Mills’ salespeople handle or monitor a number of promotions for its cereals. Which of the following involves point-of-purchase advertising? a. a scratch-off card to win a mountain bike inserted in each box b. a free granola bar attached to each cereal box c. a small box of cereal delivered with the daily newspaper d. a large display of cereal boxes at the end of the grocery aisle ANS: D DIF: Easy REF: p. 558 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-5 TYP: Application

Scenario 15-5 Starting in late 2010, shoppers at a number of Bloom supermarkets will be able to watch commercials on small notebook-sized monitors as they stroll through the aisles. The devices, or 3GTV’s as creator Automated Media Services calls them, will advertise products nearby ranging from macaroni noodles to peanut butter. The mini-televisions are part of a pilot program in nine of the grocer's locations in Maryland and Virginia to test the effectiveness of commercials at the point-of-purchase. Advertisers, which are growing increasingly frustrated by TiVo and DirectTV's fast-forwarding capabilities, will be able to pitch consumers at what Automated believes is the most crucial point in the sale process. The new technology could help grocery stores such as Bloom save money on circulars, but the transition will likely not come without conflict. Before the first 3GTV was even activated, one coalition group argued that the system would undercut parental authority by causing children to lobby for the product being advertised. (Danielle Douglas, “Bloom to Try Out In-Store TV Advertising System.” Washington Post, November 1, 2010.) 66. (Scenario 15-5) Advertisements on the 3GTV’s will likely be rotating on a very frequent basis. In fact, no one ad will be shown for any longer than one or two months at a time. These ads are known as a. short-term promotional displays. b. rotating displays. c. permanent long-term displays. d. attention-grabbing displays.

ANS: A DIF: Moderate REF: p. 559 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 15-5 TYP: Comprehension

67. (Scenario 15-5) Which of the following is not one of the objectives of point-of-purchase advertising? a. Maintain purchase loyalty among brand-loyal users. b. Stimulate trial use by users of competitive brands. c. Draw consumers’ attention to a brand in the retail setting. d. Display product features that require long-term attention in order to understand. ANS: D DIF: Difficult REF: p. 559 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 15-5 TYP: Knowledge

68. (Scenario 15-5) There are many different types of point-of-purchase displays. Which of the following best describes a shelf talker? a. any P-O-P unit that stands independently on the floor b. lighted signage used outside or in-store to promote a brand or the store c. a printed card or sign designed to mount on or under a shelf d. a smaller display designed to fit on counters or shelves ANS: C DIF: Moderate REF: p. 559 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-5 TYP: Knowledge

69. (Scenario 15-5) Many companies are using technology to market to consumers when they are in close proximity to one of its stores. Although it is not point-of-purchase advertising, it is a popular advertising topic in the industry today. This method of advertising is referred to as a. pervasive marketing. b. location marketing. c. innovative marketing. d. new-age marketing. ANS: B DIF: Moderate REF: p. 560 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-5 TYP: Comprehension

Scenario 15-6 You are a media planner at an advertising agency in Dallas. Since it is Friday, you take a long lunch with a sales associate at the Dallas Morning News followed by a walk through a nearby park, returning to the office around 2:30 p.m. When you get to your desk, you find a number of new emails from account execs waiting for you, all with subject lines suggesting pressing client issues. You need to answer them before the weekend hits. 70. (Scenario 15-6) One email says that a client with several fast-food restaurants along the state highway wants to get out the message to “eat right now.” What kind of media should he use? You reply that you know what will work best. You can meet on Monday to discuss the use of a. outdoor advertising, like billboards. b. event sponsorship, like NASCAR family days. c. directory advertising, like the Yellow Pages. d. out-of-home advertising, like kiosks in malls. ANS: A DIF: Easy REF: p. 563 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-6 TYP: Application

71. (Scenario 15-6) An urgent email from another exec says that a local client insists that his billboard campaign is “not working at all” because “no one” is seeing his billboards. Road construction has rerouted downtown Dallas traffic away from the main thoroughfares featuring his three billboards. Before you head home, you drive out to all three locations. That evening you can email the exec that this is actually the case in only one instance, and that you got this information by a. “riding the boards” yourself. b. doing your own “geo-fence.” c. measuring the “impact zone” of each location. d. sorting through the media “clutter.” ANS: A DIF: Easy REF: p. 563 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-6 TYP: Application

72. (Scenario 15-6) Another email comes from a client asking for clarification on something. She owns a hair salon downtown, and you have occasionally placed newspaper ads for her. One of her regular customers works in marketing and casually mentioned that she should advertise in “out-of-home” media. She never got to ask her exactly what that is. You email a brief definition, adding a note that a. it generally targets local audiences. b. this is not a type of support media but a primary means of advertising. c. it involves either billboard, transit, or packaging formats. d. it is a low-key, low-tech way to advertise. ANS: A DIF: Moderate REF: p. 564 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-6 TYP: Application

73. (Scenario 15-6) An account executive has emailed saying that a client is quite pleased with the results of the network TV buy that you made last month. Now the client would like to use support media in the geographic areas that have shown the strongest results, as soon as possible. He wants something that targets adults who live and work in major metropolitan areas, has the potential for mass exposure, and can be set up pretty quickly. You recommend the use of a. transit advertising. b. billboard advertising. c. cinema advertising. d. directory advertising. ANS: A DIF: Difficult REF: p. 565 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 15-6 TYP: Application

74. (Scenario 15-6) An exec leaves a voicemail asking your opinion about the best form of support media for a restaurant/pub owner in the Dallas area. He has five casual eateries, all free-standing facilities located just outside the city’s biggest shopping malls and movie theaters. He already advertises in newspapers and on local TV and radio. He now wants something a little different, something immediate, possibly located in or near the malls, something that would nudge the consumer to try this casual dining right around the corner—tonight. By the time you call the exec, you both have the same idea. What is it? a. mobile advertising b. aerial advertising c. directory advertising d. cinema advertising ANS: D DIF: Difficult REF: p. 565 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 15-6 TYP: Application

ESSAY

1. Discuss the overall trend in spending on advertising and sales promotion over the past decade. Then outline at least three reasons behind this trend. ANS: Over the past decade, many marketers have moved the emphasis of their spending away from traditional advertising and toward sales promotions—those involving consumer, trade, and/or business populations. There are several reasons why marketers have been shifting funds from mass media advertising to sales promotions: 1. Managers are demanding greater accountability for promotional spending. 2. Organizations and stockholders are setting a short-term orientation toward generating revenue. 3. Consumers are responding positively to sales promotions. 4. Marketers are causing a proliferation of brands in many product categories, while also needing to gain attention and differentiate their brand. 5. Retailers are becoming more powerful by demanding recompense from manufacturers in return for giving brands favorable placement or other special attention. 6. Advertising clutter is taking over mass media and requiring greater ingenuity to achieve breakthrough. DIF: Difficult REF: p. 540-543 OBJ: 15-1 NAT: AACSB Communication | CB&C Model Promotion

TYP: Comprehension

2. Describe some of the forms of sales promotion techniques used in consumer markets, and give some of the reasons why they are used. Then imagine yourself as a manufacturer, producer, or small business owner. Invent a brand—a product or service—and explain how you would use at least three of these techniques to target a particular consumer market. ANS: A number of sales promotion techniques are commonly used to target consumer markets: Coupons, the oldest and most widely used form of promotion, entitle the buyer to a designated price reduction. They allow discounts to some while still selling the product at full-price to others, may induce brand switching, can stimulate repeat purchases, may lead to the purchase of more expensive brands within a line, and are controlled by the manufacturer. Price-off deals offer discounts at the point-of-purchase through specially marked packages. The reduction is taken from the manufacturer’s profits rather than the retailer’s, is controlled by the manufacturer, compares the product favorably to that of competitors, is appreciated by consumers who want a straightforward deal, and often leads to multiple purchases as buyers stock up while a brand is on sale. Premiums are items that are offered free, or at a reduced price, along with the purchase of a product or service. Free premiums are sometimes attached to or included within the packaging, mailed to the consumer who sends a proof-of-purchase, or simply given away. Self-liquidating premiums are items available to interested consumers at a reduced cost, usually by mailing in a form and proof-ofpurchase. They work well with loyal consumers. Advertising specialties are small but useful items with the brand name or slogan prominently displayed. They always involve a message and are given away for free, with no obligation to make a purchase.

Contests and sweepstakes draw attention to a brand like no other technique and are popular with consumers. Contests allow consumers to compete for prizes based on skill or ability. Sweepstakes require no particular skills but only luck, as winners are drawn at random via entry forms or scratchoff cards. Sampling and trial offers are methods used by advertisers to get people to try their products and services. Sampling allows consumers to use a brand on a trial basis with little or no risk. It is often used with new products, and is very popular with consumers. Trial offers serve the same purpose—to get consumers to try something—but are used for more expensive items or services. Phone and gift cards offer an increasingly popular form of promotion. They involve free or forpurchase debit cards that award the holder with a pre-set amount to be spent or a certain number of phone minutes to be used. Rebates are money-back offers that require the purchaser to mail in a form and proof-of-purchase, requesting money back from the manufacturer rather than the retailer. They are now used for high-end goods as well as to promote multiple purchases of lower-priced goods. Frequency programs, also called continuity programs or loyalty card programs, reward consumers with discounts or free products or services based on their repeat purchases. They were pioneered by airline companies and are now used by many businesses and retailers. DIF: Moderate REF: p. 545-551 OBJ: 15-2 NAT: AACSB Communication | CB&C Model Promotion

TYP: Application

3. You are opening an informal dining establishment in your hometown, a novel type of buffet-style eatery offering a wide variety of breakfast and lunch choices 24-hours a day, called Anytime Cafe. As part of your initial promotions, you are considering a couponing effort as well as a frequent-diner program. Briefly describe a couponing effort for this business, naming several advantages and disadvantages. Then describe how a frequency program would work for this establishment, including any advantages and disadvantages. ANS: A couponing effort might involve placing coupons in local newspapers, regional magazines, sales flyers, or at other local business establishments. In this case, coupons might allow patrons dollars-off deals on certain items, buy-one-get-one-free meals, special discounts on certain days of the week, free soft drinks or desserts with meals, etc. There are a number of advantages. Anytime Cafe can give a discount to a price-sensitive consumer while still selling meals at full price to other consumers. Many customers are competitive-brand users, so the coupon can induce brand switching from other restaurants. It is also an excellent method for stimulating repeat purchases. And it can get regular users to trade up to a more expensive menu item or meal. Finally, Anytime Cafe can control the timing and distribution of coupons.Disadvantages include the time, effort, and expense involved in placing and redeeming coupons, as well as the possibility of fraud or misredemption. A frequency program is all about rewarding the long-time customer. There are many advantages. It allows patrons to earn free menu items, meals, or gifts through repeat business. In this case, the consumer would probably receive a free meal after the purchase of a determined number of meals. This is an excellent tool to build brand loyalty with one's most lucrative (repeat) customers. The disadvantage is that these programs need to be carefully monitored, with time and attention paid to keeping records and awarding premiums. There is a risk of consumer alienation if the program is changed or discontinued. As airlines discovered with their frequent-flyer programs, there can be considerable fallout from consumers if the “rules” or “quotas” are changed.

DIF: Moderate REF: p. 545-547| p. 551| p. 557 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 15-2| 5-3 TYP: Application

4. List and briefly describe the four main techniques commonly used in trade-market sales promotions. Choose one type and demonstrate how it would operate within a certain type of industry, profession, or business. ANS: Incentives to members of the trade include awards in the form of travel, gifts, or cash bonuses for reaching targeted sales levels. These can induce retailers and wholesalers to give a firm's brand added attention. Push money is a type of incentive involving monetary rewards to salespeople who feature and ultimately sell a particular brand. Allowances are seen in several forms as used in a push strategy. Merchandise allowances, in the form of free products packed with regular shipments, act as payments to the trade for setting up and maintaining displays. Shelf space has become so highly demanded, especially in supermarkets, that manufacturers are making direct cash payments, known as slotting fees, to induce food chains to stock an item. Monetary discounts are also seen in the form of bill-back allowances and off-invoice allowances. Training programs have become an increasingly popular trade promotion for retail store personnel. The increased complexity of many durable consumer goods has made it important for manufacturers to ensure that the proper pieces of information and the most persuasive themes are reaching consumers at the point-of-purchase. Cooperative advertising occurs when the manufacturer shares the cost of media with the retailer. This extends the reach and frequency for both brands, at less cost than advertising alone. DIF: Moderate REF: p. 553-554 OBJ: 15-3 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Comprehension

5. What are the two main categories of point-of-purchase promotions? What types of P-O-P formats or techniques can you name? (The text lists 16.) Now imagine yourself as a retailer specializing in a particular area —groceries, discount items, sporting goods, apparel, books, electronics, big-box items, etc. Describe how you would use at least three types of P-O-P techniques to merchandise, display, and promote various goods. ANS: The two main categories of point-of-purchase promotions are short-term promotional displays (in place for six months or less) and permanent long-term promotional displays (in place for more than six months). Among the various P-O-P formats used by retailers are the following: Window and door signage, which includes any sign that identifies and/or advertises a company or brand. Counter/shelf unit, which is a smaller display designed to fit on counters or shelves. Floor stand, which is any P-O-P unit that stands independently on the floor. Shelf talker, which is a printed card or sign mounted on or under a shelf.

Mobile/banner, which is a sign suspended from the ceiling or hung across a wall. Cash register, which is a sign or small display mounted near a cash register. Full line merchandiser, which is a unit that acts as the only selling area for a manufacturer’s line, often seen as an end-of-aisle display. End-of-aisle display/gondola, which is a large display of products at the end of an aisle. Dump bin, which is a large container that holds products, marked with graphics or signs. Illuminated sign, which is the lighted signage used outside or in-store to promote a brand or the store itself. Motion display, which is any P-O-P unit that has moving elements to attract attention. Interactive unit, which is a computer-based kiosk dispensing product information, recipes, or coupons. Overhead merchandiser, which is a display rack above the cash register that stocks products, usually with signage on the front. Cart advertising, which is any ad message attached to a shopping cart. Aisle directory, which is the list or map that depicts contents of a store aisle and provides space for an ad message. Retail digital signage, which include video displays mounted on ceilings or walls, set as end-of-aisle caps, or given strategic shelf placement. DIF: Moderate REF: p. 559-560 OBJ: 15-5 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application

6. Assume that you are a marketing director for the business of your choice—it can be a real business or an imaginary one —and you need to reach a local audience. You are asked to compare billboard advertising and transit advertising, including their advantages and disadvantages, and prepare a short report detailing these issues. Briefly outline the report you would write, paying particular attention to the best way to promote the brand, the type of product or service you are selling, the geographic area you are in, the demographics of the local population, etc. ANS: Student answers will vary depending on the type of business they choose, the nature of the brand, and the product or service they are promoting. Billboard advertising is perhaps the oldest form of advertising in America, dating back to posters and notices tacked up for the public to read during the Revolutionary War. Today, they can provide wide exposure if they manage to grab attention with minimal text and striking imagery. They often include specialized lighting, moving parts, or rotating digitalized displays. Drawbacks include poor locations, time and effort in finding locations, long or confusing messages, environmental issues, and consumers who don’t notice them.

Transit advertising is similar to billboard advertising and is sometimes used simultaneously. It is popular around the world and is seen in many venues, including on the backs of buildings, in subway tunnels, in terminals, on station platforms, and on the vehicles themselves—taxis, buses, and trucks. Many types of transit ads now use digital signage that creates customized messages for various neighborhoods or times of day. It does well in building or maintaining brand awareness, and particularly in targeting adults who work in major metropolitan areas, offering repetitive message exposure to commuters. Drawbacks, similar to those for billboards, include lengthy or complex messages, media clutter on busy streets and in public transit facilities, and busy or distracted commuters who tune out the ad message. DIF: Moderate REF: p. 31-35 OBJ: 15-6 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application

Chapter 16 - Event Sponsorship, Product Placements, and Branded Entertainment TRUE/FALSE 1. The Coca-Cola advertising campaign aligned with NASCAR created the first-ever live performance directed at a nationwide audience with improv actors adapting to audience polls in real time. ANS: F DIF: Moderate REF: p. 575 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-Intro TYP: Knowledge

2. Fresh Mixers Working Lunch promoted a new Healthy Choice product by combining quirky humor and product information using live Web programming. In less than four weeks, Working Lunch attracted more than 5 million visitors to its website. ANS: T DIF: Easy REF: p. 575-576 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-Intro TYP: Application

3. In today’s world of marketing, the unconventional is becoming conventional. ANS: T DIF: Moderate REF: p. 576 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-Intro TYP: Knowledge

4. Because quirky and gimmicky new formats have been overused, contemporary marketers are returning to traditional media to build brands in the marketing environment and to create meaningful connections with consumers. ANS: F DIF: Moderate REF: p. 576 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 16-Intro TYP: Knowledge

5. The “new order” of building brands is based on the acknowledgement that the fields of advertising, branding, and entertainment are separate entities and will always be separate entities. ANS: F DIF: Difficult REF: p. 576 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-Intro TYP: Comprehension

6. The term Madison & Vine comes from the two renowned streets on which the advertising and entertainment professions arose and grew. ANS: T DIF: Easy REF: p. 577 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-Intro TYP: Knowledge

7. The concept of Madison & Vine refers to the convergence of the advertising and entertainment industries in the branding efforts of marketers. ANS: T DIF: Moderate REF: p. 577 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-Intro TYP: Knowledge

8. The term event sponsorship refers to the innovative component of a media plan that involves a company setting up its own events, such as concerts or festivals, to promote its brand and sell its product. ANS: F

DIF: Moderate

REF: p. 578

OBJ: 16-1

NAT: AACSB Communication | CB&C Model Promotion

TYP: Knowledge

9. A majority of the promotional funds spent on event sponsorships today go toward sporting events. ANS: T DIF: Moderate REF: p. 578 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-1 TYP: Comprehension

10. An important guideline for effective event sponsorship is to look for a match or overlap between the lifestyles of the event attendees and the benefits your product can deliver. ANS: T DIF: Easy REF: p. 580-581 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Knowledge

11. The only way to measure the benefits of sponsoring an event is to determine how often the sponsor’s name appears at the event and in media coverage of the event. ANS: F DIF: Moderate REF: p. 582 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Comprehension

12. In making direct comparisons to traditional media, it becomes apparent that the advantages of event sponsorship are fundamentally the same as those that traditional media can provide. ANS: F DIF: Moderate REF: p. 582 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Knowledge

13. A sponsored event can still be considered a positive addition to the IBP mix for the advertiser even if predetermined exposure figures are not met. ANS: T DIF: Moderate REF: p. 582-583 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Comprehension

14. Product placement only occurs when a branded item is used while filming a movie. ANS: F DIF: Moderate REF: p. 584 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-2 TYP: Knowledge

15. In the current system of product placement in today’s media, companies pay a fee to have their branded products deliberately added to the content of established entertainment vehicles. ANS: T DIF: Moderate REF: p. 584 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-2 TYP: Comprehension

16. Product placement in video games has great potential, considering that 100 million U.S. households have at least some gaming capability. ANS: T DIF: Moderate REF: p. 586 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-2 TYP: Knowledge

17. Nielsen Media Research has found that, much like TV viewers who want to avoid commercials, the majority of video game players want to eliminate brand placements in games. ANS: F DIF: Moderate REF: p. 586 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 16-2 TYP: Knowledge

18. Despite their widespread use and their repetitive exposures during games, brand placements in video games do not affect purchase intent as much as placement in traditional media does. ANS: F DIF: Moderate REF: p. 586 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 16-2 TYP: Knowledge

19. In the world of promotion, authenticity refers to the quality of being perceived as genuine and natural, a definite plus in brand placement. ANS: T DIF: Easy REF: p. 587 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-2 TYP: Knowledge

20. If a doctor on Grey’s Anatomy ordered a prescription drug as well as Tylenol for a patient, a sense of authenticity would be demonstrated regarding this product placement. ANS: T DIF: Moderate REF: p. 587 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 16-2 TYP: Comprehension

21. Product placement involves advertisers finding shows where the product might fit. Branded entertainment involves advertisers creating shows so the product will star. ANS: T DIF: Moderate REF: p. 587 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 16-2 TYP: Comprehension

22. NASCAR marketers have discreetly admitted that NASCAR is the best-kept secret in marketing. ANS: F DIF: Easy REF: p. 588 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-3 TYP: Knowledge

23. Industry research indicates that NASCAR fans are unusually loyal to the brands that sponsor the cars. ANS: T DIF: Easy REF: p. 588 NAT: AACSB Communication | CB&C Model Customer

OBJ: 16-3 TYP: Knowledge

24. NASCAR fans are ten times more likely to purchase a product promoted by their favorite driver, relative to the fans of other sports. ANS: F DIF: Moderate REF: p. 588 NAT: AACSB Communication | CB&C Model Customer

OBJ: 16-3 TYP: Knowledge

25. Branded entertainment involves developing and supporting any entertainment property or media format with the goal of featuring the brand in a way that is compelling to consumers. ANS: T DIF: Easy REF: p. 589 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-3 TYP: Knowledge

26. One common problem seen in the new media mix involves matching the brand with the entertainment property. ANS: T DIF: Moderate REF: p. 590 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-3 TYP: Knowledge

27. A potential downside of branded entertainment as an IBP tool is the possibility that a brand or product will become too closely connected to an offering of the entertainment media. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

ANS: F DIF: Moderate REF: p. 592 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-3 TYP: Comprehension

28. Authenticity of a brand is strongest when the content of the show and the essence of the brand become completely intertwined and integrated. ANS: T DIF: Moderate REF: p. 592-593 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-3 TYP: Comprehension

29. The success of any IBP campaign involves choosing the right set of options and coordinating the placement of messages. ANS: T DIF: Moderate REF: p. 594 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-4 TYP: Comprehension

30. One reason why coordinating efforts in IBP can be difficult is that the complexities of all the elements demand that specialists be hired, but specialists often miss the big picture of the overall marketing effort. ANS: T DIF: Moderate REF: p. 594 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-4 TYP: Comprehension

31. When an agency acts as a “general contractor” and hires external sources that act as “subcontractors,” this tends to simplify the coordination of marketing efforts. ANS: F DIF: Moderate REF: p. 594 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-4 TYP: Comprehension

32. Ultimately, the objective underlying the coordination of supportive media is to achieve a synergistic effect. ANS: T DIF: Difficult REF: p. 594 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-4 TYP: Comprehension

MULTIPLE CHOICE 1. What kind of consumers were targeted by the Fresh Mixers Working Lunch promotion conducted by Healthy Choice? a. older people on restricted diets b. high school students making their own lunches c. young people working in office cubicles d. families with children in elementary school ANS: C DIF: Easy REF: p. 575 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-Intro TYP: Application

2. The promotion launched by Healthy Choice, Fresh Mixers Working Lunch, is the perfect example of a. event sponsorship. b. branded entertainment. c. product placement. d. traditional media. ANS: B

DIF: Easy

REF: p. 576

OBJ: 16-Intro

NAT: AACSB Communication | CB&C Model Promotion

TYP: Application

3. Today’s dynamic marketing environment has led to a “new order” in which brand builders, more than ever before, want to a. just sell to their customers without intruding in their lives. b. be part of the entertainment that their target consumers enjoy. c. use traditional advertising media in new ways. d. target narrowly defined groups of consumers based on demographics. ANS: B DIF: Moderate REF: p. 576 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-Intro TYP: Knowledge

4. The “brave new world” of IBP refers to the a. new tools and practices now used in the marketing of brands. b. risks taken by today’s marketers in reaching cynical and alienated consumers. c. lack of monetary restrictions on the latest advertising methods. d. decline of advertising in favor of sponsored events. ANS: A OBJ: 16-Intro TYP: Knowledge

DIF: Moderate REF: p. 576| p. 577 NAT: AACSB Analytic | CB&C Model Promotion

5. What was the reason, cited in the text, behind the convergence of Madison & Vine? a. the desire to recapture the fading glamour of the good old days of advertising b. the recession-era focus on more work and less leisure time c. the erosion in the effectiveness of traditional broadcast media d. the natural and inevitable partnership between marketing and promotion ANS: C DIF: Difficult REF: p. 577 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-Intro TYP: Comprehension

6. What is the “Chaos Scenario” predicted by Bob Garfield of Advertising Age? a. a lack of direction or cohesiveness in today’s marketing plans b. a massive exodus from traditional broadcast media c. a meltdown of television as a popular medium d. a growing confusion among consumers due to too many brand messages ANS: B DIF: Moderate REF: p. 577 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-Intro TYP: Knowledge

7. In the world of marketing and advertising, what is event sponsorship? a. providing financial support for an event while displaying the brand name, logo, or ad message on-site b. funding a charitable event in an anonymous way in order to promote the social good c. buying signage in venues where special events are held d. embedding the brand name within public events in a subtle way ANS: A DIF: Moderate REF: p. 578 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-1 TYP: Knowledge

8. Which of the following is accurate concerning event sponsorship today? a. Due to the economic recession, event spending worldwide has decreased. b. When it comes to events, sports sponsorships no longer draw the biggest share of advertising dollars. c. An emerging trend by the Big Three U.S. automakers is to offer face-to-face encounters

between consumers and the brand. d. The spending of North American companies has begun to grow again after a long period of inertia. ANS: C DIF: Difficult REF: p. 578 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Comprehension

9. Today’s advertisers are looking to benefit by associating with something new and hip, a process that anthropologist Grant McCracken labeled a. “an inexorable death spiral.” b. “the movement of meaning.” c. “the brave new world of business.” d. “Madison & Vine.” ANS: B DIF: Moderate REF: p. 579 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-1 TYP: Comprehension

10. Global corporations pay big sums to have their names associated with athletes and teams. According to Nike’s VP of marketing, what is “the No. 1 event in all of sports” in terms of promotional opportunities? a. the World Series b. the SuperBowl c. the World Cup d. the Masters Tournament ANS: C DIF: Moderate REF: p. 579 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-1 TYP: Comprehension

11. A major “sweet spot” for the brand occurs in event sponsorship when there is significant overlap between the a. event’s participants and the marketer’s target audience. b. primary sponsor and the secondary sponsor. c. brand preferences of attendees and the brand preferences of viewers. d. international sponsorship and the local sponsorship. ANS: A DIF: Moderate REF: p. 580 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Comprehension

12. The success of Prilosec OTC in its sponsorship of the Bunco World Championship illustrates a company that reached the ideal goal in marketing, that is, a. having a branded experience. b. identifying the consumer. c. building brand loyalty. d. selling the product. ANS: C DIF: Moderate REF: p. 580-581 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Application

13. As noted in your text, critics contend that event sponsorships, especially those of the sporting kind, can be a. damaging to a product. b. ego-driven and a waste of money. c. too narrow and local in nature. d. too broad and global in nature. ANS: B

DIF: Moderate

REF: p. 581

OBJ: 16-1

NAT: AACSB Analytic | CB&C Model Promotion

TYP: Comprehension

14. The John Hancock financial services company has been a pioneer in measuring the effectiveness of dollars spent on sponsorships. Based on their marketers’ calculations, executives felt that the company’s first sponsorship of a college football bowl game in the 1980s was a good media buy. This was because its sponsorship deal a. provided about three times the exposure of traditional advertising. b. required little planning or manpower to execute. c. banned all other companies from advertising. d. allowed for the delivery of an ad message in a traditional way. ANS: A DIF: Moderate REF: p. 581 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Application

15. What did the John Hancock marketers do when the TV audience for the college bowl game that it sponsored began to drop over the years? a. It rallied viewer support with promotions for it in traditional media. b. It invited other companies to share the cost of sponsoring the event. c. It gave up on event sponsorship and went back to standard advertising techniques. d. It moved promotional dollars to sponsor other sporting events. ANS: D DIF: Difficult REF: p. 581 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Application

16. A peanut supplier is new to sponsorship and wants to get an outside opinion on the advantages of signage in baseball stadiums. Which company gives advertisers a read on the impact of various signs at various sporting venues? a. Forrester Research b. Starcom MediaVest Group c. Nielsen Media Research d. Commercial Alert ANS: C DIF: Moderate REF: p. 581 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-1 TYP: Application

17. One way that companies like Boston-based John Hancock have attempted to assess the benefits of event sponsorship is to a. convince company leaders and stockholders that the event is socially uplifting. b. calculate the number of viewers exposed to a brand. c. have company executives meet consumers in person at the event. d. promote social causes along with the activities of the event. ANS: B DIF: Moderate REF: p. 581 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Comprehension

18. A marketing director for a bicycle helmet manufacturer has run a number of ads in traditional forms of media. Now she wants to directly measure the effectiveness of the first national bike race that the company is about to sponsor. She should compare the ____ with the ____. a. sales figures in the weeks before and after the race; sales figures before and after traditional advertising placement b. brand-preference figures in the weeks before and after the race; brand-preference figures before and after traditional advertising placement c. brand exposures at the race and from media coverage of the race; brand exposures from the same amount spent on traditional advertising d. expenditures to sponsor the race; expenditures needed to run traditional advertising over

the same time period ANS: C DIF: Difficult REF: p. 581-582 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Application

19. A manufacturer of protein powders and protein bars sponsors a grand slam tennis tournament for the first time. When it evaluates this move, it discovers that the cost per brand name exposure was much higher than it would have been by running its standard advertising. What do company executives need to remember? a. It takes multiple sponsorships of such large events in order to yield results. b. Traditional advertising will always be less expensive than event sponsorship. c. The methods used to calculate cost per brand name exposure are too subjective to be accurate. d. The number of brand name exposures only tells part of the story. ANS: D DIF: Difficult REF: p. 582 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 16-1 TYP: Application

20. When marketers connect their brand with the potent emotional experiences of powerful events, a. positive feelings for the brand may linger well beyond the event date. b. they are spending their money on risky ventures. c. they have the opportunity to present complex brand information. d. participants often resent the corporate devaluing of their experience. ANS: A DIF: Difficult REF: p. 582 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Comprehension

21. The producer of a women’s sportswear line is delighted to find that her sponsorship of the Women’s Softball World Series came with some extra benefits. It provided opportunities to entertain clients, recruit new customers, motivate employees, meet real consumers, and distribute small premiums. All of these can be considered examples of using a. media impressions. b. authenticity. c. leverage. d. product placement. ANS: C DIF: Moderate REF: p. 582 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Application

22. A firm has decided to sponsor a PGA golf tournament. Its marketing director knows it is critical to find unique ways to leverage the sponsorship. One way to leverage the sponsorship beyond traditional methods would be to a. estimate the number of viewers who will see the company name. b. allow the CEO to meet with top golfers on the course. c. calculate the exposures to the brand received by attendees. d. use the opportunity to entertain important clients and recruit new ones. ANS: D DIF: Moderate REF: p. 582 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Application

23. Which of the following would most likely offer event sponsorship on a global basis? a. the SuperBowl b. the NASCAR events c. the Olympics d. the Sweet Sixteen

ANS: C DIF: Easy REF: p. 583 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-1 TYP: Knowledge

24. Which of these examples represents the earliest instance of product placement in movies? a. Old Spice in Talladega Nights: The Ballad of Ricky Bobby b. the MINI Cooper in The Italian Job c. Reese’s Pieces in E.T. the Extra-Terrestrial d. the BMW in GoldenEye ANS: C DIF: Easy REF: p. 584 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-2 TYP: Knowledge

25. What types of programs have made product placements the norm on television? a. soap operas and reality shows b. sitcoms and quiz shows c. police/legal dramas and family dramas d. animated shows and action/adventure shows ANS: A DIF: Easy REF: p. 585 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-2 TYP: Comprehension

26. What classic component of American movies has been regularly used as a platform for product placement? a. the restaurant meal b. the romantic stroll through the city c. the car chase d. the drink at the local bar ANS: C DIF: Easy REF: p. 585 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-2 TYP: Comprehension

27. Market research indicates that ____ who are watching movies are more likely to notice product placements and more willing to try these products. a. people over age 45 b. people under age 25 c. women d. men ANS: B DIF: Moderate REF: p. 585-586 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 16-2 TYP: Knowledge

28. According to Nielsen Media Research, product placements in video games a. are more annoying to gamers than commercials are to television viewers. b. were popular for a while but are now used less frequently. c. are accepted by younger players but disliked by adult players. d. are seen by gamers as elements that add to the quality of play. ANS: D DIF: Moderate REF: p. 586 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 16-2 TYP: Knowledge

29. Recent research indicates that a brand gets the most benefit when product placement of the item a. is used repeatedly to create multiple exposures in a short time period. b. gets people to talk about it in everyday conversation. c. appears on a network television show. d. is used in isolation without the distraction of other marketing elements.

ANS: B DIF: Moderate REF: p. 587 NAT: AACSB Analytic | CB&C Model Product

OBJ: 16-2 TYP: Comprehension

30. Today’s marketers might consider ____ as a natural extension and outgrowth of product placement. a. branded entertainment b. authenticity c. market oversaturation d. event sponsorship ANS: A DIF: Moderate REF: p. 587 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-2 TYP: Comprehension

31. What company sponsors NASCAR’s longest night, creating one of the most popular televised—and branded—sporting events in North America? a. Procter & Gamble b. Nike c. Coca-Cola d. Budweiser ANS: C DIF: Moderate REF: p. 588 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-3 TYP: Knowledge

32. As arguably the most branded entertainment in the Western Hemisphere, NASCAR is a massive celebration of brands. It currently attracts about ____ sponsors just from the cars alone, based on companies that cover them with their logos. a. 800 b. 500 c. 300 d. 100 ANS: A DIF: Moderate REF: p. 588 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-3 TYP: Knowledge

33. NASCAR bills itself as the a. best marketing opportunity in sports. b. most popular form of entertainment in America. c. most inexpensive advertising in marketing. d. most popular form of product placement. ANS: A DIF: Moderate REF: p. 588 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-3 TYP: Knowledge

34. An up-and-coming chain of “green” grocers has reasonable prices, friendly staff, local produce, and a focus on organic and natural products. The company wants to connect with consumers in a fresh way and considers creating a show on the Food Network. What concept is this grocer considering? a. brand loyalty b. branded entertainment c. product placement d. Madison & Vine ANS: B DIF: Moderate REF: p. 589 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-3 TYP: Application

35. Branded entertainment is different from product placement in that it a. would not exist without the marketer’s support.

b. displays the brand in novel ways. c. involves lower levels of exposure for a brand. d. simply sells space for the brand’s presence. ANS: A DIF: Moderate REF: p. 589 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-3 TYP: Comprehension

36. The director of a promotional agency has several clients who might be interested in branded entertainment. He looks into marketing history to better understand how this concept has progressed over the years. What would he find regarding the history of branded entertainment? a. It began with the birth of television and the first variety show. b. Its longest-running vehicle was Guiding Light, a soap opera that ran for more than 70 years on radio and TV. c. It has involved many firms but none that match the marketing collaboration of Kraft Foods. d. It began with a radio show based on Campbell’s soup. ANS: B DIF: Difficult REF: p. 592 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-3 TYP: Application

37. Which corporate giant has used branded entertainment very successfully on the television show, America’s Next Top Model, mostly because content and product have a natural connection? a. Revlon and its Natural Wonder brand b. L'Oréal and its Clairol brand c. Calvin Klein and its Eternity brand d. Procter & Gamble and its CoverGirl brand ANS: D DIF: Moderate REF: p. 592-593 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-3 TYP: Comprehension

38. A marketing director meets with her staff to review recent problems they have encountered in coordinating widespread and diverse aspects of their marketing plan. She lists all the reasons she can think of that explain why coordinating an IBP effort is a huge challenge. But which of the following would not be one of her reasons? a. Specialists often lose sight of overall objectives outside their specialty. b. Internal competition for budget allocation often works against coordinated efforts. c. By definition, IBPs rarely do not require explicit goals and objectives. d. There has been an explosion in the number of media options available. ANS: C DIF: Moderate REF: p. 594 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-4 TYP: Application

39. Due to the increasing complexities associated with the advertising industry, there is a tendency for organizations to become reliant on ____. However, this can create a problem because these people have their own priorities and often lose sight of the overall goals of an effort. a. specialists b. politicians c. CEOs d. bureaucrats ANS: A DIF: Moderate REF: p. 594 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-4 TYP: Comprehension

40. In trying to coordinate traditional and emerging advertising and support media, ad agencies a. have had to deal with fewer functional specialists.

b. see themselves in the lead role, but have not yet played this role to anyone’s satisfaction. c. have experienced less internal competition for promotional budget dollars. d. have found greater cooperation between functional area specialists. ANS: B DIF: Moderate REF: p. 594 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-4 TYP: Comprehension

41. The goal of achieving a synergistic effect through IBP is to get various media to a. have an equal level of reach and frequency. b. minimize the number of different media needed. c. make sure that any marketing effort uses all media available. d. build on each other's efforts and ensure coherent and timely communication. ANS: D DIF: Moderate REF: p. 594 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-4 TYP: Comprehension

Scenario 16-1 MakeWaves is a promotional company with a website that offers the opportunity to sponsor a yacht in Grand Prix yacht racing. Commercial sponsors of the WaveRunner yacht can buy space for logos and graphics on the WaveRunner's sails, hulls, crew member uniforms, and trailer. For enough sponsorship money, the WaveRunner will even change its name to better fit the sponsor. The WaveRunner is scheduled to compete in five Grand Prix yacht-racing events every year. MakeWaves claims on its website that sponsoring the WaveRunner in a race could result in millions of impressions in sailing magazines and newspapers as well as on broadcast media, and offers specific calculations to those who inquire. 42. (Scenario 16-1) How would an advertiser hope to benefit from sponsoring the WaveRunner? a. by avoiding the ego-driven decision making often associated with traditional advertising b. by strategically placing its product at a sporting event to reach as wide an audience as possible c. by taking part in the most cost-efficient form of promotion and advertising d. by transferring consumers’ positive feelings about yacht racing to the product ANS: D DIF: Moderate REF: p. 578 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Application

43. (Scenario 16-1) Any company that hears about the WaveRunner and decides on sponsorship for the first time will be in good company. Specifically, it will be following in the footsteps of one of the world’s foremost old-school advertisers that, despite bankruptcy and realignment, remains aggressive in event sponsorship, often involving its vehicles. Who is this? a. Volkswagen b. Hyundai c. General Motors d. Jeep ANS: C DIF: Moderate REF: p. 578 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Application

44. (Scenario 16-1) MakeWaves is pitching a very specific sponsorship offer with its own benefits. But overall, the category of event sponsorship has certain advantages. One of the main advantages is that it a. replaces expensive advertising as the main brand-building tool. b. targets certain groups of consumers who already purchase the brand. c. offers personal contact with consumers and publicity during and after the event. d. embeds the brand in a very nondescript and subtle way.

ANS: C DIF: Moderate REF: p. 579 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Application

45. (Scenario 16-1) The MakeWaves website offers no information about the conversion of fan loyalty toward a sport into actual purchases of the sponsor’s product. Marketers who have set this as their main goal would do well to look into ____ branded entertainment opportunities. a. NFL Football b. Major League Baseball c. NASCAR d. PGA Golf ANS: C DIF: Easy REF: p. 588 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-3 TYP: Application

46. (Scenario 16-1) A company that thinks about sponsoring the WaveRunner does so with the hopes that it will play a major role in its IBP effort. One potential risk of using nontraditional forms of promotion is that they a. involve factors that contribute to the challenge of coordinating all IBP messages. b. cannot be quantitatively measured. c. rarely make a strong enough impact on the marketing plan. d. cannot offer the highly targeted audience necessary for this role. ANS: A DIF: Difficult REF: p. 594-595 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-4 TYP: Application

Scenario 16-2 HollywoodBranding is a new promotions company formed by three former ad execs who had illustrious careers in large multi-service advertising agencies. Over their years in account management and creative work, they developed close ties with a number of Hollywood movers and shakers. Consequently, they feel poised to respond to the business world’s growing desire for branded entertainment. But they are aware that they need to continually fight their “old school” ways of thinking about branding, forged in years of working solely with traditional media. 47. (Scenario 16-2) HollywoodBranding promotes itself to prospective clients by saying that it is “located at Madison & Vine” and offers innovative “brandertainment.” This means that it will a. act as a full-service advertising agency. b. be inventing humorous or imaginative brand logos and slogans. c. place ads in appropriate media and track subsequent media impressions. d. connect companies with consumers through entertainment venues. ANS: D OBJ: 16-3 TYP: Application

DIF: Easy REF: p. 577| p. 589 NAT: AACSB Communication | CB&C Model Promotion

48. (Scenario 16-2) A potential client has lunch with the owners of HollywoodBranding to discuss a new kind of promotion for his gourmet cookware. Beyond his magazine and newspaper advertising, he is looking for the perfect form of branded entertainment. The owners come prepared to pitch several ideas involving projects they’re aware of, and by the time coffee is served, they all agree to have the a. cookware appear in the kitchen of a well-known sitcom family. b. company sponsor a cook in this year’s Pillsbury Bake-off. c. cookware mentioned in a new movie set in a New York restaurant. d. company fund a new PBS cooking show for amateur gourmets. ANS: D DIF: Moderate REF: p. 589 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 16-3 TYP: Application

49. (Scenario 16-2) A young media expert is hired by HollywoodBranding. He went to college with a bright girl who now does all the marketing for her family’s business, a well-established cookie manufacturer with strong national distribution. Her grandparents and parents have run the same facility in St. Louis, have provided virtually the same products, and have run the same types of ads over the decades, seeing slow but steady growth. On impulse, he calls to pitch a branded entertainment idea to her family. He should be sure to let them know that branded entertainment a. is not much different from placing ads with traditional media. b. has been proven to consistently deliver higher brand exposure than other forms of media. c. can take new and unpredictable paths. d. represents one of the most conservative and dependable options available today. ANS: C DIF: Moderate REF: p. 590 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 16-3 TYP: Application

50. (Scenario 16-2) The HollywoodBranding staff has an idea for a corporate giant in the household cleaning products industry—a reality show using all of its products in crazy stunts, timed contests, and obstacle races. But the client hesitates, concerned about playing it straight with consumers and openly disclosing its role as a paid advertiser and participant in the show. This concern reflects the ideas of a. Nielsen’s Sponsorship scorecard. b. Bob Garfield’s Chaos scenario. c. Ralph Nader’s Commercial Alert. d. Advertising Age’s guidelines. ANS: C DIF: Difficult REF: p. 590 NAT: AACSB Ethics | CB&C Model Promotion

OBJ: 16-3 TYP: Application

51. (Scenario 16-2) One drawback for advertisers when subcontracting out to creative teams or external sources like HollywoodBranding is that a. they often duplicate the tactics already found in traditional advertising agencies. b. they resist trying new ideas or taking risks. c. their efforts may easily clash with the overall company efforts. d. they do not possess the skills to understand and reach today’s consumers. ANS: C DIF: Moderate REF: p. 594 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-4 TYP: Comprehension

Scenario 16-3 In July 2010, a sports-focused social networking site named MyMVPs.com was launched. The site, which has been described by founder Mark Monaco as a hybrid of Facebook, ESPN and YouTube, will allow athletes, proud parents and sports fans alike to view highlights of amateur athletes, check out the week’s funniest sports bloopers, and chat with various sports celebrities registered with the free online service. Erin Dwyer, co-founder and one of the four individuals responsible for the site’s success, believes the service will be incredibly beneficial not only for amateur athletes with college aspirations, but also for colleges with tight recruiting budgets. Dwyer stated, “It’s huge for little kids and it’s gigantic for high school athletes who want to get to college. For some schools with tight budgets for recruiting, coaches will be able to jump on a website that is clean and safe and gives them information on a player. That can give them an advantage.” Still in its early stages, the company is looking to get its name out there as much as possible—and with partnerships with sports legends such as Mike Ditka, the company appears to be headed in the right direction. (Jeff Vorva, “MyMVPs.com Hopes to Fly High With Amateur Athletes.” Chicago Trib Local, June 16, 2010.)

52. (Scenario 16-3) Still looking to get the company name out, the team at MyMVPs begins to think of ways to make people aware of the site’s various benefits. To date, they have relied on word-of-mouth to advertise, but they are interested in any possibility that may help build brand awareness. Marketers refer to this process as a. chaos scenario. b. mere exposure. c. product placement. d. media impression. ANS: B DIF: Moderate REF: p. 578 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-Intro TYP: Application

53. (Scenario 16-3) The team at MyMVPs decides to look into sponsorship as a way of building the brand. At first, they wonder about the cost. Eventually, they come to the conclusion that they would ultimately gain the most—but would also have to spend the most—if the business decided to a. be an exclusive sponsor of an event. b. calculate media impressions from an event. c. get involved in social networking for an event. d. be a co-sponsor of an event with another business. ANS: A DIF: Moderate REF: p. 580 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 16-1 TYP: Application

54. (Scenario 16-3) MyMVPs arranges sponsorship of several area high schools and begins to think of ways to leverage the sponsorship. In this context, leverage can be described as a. the practice of judging sponsorship through media impressions. b. the practice of placing any branded product into the content and execution of an established entertainment vehicle. c. any collateral communication or activity reinforcing the link between a brand and an event. d. development and support of any entertainment property. ANS: C DIF: Moderate REF: p. 582 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 16-1 TYP: Application

55. (Scenario 16-3) The team at MyMVPs decides to make sponsorship one of their top priorities. Not only can they build community relationships, but they can get the MyMVPs name out with signs and banners. The team also prints hundreds of business cards and stationary to distribute, and sets up a number of tents that will feature the company logo. In a small-scale and local way, this is the same thing large corporations do when they make an effort to a. “leverage, leverage, leverage.” b. make good use of “product placement.” c. fight the “chaos scenario.” d. speak to consumers in a “single voice.” ANS: A DIF: Moderate REF: p. 582 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 16-1 TYP: Application

56. (Scenario 16-3) By sponsoring local high schools and high school sporting events, MyMVPs will be able to promote its brand to a large amount of its target audience, which is made up of athletes, parents and fans. This overlap is referred to as a. the sweet spot. b. the marketing overlap. c. event sponsorship. d. selective product placement.

ANS: A DIF: Difficult REF: p. 580 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 16-1 TYP: Application

Scenario 16-4 You are a marketing associate at a promotional firm that specializes in innovative branding. You will be meeting with several clients next week and you need to review their files and get updated on their latest promotional efforts. 57. (Scenario 16-4) In your initial review, you realize that all four clients are currently paying a fee to have their brands exposed or displayed within some entertainment format. This means they are all taking part in a. event sponsorship. b. product placement. c. branded entertainment. d. co-branding. ANS: B DIF: Easy REF: p. 584 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-2 TYP: Application

58. (Scenario 16-4) One client has made the move to have signs and billboards for his product show up in a video game that takes users through city streets, down country roads, and across bridges and overpasses. You make a mental note to remind the client of research that indicates video game players a. are irritated by such distractions. b. consider this an added attraction when playing games. c. have been swamped with ad clutter and now tune out such promotions. d. are three times more likely than users of other media to buy the items they see in product placement. ANS: B DIF: Moderate REF: p. 586 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 16-2 TYP: Knowledge

59. (Scenario 16-4) Another client was considering videogame placement the last time you met, and will be making a decision next week. She wasn’t sure about placing her product in a game, since her company sells mostly to adults and has never specifically targeted kids. You will once again remind her of research that shows a. a good portion of hard-core players are 18 to 34 years old. b. the vast majority of gamers are teenagers, not children. c. the fastest-growing population of loyal gamers are people ages 55 to 75. d. the older people who do play video games are more likely to notice products. ANS: A DIF: Moderate REF: p. 586 NAT: AACSB Communication | CB&C Model Customer

OBJ: 16-2 TYP: Application

60. (Scenario 16-4) You recall that the owner of one firm had said in the past that you’d done a good job in convincing him that he needed to focus on creating synergy in all advertising efforts. At the time, he wanted you to clarify what you meant by this "synergy stuff." You replied that synergy refers to a. planning ahead for the use of new media as they emerge. b. making sure all media efforts build on and reinforce each other for maximum effect. c. sharing communication goals among clients and suppliers. d. using all the interactive capabilities of any given media. ANS: B OBJ: 16-2| 16-4 TYP: Application

DIF: Moderate REF: p. 586-587| p. 594 NAT: AACSB Communication | CB&C Model Promotion

61. (Scenario 16-4) One client was initially willing to pay a hefty fee for its fruit snack bar to appear in a summer action movie full of spies and car chases, but the fit just didn’t seem right to you. You convinced the client to go instead with a teen romance also released in the summer. It appears to have done very well, building popularity with kids who bought it at the concessions stand and went on to buy it at their local retailer. What concept did you rely on? a. exclusive sponsorship b. adver-gaming c. leverage d. authenticity ANS: D DIF: Moderate REF: p. 587 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 16-2 TYP: Application

ESSAY 1. What is meant by the term Madison & Vine? Give several reasons why this convergence has occurred in the world of promotion. ANS: The term Madison & Vine refers to the combination of two previously separate entities—advertising (located on Madison Avenue in New York) and entertainment (located at the intersection of Hollywood and Vine in Los Angeles). This convergence occurred due to several conditions present in the marketing world, the corporate culture, and the larger society. Advertisers are always searching for new ways to reach consumers, and entertainment provided the perfect avenue. They found that they could sponsor events, connect their name to entertainment venues, and embed their products in TV and film productions. Meanwhile, consumers have been given an increasing number of options to be informed and entertained, always finding new ways to fill their leisure time. Where there was once only television, radio, newspapers, and magazines, there are now video games, mobile devices, cell phones, and almost unlimited possibilities on the Internet, including social networking sites. All of these now act as media vehicles for embedded branding and promotional messages, effectively combining advertising and entertainment in new ways. DIF: Moderate REF: p. 576-577 OBJ: 16-1 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Comprehension

2. What is Chaos Scenario? How does it relate to today’s advertising efforts? ANS: The concept of Chaos Scenario was proposed by Bob Garfield of Advertising Age in his prediction of a mass exodus by advertisers as they flee from traditional media. His idea is that advertisers will continually shift their advertising dollars away from traditional formats because of ongoing audience fragmentation as well as technology that allows for ad-avoidance. He predicts that those ad dollars instead will be spent on new media, in a new advertising world that will not depend on 30-second television commercials or glossy magazine spreads. One repercussion will be seen in alreadystruggling networks that will get less funds to create quality programming, and will therefore lose even more audience members. The end result, he says, will be a rapid downward spiral of the old-fashioned media formats. It is impossible to say whether this mass exodus will actually happen, and traditional media will die (the authors argue against this in other chapters), but we are already seeing a shift in ad dollars from traditional media to new digital, mobile, and entertainment formats. DIF: Moderate REF: p. 577-578 OBJ: 16-1 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Comprehension

3. Discuss the nature and use of product placement. How do today’s advertisers specifically use product placement, and in which forms of media? Cite several examples based on instances of product placement that you have noticed. ANS: Product placement involves placing any branded product into the content and execution of an established entertainment vehicle, one that is already in development or is in ongoing broadcast mode. Advertisers pay for the ability to expose or promote their brand by showing it in some way in a television show, film, video game, or novel, or by having it physically present at a sporting event, movie theater, festival, concert, or other public entertainment venue. It is most effective when used with other promotions. Television shows are well-known formats for product placement, especially soap operas, reality shows, and sitcoms. Major movies have commonly included this type of promotional element since E.T. the Extra-Terrestrial featured Reese’s Pieces. Product placement is often seen in movies when automakers feature particular vehicles during car chases. Product placement is increasingly seen in video games in the form of cars, snacks, beverages, and any number of goods that appear on virtual billboards and signage. Product placement may or may not involve a celebrity connection, but either way, it can be difficult to measure. It works best when it is integrated well with the content, characters, and script so the presence of the product is believable and realistic—a concept referred to as having authenticity. DIF: Moderate REF: p. 584-587 OBJ: 16-2 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application

4. Define branded entertainment. Explain how it differs from product placement, and what its future is as a branding tool. Give two examples of branded entertainment to support your answer. ANS: Branded entertainment entails the development and support of any entertainment property (such as a TV show, movie, short film, video game, or amusement park) where the primary objective is to feature one’s brand or brands to impress and connect with consumers in a unique and compelling way. Branded entertainment and brand placement differ in one clear way. In branded entertainment, the property would not exist without the marketer’s support. In product placement, the property already exists or is already in development, and the branded product will be added to it. Examples will vary among students. One example of this distinction is seen in two BMW promotions. In 1995, product placement was used in the BMW placement of the Z3 in the James Bond thriller GoldenEye. Then in 2001, branded entertainment was seen with the BMW promotion of the Z4 in the firm’s own custom-made, Web-distributed short films that featured Marilyn Manson, Clive Owen, and other stars that launched a new era of branded entertainment. The obvious obstacle that may limit the future of branded entertainment is oversaturation. Like any other faddishly popular promotional tactic, if advertisers pile it on too quickly, a jaded consumer and cluttered environment will result. DIF: Moderate REF: p. 588-590 OBJ: 16-3 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application

5. Procter & Gamble is cited in the text as a prime example of a giant advertiser that has successfully used branded entertainment over many decades. How has P&G incorporated branded entertainment into its marketing mix over the years? Can you think of another advertiser that is heavily involved in branded entertainment today? ANS: P&G launched into branded entertainment as early as 1923 with its radio program, Crisco Cooking Talks, a 15-minute program featuring recipes and advice that prominently featured its shortening product called Crisco. By 1937, P&G marketers realized listeners wanted more than recipes, so it created a new format for radio known as the “soap opera” (during which it sold P&G soap), featuring dramatic story lines that would lure listeners to tune in every day. It began with Guiding Light, which moved to television by 1952 and is considered the longest-running show in the history of electronic media even though it was canceled in 2009. Today P&G works with other media partners to create shows in which the brands are embedded and the entertainment is branded. America’s Next Top Model features the CoverGirl brand products, a former CoverGirl model, and advertising messages about the glamour and practicality of CoverGirl cosmetics. P&G does not control—but does influence—the program content of America’s Next Top Model. It has also moved to the Internet to create new program content with a P&G basis. It began with new “Webisodes” such as the series A Parent is Born, featuring its Pampers brand of diapers. DIF: Difficult REF: p. 592-593 OBJ: 16-3 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application

6. Coordination of an IBP effort often leads to disagreement and conflict within the business environment. What kind of factors commonly work against coordination? Include those specific to an organization that handles the entire effort internally, and those specific to an organization that uses some external sources. ANS: Coordinating a complex IBP effort is a challenge for any organization. The chief problem in achieving coordination is that there can be an incredible lack of alignment around who is responsible for achieving the integration. The question involves whether the client or the agency should accept this responsibility. Ad agencies often see themselves in this lead role of “architect and general contractor,” but not many have demonstrated great success in this area. As advertising has become more complex, organizations have often become reliant on functional specialists. Specialists, by definition, focus on their specialty and can lose sight of the big picture and the efforts of others in the organization. Specialists also want their own budgets. Internal competition for budget dollars often yields rivalries and animosities that work against coordination. Few ad agencies have all the internal skills necessary to fulfill clients' demands for integrated marketing communications today. For example, interactive media often require special skills that are not held by most traditional ad agencies. Therefore, external sources must be used. External contractors often do not understand the overall strategy of the IBP effort. And the greater the number of external organizations delivering messages to potential customers, the greater the coordination challenge. Most important, the main objective underlying the need for coordination is to achieve a synergistic effect for a consistent brand meaning. DIF: Moderate REF: p. 594-595 OBJ: 16-4 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Comprehension

Chapter 17- Integrating Direct Marketing and Personal Selling TRUE/FALSE 1. Direct marketing is an interactive system that uses one or more forms of advertising media to effect a measurable response and/or transaction at any location. ANS: T DIF: Easy REF: p. 601 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Knowledge

2. One characteristic of a direct marketing program is that it almost always tries to strengthen brand recognition. ANS: F DIF: Easy REF: p. 601 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Knowledge

3. Though emerging technologies have created exciting new options for direct marketers, businesses have had direct contact with consumers since the early days of Richard Sears, Alvah Roebuck, Les Wunderman, and L.L. Bean. ANS: T DIF: Moderate REF: p. 602 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Comprehension

4. The most common use of direct marketing is as a tool to close the sale with a customer. ANS: T DIF: Easy REF: p. 605 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Comprehension

5. A direct marketing campaign can serve many purposes. One of them, though not the most common, is to engage customers and foster brand loyalty. ANS: T DIF: Moderate REF: p. 605 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 17-1 TYP: Knowledge

6. The one word that could be used to summarize the popularity of direct marketing among today’s consumers is convenience. ANS: T DIF: Moderate REF: p. 606 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 17-1 TYP: Comprehension

7. Direct marketing can provide consumers access to a range of products and services right in their own homes, which many customers consider to be a valuable trait nowadays. ANS: T DIF: Moderate REF: p. 606 NAT: AACSB Communication | CB&C Model Customer

OBJ: 17-1 TYP: Knowledge

8. The appeal of direct marketing is the ease with which marketers can measure results, most often by calculating cost per inquiry (CPI) or cost per order (CPO). ANS: T DIF: Moderate REF: p. 607 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Comprehension

9. One disadvantage of direct marketing is that it has no way to identify and target specific segments of the population. ANS: F DIF: Moderate REF: p. 607 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Comprehension

10. Direct marketers employ mailing lists because they are easy to use and inexpensive. ANS: T DIF: Easy REF: p. 607-608 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Knowledge

11. Internal mailing lists are created by accessing the organization’s own records of its customers, donors, subscribers, or inquirers. ANS: T DIF: Easy REF: p. 608 NAT: AACSB Communication | CB&C Model Customer

OBJ: 17-2 TYP: Knowledge

12. External lists are the starting point for developing better relations with customers. ANS: F DIF: Moderate REF: p. 608 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Knowledge

13. With the power that comes from every new computer chip, today’s marketers can gather and manage a massive amount of information. They might think of their overall goal as cultivating a kind of cybernetic intimacy with customers. ANS: T DIF: Moderate REF: p. 609 NAT: AACSB Technology | CB&C Model Consumer

OBJ: 17-2 TYP: Comprehension

14. The difference between a database and a mailing list is that the mailing list also includes information collected directly from a marketer’s own customers. ANS: F DIF: Moderate REF: p. 609 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Knowledge

15. A home decor catalog is trying to use its marketing database to identify and isolate its best customers to determine their decision making and purchasing behavior. A CPO analysis is an excellent tool to help accomplish this. ANS: F DIF: Moderate REF: p. 611 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Application

16. One great benefit of a database is that it allows a firm to measure how much business it is actually doing with its best customers. This can be found with an analysis of recency, frequency, and monetary factors. ANS: T DIF: Difficult REF: p. 611 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Application

17. Ben & Jerry’s uses its database to not only get customers’ reactions to flavors and product ideas, but also to involve them in social causes. ANS: T DIF: Moderate REF: p. 611 NAT: AACSB Ethics | CB&C Model Customer

OBJ: 17-2 TYP: Application

18. One simple element in a customer database—a date of birth—allows companies to do something a little special and contact customers on their birthdays. ANS: T DIF: Easy REF: p. 612 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 17-2 TYP: Application

19. Cross-selling is the practice of identifying past purchasers of one product and suggesting that they purchase other products. ANS: T DIF: Easy REF: p. 613 NAT: AACSB Communication | CB&C Model Product

OBJ: 17-2 TYP: Knowledge

20. Privacy continues to be a hot topic in the world of direct marketing, and today many consumers are uneasy about the ways in which their personal information is being gathered and used. ANS: T DIF: Easy REF: p. 613 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 17-2 TYP: Comprehension

21. A recent surge in database development has involved companies that use advanced technology to get more personal information on consumers. They merge offline data, like credit ratings and home value, with online data, like ordinary search activities and Internet navigation. ANS: T DIF: Difficult REF: p. 613 NAT: AACSB Technology | CB&C Model Customer

OBJ: 17-2 TYP: Comprehension

22. All conventional media—television, radio, newspapers, and magazines—can be used to deliver direct response advertising. ANS: T DIF: Easy REF: p. 615 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Comprehension

23. Direct mail is probably the direct marketer's most invasive tool and as such must be used with discretion so as not to alienate customers. ANS: F DIF: Moderate REF: p. 616 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Comprehension

24. If a company is looking for the lowest cost-per-contact, it should choose telemarketing. ANS: F DIF: Moderate REF: p. 616 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Comprehension

25. Perhaps the least controversial tool deployed recently by direct marketers has been the unsolicited email message, also called bulk email. ANS: F DIF: Moderate REF: p. 616 NAT: AACSB Technology | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Comprehension

26. Infomercials that use celebrity testimonials have a definite advantage over those featuring ordinary people, though this adds significantly to overall cost. ANS: F DIF: Moderate REF: p. 619 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Comprehension

27. Merely having a marketing database can create conflict between departments within a company as well as between a company and its advertising agency. ANS: T DIF: Moderate REF: p. 620 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Comprehension

28. The job of a marcom manager is to provide technical advice, information, and service to the consumer. ANS: F DIF: Easy REF: p. 621 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Knowledge

29. Products that are higher priced, complicated to use, or require demonstration are heavily dependent on personal selling in order to close the deal. ANS: T DIF: Moderate REF: p. 621 NAT: AACSB Communication | CB&C Model Product

OBJ: 17-4 TYP: Comprehension

30. Failure to get the consumer dialogue right in the personal selling part of the direct marketing process can be easily rectified by accelerating and stressing other the direct marketing efforts of a business. ANS: F DIF: Moderate REF: p. 621 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 17-4 TYP: Comprehension

31. Order taking is just what it sounds like—accepting orders for merchandise or scheduling services. But it also requires answering basic questions and communicating effectively so that a quality relationship with the customer is established and maintained. ANS: T DIF: Moderate REF: p. 621 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 17-4 TYP: Comprehension

32. Creative selling involves answering questions and providing basic benefits of the goods being offered, but it rarely requires communicating large amounts of information or advice. ANS: F DIF: Easy REF: p. 621 NAT: AACSB Communication | CB&C Model Creativity

OBJ: 17-4 TYP: Knowledge

33. The most complex and demanding type of creative selling is seen in telemarketing efforts directed at consumers at home. ANS: F DIF: Moderate REF: p. 621 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Comprehension

34. Three types of personal selling are described in the text—order taking, creative selling, and supportive communication. ANS: F DIF: Easy REF: p. 621-622 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Knowledge

35. The missionary salesperson is required to handle the hardest part of selling—closing the sale. ANS: F DIF: Easy REF: p. 623 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Knowledge

36. Customer relationship management, or CRM, is just what the term implies. It involves cultivating long-term relationships with customers. ANS: T DIF: Easy REF: p. 623 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Knowledge

MULTIPLE CHOICE 1. Direct marketing is defined as an interactive system that uses one or more advertising media to a. reach large segments of the audience. b. push a product through the distribution channel. c. sustain a brand image. d. get a measurable response and/or transaction at any location. ANS: D DIF: Moderate REF: p. 601 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Knowledge

2. The broad concept of ____ is interactive in that the marketer attempts to develop an ongoing dialogue with the customer, based on the idea that one contact will lead to another, and then another, so the message is continually refined. a. direct mail b. direct marketing c. sales promotion d. database marketing ANS: B DIF: Easy REF: p. 601 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Knowledge

3. What is one main reason why direct marketing has grown in popularity? a. its use of only one type of media to get a response b. its goal of long-term sales promotion c. its immediate measurement of response d. its reliance on technology rather than human behavior ANS: C DIF: Moderate REF: p. 601 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Comprehension

4. Direct marketing pioneer L.L. Bean has always been a relationship builder. What insight did L.L. Bean have from the beginning regarding the use of direct marketing? a. Word-of-mouth advertising is the best way to build a marketing base. b. Long-term customer relationships must be based on trust. c. Closing the sale comes first and commitment to customer satisfaction comes second. d. Customers are willing to pay for catalogs if given the proper incentive. ANS: B DIF: Moderate REF: p. 604 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Application

5. What should always be a key goal of direct marketing today, one that many for-profit businesses and not-for-profit organizations seem to forget? a. to build a widespread mail-order operation b. to create an image for the brand c. to integrate the message with all other advertising efforts d. to reach customers across the board rather than consumers in specific markets ANS: C

DIF: Moderate

REF: p. 605

OBJ: 17-1

NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Comprehension

6. You are a marketing manager for a company that packages vacations to exotic locations. You use a variety of media to promote these trips, including upscale magazines, infomercials, and direct mail. One of your primary objectives is integration. This is because if you integrate these programs, a. you will cut the cost of communicating with audiences. b. they will be easier to measure for their results. c. they will be more effective than the sum of their parts. d. you will eliminate the need to tailor specific messages to specific audiences. ANS: C DIF: Difficult REF: p. 605 OBJ: 17-1 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application 7. What are the three main purposes of direct marketing programs? a. to close the sale, identify prospects, and engage consumers b. to identify target markets, tailor the message, and support brand identity c. to provide information, answer questions, and foster brand loyalty d. to reward customers, furnish information, and generate brand preference ANS: A DIF: Moderate REF: p. 605 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Knowledge

8. The development and expansion of ____ and ____, are among several societal factors that are driving the growing popularity of direct marketing today. a. credit cards; computers b. telemarketing; bulk emailing c. mail-order firms; catalog houses d. telecommunications; door-to-door sales ANS: A DIF: Moderate REF: p. 606 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Comprehension

9. In one word, you can summarize the popularity of direct marketing with consumers today. What is that word? a. convenience b. privacy c. technology d. quality ANS: A DIF: Moderate REF: p. 606 NAT: AACSB Communication | CB&C Model Customer

OBJ: 17-1 TYP: Comprehension

10. An emphasis on producing measurable effects is one of the noted appeals of direct marketing. In evaluating direct marketing programs, ____ and ____ are frequently used. a. cost per contact; cost per consumer b. cost per rating point; cost per share c. cost per thousand; cost per million d. cost per inquiry; cost per order ANS: D DIF: Moderate REF: p. 607 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Knowledge

11. The one characteristic that makes direct marketing different from marketing in general is that it a. depends on consumer response for its success.

b. emphasizes developing a customized database. c. has a lower cost per contact. d. relies on audience segmentation. ANS: B DIF: Moderate REF: p. 607 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Comprehension

12. Two broad categories of mailing lists should be recognized by marketers. They begin with ____ lists as the starting point for developing better relationships with current customers. Then they can purchase ____ lists to cultivate new business. a. internal; external b. demographic; geo-demographic c. recency; frequency d. behavioral; psychographic ANS: A DIF: Easy REF: p. 608 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Knowledge

13. A direct marketer promoting a service industry uses both internal and external lists. In essence, what is one main difference between these two types of lists? a. Internal lists contain all types of consumer information. External lists consist of names and addresses. b. Internal lists help to develop relationships with current customers. External lists help to attract new customers. c. Internal lists are drawn from competitors' customer lists. External lists are drawn from the general population. d. Internal lists cannot be enhanced. External lists can be enhanced. ANS: B DIF: Moderate REF: p. 608 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Comprehension

14. A real estate firm has a name-and-address file. It can now add more names, add more details about the names already on the list, or merge the list with another list consisting of new information. All of these choices are forms of a. media application. b. cross-selling. c. list enhancement. d. system selling. ANS: C DIF: Moderate REF: p. 609 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Application

15. In some cases, marketing databases are expanded with more detail by adding ____ data, which reveals the characteristics of the neighborhood in which a person resides. a. demographic b. psychographic c. telegraphic d. geo-demographic ANS: D DIF: Easy REF: p. 609 NAT: AACSB Communication | CB&C Model Research

OBJ: 17-2 TYP: Knowledge

16. Xercise, a nationwide fitness center chain, interviews its customers to determine their wants and needs regarding their local center’s services, classes, equipment, facility features, business hours, etc. The marketers at Xercise are in the process of developing

a. b. c. d.

a marketing database. an external mailing list. a geo-demographic data source. a single-source tracking study.

ANS: A DIF: Moderate REF: p. 609 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Application

17. An RFM analysis is used to a. determine which products or services are the most popular. b. identify the customers who are the most loyal purchasers. c. track the replies from direct mail pieces. d. compare the efficiencies of various direct marketing programs. ANS: B DIF: Moderate REF: p. 611 NAT: AACSB Communication | CB&C Model Customer

OBJ: 17-2 TYP: Comprehension

18. A shoe retailer uses its marketing database to run an RFM analysis on its customers. The F in RFM stands for frequency and refers to the number of times a customer a. was reached with any kind of advertising message. b. was reached through a direct marketing medium. c. bought a product from the company. d. bought a product from a certain product category. ANS: C DIF: Moderate REF: p. 611 NAT: AACSB Communication | CB&C Model Customer

OBJ: 17-2 TYP: Application

19. Which of the following is one of the three basic elements of any frequency-marketing program? a. an internal mailing list b. a benefit package c. an external mailing list d. a sales staff ANS: B DIF: Moderate REF: p. 612 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Knowledge

20. Cross-selling involves marketing a. additional products to current customers. b. the same product across different consumer types. c. to different members of the same household. d. aimed at various segments with the same message. ANS: A DIF: Moderate REF: p. 613 NAT: AACSB Communication | CB&C Model Product

OBJ: 17-2 TYP: Knowledge

21. A suburban country club contacts each member who holds a golf membership and inquires as to whether he or she would also like to purchase a pool membership for the entire household. The country club personnel are using their marketing database for a. personal selling. b. creative selling. c. marcom selling. d. cross-selling. ANS: D DIF: Difficult REF: p. 613 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 17-2 TYP: Application

22. According to the text, what looms as arguably the major concern regarding direct marketing today in the minds of consumers? a. annoying telemarketing b. invasion of privacy c. increased junk mail d. ongoing credit card debt ANS: B DIF: Moderate REF: p. 613 NAT: AACSB Communication | CB&C Model Customer

OBJ: 17-2 TYP: Comprehension

23. Consumer worries about privacy issues related to direct marketing have been addressed, at least to a point, by a. industry guidelines. b. customer boycotts. c. federal investigators. d. government legislation. ANS: D DIF: Moderate REF: p. 613 NAT: AACSB Communication | CB&C Model Customer

OBJ: 17-2 TYP: Knowledge

24. A busy mother of four children is concerned with issues of privacy and doesn't want her family phone number on mailing lists. What can she do? a. learn to live with telemarketers until they are banned by law b. sign up for the Direct Marketing Association’s opt-out program c. contact the FTC’s Do Not Call Registry d. call the state Better Business Bureau ANS: C DIF: Easy REF: p. 613 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Application

25. Two big advantages of direct mail as a communication medium stems from its a. cost and response rate. b. selectivity and flexibility. c. mailing lists and consumer data. d. timing and delivery. ANS: B DIF: Moderate REF: p. 615 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Knowledge

26. A nationwide restaurant chain is considering the use of a direct mail piece to reach potential customers. Managers of the company should realize that two negatives related to this tactic are the high cost per contact and the a. limited ability to test executions. b. lack of creative options. c. inaccuracy of addresses on mailing lists. d. consumer distrust of mailed advertising. ANS: C DIF: Difficult REF: p. 615 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Application

27. Your phone rings one evening at dinnertime. A man says he’s calling from a nationwide magazine subscription service and wants to know about your hobbies and interests and what you like to read. He proceeds to tell you about a special deal if you order three magazines. This type of telemarketing will most likely act to a. furnish helpful information about the company.

b. annoy consumers and alienate them from the company. c. create a favorable image of the company. d. promote the company in an inexpensive way. ANS: B DIF: Easy REF: p. 616 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Application

28. Which direct marketing medium currently has the highest response rate? a. telemarketing b. infomercial c. direct mail d. advertorial ANS: A DIF: Moderate REF: p. 616 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Knowledge

29. At present, which form of direct marketing is considered the most controversial? a. direct mail b. telemarketing c. bulk email d. infomercial ANS: C DIF: Moderate REF: p. 616 NAT: AACSB Technology | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Comprehension

30. A nationally distributed fashion and beauty magazine regularly acts as a vehicle for direct marketing. This occurs when direct marketers promote their products or services by a. having feature stories published. b. sending press releases. c. getting free publicity in advice columns. d. paying for bind-in insert cards. ANS: D DIF: Difficult REF: p. 618-619 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 17-3 TYP: Application

31. Infomercials were made possible by a. the advent of video cameras. b. increasingly gullible consumers. c. less expensive ad space on satellite and cable systems. d. relaxed network standards for programming. ANS: C DIF: Moderate REF: p. 619 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Comprehension

32. A company wants to sell a window cleaning kit in a 30-minute infomercial. What does an experienced PR specialist suggest that this company do? a. Wait until the end to give contact information in order to build suspense. b. Repeat the phone number and website throughout the broadcast. c. Spend the money needed to hire a celebrity as spokesperson. d. Avoid testimonials. ANS: B DIF: Difficult REF: p. 619 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 17-3 TYP: Application

33. What is one of the keys to success for an infomercial? a. keeping the broadcast under five minutes

b. avoiding the use of celebrities c. promoting only nationally known brand names d. including testimonials from satisfied users ANS: D DIF: Moderate REF: p. 619 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-3 TYP: Comprehension

34. The development of a marketing database can lead to interdepartmental conflict within a company. What are the most common sources of such conflict? a. whether databases are helpful, and whether or not to even establish one b. what privacy issues might arise, and how they might be addressed c. how the information will be collected, and how the listings will be contacted d. who will have direct access to the database, and whose budget will get cut to create it ANS: D DIF: Difficult REF: p. 620 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Comprehension

35. How might the establishment of a marketing database create problems between a company and its advertising agency? a. by implying that the ad agency is unable to gather and track reliable information b. by using funds that would have supported traditional ad agency campaigns c. by purchasing mailing lists from competing promotional agencies d. by forcing the ad agency to use the data the company has on its own mailing lists ANS: B DIF: Difficult REF: p. 620 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Comprehension

36. A fast-growing frozen yogurt chain discovers the need to coordinate all of its communications programs and all of its specialists’ efforts. At this point in its growth, the company would be wise to focus on hiring or promoting someone to act as a a. missionary salesperson. b. marcom manager. c. list enhancer. d. functional specialist. ANS: B DIF: Moderate REF: p. 621 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Application

37. The role of a marcom manager is to a. ensure efficient and timely delivery of products ordered. b. monitor contacts, sales, and return sales. c. schedule the media for marketing communications. d. plan the overall communications program and oversee functional specialists. ANS: D DIF: Moderate REF: p. 621 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Knowledge

38. Personal selling is a. the face-to-face communications and persuasion process. b. virtually the only way to close the deal. c. simpler to conduct than any other marketing functions. d. the most controversial form of direct marketing. ANS: A DIF: Moderate REF: p. 621 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Knowledge

39. There are many different types of sales jobs. Which type is the least complex form of personal selling? a. creative selling b. system selling c. missionary selling d. order taking ANS: D DIF: Easy REF: p. 621 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Knowledge

40. A salesperson sells sets of interrelated components, essentially representing a full range of products and services, to his business customers. His accounts are mainly industrial manufacturers who prefer to purchase entire lines of parts and products from his firm, including producers of steel and aluminum goods, manufacturing plants, heavy equipment producers, and government buyers. This individual is involved in a. system selling. b. missionary selling. c. creative selling. d. marcom management. ANS: A DIF: Moderate REF: p. 622 NAT: AACSB Communication | CB&C Model Product

OBJ: 17-4 TYP: Application

41. A marketer wonders aloud why salespeople no longer simply approach their prospects with the direct intention of making a sale, but instead spend time analyzing all their possible needs and desires. Her colleague in the next cubicle thinks about this as well, and they talk. They realize that the answer is because today’s salespeople are expected to a. be problem solvers who work in partnership with customers. b. be technical experts with experience in database management and analysis. c. take orders only after confirming the appropriateness of each sale. d. do everything that was once done by several departments. ANS: A DIF: Difficult REF: p. 623 OBJ: 17-4 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application Scenario 17-1 If you walk into a Cracker Barrel Old Country Store, you’ll see many items once found in general stores, like porcelain signs, ceramic jugs, tin boxes—and Coca-Cola trays and plaques. And since 2004, Coca-Cola Co. has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel. Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke. In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising, resulting in the warm and jolly image of Santa that has endured in American culture ever since. The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands. In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands. (http://www.crackerbarrel.com/about-decor.cfm?doc_id=51. Accessed January 17, 2011.) (original press release by Jim Taylor, “Rare Coca-Cola® Holiday Artwork on Display at Cracker Barrel Old Country Store®,” http://www.crackerbarrel.com/mediaroom-newsreleases, November 15, 2004.)

42. (Scenario 17-1) Cracker Barrel stores feature a big fishbowl inviting visitors to leave a business card and announcing a monthly drawing for free memorabilia from both brands. Those whose cards are drawn receive their prizes by mail. What are Cracker Barrel and Coca Cola specifically doing with this fishbowl activity? a. developing a mailing list b. promoting brand loyalty c. cross-selling d. conducting personal selling ANS: A DIF: Moderate REF: p. 607 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Application

43. (Scenario 17-1) The marketers of Coca Cola collectibles offer their best customers a program in which they are allowed to preview and purchase limited-edition items one month before the general public is informed of the sale. This assures key customers that they won't miss out on a valued collectible due to unusually high demand. This is an example of a. an effective use of external lists. b. a CPO program. c. a frequency-marketing program. d. marcom management. ANS: C DIF: Moderate REF: p. 612 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Application

44. (Scenario 17-1) When consumers drop their business cards into a fishbowl at a Cracker Barrel store, they are entering a contest. But in essence, the marketers at Cracker Barrel may see this as a. opting-in for bulk email and other promotions. b. a form of direct response advertising. c. a way to promote system solutions. d. fostering creative selling. ANS: A DIF: Moderate REF: p. 617 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 17-3 TYP: Application

45. (Scenario 17-1) If Coca-Cola employed someone to call on frequent buyers of its memorabilia to guarantee their satisfaction and update their needs—but not necessarily to pitch new products or close another sale—this employee would be considered to be a(n) a. order taker. b. missionary salesperson. c. system solutions person. d. creative salesperson. ANS: B DIF: Moderate REF: p. 623 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-4 TYP: Application

Scenario 17-2 AmericanProfile is an e-technology company. It allows companies to search and navigate gigabytes of data, categorize disparate content, and gain secure access to information regardless of where it resides—all from its Web browser. So, AmericanProfile can share content across connected servers with partners, suppliers, customers, and employees to form an e-business content network. And it all happens in real time. 46. (Scenario 17-2) The whole idea behind promoting AmericanProfile is to show companies that gathering information about visitors’ households and lifestyles through its website is a crucial step in building a

a. b. c. d.

selection of testimonials. creative selling strategy. marketing database. core team of functional specialists.

ANS: C DIF: Moderate REF: p. 609 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Application

47. (Scenario 17-2) AmericanProfile is considering imitating a direct marketing tactic employed by several consumer magazines. Visitors to the home pages of these magazine’s websites can link to tips on gardening, home decorating, cooking, clothes shopping, skin care, hair care, etc. They are then encouraged to rate these articles and columns, explain whether they were helpful, and add comments and suggestions based on their own lifestyles and hobbies. This allows marketers to enhance their customer information with a. psychographic data. b. geo-demographic data. c. demographic data. d. behavioral data. ANS: A DIF: Difficult REF: p. 609 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 17-2 TYP: Application

48. (Scenario 17-2) Like many firms, AmericanProfile uses an RFM analysis to identify certain groups of high-profile customers and analyze their habits across three criteria. This is why RFM stands for a. record, format, momentum. b. recency, frequency, monetary. c. reach, function, marketing. d. returns, files, mailings. ANS: B DIF: Moderate REF: p. 611 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Application

49. (Scenario 17-2) One of the magazine publishers AmericanProfile has studied collects data at its website about readers of one of its health and fitness magazines. The publisher uses direct mail to try to get these readers to subscribe to another one of its publications, one that focuses on nutrition. This practice is known as a. missionary selling. b. spamming. c. system selling. d. cross-selling. ANS: D DIF: Moderate REF: p. 613 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 17-2 TYP: Application

50. (Scenario 17-2) AmericanProfile has also adapted techniques of marketers at a well-known pet magazine who are well aware that casual visitors are often reluctant to provide personal information. The pet magazine has a full page on its website dedicated to these privacy concerns. The magazine pledges to deal with these issues by making sure consumers are contacted only with meaningful messages, and by a. abstaining from selling their information to third parties without permission. b. making the site appear independent from commercial sponsors. c. having creative salespeople call visitors and ask about such concerns. d. enhancing the final mailing list with nothing more than demographic data. ANS: A

DIF: Moderate

REF: p. 613-614

OBJ: 17-2

NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application Scenario 17-3 As the number of firms utilizing direct marketing continues to grow, so too does the number of consumers opposed to the methods often described as “intrusive.” To combat the growing number of opposed consumers, marketers need to find creative new ways to optimize their direct marketing campaigns. One outlet firms are beginning to experiment with is social media. Executives understand that many consumers view a company’s Facebook page more often than the company’s home page, so they’ve grown to realize that setting up some form of an email opt-in on social media sites is a great way to build marketing databases. In addition to opt-in sections, social media allows businesses to interact with consumers, which may make them less inclined to respond negatively to a company’s direct marketing efforts. By utilizing social media more often in the future, a number U.S. companies hope to build stronger and more useful marketing databases. 51. (Scenario 17-3) Building a marketing database can be helpful because it allows companies to gauge how receptive customers may be to new products or product features. One way of isolating a company’s best customers is by utilizing a. a recency, frequency, and monetary analysis. b. a frequency marketing program. c. cross-selling techniques. d. direct response advertising. ANS: A DIF: Moderate REF: p. 611 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 17-2 TYP: Application

52. (Scenario 17-3) Which of the following is an essential application of the marketing database? a. keeping close tabs on consumers to ensure their loyalty b. reinforcing and recognizing your best customers c. degrading and ignoring customers that are not providing consistent business d. notifying customers of minute changes to various products and services ANS: B DIF: Easy REF: p. 612 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Knowledge

53. (Scenario 17-3) What effect has the Internet had on the privacy concern regarding direct marketing? a. It has caused consumers to feel safer because they know marketers are acting responsibly. b. It has amplified privacy concerns because it makes it easier for all kinds of people and organizations to get access to personal information. c. It has had no effect on consumer’s feelings towards direct marketing. d. It has greatly reduced the direct marketing efforts of companies across the world. ANS: B DIF: Moderate REF: p. 613 NAT: AACSB Ethics | CB&C Model Online/Computer

OBJ: 17-2 TYP: Knowledge

54. (Scenario 17-3) Emailing consumers is considered what type of advertising? a. direct-response advertising b. creative advertising c. slow-response advertising d. direct mail advertising ANS: A DIF: Moderate REF: p. 615-616 OBJ: 17-3 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application

55. (Scenario 17-3) Which of the following is often referred to as the most controversial of the various direct marketing methods? a. social media interaction b. direct mail c. bulk email d. repetitive telemarketing ANS: C DIF: Moderate REF: p. 616 OBJ: 17-3 NAT: AACSB Reflective Thinking | CB&C Model Marketing Plan TYP: Application Scenario 17-4 Trapper's Lake Lodge is rustic hotel situated on a large lake in the Flat Tops Wilderness Area. The lodge offers a relaxing getaway as well as guided fishing, hunting, bicycling, and cross-country skiing trips from its remote location 250 miles away from a major airport. Guests must travel the last 40 miles on a rough dirt road during the summer months or ride a special snow car during the snow season. Trapper's Lake Lodge management has found that guests almost always have a wonderful experience during their stay and swear they will visit again. Nonetheless, the biggest problem is getting people to visit in the first place, probably due to the difficult travel involved. So the lodge management has decided to mount an aggressive direct marketing campaign to increase first-time guest visits as well as to nurture loyal frequent visitors. 56. (Scenario 17-4) A public relations consultant advises the lodge management that any direct marketing campaign should be coordinated with its other advertising and promotional strategies. In effect, the consultant is recommending that the lodge focus on ____, which should always be the goal of advertising and promotion. a. innovation b. marcom management c. integration d. convenience ANS: C DIF: Easy REF: p. 605 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Application

57. (Scenario 17-4) Guests at the lodge have always filled out a brief form with their name, address, phone number, and email address. They will now be asked to complete a questionnaire that collects this information plus more—their age, gender, education level, and occupation, plus their outdoor interests, recreational preferences, other hobbies, and comments about their stay at Trapper's Lake Lodge. This combination of new ____ and ____ will be used to help build a marketing database for the lodge. a. demographic data; psychographic data b. personal data; consumer behavioral data c. behavioral data; psychological data d. demographic; geo-demographic data ANS: A DIF: Difficult REF: p. 609 NAT: AACSB Communication | CB&C Model Marketing Plan

OBJ: 17-2 TYP: Application

58. (Scenario 17-4) After asking for references from current guests, and for permission to use their names, the lodge has gathered a list of about 75 friends and family members who may be interested in a stay. The lodge managers plan on making an initial contact with each of them, hoping to experiment with a couple of different messages to see what works best. But they want to be careful not to turn off these potential customers. Which approach would work best for this first step? a. mobile marketing through text messages b. personalized letters through direct mail c. phone calls through telemarketing

d. promotional messages through bulk email ANS: B DIF: Difficult REF: p. 615-616 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 17-3 TYP: Application

59. (Scenario 17-4) After the initial contact, the managers have identified about two dozen potential new visitors who live in and around the closest big city, the one that is about 250 miles away. They decide to start with this group. They want to send a sales rep to host a casual buffet dinner for these potential guests along with the current customers who recommended them. The rep will promote the features of the recreational facility and drum up sales from both returning and new customers. What will this person be doing to support the lodge’s direct marketing process? a. personal selling b. order taking c. creative selling d. system selling ANS: A DIF: Moderate REF: p. 621 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 17-4 TYP: Application

ESSAY 1. What is meant by the term direct marketing? What elements have contributed to its growth and popularity in recent years? What are the three principal purposes that a direct marketing program could serve for a company? ANS: According to the Direct Marketing Association, direct marketing is “an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location." By definition, it is interactive because it attempts to initiate and maintain a dialogue with customers, and it involves multiple forms of media to be most effective. Some elements that have contributed to its recent growth and popularity are convenience (including time-savings for the consumer); credit cards (including more liberal views about using credit and accumulating debt); toll-free numbers (which make it simpler and more appealing to respond to direct marketing efforts); and computers (allowing for quick response and comparison shopping on the part of consumers, and easy ways to tract and interact with customers on the part of businesses). The most common purpose that direct marketing serves is to close the sale with a customer. It can also identify prospects for future contacts. And it can be used to engage customers; that is, to seek their advice, give them information, address their concerns, reward their support, or foster their loyalty. DIF: Moderate REF: p. 601| p. 605-606 NAT: AACSB Analytic | CB&C Model Marketing Plan

OBJ: 17-1 TYP: Comprehension

2. You are the marketing manager for the Internet’s largest online shoe retailer. The company ships shoes of all types, styles, and sizes to locations throughout the U.S. and around the world. Given a choice between access to a mailing list and access to a marketing database, which would you choose? Define each. What are the advantages of your choice? Be as specific as possible. ANS:

A mailing list is simply a file of the names and addresses that your business could use in contacting current or prior customers. Standing alone, an internal list (an organization’s records of its own customers, subscribers, donors, and inquirers) offers little perspective on the best marketing prospects for the future. But it can be enhanced with information from external lists by adding additional names, or by merging it with other lists to match up demographic, geo-demographic, behavioral, and/or psychographic data with these customers. A marketing database has all of the information that would be on this mailing list, plus one more element—it includes information about individuals' preferences and behavior patterns, collected directly from the customers. It allows you to give customers personalized attention, because you understand their likes and dislikes, purchasing patterns, frequency and timing of purchases, nature of returns (a common issue with online shoe purchases), and other details related to shopping and consumption. In addition, it can form the basis for an RFM (reach, frequency, and monetary) analysis. This allows you to target your most profitable customers with special promotions and personal attention. For these reasons, the marketing database would probably be more advantageous for the retail shoe business. DIF: Moderate REF: p. 607-611 OBJ: 17-2 NAT: AACSB Analytic | CB&C Model International Perspective TYP: Application 3. Define list enhancement, and discuss two simple ways to conduct it. What four categories of information are often included to help define various populations and target markets? ANS: List enhancement refers to any additions or expansions that are made within a basic internal mailing list, that is, a basic name-and-address file. It involves merging existing records with new information. One way to do this is to simply purchase lists with more names and addresses from a research firm or noncompetitive business, and add these to the existing internal list. The second way is to incorporate information from external databases into the original list. The four categories of information that are often used to enhance lists are as follows: Demographic data, the basic descriptors of households and consumers supplied by the Census Bureau. Geo-demographic data, the information about the neighborhood in which a person lives. Psychographic data, the information involving a person’s lifestyle, interests, and opinions. Behavioral data, the information about other products and services the person has purchased. DIF: Moderate REF: p. 609 OBJ: 17-2 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Comprehension

4. Marketing databases are used by businesses for three concrete tasks or specific applications. Identify and define all three. Then select one and demonstrate how it is used by a well-known corporation, manufacturer, retailer, or service provider. ANS: Businesses use marketing databases in at least three specific applications—the RFM analysis, the frequency marketing program, and the cross-selling effort.

An RFM analysis provides data on recency, frequency, and monetary elements. This means it reviews the database and tells the marketer how often a customer is buying from the company, how recently that customer has made a purchase, and how much that customer is spending. In this way it calculates the “value” of the customer, based on past behavior and purchasing patterns. A frequency marketing program recognizes and reinforces buying behavior in preferred customers. It has three elements—a database to hold its collective memory; a benefit package to attract and retain customers; and a communication strategy to keep an ongoing dialogue going with the firm’s best customers. A cross-selling effort identifies customers who have already purchased one of the firm’s products and creates a marketing strategy to encourage them to purchase other products the firm offers. In an extension of cross-selling, a firm can turn this information around and do just the opposite. It can determine which types of customers have bought a certain product, and then pitch that product to others in the database who share some of the same characteristics or demographics. DIF: Difficult REF: p. 611-613 OBJ: 17-2 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application

5. A national big-box retailer has created a new marketing database. But it has become the center of great conflict among the departments within the firm. It has also caused problems between the retailer and its advertising agency. Why is such a useful tool creating this discord? ANS: A marketing database is a powerful source of information, and, within a giant retail company like this, those who don't have access to it can become envious of those who do. In addition, the effective use of the database can lead to increased funding for the department that is responsible for direct marketing efforts. Often, this additional money comes from other departments' budgets. That always creates conflict. The database can also reallocate promotional budgets. Therefore, the advertising agency for this retailer may work only with conventional media and therefore may lose income to other companies that offer direct marketing expertise. DIF: Moderate REF: p. 620-621 OBJ: 17-4 NAT: AACSB Analytic | CB&C Model Marketing Plan

TYP: Application

6. Discuss why the role of personal selling is a critical one in the direct marketing tool kit. List and briefly explain the four types of personal selling as part of your answer. ANS: Personal selling is critically important for establishing face-to-face communication with consumers. Face-to-face interactions enhance persuasion and are often necessary in selling products involving high technology or a high price. Products that are complicated to use, require demonstration, or must be customized to individual consumer needs also are more successfully marketed when the IBP mix includes a personal selling approach. There are four types: Order taking is a familiar sales role, one that involves documenting new purchases from consumers or businesses who want to buy goods or schedule services. What is not generally understood is that order takers very often act as the first line for establishing a dialogue with the customer. Creative selling is needed when the consumer relies heavily on the sales person for technical information, advice, and service.

System selling entails offering a set of interrelated components rather than a single item, and sometimes a full range of products and services needed by customers. This often involves industrial manufacturers, producers of heavy equipment, or government buyers who have complex purchasing processes and prefer dealing with a single firm, or a small group of firms, rather than multiple suppliers. Missionary selling is a different type of selling, one that is probably the least understood. This salesperson calls on accounts for the purpose of monitoring buyer satisfaction and updating needs, not necessarily making another sale. DIF: Difficult REF: p. 621-623 OBJ: 17-4 NAT: AACSB Analytic | CB&C Model Strategy

TYP: Comprehension

Chapter 18 - Public Relations, Influencer Marketing, and Corporate Advertising TRUE/FALSE 1. The marketers for the hugely successful Charmin Restrooms IBP effort in Times Square had as its slogan, “Enjoy the Go!” ANS: T DIF: Easy REF: p. 630 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-Intro TYP: Knowledge

2. Today, the field of public relations has moved beyond its traditional role of managing “relations” with a company’s many “publics.” ANS: T DIF: Easy REF: p. 632 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-Intro| 18-1 TYP: Knowledge

3. The classic view of public relations involves a company’s efforts to foster goodwill between itself and its many constituent groups. ANS: T DIF: Easy REF: p. 632 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-1 TYP: Knowledge

4. When adversity strikes, public relations personnel step out of the picture so that company executives can control and monitor communications. ANS: F DIF: Easy REF: p. 632 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-1 TYP: Knowledge

5. The big difference between public relations and advertising is that public relations is never used to promote specific products or services. ANS: F DIF: Moderate REF: p. 633 NAT: AACSB Communication | CB&C Model Product

OBJ: 18-1 TYP: Comprehension

6. Public relations is the one and only tool that can provide damage control after bad publicity hits. ANS: T DIF: Moderate REF: p. 634 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-1 TYP: Comprehension

7. Negative publicity stems from external forces outside a firm’s control, not from a company’s internal activities or decisions. ANS: F DIF: Moderate REF: p. 634 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-1 TYP: Comprehension

8. Promoting a product or service through press releases or events is a public relations tactic to increase public awareness of a brand. ANS: T DIF: Moderate REF: p. 636 NAT: AACSB Communication | CB&C Model Product

OBJ: 18-2 TYP: Comprehension

9. A company prepares a well-crafted, informative press release. However, two major drawbacks associated with press releases are that the news media decides if or when the item will run, and the news media might alter the meaning of the release. ANS: T DIF: Difficult REF: p. 637 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Application

10. In general, press releases are preferred over other forms of public relations because it is an unwritten rule, widely accepted throughout the industry, that the news media will not edit them. ANS: F DIF: Moderate REF: p. 637 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Comprehension

11. A company that specializes in community recycling opens a recycling center in a town that has never had access to a such a program before. The company invites a reporter from the local newspaper to do an exclusive story on the center. The disadvantage to this approach is that the company has less control over the story than if it were to issue a press release. ANS: F DIF: Difficult REF: p. 637-638 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-2 TYP: Application

12. Press conferences can be strong public relations tools, because in using a news format to present information, they lend an air of credibility. ANS: T DIF: Moderate REF: p. 638 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Comprehension

13. Publicity, unlike other forms of public relations, can quite easily be strategically controlled. ANS: F DIF: Easy REF: p. 638 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Comprehension

14. Today’s politicians essentially cannot benefit from public relations in any way, because the tone of publicity in political life is very difficult to manage. ANS: F DIF: Difficult REF: p. 638 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-2 TYP: Comprehension

15. A company allows its workers to take one afternoon off each month to volunteer at the nonprofit organization of their choice. The company sends out a press release that explains this program to the media. This is considered a reactive public relations strategy, similar to event sponsorship. ANS: F DIF: Difficult REF: p. 639 NAT: AACSB Reflective Thinking | CB&C Model Strategy

OBJ: 18-3 TYP: Application

16. A petroleum company undertakes an extensive research effort designed to analyze its internal workings and identify opportunities to present itself in a positive light. This research is referred to as message content. ANS: F DIF: Moderate REF: p. 640 NAT: AACSB Analytic | CB&C Model Research

OBJ: 18-3 TYP: Application

17. A public relations plan is a common technique employed by organizations to search their departments, activities, and staff in order to identify the characteristics or elements that will be positive and newsworthy. ANS: F DIF: Moderate REF: p. 640 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-3 TYP: Comprehension

18. The section of the public relations plan that specifies precisely what means will be used to implement the plan is the program rationale. ANS: F DIF: Moderate REF: p. 641 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-3 TYP: Comprehension

19. A reactive public relations strategy is a tool designed for firms to take quick and thoughtful action at the first sign of negative publicity. ANS: T DIF: Moderate REF: p. 641 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 18-3 TYP: Comprehension

20. The British beef industry was rocked by reports of mad cow disease in its herds. To deal with the concerns raised, the industry had to adopt a proactive public relations strategy. ANS: F DIF: Moderate REF: p. 641 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 18-3 TYP: Application

21. When pet food manufacturers provide product samples and informational brochures to veterinarians, who then recommend them to visiting pet owners, they are conducting influencer marketing. ANS: T DIF: Moderate REF: p. 642-643 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-4 TYP: Application

22. We can think of influencer marketing as a set of conversations involving an influencer, a consumer, and a brand. ANS: T DIF: Moderate REF: p. 644 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-4 TYP: Comprehension

23. Influencer programs directed at professionals virtually run themselves, because these individuals are accustomed to freely dispensing bits of information and giving their opinions without a thought. ANS: F DIF: Moderate REF: p. 644-645 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-4 TYP: Comprehension

24. Buzz marketing involves creating an event or experience that leads to conversations about the brand. ANS: T DIF: Easy REF: p. 645 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-4 TYP: Knowledge

25. Viral marketing involves promoting a brand by stimulating professionals or “experts” to discuss it with consumers online or in person. ANS: F DIF: Moderate REF: p. 645 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-4 TYP: Knowledge

26. Corporate giant P&G has hired some 600,000 outgoing and talkative people to share news and information about its brands with their peers. ANS: T DIF: Moderate REF: p. 646 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-4 TYP: Knowledge

27. The people enrolled by manufacturers to bring their brands into their conversations and share interesting or exciting information about them with their social networks are called controllers. ANS: F DIF: Moderate REF: p. 646 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-4 TYP: Knowledge

28. The intent of corporate advertising is to establish a favorable attitude toward a company as a whole rather than to focus on product features. ANS: T DIF: Easy REF: p. 647 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-5 TYP: Knowledge

29. Corporate advertising is gaining favor worldwide as well-known firms and established companies invest in this form of promotion. ANS: T DIF: Moderate REF: p. 647 OBJ: 18-5 NAT: AACSB Analytic | CB&C Model International Perspective TYP: Comprehension 30. Objectives of corporate advertising can include boosting employee morale and attracting new employees. ANS: T DIF: Moderate REF: p. 648 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-5 TYP: Knowledge

31. There are three broad types of corporate advertising—professional, peer-to-peer, and word-of-mouth. ANS: F DIF: Easy REF: p. 649 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-5 TYP: Knowledge

32. Corporate advertising is not always targeted at the consumer. ANS: T DIF: Easy REF: p. 649 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 18-5 TYP: Comprehension

33. Advocacy advertising occurs when a company promotes a discussion or dialogue about selected social, political, or environmental issues, but does not take a stand or give an opinion on these issues. ANS: F DIF: Difficult REF: p. 649 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-5 TYP: Comprehension

34. A well-known gun manufacturer runs an advertisement in a hunting magazine asking readers to contact their elected officials and urge them to vote against all gun control legislation. This is an example of advocacy advertising. ANS: T DIF: Moderate REF: p. 649 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-5 TYP: Application

35. A credit card company sponsors a campaign to restore the Statue of Liberty, and features the initial concept as well as the progress being made in its television commercials. The company is running cause-related advertising. ANS: T DIF: Moderate REF: p. 650 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-5 TYP: Application

36. A marketing survey conducted by a Boston-based brand strategy firm found that almost 50 percent of consumers have a more favorable impression of companies that support good causes. ANS: F DIF: Moderate REF: p. 651 NAT: AACSB Communication | CB&C Model Customer

OBJ: 18-5 TYP: Knowledge

MULTIPLE CHOICE 1. The wildly successful Charmin IBP effort began in 2000 as a campaign to a. create plush public restrooms on Broadway. b. provide clean restrooms at state fairs. c. find a new slogan for the product. d. donate bathroom tissue to homeless shelters. ANS: B DIF: Moderate REF: p. 630 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-Intro TYP: Knowledge

2. The classic role of public relations is to a. foster goodwill between a firm and its constituent groups. b. minimize any negative messages about a company. c. use unpaid media to convey a message traditionally carried by paid media. d. employ personal contact with media figures to present a business in the best possible light. ANS: A DIF: Easy REF: p. 632 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-1 TYP: Knowledge

3. Stockholders, suppliers, employees, government entities, citizen action groups, and the general public can all be considered ____ in the world of public relations. a. obstacles b. tools c. constituent groups d. publicity seekers ANS: C DIF: Moderate REF: p. 632 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-1 TYP: Knowledge

4. Beyond its more positive aspects, public relations is strategically used for ____ when adversity strikes—and all organizations will have to face adversity at some point. a. preparing internal communications b. conducting damage control c. enacting community service programs d. launching proactive efforts ANS: B DIF: Easy REF: p. 632| p. 634 OBJ: 18-1 NAT: AACSB Analytic | CB&C Model Promotion TYP: Comprehension

5. Author Steven Brown talks about the factors that are ushering in a “new era” for public relations by pointing out that we a. are currently experiencing the heyday of mass marketing. b. now expect to have a trustworthy relationship with companies. c. live in an intensely commercial and brand-obsessed world. d. are becoming more accustomed to negative and aggressive promotional tactics. ANS: C DIF: Difficult REF: p. 633 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-1 TYP: Comprehension

6. Of the six main objectives of public relations, which one almost exclusively involves damage control? a. lobbying b. giving advice and counsel c. counteracting negative publicity d. preparing internal communications ANS: C DIF: Easy REF: p. 636 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 18-2 TYP: Knowledge

7. Rumors are running rampant through a company that a competitor is going to buy out the firm and fire half of its workers. To reduce the anxiety of its workforce, the company could embark on a PR effort that involves which of the main objectives of public relations? a. spreading goodwill and positive feelings b. giving advice and counsel c. promoting a product or service d. preparing internal communications ANS: D DIF: Difficult REF: p. 636 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-2 TYP: Application

8. Which of the primary objectives of public relations involves dealing with government officials and pending legislation? a. giving advice and counsel b. lobbying c. counteracting negative publicity d. preparing internal communications ANS: B DIF: Easy REF: p. 637 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Comprehension

9. A more narrow or traditional view of public relations involves a. producing videos. b. petitioning the government. c. leading social movements. d. writing press releases. ANS: D DIF: Easy REF: p. 637 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Comprehension

10. An electronics company is about to launch a major technological advancement. Its public relations team focuses on a feature story rather than a press release. This is because a feature story a. is created internally. b. offers more control. c. is brief and to the point. d. can be distributed to multiple media outlets.

ANS: B DIF: Moderate REF: p. 637-638 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Application

11. For the most part, it is very difficult to strategically control the exposure a firm receives through publicity efforts. In this respect, such endeavors are similar to a. press conferences. b. press releases. c. event sponsorships. d. company newsletters. ANS: B DIF: Difficult REF: p. 637-638 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Comprehension

12. As opposed to a news release, a feature story a. gives exclusive rights to the author of the information. b. is essentially an informal type of paid media exposure. c. allows the company no control over content. d. is written by an employee of the firm. ANS: A DIF: Moderate REF: p. 637-639 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-2 TYP: Comprehension

13. Among all the tools of public relations that a company might use, which one focuses specifically on employees? a. a press release b. a feature story c. a company newsletter d. a sponsored event ANS: C DIF: Easy REF: p. 638 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-2 TYP: Knowledge

14. A large metropolitan newspaper comes out with an investigative piece on unsafe baby cribs, and overnight, the manufacturer highlighted in the article finds itself in a crisis management situation. Which of the major tools of public relations is most likely to be immediately employed in a case like this? a. lobbying elected officials b. calling a press conference c. issuing a company newsletter d. setting up a feature story ANS: B DIF: Moderate REF: p. 638 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-2 TYP: Application

15. A leading sporting goods company calls a press conference to announce that the winner of the National Football League's Most Valuable Player Award has signed a contract to endorse the company's products. The advantage of using a press conference rather than other tools is that it a. virtually forces the national media to cover the story. b. adds credibility and lends an air of importance. c. is perceived as a proactive tool. d. is easier to integrate into a IBP program. ANS: B DIF: Difficult REF: p. 638 NAT: AACSB Reflective Thinking | CB&C Model Product

OBJ: 18-2 TYP: Application

16. What term refers to the free media exposure that a firm receives about its activities or brands? a. publicity b. advocacy c. product launch d. corporate image ANS: A DIF: Easy REF: p. 638 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-2 TYP: Knowledge

17. Public relations strategies can be broadly categorized as either ____ or ____. a. public; private b. product-oriented; customer-oriented c. proactive; reactive d. internal; external ANS: C DIF: Easy REF: p. 639 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 18-3 TYP: Knowledge

18. A clothing company that targets preteens and young teens has to respond quickly when its celebrity spokesperson, a 19-year-old pop singer, is arrested for drunk driving and cocaine possession. Some time later, its new public relations specialist reviews this situation and how it was handled. She can understand the need for the company’s ____ approach at the time, but now she suggests shifting to a ____ strategy by launching a more positive initiative. a. aggressive; low-key b. reactive; proactive c. formal; informal d. consumer-based; market-based ANS: B DIF: Moderate REF: p. 639 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 18-3 TYP: Application

19. A proactive public relations strategy is ultimately guided by a. government regulation. b. public opinion. c. unforeseen events. d. marketing objectives. ANS: D DIF: Difficult REF: p. 639 NAT: AACSB Communication | CB&C Model Strategy

OBJ: 18-3 TYP: Comprehension

20. A regional chapter of the Red Cross undergoes a public relations audit. The result of this audit should a. assess the degree of positive and negative media coverage the Red Cross has received. b. compare the cost of public relations efforts with commensurate advertising efforts of the Red Cross. c. tell the Red Cross whether or not it needs to hire an outside public relations firm. d. prepare the Red Cross for both proactive and reactive strategies. ANS: D OBJ: 18-3 TYP: Application

DIF: Difficult REF: p. 639-640| p. 641 NAT: AACSB Analytic | CB&C Model Strategy

21. A canned soup manufacturer is identifying its own unique characteristics, activities, and programs that are positive and newsworthy. It is in the process of a. doing a public relations audit. b. creating a marketing plan.

c. designing a public relations plan. d. researching an influencer program. ANS: A DIF: Moderate REF: p. 640 NAT: AACSB Analytic | CB&C Model Research

OBJ: 18-3 TYP: Application

22. What element of public relations includes analyses, objectives, and rationales regarding a company’s programs, as well as the message content and vehicles that will assist in its communications? a. a public relations plan b. a public relations audit c. a publicity tool d. a publicity message ANS: A DIF: Difficult REF: p. 640-641 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-3 TYP: Comprehension

23. A regional dairy products manufacturer wants to review its strengths and weaknesses to be better prepared for the future. Which public relations initiative will not only give the firm positive themes to project, but will also provide the current and accurate data that it will need to communicate in the event of an unforeseen problem or negative incident? a. a proactive public relations strategy b. a reactive public relations strategy c. a public relations plan d. a public relations audit ANS: D OBJ: 18-3 TYP: Application

DIF: Difficult REF: p. 640| p. 641-642 NAT: AACSB Analytic | CB&C Model Strategy

24. Compared to a proactive strategy, a reactive strategy is more difficult for public relations staff to organize and prepare. Why is this? a. because it cannot use input supplied by the audit b. because it is triggered by events that are unpredictable c. because it must identify the content, rationale, and vehicles related to the overall message d. because it does not originate inside the organization ANS: B DIF: Difficult REF: p. 641 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 18-3 TYP: Comprehension

25. Which of the following is an important element of a reactive public relations strategy? a. creation of situation analysis b. identification of vulnerabilities c. clarification of program rationale d. development of marketing objectives ANS: B DIF: Difficult REF: p. 642 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 18-3 TYP: Comprehension

26. A pharmaceutical company manufactures several antidepressant and anti-anxiety medications widely prescribed by physicians. Its executives know that among the millions of consumers taking their products, one or two adverse reactions reported by the media can have a very damaging effect on its reputation. In public relations terms, this is called a(n) a. proactive situation. b. vulnerability. c. synergistic opportunity.

d. influencer. ANS: B DIF: Moderate REF: p. 642 NAT: AACSB Communication | CB&C Model Product

OBJ: 18-3 TYP: Application

27. Influencer marketing involves individuals or groups who a. represent the larger public in their opinions on products or brands. b. support social causes or issues promoted by an organization. c. spread positive word-of-mouth to a broad population. d. are unusually impacted by branded marketing programs. ANS: C DIF: Easy REF: p. 642 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-4 TYP: Knowledge

28. Which person in your community is most likely to be a professional influencer? a. your doctor who prescribes an antibiotic for your strep throat b. your neighbor who likes to shop, talk about new products, and share recipes c. your hairdresser who talks about a cool new conditioning system and gives you a sample d. your dentist whose office gives away a toothbrush after each cleaning ANS: C DIF: Moderate REF: p. 642 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-4 TYP: Application

29. Compared to other influencers, professional influencers are usually a. paid more by companies to push their products. b. in need of hard data or clinical study results before supporting a brand. c. dependent upon their social groups for their marketing success. d. easier to recruit for marketing efforts. ANS: B DIF: Moderate REF: p. 644-645 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-4 TYP: Comprehension

30. Peer-to-peer influencer programs have a different tone than those involving professionals in that they focus more on a. superior product benefits and features. b. sharing advice or expertise with another consumer. c. evidence or data to back up product claims. d. something fun or provocative involving a brand. ANS: D DIF: Moderate REF: p. 645 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-4 TYP: Comprehension

31. Public relations has been around for a long time. An early version of influencer marketing involved a technique still used today. It was very big in the 1800s, when P.T. Barnum got people talking by a. funding events for charity organizations. b. setting up publicity stunts. c. holding the first press conferences. d. hiring people to talk about his business. ANS: B DIF: Moderate REF: p. 645 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-4 TYP: Application

32. Buzz marketing and viral marketing have many similarities and overlaps. One way to distinguish them is that, in general, buzz marketing involves ____ and viral marketing involves ____. a. participation in events or experiences; online or face-to-face talk about the events or experiences

b. Internet marketing; mobile marketing c. professionals providing advice and recommendations; ordinary people providing advice and recommendations d. promotions on corporate websites; discussions on social network websites ANS: A DIF: Moderate REF: p. 645 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-4 TYP: Comprehension

33. All of these women live and work in the same big city. But who would probably make the best connector? a. one who works as a computer programmer, is meticulous, and likes to cook b. one who works in a call center, is outgoing, and likes to shop c. one who works as a preschool teacher, is imaginative, and likes to do crafts d. one who works in a library, is intelligent, and likes to read ANS: B DIF: Moderate REF: p. 646 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-4 TYP: Application

34. Many contemporary companies now seek out “connectors” to assist with their public relations efforts. Connectors can be described as people who a. enjoy social networking and staying connected through various websites. b. are paid to go door-to-door to dispense samples and product information. c. like to share new information or novel ideas with their large social networks. d. memorize scripted pitches and answers to questions so they can engage consumers in dialogues. ANS: C DIF: Moderate REF: p. 646 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-4 TYP: Knowledge

35. In essence, the goal of corporate advertising is to a. see the company become a global brand. b. create a favorable overall image for a company. c. promote a company’s full range of products. d. counteract claims of a company’s competitors. ANS: B DIF: Easy REF: p. 647 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-5 TYP: Knowledge

36. Which of the following companies would most likely focus on corporate advertising? a. a kitchen appliance manufacturer b. a designer shoe producer c. a small electronics parts manufacturer d. a family-owned ice cream producer ANS: A DIF: Difficult REF: p. 647-648 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-5 TYP: Application

37. Not all media are created equal when it comes to corporate advertising. Compared to others, which two forms of media are particularly well suited to corporate advertising efforts? a. radio and television b. newspapers and magazines c. Internet and mobile devices d. television and magazines ANS: D DIF: Moderate REF: p. 648 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-5 TYP: Comprehension

38. In the summer of 2010, oil giant BP runs TV commercials showing its employees talking about their part in cleaning up the Gulf oil spill and getting coastal towns back on their feet. This is an example of a. viral advertising. b. corporate image advertising. c. cause-related advertising. d. advocacy advertising. ANS: B DIF: Moderate REF: p. 649 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-5 TYP: Application

39. Corporate advertising that is designed to influence public opinion on issues of concern to the sponsor is known as a. cause-related advertising. b. advocacy advertising. c. word-of-mouth marketing. d. image marketing. ANS: B DIF: Easy REF: p. 649 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-5 TYP: Knowledge

40. A publisher of children’s books located in New York City launches a campaign to promote literacy by donating multiple books to 25 public libraries and 50 public schools located in low-income areas across the country. This publisher is conducting a. corporate image marketing. b. advocacy advertising. c. green marketing. d. cause-related advertising. ANS: D DIF: Difficult REF: p. 650 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-5 TYP: Application

41. When marketers are considering cause-related advertising, it should be stressed that this type of advertising works best when the company involved a. needs to do damage control. b. is motivated to create close relationships with consumers. c. chooses an issue that connects with its business. d. wants to create a buzz about an exciting product. ANS: C DIF: Moderate REF: p. 650 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-5 TYP: Comprehension

42. Cause-related marketing is becoming increasingly common, largely because research shows that a. consumers are influenced by it and like companies that take part in it. b. it is the most cost-effective of all public relations techniques. c. most global companies are looking for ways to spread goodwill worldwide. d. firms can best demonstrate that they are environmentally friendly in this way. ANS: A DIF: Moderate REF: p. 651 NAT: AACSB Analytic | CB&C Model Customer

OBJ: 18-5 TYP: Comprehension

43. An automaker runs a commercial talking about the clean energy of its new hybrid, showing it zooming past pristine sandy beaches and next to sparkling mountain springs. What is the automaker using? a. cause-related advertising b. buzz marketing

c. advocacy advertising d. green marketing ANS: D DIF: Moderate REF: p. 651 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-5 TYP: Application

44. A nationwide coffee retailer runs ads and posts signs in its coffee shops noting that cups are made from recyclable materials and coffees are organically grown by free-market producers. What kind of marketing element does this involve? a. green b. reactive c. viral d. advocacy ANS: A DIF: Moderate REF: p. 651 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-5 TYP: Application

45. In the early 1990s, Jacquelyn Ottman wrote a book that predicted a new marketing revolution, which didn’t really occur at the time, but is growing and becoming quite popular now. What is it? a. buzz marketing b. influencer marketing c. green marketing d. viral marketing ANS: C DIF: Moderate REF: p. 651-652 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-5 TYP: Application

46. The text points out that the Internet has changed the game in the world of green marketing in one very specific way. What is it? a. allowing for “green news” to be disseminated instantly b. offering tips on creating a “green site” c. challenging corporations around the world to “go green” d. exposing businesses that make phony “green claims” ANS: D DIF: Moderate REF: p. 652 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-5 TYP: Comprehension

Scenario 18-1 The giant brewing companies of the U.S. love to use public relations to keep their company names in the minds of Americans and to promote their many brands of beer and ale. Both traditional and innovative public relations activities—using both traditional and innovative media—help to promote a positive public image, create brand awareness, highlight the product line, and act as cost-effective ways to enhance the overall IBP campaign. And these brewers use a variety of objectives and tools that support the field of public relations. 47. (Scenario 18-1) The manager of a Milwaukee brewing plant notices employees passing a paper around that everyone reads. He later sees a similar paper circulating around the break room. He asks to see it, and finds that it’s a copy of a news article on projected plant closings in Milwaukee in the near future. He sees the need for a public relations response. What would be its main objective? a. lobbying b. counteracting negative publicity c. preparing internal communications d. building awareness of a product or service ANS: C

DIF: Moderate

REF: p. 636

OBJ: 18-2

NAT: AACSB Reflective Thinking | CB&C Model Promotion

TYP: Application

48. (Scenario 18-1) A public relations firm has designed a website for a large brewing company. It provides product information on all its brands, with a separate page for each, featuring the way that particular product was imagined, concocted, tested—and named. It offers a contest to name the new fall lager that will premiere later in the year. With this site, the company seems to have set its primary objective as a. promoting a product or service. b. giving advice and counsel. c. delivering internal communications. d. counteracting negative publicity. ANS: A DIF: Easy REF: p. 636 NAT: AACSB Analytic | CB&C Model Product

OBJ: 18-2 TYP: Application

49. (Scenario 18-1) A large brewing company has its public relations staff create an interactive website aimed at men and women in their 20s and early 30s. It offers interesting facts about the history of beer, the making of beer, the definition of various brewing terms, the difference between hops and malt, etc. It includes silly games like crossword puzzles, word jumbles, and trivia contests, all of course related to beer. The objective of these types of PR initiatives is to a. counteract negative publicity about beer. b. disseminate internal information about the beer industry. c. lobby politicians for favorable outcomes for the beer industry. d. promote goodwill toward beer drinkers. ANS: D DIF: Moderate REF: p. 636 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Application

50. (Scenario 18-1) One beer producer has sent the press an expensive, attractive, eight-page press release that explains the organization’s new educational program on the dangers of teenage drinking. The disadvantage of this approach is it a. is often more expensive to run than typical advertising spots. b. takes far more planning than an exclusive interview. c. is effective only when used as a proactive strategy. d. provides little control over how and when the final story will run. ANS: D DIF: Moderate REF: p. 637 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Application

51. (Scenario 18-1) The brewing company with the interactive website full of facts and games is moving beyond the Web and into the community. It sends stories to media outlets announcing that all the fun on its website will continue at its beer gardens to be set up at summer and fall festivals around the country, featuring more games, puzzles, and trivia contests. Which two PR tools is the company using here? a. press conference and lobbying b. press release and sponsored event c. buzz marketing and publicity d. feature story and viral marketing ANS: B DIF: Easy REF: p. 637-638 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Application

Scenario 18-2

A young man decides to become a mass producer of quality T-shirts. His small factory located in Oregon begins by promoting itself as hiring excellent seamstresses, offering a pleasant working environment, paying decent salaries, and, most importantly, giving the public an opportunity to buy clothing that is truly “made in America.” The company eventually adds other clothing items, opens three brick-and-mortar retail stores in several large cities, and expands to online shopping. Over the years, the firm grows and prospers due to its reputation as an American manufacturer, a fair employer, and an opponent of the traditional view of “sweatshops.” And along the way, it deals with a few public relations issues. 52. (Scenario 18-2) Shortly after this young man launches his business, a local newspaper runs a series of investigative reports on crowded, dimly lit, and unventilated sweatshops along the West Coast that hire illegal immigrants. His business is mentioned, though only in a list of firms that employ seamstresses, not in the list of those accused of wrongdoing. Still, he feels the need to write a letter to the editor as well as put out press releases to clarify his position and describe his business ethics. In public relations terms, what is he doing? a. promoting products b. preparing internal communications c. counteracting negative publicity d. lobbying ANS: C DIF: Moderate REF: p. 636 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 18-2 TYP: Application

53. (Scenario 18-2) He feels he did a good job in his series of press releases about the positive aspects of his company. However, he is aware that press releases have their limitations. He knows that they a. are better at promoting positive news than combating negative information. b. cannot be integrated with other communication efforts. c. do well in communicating information internally but not as well externally. d. may be edited, misconstrued, delayed, or not run at all by media organizations. ANS: D DIF: Moderate REF: p. 637 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Application

54. (Scenario 18-2) The conflict passes, things settle down, and he goes on to build his business—knowing that a rash of bad publicity could have done him in early on, before he even got started. Now he knows that he is part of an industry with many questionable players. And he is aware that the chance of being associated with sweatshops, illegal hiring, or other unsavory aspects of business must be anticipated. In this way, he has a. conducted a situation analysis. b. developed his program objectives. c. formulated his marketing rationale. d. identified his vulnerabilities. ANS: D DIF: Moderate REF: p. 642 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-3 TYP: Application

55. (Scenario 18-2) Over the years, he has learned that positive word-of-mouth advertising helps. He now enlists the testimony of seamstresses who have been with him for years, customers who won’t buy any casual clothing but his, and even high-end designers who praise his business integrity and product quality. What is he involved in now? a. publicity marketing b. influencer marketing c. sponsorship marketing d. internal marketing

ANS: B DIF: Moderate REF: p. 642 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-4 TYP: Application

56. (Scenario 18-2) After 35 years, he looks back to his beginnings. He had little money for a public relations agency early on, so he had to create carefully worded messages and strategically placed ads that got the public to perceive the business as a whole in a very positive light. In essence, he was using a type of a. influencer marketing. b. free publicity. c. corporate advertising. d. reactive strategy. ANS: C DIF: Moderate REF: p. 647 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-5 TYP: Application

Scenario 18-3 For some years now, enterprising individuals have gotten their own ideas, forums, and entertainment programs out in front of the public with no help from big tech firms, media conglomerates, or ad agencies. They simply posted their creations on the Internet. It began with blogs, moved to podcasts, expanded to social networks, moved on to YouTube videos, and transferred to Twitter. And it just keeps going. Audience members can download these technological tidbits—text, visual, and audio formats—to their laptops as well as to cell phones, Blackberries, iPods, iPads, and every other mobile gadget that hits the market. Eventually, public relations companies started getting into the act. 57. (Scenario 18-3) An athletic supply manufacturer is about to launch a new sports sock made of an innovative fabric that cushions the foot, reduces impact, absorbs moisture, and supports high-intensity sports like no other. It creates short video spots and posts them on its home page, Facebook page, YouTube, and other sites for viewing and downloading. Since this tactic is generated by the company, intends to gain positive publicity, and hopes for free exposure of a new product, it works in much the same way that the more traditional ____ does. a. company newsletter b. sponsored event c. press release d. feature story ANS: C DIF: Difficult REF: p. 637 NAT: AACSB Technology | CB&C Model Online/Computer

OBJ: 18-2 TYP: Application

58. (Scenario 18-3) A medium-sized, family-owned organic farm in California packages its fresh produce and distributes it to grocers around the country. It is now rumored to be part of an e-coli outbreak that is attacking spinach grown at nearby farms. This is absolutely false, so the family acts fast by clarifying the situation through Twitter releases, blog responses, and announcements on its home page, as well as several more traditional tactics. This kind of activity focuses on problems to be solved rather than opportunities to be considered, and requires that a company take defensive measures. What is it? a. reactive public relations strategy b. lobbying campaign c. corporate image marketing d. proactive public relations strategy ANS: A DIF: Moderate REF: p. 641 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 18-3 TYP: Application

59. (Scenario 18-3) A high-tech firm creates special effects and computer-generated content for Hollywood movies. Its PR people prepare intriguing 60-second videos about its role in three blockbuster action movies released this year and posts them on YouTube. The firm is using a type of ____ aimed at the movie trade as well as consumers. a. advocacy marketing b. buzz marketing c. green marketing d. influencer marketing ANS: B DIF: Moderate REF: p. 645 NAT: AACSB Technology | CB&C Model Promotion

OBJ: 18-4 TYP: Application

60. (Scenario 18-3) The makers of a well-known Tennessee whiskey release a very funny three-minute video on their website. It gradually gets noticed and downloaded and emailed to friends and family by loyal consumers, and then by people who just want to share a funny video. With very little effort, the word gets out and people are talking about this old-fashioned brand in a new way. The company is benefiting from the success of a. corporate image marketing. b. lobbying. c. green marketing. d. viral marketing. ANS: D DIF: Moderate REF: p. 645 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-4 TYP: Application

61. (Scenario 18-3) A Midwest publisher launches a series of young adult books featuring witches, devils, and vampires. Several conservative church groups in Georgia, Alabama, and Mississippi stage protests and burn the books in videotaped media events, after which a number of nearby libraries ban the books. The publisher sets up a Facebook page to gather signatures in opposition of book-burning and book-banning and in support of free speech and free enterprise in a free society. It encourages visitors to put an emphasis on literacy, education, and open libraries. The publisher’s Facebook page is a form of ____. a. corporate image advertising. b. advocacy advertising. c. cause-related advertising. d. influencer marketing. ANS: B DIF: Difficult REF: p. 649-650 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-5 TYP: Application

Scenario 18-4 In the summer of 2010, basketball star LeBron James found himself in the middle of a PR nightmare when he decided to turn his decision regarding his future team into an hour-long spot on ESPN, which interestingly enough was entitled, “The Decision.” Almost immediately, fans and critics alike began to express their distaste for the way the multi-millionaire handled the situation. Many fans’ opinions of the star were greatly altered and James’ positive public image appeared to be shattered. Perhaps even worse than the damage to his image, the Lebron James “brand” began to take a hit when his jerseys were pulled from many retailers’ stores and websites, and thousands of fans vowed they would never buy James’ line of shoes ever again. Several months later, James began the process of repairing his public image. James, who endorses Nike products, came out with a controversial commercial some believe was intended to evoke sympathy. However, many others felt the commercial mocked the negative reaction expressed over “The Decision,” and was intended to rebrand the star as a bit of a rebel. Either way, LeBron James appears to have a long way to go before he can once again be recognized as one of the most beloved players in the NBA.

62. (Scenario 18-4) This is an unfortunate case of negative public relations. According to the text, what is the classic role of public relations? a. to foster goodwill between a firm and its many constituent groups b. to promote new forms of marketing, such as green marketing c. to boost employee morale or attract new employees d. to better position the firm’s products against competition, particularly foreign competition ANS: A DIF: Difficult REF: p. 632 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-1 TYP: Application

63. (Scenario 18-4) Judging by his recent apology and television commercial, LeBron James is apparently trying to repair his image. This is often referred to as a. damage control. b. public relations management. c. spreading goodwill. d. a public relations audit. ANS: A DIF: Moderate REF: p. 634 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-1 TYP: Application

64. (Scenario 18-4) There are six primary objectives of public relations. Which of the following objectives did LeBron James’ management team apparently do ineffectively? a. promoting goodwill b. lobbying c. preparing internal communications d. giving advice and counsel ANS: A DIF: Easy REF: p. 636 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Application

65. (Scenario 18-4) One reason LeBron James and his team did not expect such negative backlash following “The Decision” was because he donated the $3 million generated by the television spot to a number of children’s charities. Although it may not have been effective in this instance, fundraisers generally a. erase a company’s negative public image completely. b. cause any company to greatly increase its sales. c. give positive visibility to a brand or company. d. serve as the make-or-break element for any brand or company. ANS: C DIF: Moderate REF: p. 638 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Application

66. (Scenario 18-4) LeBron James was widely criticized for his decision because he refused to make it during a traditional press conference. Press conferences are often a good way to announce important decisions, scientific breakthroughs and new product details because they a. offer the chance to see that an organization is dedicated to supporting its community. b. use a news format to present salient information. c. offer a single journalist the opportunity to do a fairly lengthy piece with exclusive rights to the information. d. ensure that the company gets the appropriate amount of publicity following their announcement. ANS: B DIF: Difficult REF: p. 638 NAT: AACSB Reflective Thinking | CB&C Model Promotion

OBJ: 18-2 TYP: Application

Scenario 18-5 An old adage states that all publicity is good publicity. However, Professors Jonah Berger of the Wharton School, and Alan Sorensen and Scott Rasmussen of Stanford found that there is such a thing as bad publicity. The colleagues studied the relationship between bad publicity and its impact on music albums, books, and movies. In 2010, they published their findings in an article in Marketing Science. After studying cases involving the late Michael Jackson, Russell Crowe, and various authors, the colleagues concluded that negative publicity can increase product sales. Michael Jackson sold more albums after receiving negative media attention, and films starring Russell Crowe received higher rankings following an incident in which he allegedly threw a cell phone at a hotel employee. These high-profile stars actually thrived after receiving substantial amounts of negative publicity. However, in many lower profile cases, negative publicity hurt sales and product reception. The three colleagues conducted an analysis of The New York Times’ reviews and book sales and found that negative reviews hurt sales of books by well-established authors, but helped sales of books by relatively unknown authors. After conducting their study, the authors found that conventional wisdom is wrong: not all publicity is good publicity. But they did show that negative publicity can sometimes be positive; it all depends on existing-product awareness. (Ned Smith, “Can Bad Buzz Be Good?” Business News Daily, November 1, 2010) 67. (Scenario 18-5) The text states that we have entered a “new era” for public relations. What is one factor that contributes to this belief? a. increased media coverage of company advertising b. more aggressive efforts to catch firms acting in an improper manner c. increasingly sophisticated and connected consumers who are talking to each other more and more about brands d. more focus on public relations and its various applications and less concentration on the rest of the marketing process ANS: C DIF: Moderate REF: p. 633 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-1 TYP: Comprehension

68. (Scenario 18-5) Although it is sometimes unavoidable, one way to prevent negative publicity is to develop a ______ public relations strategy that focuses on opportunities to accomplish something positive. a. reactive b. damage-control c. proactive d. situational ANS: C DIF: Difficult REF: p. 636| p. 639 OBJ: 18-2| 18-3 NAT: AACSB Reflective Thinking | CB&C Model Strategy TYP: Comprehension 69. (Scenario 18-5) When publicity is positive it tends to a. carry heightened credibility. b. create more skepticism. c. create competition amongst brands. d. polarize individuals within a company. ANS: A DIF: Easy REF: p. 638 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-2 TYP: Comprehension

70. (Scenario 18-5) One way to help firms implement a reactive public relations strategy and prepare for possible negative publicity is to a. identify any weaknesses in the firm’s operations or products that may negatively affect

relationships with its constituents. b. promote goodwill. c. prepare internal communications. d. increase corporate advertising efforts. ANS: A DIF: Moderate REF: p. 641-642 NAT: AACSB Analytic | CB&C Model Strategy

OBJ: 18-3 TYP: Comprehension

71. (Scenario 18-5) Publicity often increases the awareness of a particular brand. The concept of creating an event or experience that yields conversations that include the brand is referred to as a. viral marketing. b. publicity. c. influencer marketing. d. buzz marketing. ANS: D DIF: Moderate REF: p. 645 NAT: AACSB Communication | CB&C Model Promotion

OBJ: 18-4 TYP: Knowledge

ESSAY 1. Public relations is the one tool that can accomplish a tough and often unpleasant task for a company. What is it, and how does public relations get involved? Give at least two real-life examples of this process. ANS: Damage control is the task that only public relations can handle. Even the most careful, ethical, and organized companies will probably have to face negative publicity at some point—a product defect, a recall, a hazard, an accident, a public health issue, an employee scandal, etc. Issues can arise from internal problems that have been neglected or left unsolved, or from external forces that have arisen and are completely out of the company’s control. This is where damage control comes in. Public relations departments or directors can do several things to at least calm nerves and cool tempers. They need to focus on the company’s reputation and the preservation of the brand. But first, they need to give honest information, speak directly to the public, apologize, spell out the problem and their plan to solve it, and offer something to the public or the customers (a replacement part, a recall program, a clean-up effort, etc.). There are several things they should not do—hide from the media, refuse to speak to the public, or insist they are right or innocent. One of the first things they normally do is to contact the media and hold a press conference, so they can address the issue, answer questions, and show that they are handling the situation. Press releases often come shortly afterwards, and even new ad messages may be created. Most important, PR personnel should be prepared in advance, with accurate data and clear information always at hand, even before “bad news” hits. DIF: Moderate REF: p. 634-635| p. 637-638 NAT: AACSB Analytic | CB&C Model Promotion

OBJ: 18-1| 18-2 TYP: Application

2. The text lists six main objectives of public relations efforts. List three of these objectives. Then give an example by identifying a company that sells a product you purchase or provides a service you use. Explain how this company could try to achieve each of the four objectives. ANS: Companies may have the following objectives as their goals for public relations efforts:

1. Promoting goodwill. This is an image-building function of public relations. Industry events or community activities that reflect favorably on a firm are highlighted. 2. Promoting a product or service. Press releases or events that increase public awareness of a firm's brands can be pursued through public relations. 3. Preparing internal communications. Disseminating information and correcting misinformation within a firm can reduce the impact of rumors and increase employee morale. 4. Counteracting negative publicity. The attempt here is not to cover up negative events, but rather to prevent the negative publicity from damaging the image of a firm and its brands. 5. Lobbying. The public relations function can assist a firm in dealing with government officials and pending legislation. 6. Giving advice and counsel. The public relations effort can assist management in determining what (if any) position to take on public issues, prepare employees for public appearances, and help management anticipate public reactions. Student examples will vary. DIF: Moderate REF: p. 636-637 OBJ: 18-2 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application

3. How do proactive and reactive public relations strategies differ? Describe the steps necessary to implement each strategy. ANS: A proactive public relations strategy is guided by marketing objectives, seeks to publicize a company and its brands, and is offensive rather than defensive in spirit. It starts with a public relations audit, which identifies the characteristics and activities of a firm that are positive and newsworthy. The next step is to take information from the audit and turn it into a public relations plan. The plan identifies the objectives and activities related to the public relations communications issued by the firm. The components of a public relations plan include a current situation analysis, program objectives, program rationale, communications vehicles, and message content. A reactive public relations strategy is guided by events outside the control of a company, focuses on problems to be solved rather than on opportunities, and requires defensive rather than offensive measures. Since the events that trigger a reactive public relations strategy are unpredictable and uncontrollable, it is much more difficult to implement a reactive than a proactive strategy. Part of the preparation for a reactive strategy occurs during the public relations audit prepared for the proactive strategy. The information provided by the audit gives a firm what it needs in a time of crisis so it can issue public statements based on current and accurate data. A second step in preparing a reactive strategy is the identification of vulnerabilities, that is, the areas of potential weakness in products or operations that might create a negative situation. DIF: Difficult REF: p. 639-642 OBJ: 18-3 NAT: AACSB Analytic | CB&C Model Strategy

TYP: Comprehension

4. Describe the objectives and features of influencer marketing. Then define at least three types from those in use today—professional influencer programs, peer-to-peer influencer programs, buzz and viral marketing, and the cultivation of connectors. Give an example of each. ANS: Influencer marketing refers to a series of personalized techniques directed at individuals or groups who have the credibility and capability to drive positive word-of-mouth to a broader and salient segment of the population. In implementing an influencer marketing initiative, it is useful to think of it as systematic seeding of conversations involving a consumer, an influencer, and your brand.

Professional influencer programs utilize professionals in the field as influencers. These programs offer great credibility but they also require careful enlistment in the effort because professionals take their responsibilities very seriously. Several points should be kept in mind. First, a professional’s time is money, so wasting their time is likely to be counterproductive. Second, messaging a professional with information that offers them “intellectual currency” as well as important benefits of the brand will enhance their likelihood of participating. For instance, celebrity testimonials will not have nearly the credibility with this group as clinical studies will have. Finally, a successful professional influencer program requires long-term commitment. Peer-to-peer influencer programs do similar work in spreading positive word-of-mouth, but rely on ordinary people to talk about products and brands in a positive way. They spread the word through their own social groups, either in person or online. Buzz and viral marketing are both subspecies of peer-to-peer influencer approaches. In buzz marketing, the idea is to create an event or experience that yields conversations about your brand. In viral marketing, the goal is to have consumers market to other consumers, usually via the Internet, email, blogs, and social network sites, or via texting and downloading to mobile devices. Personal contact also works. In both buzz and viral programs, the idea is to target a handful of carefully chosen extroverts or trendsetters as your influencers and let them spread the word about your brand. Think of what you offer them as “social currency” (in contrast to “intellectual currency” for professionals). Connectors can also be recruited as ongoing peer influencers in less dramatic ways. Women with large social networks often act as connectors after being approached by large household goods manufacturers and enrolled in special influencer programs. An example is P&G’s Vocalpoint. The social currency is news about existing or new brands and products, and the reward is twofold. First, the connectors can feel that their voice is actually heard by a big company. Second, they are the first to talk about something and the first to try out the latest samples. This gives them something new to talk about. DIF: Moderate REF: p. 642-647 OBJ: 18-4 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application

5. What common goal do corporate image advertising, advocacy advertising, and cause-related advertising share? Outline the unique features of each of these types of corporate advertising. ANS: The goal of all corporate advertising is to establish a favorable attitude toward a company as a whole. Corporate image advertising focuses on enhancing the overall image of a firm among important constituents—usually customers, employees, and the general public. It can range from a general favorable image to a specific image. Advocacy advertising attempts to establish an organization's position on important social, political, or environmental issues. Of course, a firm has a purpose in running such advocacy ads. Typically, the issue chosen is directly relevant to the business operations of the organization. Cause-related advertising affiliates a firm with worthwhile social causes—reducing poverty, increasing literacy, curbing drug abuse, fighting disease. The idea behind cause-related marketing is that a firm launches an effort or funds a campaign that makes a positive difference in society. It may also donate money to a nonprofit organization in exchange for associating its company name with the work of that group. The purpose of cause-related marketing is to enhance the image of the firm in the minds of consumers by associating the firm with a worthy cause. DIF: Moderate

REF: p. 649-651

OBJ: 18-5

NAT: AACSB Analytic | CB&C Model Promotion

TYP: Comprehension

6. What has led to the growth and popularity of green marketing? What cautions should potential advertisers take before launching into it? A number of corporations, manufacturers, and service industries have issued “green” messages. Name as many as you can, with a few words to describe the promotion if possible. ANS: Green marketing refers to any corporate effort that attempts to align itself with a cause or movement in support of the environment. Like any promotion, the resulting ad campaign can reflect a sincere effort to do some good or a cheap imitation of such sentiment. Green marketing has reflected a socioeconomic movement that has been on and off in past decades. In the early 1990s, the book Green Marketing by Jacquelyn Ottman predicted that going green would be a marketing revolution, but it didn’t come to pass, at least not in the United States. Today, it appears that the movement really will take hold and create meaningful actions and messages on the part of the nation’s giant corporations as well as smaller businesses. Advertisers (and consumers) should be aware that there are millions of “green claims” out there, but many are exaggerated, absurd, or downright false. It is easy for a company to incorporate the word “green” in its name, slogan, or packaging when it really doesn’t mean anything. Advertisers should also be aware that environmental issues are broad and complex. Even the best intentions of a socially conscious business may fall short. The text advises firms to follow one law when launching a green marketing campaign—underpromise and overdeliver. DIF: Moderate REF: p. 651-652 OBJ: 18-5 NAT: AACSB Analytic | CB&C Model Promotion

TYP: Application